Louisiana: The State We're In; 911

[music] Funding for the production of Louisiana: The State We're In is provided in part by the Zigler Foundation of Jennings and Gulf States Utilities, helping Louisiana bridge the gap to our energy future. [Host] These are microorganisms -- living, one-celled bacteria that multiply rapidly. Now when most people think of bacteria, they think of diseases: tuberculosis, pneumonia, even strep throat. But today microorganisms are also being used to help rid Louisiana of dangerous hazardous wastes. Tonight, a special report. We'll also have a wrap-up of testimony this week in the fraud and racketeering trial of Governor Edwin Edwards and seven others. Following nearly two months of courtroom maneuvering, the prosecution at last wrapped up its case this week. Now Governor Edwards will have a chance to tell his side of the story. And finally tonight, a look at how Louisiana's economy could soar with the construction of a $2 billion space station. [music] [Host, Ken Johnson] Good evening, I'm Ken Johnson. Thanks for joining us for this week's show. Well, after nearly two

months at center stage, the prosecution finally brought down the curtain this week on its case against Governor Edwin Edwards and seven co-defendants, only to have the Governor and some of the best courtroom drama so far tell a federal judge, "Let's get on with the show." Edwards surprised just about everyone by asking Judge Marcel Livaudais Jr. not to drop the charges against him. The Governor said too much was at stake and that he wanted a chance to refute the government's fraud and racketeering charges in an open forum. We'll have a complete wrap-up on the trial later in the program. But first a look at some major developments this week at the state capitol. A blue ribbon economic advisory committee recommended this week that Louisiana phase out the popular homestead exemption, claiming that homeowners in the state are not carrying their fair share of the tax burden. Also this week some legislators warned that the state may be forced to cut back funding to local governments because of Louisiana's continuing financial problems. This year cities will receive about $1.5 billion from the state treasury. In other budget matters it was revealed this week that local sheriffs may be profiting at the state's expense

because it costs them less money to house prisoners than what the state reimburses them. The over charges could run into the millions of dollars. And finally this week the U.S. Senate approved a settlement with Louisiana over disputed offshore oil and gas revenues. The so-called 8g money could provide about $700 million to Louisiana. Governor Edwards says $16 million of that money will immediately go to colleges and universities. In other news at the capitol, top business leaders from around the state held a sort of economic summit meeting this week because of growing concern about the future of Louisiana's troubled economy. [Gene Fortier] Who wants to really make substantial capital investments in the state of Louisiana when we have the leadership that we have? When you go up and down the roster of the leadership of this state, it is indictment after indictment, prison after prison, indictment after prison. It's never ending and nobody has any pride in this state. Nobody wants to be affiliated with us. So what we need to do obviously is change the leadership.

Let's try to get some integrity back into this state. [Johnson] There was some good economic news this week. The Ethyl Corporation launched a $10 million expansion project at its Baton Rouge plant and technical center. Ethyl employs more than 1,000 people. The company is one of only a handful of research facilities in Louisiana. In political news this week, state Senator Tommy Hudson made it official. The Baton Rouge lawmaker said he will run for the congressional seat being vacated by Representative Henson Moore. Hudson's announcement was the latest in a political chain of events that was set in motion with the retirement next year of Louisiana senior Senator Russell Long. [Tommy Hudson] I'm going to continue doing rightly or wrongly what I've done in the past. I'm going to continue tough and taking tough stands on education, economic development, those things critical to the future of this state. [Johnson] Hudson has served in the state legislature for 10 years now. In 1984 he was elected president pro tem(pore?) of the Senate. He also serves as chairman of the Senate Commerce Committee. While Senator Hudson is trying to launch a new political career, Governor Edwards is trying to save the one

he has. This week Edwards told a federal judge that as governor of Louisiana with his reputation on the line, he considered it paramount for all of the facts in his case to come out in open court. And with that Edwards withdrew his lawyers' motion for judgment of acquittal. Laura Myers has more now on this important story. Laura. [Laura Myers] Ken, the eight defendants began presenting their case to the jury today. Judge Marcel Livaudais earlier this morning refused defendants' request for acquittal. Also today U.S. Attorney Stan Bardwell of Baton Rouge says he's reviewing the Governor's federal income tax returns. The Governor failed to detail high stakes gambling losses on his tax forms. Governor Edwards, however, says there's no requirement to report losses, only gambling winnings. For the eight defendants, their federal racketeering and fraud trial is now in its home stretch. And when the prosecution rested its case this week, the defendants and their attorneys decided to celebrate. [male speaker] Don't anybody move, and one, two, three. [Myers] A full day of arguments for acquittal of the defendants by defense attorneys gives a

