Fool for scandal: How the 'Times' Got Whitewater Wrong
by Gene Lyons
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The perception that Gerth most resents is the one most talked about in Arkansas: his reliance upon the hidden hand of Sheffield Nelson--Clinton's 1990 Republican gubernatorial opponent and a legendary political infighter. The Times reporter insists that Nelson did no more than give him Jim McDougal's phone number and later introduce him to former Judge David Hale, whose defense attorney is Nelson's associate. Nelson, the Republican nominee for governor again in 1994, tends to be coy about his role. But he has given other reporters a thirty-eight-page transcript of an early 1992 conversation between himself and McDougal, then embittered by what he saw as Clinton's abandonment.
Indeed, Jeff Gerth, Sheffield Nelson, and the New York Times go way back. As long ago as 1978, Gerth wrote a well-timed expose of Nelson's mortal foes Witt and Jack Stephens--the billionaire natural-gas moguls and investment bankers who ran Arkansas like a company store during the Orval Faubus era (1955-67). The Stephens brothers owned a small gas-distribution company in Fort Smith that was paying them at a better rate then other gas-royalty owners. But what made Gerth's piece significant was its timing: it appeared shortly before a Democratic primary in which the Stephenses' nephew, U.S. Representative Ray Thornton, was eliminated in a three-man race for the U.S. Senate. Gerth had promised local reporters he'd uncovered a scandal that would knock Thornton out of the race. Some observers think the Times article about the business dealings of Thornton's uncles did swing just enough votes in Fort Smith to keep him out of a runoff election won by Senator David Pryor.
A few more highlights from Sheffield Nelson's political biography may help underline his motives for helping reporters portray the Clintons in the worst possible light. Hired out of college as Witt Stephens's personal assistant, Nelson was later installed as CEO of Arkansas-Louisiana Gas Co. (Arkla), controlled by the Stephens family and the state's principal natural-gas utility. (It was his subsequent refusal to use Arkla pipelines to carry gas from other Stephens-owned companies to buyers east of the state that eventually provoked a lifelong blood feud of Shakespearean malevolence.) Until 1989 Nelson was a Democrat, impatiently biding his time until the end of the Clinton era. But when it became apparent that Clinton would run again in 1990, Nelson became a Republican and won the 1990 gubernatorial primary over an opponent funded by Stephens interests. Bill Clinton then proceeded to humiliate Nelson 58 percent to 42 percent in the general election.
Clinton owed his 1990 triumph in part to the fact that his Public Service Commission conducted an inquiry into a business deal involving Nelson and a friend of Nelson's named Jerry Jones. It seems that back when Nelson was CEO of Arkla, he'd overridden the objections of company geologists and sold the drilling rights to what turned into a mammoth gas field in western Arkansas to Arkoma, a company owned by Jones, whom Nelson had brought onto Arkla's board of directors. The price was $15 million. Jones found gas almost everywhere he drilled. Two years after Nelson's departure, Arkla paid Jones and his associates a reported $ 175 million to buy the same leases back as well as some other properties. Jerry Jones then proceeded to buy the Dallas Cowboys and win two Super Bowls. The election-year probe of the Arkla-Arkoma deal resulted in millions of dollars of refunds to rate payers, which wasn't necessarily the point. It also earned the President a permanent spot on Sheffield Nelson's enemies list. The result, it's no exaggeration to say, has been Whitewater. More...............
http://www.pbs.org/wgbh/pages/frontline/shows/arkansas/whitewater/lyonsarticle.htmlJeff Gerth WAS, the NYT reporter I was thinking about I'm almost positive and I think that Gene Lyons was the man who wrote the article I was telling you about above. Just scanning the Frontline piece here, I see several of the elements of the story I'd been trying to locate. The name of the piece is a little different, but I believe it's the same story. I'm bookmarking it for a better look.