PAGE 18 THE DALLAS MORNING NEWS June 16, 1993, Wednesday, HOME FINAL EDITION SECTION: NEWS; Pg. 1A LENGTH: 2479 words HEADLINE: Ex-Gov. John Connally dies at 76; He was giant of Texas politics' BYLINE: Kent Biffle, Staff Writer of The Dallas Morning News KEYWORD: JOHN CONNALLY; DEATH; OBITUARY; TEXAS GOVERNOR BODY: Three-time Texas Gov. John B. Connally, who narrowly survived bullet wounds in the 1963 ambush that killed President John F. Kennedy, died Tuesday. He was 76. Mr. Connally in the 1970s bolted from the Democratic Party, served a Republican president and eventually unsuccessfully sought the GOP presidential nomination. He was struggling back from bankruptcy at the time of his death. He had been a patient at Methodist Hospital in Houston since May 17, undergoing treatment for infection and pneumonia, which was complicated by a lung problem known as pulmonary fibrosis, a scarring of the lung tissue. He had been listed in critical condition since June 3. "We deeply thank all of those whose thoughts and prayers have been with us throughout this ordeal,' Mr. Connally's wife, Nellie, said in a statement. President Clinton said he was saddened to hear of Mr. Connally's death, calling him a man "whose life was one of service to his country and of dedication to the principles in which he so passionately believed.' Texas Gov. Ann Richards said: "I lost a real good friend. "When important people die, you mourn the loss of their influence and their ability to get things done. All of that is true with John Connally, but it is harder for me to accept because of the fact that he was a personal friend. . . . "Texas lost one of its favorite sons today,' she said. U.S. Sen. Phil Gramm, R-Texas, called Mr. Connally "a giant of Texas politics, a man whose vision was long and who strode across eras with grace, dignity and iron determination.' Treasury Secretary Lloyd Bentsen, a former U.S. senator from Texas, said Mr. Connally was "a man of courage, great leadership quality and a powerful person. He was persuasive in his point of view and was my friend.' "John Connally in my view was one of the great governors of Texas,' said former President George Bush in a statement released from his summer home in PAGE 19 THE DALLAS MORNING NEWS, June 16, 1993 Kennebunkport, Maine. "He represented his state and nation with distinction.' Former Texas Gov. Bill Clements, reached in New Mexico where he had a speaking engagement Tuesday, said his friendship with Mr. Connally also spanned decades. "He was a great, great Texan, and I'll miss him,' Mr. Clements said. Lyndon's boy' A political figure once as familiar to Texans as Austin's Capitol dome, Mr. Connally was a key player in the tumultuous career of former President Lyndon B. Johnson. After the death of LBJ, his Democratic mentor, 20 years ago, Mr. Connally, who had governed Texas from 1963 to 1969 as a conservative Democrat, declared himself a Republican. He pursued the GOP presidential nomination, but that prize eluded him. He was called "Lyndon's boy' during his years as an aide and confidant to LBJ, the hard-driving New Deal Democratic congressman and senator who was elevated from vice president to president by the assassin's bullets that killed JFK. Four of seven members of the Warren Commission accepted a theory that Mr. Connally, a passenger in the limo with JFK, was wounded in the chest, wrist and leg by a bullet after it had already passed through the president. Mr. Connally always resisted the so called single-bullet theory. He insisted: "One bullet caused the president's first wound, and then an entirely separate shot struck me.' His account spurred speculation that it was the governor of Texas who was the primary target of a revenge-driven assassin. Months before the shooting in Dallas, Mr. Connally, as secretary of the Navy, had refused to grant an honorable discharge from the Marine Corps to Cold War turncoat Lee Harvey Oswald, the assassin. The theory never won wide acceptance. Tall, handsome and articulate, Mr. Connally was an imposing public presence. But his politicking style, when compared with LBJ's warm-handed campaigning, sometimes seemed cool and aloof. Making speeches or leading parades on horseback, he was a conservative crowd pleaser. Until he switched parties, his accomplishments were measured