Louisiana: The State We're In; 912

[Beeps] 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. If the oil and gas industry is, as they say, the backbone of the state's economy then farming is its heart and soul. Agriculture is big business in Louisiana. It's also in big trouble. A recent report showed that 18 percent of all farm losses in the United States, 18 percent of them occurred right here in Louisiana. Tonight a special report, Trouble on the Farm. Also tonight we'll have a wrap-up of this week's testimony in the fraud and racketeering trial of Governor Edwards and seven others, plus a feature report on award-winning photographer Philip Gould, a man who sees Louisiana as a microcosm diverse in cultures, religious beliefs and heritages, a man whose photographs seem to have spirits. [Theme music] Good evening, I'm Ken Johnson. Thanks for joining us for tonight's show. Money, it's been

called the life blood of state government. Well, if that's the case, then Louisiana may be bleeding itself to death. This week, a report prepared by the Legislative Fiscal Office revealed that the state is giving away $4.13 billion. That's billion, not million. More than $4 billion a year in tax exemptions. This at a time when the state budget is in the red and when state agencies are being ordered to slash spending again and again. Now, of course, some of the exemptions are required by federal law or by the state constitution. But whatever the case, many legislators say it's time to review all exemptions. The three biggest: exemption for food from the state sales tax, $231 million a year; sales tax exemption for electricity, $163 million a year; and personal exemptions for individuals on their state income tax forms. That amounts to $163 million a year. The state Legislature is looking into those exemptions. In other news this week at the State Capitol, a lottery expert said Louisiana

could realize up to $300 million a year from a lottery, one that has built-in safeguards to prevent against fraud and corruption. Louisiana certainly could use the money. This week the state's largest teacher group, the Louisiana Association of Educators, said it will push for pay raises ranging from $12,000 to $26,000 phased in over four years. The LAE said it also has a plan for firing bad teachers. And finally this week, the Department of Environmental Quality said it is investigating a six-block area in Port Allen to determine if some 50 underground storage tanks are leaking hazardous materials into the ground. Meanwhile in Washington the Senate has given preliminary approval to a compromised farm bill that reduces subsidies to rice, cotton and wheat farmers here in Louisiana, but makes it easier for them to obtain disaster relief aid following hurricanes, floods, even droughts. That should help some farmers around the state. But for others, it may already be too late.

I went out and looked at some beans a while back that they were cutting and I wouldn't have fed them to my chickens. They were terrible. This crop has been devastated. I think we're going to see some mass foreclosures, bankruptcies, people walking off and just leaving. [Music] [Music] [Music] Scarecrow on a wooden

cross, blackbird in the barn, 400 empty acres that used to be my farm. The lyrics to that song by Farm Aid organizer John Cougar Mellencamp are haunting. But worst of all, they're true. Farmers in Louisiana, just as they are all across the country, are in trouble, big trouble. The problems here have been especially acute. Three hurricanes this year, two freezes last year, record flooding, a drought, high interest rates, low prices and now there's concern that a farm credit crunch could force many banks to foreclose on hundreds of farms statewide. Rain on the scarecrow, blood on the plow. [Music] Well, I have always been an incurable optimist, but I'm almost cured of it now because I don't see a short-term solution to our problems and I think that traditional agriculture, by that I mean row-crop farming, is in serious trouble.

There are some avenues for people who are willing to invest in aquaculture and in specialty crops such as vegetables in this area. But there the investment is tremendous to make a conversion and I think opportunities are probably limited by your ability to finance it. They're really up against the wall. Sugar farmers will be in a little better position because we are able to salvage something. Soybean farmers as a whole were in terrible shape because of the price structure, even before the storm. If the oil and gas industry is, as they say, the backbone of the state's economy then farming is its heart and soul. Agriculture is big business in Louisiana, has been since way back before the Civil War. Once wealthy aristocrats, the Plauchets [?], D'Marignys, the Sinclairs, the affluent controlled sprawling cotton and sugar plantations from one end of Louisiana to the other. Farming has changed a lot since then. The big plantations for the most part are gone. Their memory

