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MINIM’ ASKS TO REBUT CHARGES

MINIM’ ASKS TO REBUT CHARGES
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March 2, 1972, Page 1Buy Reprints
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WASHINGTON, March 1—Deputk Attorpey General Richard G. Kleindienst will appear before a special session of the Senate Judiciary Committee to morrow to answer under oath allegations of improprieties growing out of the Justice Department's Settlement of an antitrust action against the International Telephone and Telegraph Corporation.

The open hearing was sche& uled after Mr, Kleindienst, whose nomination to become Attorney General was approved without dissent by the committee last week, requested an opportunity to deny the allegations.

At issue are charges ‘published this week by Jack Anderson, the SyndiCated columnist, that three antitrust suits. against I.T.T. were dropped after one of the corn: pany's subsidiaries pledged $400,000 to help finance the Republican National Convention next August in San Diego.

In his column yesterday, Mr. Anderson published material from a memorandum that he said was written by Mrs. Dita D. Beard, a Washington lobbyist for I.T.T., who told her superiors.that Attorney General John N. Mitchell agreed last May to settle the case along the lines that it was later settled.

Today, Mr. Anderson said in a second column that Mr. Kleindienst had “told an outright lie” when he stated publicly that he had not been involved its the negotiations preceding the Government's decision to settle, the cases.

Mr. Anderson quoted Felix G. Roliatyn, a New York investment banker who is a director of I.T.T., as saying that he discussed the settlement in private with Mr. Kleindienst roughly a half‐dozen times while it was being rworked out by staff lawyers in the Justice Department.

Last night and today Mr. Kleindienst held a series of meetings on Capitol Hill with key Senators, in Which he reportedly denied taking any hand in the negotiations Of the settlement.

Sources close to the discussions reported that Mr. Kleindienst conceded that he did have conversations with Rohatyn, early in 1971, and that he arranged for Mr. Roluityn to meet with Richard W. McLaren, then chief. of the atistice Departinent's Antitrugt Division.

According to these sources, Mr. Rohityn had told Mr. Kleindienst that if I.T.T. were forced to divest itself of the Hartford Fire ‘Insurance Company, it would encounter serious‐liqUidity problems, which would adversely affect the United State's overseas balance of payments.

Mr. Kleindienst reportedly said that he had arranged for a Meeting, at which Mr. Rohatyn and other representatiVea of I.T.T. made a presen, tation of these economic argumrdis to Mr. McLaren, members of his staff, and representatives the Treasury Department.

Inquiry From O'Brien

In his column today Mr. Anderion said Mr. Kleindienst lied when he wrote a letter on Dec. 13 answering an inquiry about the matter from Lawrence F. O'Brien, chairman of the Democratic National Committee. Mr. Kleindienst wrote that the settlement “was handled and negotiated exclusively” by Mr. McLaren, and that Mr. Kleindienst had had no role other thin to concur in Mr. McLaren's recommendation.

In an interview today in Chicago, Mr. McLaren, who is now a Federal District Judge, said that there had never been any pressure from, his superiors to settle the case, and that he end his staff had negotiated the settlement.

“John. Mitchell never had anything whatsoever to do with the I.T.T. case,” Mr.. McLaren declared. “He had disqualified himself, as lie had been counsel for one of the company's divisions when in private practice.”

“I worked up a settlement formula in conjunetion with the career trust staff of the Antitrust Division. It was approved by Mr. Kleindienst and negotiation of the details was carried out: by myself and the trust staff wth lawyers for I.T.T„” Mr. McLaren asserted, and added:

“This was a S1‐billion divestiture, the largest in antitrust history, thus an order against major acquisitions. It Wag an excellent settlement from the department's standpoint.”

At a meeting of the Repdblican National Committee in Washington, R. L. Herman, vice chairman of the convention arrangements committee, said that neither the San Diego committee nor the National Committee would acceptthe alleged $0400'offer from I.I.T. as it would be improper to take such a disproportionate share, of the Republican party's convention needs from a single source.”

Mr. Herman said that, so fares he knew, the Republican party had not received any funds from I.T.T. or from the Sheraton Corporation of America, an I:T.T. subsidiary. But he said he hoped that the party would be able to sell the companies advertising space in the convention program. Page rates run run from $10,000 to $25,000.

The Sanate minority leader, Hugh Scott, who presided‐over a meeting last night in his Capitol office, between Mr. Kleindienst and other Senators, said, “He has a full and adequate Answer.”

Another meeting. was held this afternoon in the office of the. Senate majority leader, Mike Mansfield. In the course of the two meetings, Mr. Kleindienst gave his explanation to Senator Roman L. Hruka, Republican of Nebraska, and the following Senate Democrats: James 0. Eastland of Mississippi, Birch Bayh of Indiana, Edward M. Remedy of Massachusetts, John V. Tunney of California and Philip A. Hart of Michigan.

Mr. Kleindienat Was said to have indicated that Mr. McLaren would, appear with him to testify tomorrow, and that Mr. Mitchell and Mr. Rohatyn would testify if needed.

AJustice Department spokesman said tonight that no plans had been made for Mr. Mitchell to testify.

Confusion surrounded the hurried efforts of Judiciary Committee staff members to get in touch with Other possible witnesses today. There was some prospect that the hearing could last several days or more, as the committee staff was reportedly informed that Mrs. Beard is, seriously ill and unable to testify.

This could delay the confir, oration of Mr. Kleindienst's nomination, which was reported to the Senate floor yesterday and was expected to have been approyed tomorrow without serious opposition ‘be: fore the I.T.T. matter arose.

Efforts were being made by various Senators to invite, the following persons as witnesses: former Gov. Louie B. Nunn of Kentucky, host at the Kentucky ‘Derby party at which Mrs. beard discussed the I.T.T. case With Mr. Mitchell; W. R. Merriam, head of I.T.T.'s Washington office, wile was allegedly the addressee of Mrs. Beard's Memorandum, and Harold S. Geneen, president of I.T.T.

Others who are expected to testify are Mr. Anderson, Brit Hume, one of his investigators, Who interviewed Mr. Rohatyn; and Ruben B. Robertson 3d; an associate of Ralph Nader, the consumer advocate.

Mr. Robertson, who listened on a telephone extension Sun day night when Mr. Hume interviewed Mr. Rohaytn, said to day that the I.T.T. director said he talked “continuously". with Mr. Kleindienst during the period last year when the negotiations were going on.

Mr. Rohatyn was said to have insisted that his role was limited to dealing with “the economics and business aspects of the divestiture.”

Mr. Rohatyn is a senior partner of Lazard Freres & Co. in New York, an investment firm that concentrates on assisting clients interested in merging with other businesses. His sec retary said today that he was out and that she did not know when to expect him back.

It became known late last summer, several weeks after San Diego was named as the Republican Convention site, that the Sheraton Corporation. of America had agreed to underwrite a major portion of the $400,000 needed from “private sources” there to gain the convention.

The Justice Department announced on July 31 that it had settled three suits it hag brought to make I.T.T., a huge conglomerate, divest itself of sudsidiaries.

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