against those of LBJ, who was nine years his senior. Inevitably, Mr. Connally had difficulty emerging from the older politician's long shadow. He waited three months, respectfully, after delivering the eulogy at LBJ's funeral in 1973 before announcing his official departure from the Democratic Party. Informally, he had much earlier broken ranks. For example, against the Democrats' 1972 presidential nominee, George McGovern, Mr. Connally headed a group called Democrats for Nixon in support of Republican President Richard M. Nixon. Earlier, he had served the Republican administration as secretary of the treasury, in 1971-72. He became a special adviser to Mr. Nixon. PAGE 20 THE DALLAS MORNING NEWS, June 16, 1993 During the Watergate scandals, Mr. Connally was acquitted of a charge that he accepted $ 10,000 from a grateful dairy industry official for his 1971 recommendation that the Nixon administration raise federal milk price supports. "John Connally was one of the most courageous people I ever met,' said Michael E. Tigar, professor at the University of Texas School of Law, on Tuesday. Mr. Tigar, with Edward Bennett Williams, successfully defended Mr. Connally. " . . . The whole of his public life is, I think, a testament to his innocence.' Political damage Despite his acquittal, Mr. Connally was politically damaged. But he told The Dallas Morning News, "The very idea that I would take a $ 10,000 payoff or bribe is so reprehensive and inconceivable to me that I can't even comprehend that.' After becoming a Republican, Mr. Connally still couldn't entirely erase the LBJ brand. After spending $ 11 million to garner a solitaryGOP delegate from Arkansas in 1980, Mr. Connally was quoted as saying, "I reminded everyone of Lyndon.' Had Mr. Connally remained an avowed Democrat, observers say, the chances were good that sooner or later he would have won that party's nomination for the presidency. But within the Democratic club, the conservative Mr. Connally was often at odds with the policies of liberals. "I wanted John to stay a Democrat,' said Robert Strauss, former Democratic national chairman and one of Mr. Connally's oldest friends. "I thought he'd be president, and I thought he'd make a great president. We never fell out really. We just went down different paths. . . . I've lost a good friend.' To be sure, Mr. Connally's conservatism hadn't come into bloom in 1939 when he was first hired by freshman U.S. Rep. Lyndon Johnson. He'd been recommended to LBJ by a longtime champion of liberal Democrats in Texas, the late oilman J.R. Parten. As he built a political career of his own, Mr. Connally's persona became more and more conservative. Bankruptcy More surprising to Texans than his party-switching was his filing for bankruptcy in 1987. An authority on international monetary matters, a trustee of the Andrew Mellon Foundation and director of several banks, Mr. Connally disclosed debts of $ 93.3 million and assets of $ 13 million. His debts were for the most part oil and real estate deals that collapsed in the economic decline of the 1980s. He and Mrs. Connally auctioned most of their personal possessions to help pay secured creditors. Close friends reportedly bought some of the treasured items with the aim of returning them one day to the Connally family. An aftershock to the bankruptcy came when Mr. Connally showed up on TV in a 1988 Super Bowl commercial, endorsing a bank. He told viewers: PAGE 21 THE DALLAS MORNING NEWS, June 16, 1993 "Nellie and I worked hard all of our lives to make sure our future would be financially secure. Well, the future is here, and things haven't quite worked out like we'd planned. But that's all right, because there's no better place than Texas to start over -- and save a little.' The commercial symbolized Mr. Connally's drive to regain his financial standing. Many of his losses were blamed on deals made in partnership with developer Ben Barnes, a former Texas House speaker and lieutenant governor. "I've lost a very good friend, and Texas has lost a universal man, a man for all seasons. He was one of the greatest leaders this state has produced,' Mr. Barnes said Tuesday. "It's going to be hard to imagine Texas without John Connally.' A major step in Mr. Connally's comeback was revealed less than a week before he was hospitalized, when