Panel Chooses Democrat as Wright Prober

Richard J. Phelan, a Chicago Democrat, was chosen Tuesday by the House Ethics Committee to act as independent counsel in the investigation of allegations that House Speaker Jim Wright (D-Tex.) used his position to benefit himself and Texas cronies.

The appointment brought a howl of protest from Wright’s chief accuser, Rep. Newt Gingrich (R-Ga.), who objected that the panel not only had chosen “an active partisan Democrat” but also had waited until after the Democratic National Convention to announce its decision.

Wright, who was chairman of the Democratic convention, is accused--among other things--of publishing a 117-page memoir, “Reflections of a Public Man,” as a subterfuge to convert campaign contributions to his personal use.

He received 55% royalties on the book, an unusually favorable ratio, in a contract with a Ft. Worth printer to whom he had already given about $600,000 in funds for campaign work. Critics say that has the appearance of a kickback.

Phelan, 51, a managing partner of the Chicago law firm of Phelan, Pope & John, earlier this year served as a fund-raiser for the unsuccessful presidential campaign of Sen. Paul Simon (D-Ill.). He also has contributed to the campaigns of Sen. Alan Dixon (D-Ill.) and former Democratic presidential candidate Walter F. Mondale.

But he insisted that his partisan affiliation would not taint the investigation.

“The fact that I’m a Democrat doesn’t stand in my way to be fair,” he said after the closed committee meeting in which he was chosen. “I would hope that no citizen would be branded unfair or unobjective simply because he exercised his basic American right.”

Unanimous Choice

In response to Gingrich’s complaint of partisanship, Rep. John T. Meyers of Indiana, ranking Republican on the committee, noted that the choice of Phelan was unanimous and characterized him as the best man for the job. In addition, panel members noted that Phelan will be assisted in the investigation by a Republican member of his law firm.

Likewise, Chairman Julian C. Dixon (D-Culver City) said members of both parties on the committee had concluded that, despite his affiliation with the Democrats, Phelan “can be fair and impartial” when it comes to investigating Wright.

Dixon also disclosed that the committee had decided on June 9--the day it agreed to investigate Wright--that it would appoint an outside counsel. Since then, he said, panel members have been involved in interviewing prospective candidates for the job.

Gingrich, who initiated the Ethics Committee complaint against Wright, said he would have preferred the selection of an independent or a Republican to investigate the nation’s highest-ranking Democrat. He did not dispute Phelan’s competence, however.

‘Would Be Up in Arms’

“Imagine that we (Republicans) had suggested in order to investigate someone in the Reagan Administration a Peoria, Ill., Republican who had raised $100,000 for Bob Dole,” he said. “Every Democrat in the House would be up in arms.”

Dixon refused to respond to a plea from Archibald Cox, chairman of Common Cause, the citizens’ lobby, that the committee publicly affirm Phelan to investigate Wright without interference from panel members. He also declined to estimate how long the investigation would take.

Phelan, whose firm will receive up to $300,000 for its work, indicated that he did not expect his inquiry to be controlled by the committee. “As I see our job,” he said, “it’s to conduct an independent, full review of all the facts that have been presented in the inquiry and report back to the committee.”

Six Specific Charges

Gingrich said the independent counsel must be permitted to go beyond the six specific charges the committee cited in its original decision to investigate Wright. “He can’t be on a short leash held by the chairman of the committee,” he said.

In addition, Gingrich questioned Phelan’s experience in the field of election law. His Chicago law firm specializes in civil litigation, and Phelan has recently tried cases in the area of product liability, medical malpractice and environmental pollution.

Wright, who has expressed confidence that he will be exonerated, said Gingrich and critics were setting an impossible standard for the investigation.

“Failing to have any substance on which to rely, they are trying to lay the impression that the inevitable result of a clear bill of health is somehow a whitewash,” Wright said. “They would have said that no matter whom they chose.”