Firm Denies It Shredded Data on Whitewater

The Rose Law Firm where First Lady Hillary Rodham Clinton was a partner shredded documents related to the Whitewater Development Corp. last week, a newspaper reported Wednesday. The firm emphatically denied the report.

The Washington Times cited as its source an unidentified Rose employee. President and Mrs. Clinton, along with James B. McDougal and his then-wife, Susan, were partners in Whitewater, an Arkansas real estate venture.

In Little Rock, Ark., Ronald M. Clark, managing partner at Rose, said the report about shredding Whitewater documents was “totally false . . . . I am absolutely sure. I am extremely upset that somebody would allege this.”

Clark said his firm had “no significant documents” concerning the Whitewater development.

Wesley Pruden, editor-in-chief of the Washington Times, said the newspaper stands by its story, which he said was based on conversations with “direct and corroborating sources” at the law firm.

The Little Rock office of special counsel Robert B. Fiske Jr. said the report would become part of its investigation into Whitewater and related matters.

Fiske, appointed Jan. 20 by Atty. Gen. Janet Reno, is looking into--among other things--whether McDougal improperly diverted funds from Madison Guaranty Savings & Loan Assn., which he controlled, to Whitewater and Clinton gubernatorial campaigns.

Clark said the firm has kept documents, “in anticipation they will be requested.”