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Chambers, Lowe concerned with Franklin Editorial - July 25, 1989 - UPI


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Chambers, Lowe concerned with Franklin Editorial - United Press International Regional News July 25, 1989, Tuesday, BC cycle

LINCOLN, Neb. Two men who worked on a special legislative committee investigating the failure of the Franklin Community Federal Credit Union in Omaha question whether confidential material has been released. Sen. Ernie Chambers of Omaha, former committee vice chairman, and Jerry Lowe, former chief investigator, referred to a Sunday editorial in The Omaha World-Herald. The editorial praised Sen. Loran Schmit of Bellwood, committee chairman, for saying there was no verification of child abuse allegations tied to Lawrence E. King Jr., Franklin's former manager-treasurer who faces 40 fraud charges in a federal grand jury indictment.

Chambers and Lowe resigned from the committee July 13 along with counsel Kirk Naylor Jr. to protest statements made by Schmit. Frank Partsch, The World-Herald's editorial page editor, declined comment Tuesday on reaction to the Sunday editorial. A portion of the editorial said: ''One child, who has been under psychiatric care, is said to believe that she saw George Bush at one of King's parties. This is the same person whose story of a severed head was looked into. Neither tale could be verified.'' Chambers said during a Monday interview with KKAR radio in Omaha the information came from the committee's confidential reports. ''What The World-Herald has done is lumped together statements and attribute them to one person and that is entirely erroneous. The statement they presented here is false,'' Chambers said. He said no child under psychiatric care has said she saw Bush at a party. ''The material about the homicides was made public when Senator Loran Schmit at a (June 22) public hearing read from one of these confidential reports, which the committee had not authorized him to do,'' he told KKAR. ''That was confidential information and my only hope is that it did not come from a member of the committee,'' he said. Lowe also told KKAR he was troubled by the inclusion of that information in the editorial. Chambers also questioned the editorial in light of what he said was the obvious relationship between Harold W. Andersen, World-Herald publisher, and King. Andersen headed an advisory board and led a building fund drive for the credit union.


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