Gurney's "Boosters"

One of the bitter side effects of Watergate has been to reinforce people's distrust of all politicians. That distrust was hardly dampened last week when charges of corruption were raised against--of all people--one of the investigators. Edward J. Gurney, Republican member of the Ervin committee, acknowledged in a terse statement that the Justice Department was looking into allegations that he had received more than $300,000 in unreported contributions in 1971 and 1972, mostly from builders seeking influence with the Federal Housing Administration.

According to the Miami Herald, the probe of the Senator's finances began after Gainesville Builder Philip I. Emmer complained to the FBI that a Gurney emissary had demanded $5,000 for FHA approval of two apartment projects costing $6,000,000. The Herald reported that another builder, John Priestes of Miami, told a grand jury that he had been promised influence through Gurney's office if he paid Larry E. Williams, who was then an aide to the Senator, $500 a house for each FHA-subsidized housing contract he received. Priestes reportedly testified that he had turned over more than $170,000 in cash to Williams and former Miami FHA Director William Pelski, in exchange for FHA housing contracts.

Some of the funds collected for Gurney were deposited in the Commercial Bank of Winter Park, Fla., on whose board the Senator sits, the newspaper said. Eventually, all of the money was channeled to the Washington bank account of a secret "Gurney Boosters Fund" and used by the Senator to pay office, travel and other expenses.

Gurney declined to confirm or to deny the accusations, explaining: "The Justice Department has asked that neither me nor any member of my staff make any comment until the investigation is concluded."

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