j
Monday, April 2, 1984
University of Nebraska-Lincoln
Vol 83 No. 12a
CQmaQTnra in impeactaiieiiit .total
By Patty Piyor
After three and a half days of tes
timony, both sides concluded their
cases in the Paul Douglas Impeach
ment trial early Thursday afternoon.
The Nebraska Supreme Court con
sidered six articles of impeachment
drawn up by a special legislative com
mittee investigating Douglas' question
able financial transactions with the
now insolvent Commonwealth Savings
Co. i
Now it is up to the seven justices of
the court to issue a written opinion on
the attorney general's fate, but that
process could be a lengthy one.
The decision of the court will be by
opinion, but I can't say when that opin
ion will be filed," Chief Justice Pro Tern
Leslie Boslaugh said after closing argu
ments Thursday. "Obviously, it will take
some time for the court to consider the
record and the many exhibits that
have been submitted."
Both sides were given the opportun
ity to submit additional briefs after the
court adjourned. Prosecuting attorney
Richard Kopf of Lexington said he
planned to file an exhibit detailing real
estate transactions involving Douglas,
his business associate Paul Gaiter, former
Commonwealth officer Marvin E. Copple
and Copple's secretary, Judith A. Dris
coll. Defense attorney William Morrow
of Omaha will have time to respond to
the exhibit. More than 80 exhibits
were filed during the trial.
Impeachment articles
The six articles of impeachment, all
concerning Douglas' knowledge of inside
transactions at Commonwealth and
his statements to officials investigat
ing the case, are:
Douglas' duty not to misrepresent;
His duty not to lie;
His duty to disqualify himself in.
any investigation involving a conflict of
interest;
His duty to avoid insider borrow
ing; His duty to investigate possible
wrongdoing at Commwealth; and
His duty to avoid even the appear
ance of impropriety.
The court must uphold only one of
the six charges for Douglas to be per
manently removed from office; five of
the seven judges, or two-thirds of the
court, must uphold the opinion.
The six specifications against Dou
glas stem from a number of complex
business deals made as far as back
1976.
Among these was a $241,774 loan to
Douglas and Gaiter, which the two
men used to buy 26 lots in Lincoln's
Fox Hollow subvision. The lots were
bought at a discount through Copple
and sold at a profit.
Douglas also received $32,500 in fees
from Copple for work done on other
land development projects and a check
for $371,814 from Driscoll for the sale
of lots purchased with Commonwealth
funds.
The real estate transactions were
part of three-way dealings between
Cflpple, Driscoll and the DouglasGai
ter partnership in which Common
wealth loans funded the purchases
and the money was funnelled back to
Copple.
In questioning from prosecuting at
torney Kopf Wednesday, Gaiter denied
any knowledge of DriscoU's borrowing
from Commonwealth to purchase the
lots from him and Douglas.
Loans rolled over
Douglas also received $6,500 car
loan from Commonwealth in 1976,
which was renewed six times without
interest or principal and paid off in
August 1979; and a $25,000 home
improvement loan also in 1976, like
wise renewed 15 times and paid off in
September 1982.
Defense witness Robert Kirchner, an
accountant now working for the Com
monwealth receivership, testified Wed
nesday that issuing such loans was
common business practice at Commonwealth.
With interest on loans often going
unpaid, the company would simply
capitalize the note and roll it over into
a larger note, he said.
Common practice or not, however,
the state contends that Douglas' fail
ure to disclose such dealings led to a
conflict of interest in the ensuing in
vestigation at Commonwealth.
The investigation was conducted by
interim Banking Director John Miller
and special Assistant Attorney Gen
eral David Domfna, who both testified
that Douglas' failure to disclose his
business dealings with Copple impeded
their progress.
Douglas' lack of disclosure "fore
closed a whole line of questioning,"
Domina testified Tuesday.
Miller supported Domina's state-
ments in testimony as the state's finaf
witness Wednesday and again in re
buttal testimony Thursday.
Despite statements that he intended
to cooperate fully with investigators,
Douglas did not provide all the re
quested information, Miller said.
Neglected investigation
The state also contends that Dou
glas neglected to investigate possible
wrongdoing at Commonwealth when
Continued on Page 6
By Mark Davis
The largest agriculture contract in UNL's history
was signed Friday, extending the $4.2 million Mor
occan dry-land farming research project contract
to five-years and $19.2 million.
The project is coordinated by UNL in cooperation
with the Mid America International Agricultural
Consortium.
The contract allows research between Morocco
and the MIAC which has been done for the past four
years, to continue.
Robert Kleis, dean and director of international
programs at the Institute of Agriculture and Natu
ral Resourses, said the project should increase the
productivity of the Central Plains in Morocco.
The 30,000-square mile area is similar to parts of
Nebraska's farmland and should provide an excel
lent research base for dry-land farming improve
ments, he said.
The project brings 35 Moroccan students to UNL
Tor training in agricultural sciences. Also, 12 agricul
tural specialists will go to Morocco to help develop
elf-sufficient food supplies. The research focuses
on cereal grains, which Morocco currently imports.
The project also will improve equipment in Moroc
can research facilities and provide short-term con
sultation with the MIAC. ,
Nebraska, Iowa State, Kansas State, Missouri and
Oklahoma State make up the MIAC. Kleis said
Nebraska is the leading institution for the Moroccan
project.
Chuck Francis, project coordinator, said some of
the major Moroccan problems MIAC will research
are erosion, tillage and weed control. The project
will serve as a longterm link for dry-land farming
research with Morocco, he said.
Dan Bigby, assistant project coordinator, said the
project would benefit UNL by developing a close
working relationship between the countries' scient
ists. This will allow UNL's staff to broaden its back
ground in international agriculture, he said.
In a speech before the contract was signed, Kleis
said he hoped the contract would be renewed again
in another five years.
This is a longterm project," Kleis said. "You don't
build institutions and train people overnight " he
said.
7.
Mark DavisDaily Nebraskan
Wendel McKinsey, executive director of Mid
America International Agricultural Consor
tium, signs the $19.2 million contract with
Morocco. NU Regent Edward Schwartzkopf
witnesses the signing.
. -
Inside
Nebraska lawmakers should keep their
expenses to a minimum Pass 4
Local movie-goers should say "No Tanks"
to James Garner's latest film Paga 9
The Nebraska baseball team wins a double
header from the Kansas State Wildcats .....
Pags 10
Index .
Arts and Entertainment . . . . 8
Classified 10
Crossword '12
Editorial 4
Off The Wire 2
3ports -10
.j:o;
Monte SchmidtDaily Nebraskan
UNL students frolic in the sun of Padre Island, Texas, Thursday during spring break. From left,
Lance Kingery, Lon Swanson, Peter Gotzmsn, Dana Wintroub, unidentified woman, Cynthia Miller,
Dee Maxcn and Jeff Graves.