foreshadowing of what the defense team will present to the jury the next two weeks. Attorney Michael Fowler, representing lawyer Phillip Brooks, said counterletters used to hide the true ownership of hospital projects are legal. If a lawyer can't execute a counter- letter then the legislature is a party to this crime, he said. Attorney Thomas Rutter (?), representing architect Perry Segura, told the judge that Segura, like Smith Barney, earned his fees and if paying quote finders fees are illegal then lots of folks and attorneys are in deep, deep trouble. Defendant James Wyllie's attorney Richard Simmons argued without proving the bribery of John Landry and the Governor then forming hospital corporations with the intent to market them is not illegal. Defendant Marion Edwards' attorney Jack Marcel (??) said the prosecution did not prove Marion Edwards was involved in a scheme to bribe his brother. Attorney Risley Triche representing Gus Mijalis said a $100,000 payment for nursing home approvals was given from one private citizen to another. Mijalis is trying to get that obstruction of justice

charge dropped from the indictment. That indictment mistakenly lists Keith Gamble instead of Kevin Gamble. That name is different from the one the prosecution claims Mijalis tried to influence. Defendant Charles Isbell's attorney Lewis Unglesby said the way his real estate client conducted business may not have been the most genteel way to do it, but it was not illegal. And attorney William Jeffers representing Ronald Falgout said the prosecution's case is devoid of any evidence of an agreement of Falgout to bribe Landry or the Governor. But U.S. Attorney John Volz counters that if the charges against the eight defendants are dropped, then the slick, the cunning, the people who know how to manipulate, would escape the law. But Governor Edwards took prosecutors and Judge Marcel Livaudais by surprise when he stood up in court telling the judge he did not want him to drop the racketeering and fraud charges against him. He told a hushed courtroom he was acting against the advice of his own attorneys, saying that while his co-defendants are ordinary citizens, he is a governor. And because he is a

governor, he says there's more at stake than his guilt or innocence and he wants the jury to hear his side of the case. Said the Governor, "the lack of evidence presented in this case justifies a verdict of acquittal, especially against my co-defendants." After his dramatic courtroom appeal, Edwards reminded reporters he cannot violate the gag order imposed by the judge. [Edwards] I cannot comment on the trial, thank you very much. [Myers] Speculation among courtroom observers and attorneys is that Edwards may take the witness stand to counteract negative publicity caused by prosecution's evidence of his gambling debts. Previous testimony has revealed that Edwards accumulated more than $2 million in gambling debts over a three-year period, a million of which was during 1984 when he was governor. Still unexplained, however, is how the Governor got hundreds of thousands of dollars in cash to pay those debts. Just before prosecutors rested their case, they dimmed the courtroom lights, playing audio and video tapes of news conferences held by the Governor on September 26 and November 30th

of last year. The tapes were played to show contradicting statements by Edwards about his ownership interest in four hospital corporations. Those projects won state approval between his second and third term as governor. That September news conference was held at the capitol and the November conference was held immediately after he testified before a federal grand jury that later indicted him. [Edwards] I do not have any interest in Falgout's business and never did. I did work for him as a lawyer and a consultant. Well, I had four different ventures that I succeeded with as a partner, consultant and a lawyer. Call me whatever you want to with Mr. Falgout. In one instance, I got some stock in AMI just sold for about $400,000. In one instance I got some stock in HC that I sold for about $400,000. And in another instance I got a cash fee from him for about $200,000. The total amount of what I got from the four of them is much closer to $2 million than $1 million. [Myers] Answering questions about why he made money in the hospital scheme, Edwards said about one of the

projects in East Baton Rouge, "I initiated the idea. I'm the one who gave birth to the idea." A previous government witness has testified, however, that it was not the idea that was worth the money. Edwards also said "I got from him, defendant Falgout, fees for representing him as a lawyer and as a consultant." The prosecution has tried to prove that Edwards actually did little or no work as an attorney for the four projects. The Governor's bookkeeper Barbara "Bunny" Creech testified again this week as the last government witness. Asked by prosecutor Pauline Hardin how much attention did Governor Edwards pay to his records and record keeping, she replied, "Not much." And asked, "you said you always put sales of stock in lawyers fees and commissions," she said, "That's correct." But Creech said she did not treat a February 1984 $76,000 sale of Empire Land Corporation stock as a legal fee. That firm is under federal investigation examining the Governor's relationship with Texaco. The 10th week of the trial resumes Monday.

