Wright Solicited Funds, S&L; Witness Says

A former savings and loan executive has testified that House Speaker Jim Wright offered to block legislation that could hurt thrifts in exchange for $250,000 in contributions to a political action committee.

David R. Farmer was testifying Friday in the trial of three former savings and loan executives on charges that they allegedly participated in what federal prosecutors say was a conspiracy by the thrifts to evade federal laws by channeling corporate contributions to political campaigns.

No direct evidence that Wright had made any such promise was presented.

Task Force Probe

Wright was not named in the federal indictment against the three defendants, Robert Hopkins, Morton Hopkins and John Harrell, who were charged after investigations by the Dallas Bank Fraud Task Force.

The three are former executives of Commodore Savings Assn.

Farmer, former senior vice president and chief financial officer of Commodore, said he gave a $1,000 donation to the East Texas First Political Action Committee in 1985, then was told to file a false expense report to get the money back.

Farmer said it was understood that Wright, the Democratic majority leader at the time, had guaranteed that specific legislation unfavorable to savings and loans would be blocked from making it out of committee. The former Commodore executive did not cite the legislation.

“In return for the contributions, Jim Wright guaranteed the legislation would not get out of committee,” Farmer said. “Both John (Harrell) and myself were amazed that as high ranking an individual in the Congress as he (Wright) would be involved in something like this.”

Says 10 Contributed

Under questioning, Farmer said 10 savings and loans were contributing a total of $250,000 to the political fund.

In an interview after the court session, the New York Times reported, Harrell did not dispute Farmer’s testimony, but he said he never spoke directly with Wright about raising funds and would not say where he got his information. The newspaper said Farmer testified that he was told about the deal by Harrell, the savings and loan’s chief executive.

In other testimony last week, witnesses said Commodore employees gave donations to a political action committee and were given raises in return.

A Commodore secretary testified that some of the money donated to the political action committee was laundered through Vernon Savings & Loan. On one check the words “For Jim Wright” were written on the memo line, she said.

Calls from the Associated Press to Wright’s Washington and Ft. Worth offices went unanswered late Friday night.