he announced May 11 that he and Houston financier Charles Hurwitz were steering a $ 75 million venture to build a Class 1 pari-mutuel horse-racing track in Harris County. The private investment team planned to build and operate the troubled Sam Houston Race Park, Mr. Connally said. Mr. Connally was a director of the Houston-based conglomerate Maxxam Inc., of which Mr. Hurwitz is chairman. As trustee and director of a long list of firms and foundations during his career, Mr. Connally never lacked business offers. He reportedly received more than 50 business propositions in the immediate wake of his bankruptcy. Mr. Connally married the former Idanell Brill in 1940 while they were students at the University of Texas at Austin, where he received a law degree in 1941. They have two sons and a daughter: John B. Connally III of Houston, and Mark Connally and Sharon Ammann, both of Austin. Another daughter, Kathleen, died in 1958 at age 16. Then a student at Arlington Heights High School in Fort Worth, she eloped with an 18-year-old classmate to Tallahassee, Fla. The young couple's marriage was turbulent. During a spate in a struggle over a shotgun, Kathleen was fatally wounded. Her death was ruled an accident. Mr. Connally and Mrs. Ammann became embroiled in this year's U.S. Senate race in Texas. Mrs. Ammann accused Texas treasurer and Republican candidate Kay Bailey Hutchison of angrily hitting her in the midst of campaign work in 1991. Ms. Hutchison, who won the election, said the allegations were strictly political motivated, but Mr. and Mrs. Connally publicly defended their daughter. John Bowden Connally was born in Floresville on Feb. 27, 1917, a son of rancher and county politician John B. and Lela Wright Connally. At the University of Texas, he was elected president of the student body in 1938, the same year that his wife to be was elected "Sweetheart of Texas.' A Navy officer in World War II, Lt. Cmdr. Connally was a flight director aboard aircraft carriers, the USS Essex and later the USS Bennington, during some the Pacific's heaviest fighting and kamikaze attacks. PAGE 22 THE DALLAS MORNING NEWS, June 16, 1993 After months of combat, he won a first bronze star, outranked by the controversial silver star awarded Lyndon Johnson for accompanying a single bombing mission over New Guinea during his short stint with the Navy. Mr. Connally later was awarded the Legion of Merit. LBJ returned to Congress. In Washington, he lobbied without much effect for the return of his former aide. In 1945, with Lt. Cmdr. Connally scheduled to arrive in San Francisco and head home to Texas, Rep. Johnson wired the Adolphus Hotel in Dallas: "My boy, Lieutenant Commander John Connally, arrives tomorrow and will lay over in Dallas. Please arrange room, etc. -- LBJ.' Postwar years After the war, Mr. Connally managed radio station KVET in Austin, from 1946 to 1949, when he again served a few months as administrative aide to then-Sen. Johnson. He was a member of an Austin law firm until 1952, when he made a move that bespoke a bright future. He became a lawyer for Fort Worth independent oil operators Sid W. Richardson and Perry R. Bass, an association that promised years of wealth and influence. In 1961, his naval wartime experience, underscored by Mr. Johnson, helped qualify Mr. Connally for a tour as President Kennedy's secretary of the Navy. He resigned the post after a few months to return to Texas, where he began his successful campaign for governor. He served three two-year terms as governor. Improvements in education and state services, development of water resources and a strong focus on tourism were the highlights of his administration. In his first term, Mr. Connally stressed educational excellence, economic development and tourism, and was successful in having many of his proposals adopted by the Texas Legislature. He focused on securing more state funding for education in his second term, and again he was fairly successful as Texas' economy boomed. His final term as governor saw teacher salaries increase and a revision in the state's criminal code. He stepped down in 1969 to become a partner in the powerful Houston law firm of Vinson & Elkins. Stunning appointment In late 1970, President Nixon stunned the political world by naming Mr. Connally his secretary of