[Johnson] Interestingly Judge Marcel Livaudais Jr., who is presiding at the Governor's trial, is the newest federal judge in New Orleans. And this is his first major criminal case. Before the Governor became involved in the alleged hospital approval scheme, he took a lot of heat for his handling of the environment. He was especially criticized for a comment he made on national TV about tradeoffs between industry and the environment. Today Louisianians pay for many of those so-called tradeoffs in the way of polluted land, water and air. New technology is offering hope that one day we may be able to undo some of the damage. But for many areas of Louisiana, it may already be too late. (song about river) [singing] [singing]

[singing continues] [singing ends] [Ross Vincent] There are very few states in the nation that have suffered as much and will continue for a long time to suffer as a result of some of the sloppy practices that hazardous waste generators and disposers have used nationwide. Other states have similar problems, but few of them have it in as many places and in as concentrated a fashion as Louisiana does. It's going to cost us probably billions to get out from under this problem. [Johnson] No doubt about it. Louisiana has paid a staggering price for the neglect of its land, its air, and its water. We've paid the price. But have we learned the lesson? [music] Who's garden was this? Must have been lovely. [music continues] [singing more] [singing] I've seen pictures of flowers and I'd love to have smelled one.

[Johnson] When it comes to the disposal of hazardous wastes, there is a right way and a wrong way, a safe way and a dangerous way, an expensive way and a cheap way. For too many years in Louisiana, many reputable industries -- in some ways no different than the outlaw midnight dumpers -- took the wrong, dangerous, cheap way out. [ominous music] [Ross Vincent] The technologies for dealing with hazardous waste in a fashion much better than we've traditionally done it is improving.There has been technology available that could have done a better job for a long time, but there's been no incentive to use it because the regulatory program programs have been ineffective and as a rule the better technology is more expensive. So that the operators have chosen to cut their costs by leaving us a toxic burden that we're going to have to cope

with for years, if not generations. [Gerard Daigre] In the past most people took the very easy way out -- that was to put hazardous waste directly into the river, into landfills or into other very cheap accessible disposal sites. This has changed because of tightening regulations and because of management philosophy. What we've seen is a change in philosophy here and that we are going to treat our waste and treat it well on site and do away with the liability of that waste. If we burn it and incinerate it properly, we do away with that liability. In the past much of this waste was put into landfills, and we still have that liability as is evidenced by the cleaning up of many of the old hazardous waste sites in the state. [Johnson] Many critics say Louisiana would not have the problems it does today if companies 10, 15, even 20 years ago, had to follow the rules and regulations

that govern companies today. There are at present four widely accepted methods of disposing of hazardous wastes: incineration, solid waste landfills, injection wells, and biological closure, which is the use of microorganisms or bacteria to break down dangerous compounds. Dow Chemical is recognized as one of the leaders in incineration technology. In 1981 Dow constructed a $13 million general purpose rotary kiln incinerator system at its Plaquemine plant. Unlike other incinerators, a rotary kiln can destroy solids, liquids, sludges, gases, even whole containers of toxic materials. Incineration is actually a simple chemical oxidation reaction. Organic material made up largely of carbon and hydrogen is reacted with oxygen to produce carbon dioxide and water vapor. Ninety-nine point nine-nine percent of the hazardous wastes are destroyed in this process. [Stan Cole] This is the Dow Chemical Louisiana Division rotary kiln incinerator where both liquid and

