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Model of the proposed Institute of Texan Culture to have 145,000square feet , of state exhibits at HemisFair. tower, but when the storm broke he said he guaranteed that if the contract was rebid, he would see to it that the tower cost no more than Rheiner’s original bid. Presumably he meant his construction company would build it for that, or less; Lowe says Zachry has made it clear he will not bid for any HemisFair work and will not come in as a builder unless things fall behind schedule, and then only on a nonprofit basis. But now it became clear that Zachry, a politically sophisticated ‘man, favored re-bidding the tower contract. The fair’s executive committee voted 11-3 to adopt a new conflict of interest provision declaring that officers and members of the executive committee could have “no ‘financial interest whatsoever In any contract with this corporation.” The phrase “financial interest,” however, was qualified to mean only “a majority control” of a corporation dealing with the fair, and banks were excluded. Members of the huge board of directors were not affected on the grounds that they ‘are the largest part of San Antonio’s business community. . Three of ‘the four tower trustees who were also HemisFair executive committee resigned as trustees, but the fourth, Mayor MacAllister, did not. Gonzalez thereupon leveled a new blast at his fellow honorary HemisFair ‘co-chairman, ,the ‘mayor. Gonzalez said the Texas urban renewal law ‘prohibits public officials from ‘acquiring “any interest in . . . any property ‘included or planned to be included in an urban renewal project,” and McAllister should quit as mayor or trustee, either one. The mayor said five ‘lawyers \(including Daniels, was ‘no conflict of interest, and ‘he would not resign as trustee; he has not. But the contract has been re-advertised on ‘an openbid basis and the contract went to a San Antonio-Houston combine that turned in the low bid, which, however, was $336,000 higher than Rheiner’s original bid. \(Rheiner was second lowest bidder on the second tower’s costs has been forgotten. The pend ing question is whether, after all this, the revenue bonds can ‘be sold to finance the tower in time to build it. First Connally had caused delay with his expansion of plans for the Texas pavilion; then, Gonzalez. But now Gonzalez whipped through the $10 million ‘appropriation. The bill went to the Senate, ‘and within eight days Yarborough ‘had a hearing arranged. But it was his turn; he did not pass. AS A LIBERAL DEMOCRAT, frequently arrayed ‘against Gov. Connally, Yarborough identifies with the San Antonio liberals who backed and elected Cty. Judge Charles Grace, Cty. Cm’sr. Albert Pena, and many liberal San Antonio legislators. Last spring, however, the city’s Good Government League, which dominates city politics, financed and conducted ‘a winning campaign against Grace and the Democratic Coalition’s legislative candidates. The campaign was bitter; Grace was speared in a television ‘special, played again and again, identifying him with labor bosses, Pena, and “lying and cheating.” Qty. Democratic chairman Daniels is closely identified with G.G.L., and the Observer reliably understands that when Yarborough heard that the G.G.L. was preparing to mail out 200,000 slate card’s hostile to the Grace ‘slate, ‘he telephoned Daniels and told ‘him if they were mailed, t would be ‘too bad for HemisFair. They were mailed. Grace and the Coalition ‘sustained an across-theboard defeat. 13 A half-hearted attempt had been ‘made to involve the non-G.G.L. liberals in HemisFair, but it had fizzled. The vehicle was an advisory “federal participation committee” of which Grace, Sinkin, Mrs. Kampmann, Pena, Daniels, and Solomon Casseb, a pro-Connally judge, were members. This committee met once; not ,again. Last fall Pena began writing Sinkin letters asking when they would ‘meet again; Sinkin replied facetiously, Pena says. After Grace’s defeat Pena resigned from the committee. To the extent they are political people ruling committee’s members ‘are G.G.L.’ers. Saw’telle G.G.L.’s principal strategist. Frost, Smith, Killian, McAllister, ‘and Vazquez are in the G.G.L. ; McAllister, White, and Mrs. Kampmann are Republicans; as Connally’s state party vice-chairman, Mrs. Negley has been bracketed with the conservatives. It is no secret in San Antonio that the G.G.L. mean’s to defeat Cmsr. Pena in 1968 if it can. Sinkin, while a member ‘of the G.G.L., had been the fair’s man with Yarborough, but this fall he suddenly found himself this no longer. Yarborough’s ‘man in Bexar County now is Charles Grace. In July Yarborough let HemisFair feel the sting of ‘a senior U.S. senator, letting fly at Connally’s being ‘the commissionergeneral. Yarborough cited the Texas Constitution’s prohibition of the governor ‘holding “any other office, civil, military, or corporate” ‘and accused Connally of “a flagrant violation of the Constitution.” Connally said he was rather amused ‘by the attack. A’s set out in ‘an earlier Observer story, Yarborough refused to attend a HemisFair reception ‘honoring Connally in Washington. In San Antonio HemisFair’s comptroller, Jack Trawick, ‘said that transporting five Washington for the July 13 reception, plus the reception itself at the Mayflower Hotel, cost HemisFair $3,400. Between July 24 and Aug. 3 Gov. and Mrs. Connally, Mike Myers of the governor’s staff, and two HemisFair ,staffers made a South American tour drumming up governmental commitments ‘to participate in HemisFair. The expenses were ‘paid by HemisFair and came to $8,840, Trawick told the Observer. They included “security guards for the governor in various places,” but HemisFair paid those, too. Connally is not paid a salary as commissioner-general. Mrs. Negley was a member of ‘the South American party, too, but paid ‘her own way. Trawick says that although Speaker Ben Barnes gave HemisFair’s cause a hand in Peru, HemisFair did not pay his expenses on that trip. 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