U.S. Grand Jury Investigates Wright Book Deal; Texans Get Subpoenas

A federal grand jury here is investigating a book deal by former House Speaker Jim Wright and has subpoenaed at least two groups that bought his book, “Reflections of a Public Man.”

Attorneys for Southwest Texas State University and the National Assn. of Realtors said today that they have received subpoenas for records related to the purchase of Wright’s book after speeches to their organizations by the former congressional leader.

Resigned in June

Wright, a Texas Democrat, resigned in June after a yearlong House Ethics Committee investigation that led to a finding that he improperly accepted gifts and sought to evade House limits on outside income through bulk sales of the book.

Justice Department spokesman David Runkel said the agency’s inquiry is continuing. “I can’t comment on any aspect of the investigation, except I will confirm that it is ongoing,” he said.

Larry Shannon, administrative assistant at Wright’s office in Fort Worth, said: “It would seem that the inquiry is merely routine.”

He said he was certain the Justice Department will come to the conclusion that no laws were broken.

Southwest Texas State received its subpoena Monday and has until Friday morning to produce documents pertaining to Wright’s speech to the school in San Marcos in the fall of 1984.

University attorney Bill Fly said the school had agreed to pay Wright $3,000 for a speech. After Wright’s appearance, someone in the Speaker’s office called the university to say Wright had reached his limit on outside income. The staffer then asked if Wright could use the $3,000 to instead purchase copies of his book for the university, Fly said.

“We received about 504 copies of that book,” Fly said.

Under an agreement with the publisher of his book, Wright was to receive 55% of the royalties. While the House limits what a member can keep in fees from speaking engagements to 30% of his or her congressional salary, royalties are exempt.

Books Not Received

Laurene Janik, general counsel for the realtors organization, said the group is also responding to a grand jury subpoena relating to Wright’s book.

Wright spoke to the group in April, 1985. A $2,000 check was issued and voided, and the money was to be used to purchase Wright’s book, she said. But the realtors have no record of receiving copies of the book and no staff members has any recollection of seeing the books, Janik said.