solid hazardous waste is burnt. We feed in the solid hazardous waste in plastic grams (?) on a conveyor system. The liquid waste is piped directly into the unit. The kiln section here, where the combustion process starts, runs about 1450 degrees Fahrenheit. From there the combustion gases go into the secondary combustion chamber where we're now operating about 1800 degrees Fahrenheit to be sure that the combustion process is completed. From there the combustion gases are quenched and then go into a wet scrubber system where any particulate matter is removed. It is then vented through our stack and what we're dealing with at the stack is primarily CO2 and water vapor which are the byproducts of this combustion process. [Daigre] The unit that you see here is what we consider state of the art. It is one of the newest units in the United States. It is computer controlled. It has all the proper instrumentation to allow proper shutdowns, proper control of the burning process. We feel that it's a very efficient process and are very comfortable that we are meeting state

and federal regulations regarding this incineration system. [plant operator] Ok, steam pressure's 25 and we want to go to 30 on the valve. [Cole] Currently what you're seeing right now is the board operator in communications with one of the outside operators is trying to get the proper adjustment on a flow to the incinerator to ensure that they're not overfeeding the incinerator. And that's what they're currently trying to adjust. Using the computer, they can monitor what that flow is and make the necessary adjustments from here in the control room while the man out in the field watches the burning operation inside the kiln. (workers yelling)

The purpose of the computer monitoring is to ensure that we're getting adequate destruction in our incinerator and we do that by monitoring the temperatures and the CO in the stack. If either the temperatures in the kiln or the CO on the stack goes too high, then there's an automatic shutdown that feeds the incinerator. This is how we ensure that we're getting proper destruction of the waste. The system will automatically shut down if there's a process upset. [Johnson] For the most part the process is safe, clean and efficient, but it's also expensive. Researchers say one way to cut costs is to biologically treat hazardous wastes. These are microorganisms seen under a microscope: living, one-celled bacteria that multiply rapidly. Now when most people think of bacteria, they think of diseases: tuberculosis, pneumonia, even strep throat. But today microorganisms are being used in essence to eat organic waste material as food and, in doing so, convert it

to carbon dioxide and water. [Ralph Portier] Microorganisms are decomposers. Man for centuries have been taking advantage of the ability of microorganisms to degrade, to decompose organic materials for various purposes. You take the domestic municipal waste, typical sewage plant. We take advantage of the ability of microorganisms to process and degrade that organic material. In the situation we're discussing here, we're just focusing a old technology, domestic waste treatment, and we are now approaching it in terms of hazardous waste, taking microorganisms and attempting to accomplish the same things. [Johnson] This is the old Inger hazardous waste site near Geismar. It's an environmental nightmare, a real mess. It's also on the EPA Superfund hit list. Researchers are

hoping to use this as a pilot project for the rest of the country. State officials say conventional cleanup of this site, where contaminated soil is dug up, containerized, and then hauled away to approved landfills, could cost between four and five million dollars. That figure could be cut in half by using microorganisms. [Paul Templet] If you move a toxic waste from one site to another, you're causing some problems because the actual digging it up usually puts more into water bodies, if there's a local water body, into the streams. If you haul it in trucks, you've got a chance for accidents on the road. If you put it into another disposal site where they're not doing things just absolutely right, that site itself may turn out to be a hazardous waste problem in the future. The best thing is to destroy it on the site if you can. It's the safest, it's the cleanest, it's the best way to do it. [Johnson] Whether it's the use of microorganisms or incineration or solid waste landfills, the technology is there to begin cleaning up Louisiana. But it will take time and money

and after years and years of neglect we may be in danger of running out of both. Well from new technology here on Earth to new technology in space, Martin Marietta's Michoud plant in New Orleans is trying to land a $2 billion contract to build a space station. That could mean a lot of new jobs for Louisianians, as Laura Myers reports. [countdown] Three, two, one. Lift off! [Myers] From the limits of outer space to the boundaries of Earth, a group of high technology experts wants Louisiana to play a major role in NASA's space program. These people are part of a select group who intend to prove that Louisiana and its Martin Marietta Michoud complex in eastern New Orleans have the right stuff, the right stuff to bring 1,200 new jobs to Louisiana. Behind these closed doors, some of the state's top high technology experts are working to build a $2 billion space station for NASA. That $2 billion space station

will be the first permanent manned space station in human history, and it could be built in Louisiana. [Richard Davis] It would continue to bring high technology into the Louisiana area. We certainly brought it in with the external tank and we'll be here for many years on the external tank. However, the space station would add several new dimensions, some technologies we don't currently use on the ET. It would also represent, I think, a source of jobs for some of our excellent engineering graduates from schools like Tulane and so forth to be able to stay in the area instead of receive their degree and then look for employment outside. [Myers] This space station will be built in Louisiana. if Martin Marietta beats out its chief competition for the $2 billion contract, Boeing Aerospace. If Boeing gets the contract, the space station would then be built in Huntsville, Alabama. These preliminary space station designs are being built under a $24 million federal contract. The final station will whirl around the Earth 300 miles up into