the treasury, a post he held for 15 months until his resignation in May 1972. Mr. Connally played a major role in the development of a dramatic series of economic proposals that Mr. Nixon unveiled in August 1971. They included a 90-day freeze on wages, prices and rents; measures to cut federal spending and taxes; and the establishment of a "floating' dollar in PAGE 23 THE DALLAS MORNING NEWS, June 16, 1993 world markets that ended its historic dependence on the price of gold. After he returned to private life in 1972, he helped to mobilize Democratic support for Mr. Nixon in the 1972 campaign. And after his conversion to the Republican Party, Mr. Nixon considered him as a possible choice for vice president when Spiro Agnew resigned in a scandal in October 1973. But the prospect of strong Democratic opposition in Congress forced Mr. Nixon to turn instead to a more generally acceptable figure, House Republican Leader Gerald Ford, who became president when Mr. Nixon was forced to resign in the Watergate scandal. In recent years, Mr. Connally remained involved in politics, both on the national and local levels. He endorsed Bob Dole over George Bush in 1988, and commentators at the time cited the long rivalry between Mr. Connally and Mr. Bush. He also served as campaign chairman for former Houston Mayor Fred Hofheinz in his unsuccessful bid to unseat Mayor Kathy Whitmire in 1989. He was a fund-raiser for Mayor Bob Lanier in his successful bid to unseat Mrs. Whitmire in 1991. Mr. Connally was part of a coalition against zoning in Houston. Analysts say that, although it may be a tough fight, voters are likely to approve zoning this fall. Mr. Connally also served as chairman of the campaign to raise money for the Wortham Theater Center in the mid-1980s. Just before the Persian Gulf war began in 1990, Mr. Connally helped negotiate the release of 21 hostages held by Iraq. Besides his wife and three children, Mr. Connally is survived by four brothers, two sisters, eight grandchildren and one great-grandchild. Staff writers Bruce Tomaso and Bruce Nichols in Houston, George Kuempel and Sam Attlesey in Austin, Carl P. Leubsdorf and Kathy Lewis in Washington, and Diane Jennings, Jacquielynn Floyd and Cheryl Hall in Dallas contributed to this report. CORRECTION-DATE: June 17, 1993, Thursday, HOME FINAL EDITION CORRECTION: On Page 18A Wednesday, the caption with a photo of former Gov. John Connally and President Lyndon B. Johnson may have implied incorrectly that they were talking shortly after the assassination of Mr. Johnson's predecessor, John F. Kennedy. The photo was taken Jan. 5, 1964, more than a month after the assassination. GRAPHIC: PHOTO(S): 1. John Connally . . . had been hospitalized since May 17. 2. John Connally is sworn in as governor of Texas in 1963. He serves three two-year terms, stepping down in 1969. (DMN: file photo). 3. Newly sworn-in President Lyndon B. Johnson says goodbye to recuperating Gov. Connally before returning to Washington after the assassinaton of President John F. Kennedy. PAGE 24 THE DALLAS MORNING NEWS, June 16, 1993 (Associated Press). 3. Mr. Connally and his wife, Nellie, in 1984. (DMN: file photo). 4. Gov. Connally in 1963 at the Southwest Exposition adn Fat Stock Show in Fort Worth. (DMN: file photo). 5. Mr. Connally stands with his horse, Nellie's Kneesox, before a 1986 auction in his hometown of Floresville in which his horses were sold. (DMN: file photo). 6. Gov. Connally rides with President John F. Kennedy and first lady Jacqueline Kennedy on the day of the president's assassination. Mr. Connally was seriously wounded in the shooting. (Associated Press). 7. Already commissioned in the Naval Reserve when World War II begins, he distinguishes himself as a fighter direction officer aboard aircraft carriers in the Pacific in 1944-45. (DMN: file photo). 8. Mr. Connally talks with President John F. Kennedy in 1961 during his tenure as secretary of the Navy. (DMN: file photo). 9. Mr. Connally confers with President Richard Nixon before leaving on an around-the-world mission in June 1972. (Associated Press). 10. Mr. Connally wipes a tear at an auction on Jan. 22, 1988, in which he sold his assets to pay creditors after declaring bankruptcy. (Associated Press). CHART(S): 1. Remembering John Connally. 2. Connally through the years