space. [John Dye] As I envision it today, it would be very similar to what is going on through the space shuttle program today, with spacecraft and past history of the Skylab project. Basically long-term habitation via manned crew with life science experiments and metal processing experiments, physical structure and other related, you know, engineering or scientific work. [Myers] The first manned U.S. Space Station, Skylab, spun for seven months over the Earth after launching in 1973. But the first permanent space station won't come inexpensively. This project is part of a total $8 billion package intended to function in space for several decades. [Dye] Basically the station has to be designed to meet a 10-year lifetime period with indefinite life through on orbit replacement and repair. It's like trying to design a car to last indefinitely. Which is a pretty hard task.

[Myers] Michoud is designing living areas for a crew of six to eight people, laboratories and manufacturing modules, and storage facilities for oxygen, food, and fuel. Michoud feels it has the right stuff to build this permanent space station because this complex alone has over 40 acres of space. Michoud has deep water access to Florida's Kennedy Space Center launch pad and a steady stream of young engineers provided by Tulane and the University of New Orleans. By contrast Boeing plans new construction in Huntsville if it gets the project expected to be awarded sometime next year. There's another benefit to the state if Michoud builds the $2 billion project. Space station job descriptions require talents of high tech experts, electrical and mechanical engineers, chemists, and biomedical specialists -- new jobs that will stay in Louisiana. [Johnson] Well, long before anyone thought about building space stations, the new frontier was anything west of the Mississippi River. In Pineville, the Mt. Olivet Chapel was built during those wild

west days. Later it served as a headquarters for the Union Army during the Civil War. The chapel has survived a lot, and today it serves as a link between our past and our present. Karen Nachman has a feature report on this historic church. [music] [Nachman] In the heart of Central Louisiana, nestled among the pines, stands Mt. Olivet Episcopal Church. It's one of the few remaining buildings in Pineville, Louisiana, from pre-Civil War days. The Union troops spared Mt. Olivet Chapel when they burned Alexandria in May of 1864. [Craig Morgan] Well, it wasn't burned because this is where the Union troops had their headquarters. It's built on the highest land close to the river, and they had a marvelous view of the river. And so the Union troops made this their headquarters. And we even have stories of them shooting Confederate runners as they sat on the porch of the church. Quite interesting

that it would not be burned because the rest of Pineville was burned to the ground when the Union troops left so that the Confederates could not use any of the existing buildings to their advantage. [Nachman] Mt. Olivet Chapel was built in 1858 and consecrated in 1859 by Bishop Leonidas Polk. Bishop Polk was also known as the fighting bishop. Now that's because during the Civil War he turned in his robes for a Confederate uniform to fight for the Southern cause. It's said that he went into battle with a sword in one hand and a Bible in the other. [Morgan] Well, the purpose for building the church was a funeral chapel for St. James Church in Alexandria. Alexandria being flat, they did all of their burial on this side of the river. And there was no bridge at that point, so a funeral was a quite a long affair that involved barges coming across, so in 1857 with about $700 a group of Episcopalians

built this chapel as a funeral chapel. [Nachman] Mt. Olivet Chapel was the only Protestant church in the Pineville area until 1870. After the Civil War the chapel was used not only for funerals but as a schoolhouse and church for the residents of the area. Today Mt. Olivet serves as the home of the western diocese of Louisiana. The bishop of the diocese restored the church to use as his bishop's chapel and to allow tourists to share in the beauty and history of Pineville's oldest survivor. [Johnson] Well, that's our show for tonight. I hope you enjoyed it. Next week a special report on Louisiana's troubled sugarcane industry. A way of life for hundreds of years in the state is threatening to vanish. That story and a lot more next week. I'm Ken Johnson. Thanks for watching and have a great weekend. Goodnight. [music] Funding for the production of Louisiana: The State We're In is provided in part by the

Zigler Foundation of Jennings, and Gulf States Utilities, helping Louisiana bridge the gap to our energy future. [silence]