is kept alive only by history books. Today Louisiana's rich countryside is a quiltwork of small farms. Some 35,000 of them statewide, most of them 500 acres or less. They are owned and farmed not by aristocrats, but by people who aren't afraid to roll up their sleeves and work -- often seven days a week from sunup to sunset. I've been involved of farming all my life. I've worked under my father and then two years ago my brother and I went into business together. And we have seen the good years and the bad years, but you really have to love farming to stick through, stick with it through the bad years. Knowing the problems that you have, why do you stay in it? Well, that's probably the hardest question to answer of all, because it's something that a farmer asks himself time and time again. And I think of the famous words for any farmer as well: Next year we're going to see a good one. It's going to happen

and we're going to get out of this mess. Not all farmers feel that way. More and more of them are selling out and getting out before their spirit gives out or the bottom falls out. That doesn't make them quitters. Farmers are a tough bunch, always have been. Most consider themselves lucky when they show a profit one year out of every three. When they do have a good year, they pay off bank loans and bills and buy new equipment and livestock. When they have a bad year, they bite their bottom lip and tough it out. Farmers historically are fighters. When they're not fighting low prices and high interest rates, they're fighting floods in the spring and droughts in the summer. But this year, three hurricanes. Well, that's enough to dampen the spirits of even the toughest stone-faced, tobacco-chewing farmer. Mr. Patterson, as a district manager for a large farm implement company, you travel from one end of Louisiana to the other. What are farmers telling you? They tell me they have no money due to the price of commodities in which they have to merchandise within this state state at the present time. That means to you? Absolutely zero sales

and farm machinery. All manufacturers today are taking the crunch as drastically, in my opinion, as the farmer is. Yes, we too are going out of business. This year has been very difficult. We've, our sales in machinery dropped like 70 percent. Machinery-wise, parts probably 15 to 20 percent, parts service was way down and we had an excellent crop made, but we're harvesting it in an awful poor fashion. What we'll get out of it no one can really tell yet but we're butchering it and it's in terrible shape. You're a fourth generation farmer. Do you think it will stop there? I really don't know. I have a son who wants to farm, but I'm encouraging him to study something else so that he'll have something else he can do if he, if he doesn't have the opportunity to farm. I'm not real optimistic at this point about continuing in agriculture. I'm looking at other options.

More and more farmers around Louisiana are finding themselves in the same spot. Farmers who own their land and have collateral can go to their bankers and borrow money they need to make it through the lean times. But other farmers, mostly small farmers, young farmers, those who lease land or those who are making big monthly payments on land they've recently bought are hanging on by the skin of their teeth. Ten years ago it was a different story. He was making a living. He was probably sending his children to LSU. He was paying for his house, he was buying new cars, he was buying equipment. What about today? He's going broke. A hundred and fifty acres, you cannot make it today in Louisiana. Small farms are being swallowed up every day, but it's not just the little guys in trouble. The future of Louisiana's $5.5 billion a year farming industry could be at stake. Recent studies at Louisiana Tech University depict graphically just how serious the problem is becoming. In the second quarter of 1985, personal income from farming in Louisiana plummeted by more than $100 million. That represented a

monstrous drop of nearly 50 percent compared to the same time a year ago. Worse yet, 18 percent of all farm losses in the United States, 18 percent of them occurred right here in Louisiana. Disturbing news to some, alarming to others. I think the American public must be made aware of the plight of the American farmer. I don't believe that the American farmer's ever cried, hollered wolf in the past. He definitely is not at this particular time. The sooner that our general Congress and the number of households throughout America realize that we cannot live in this country without the food and fiber produced by American farmer and rancher today, that's what it's going to take, in my opinion. What do you tell farmers who are trying to hold on? We've got to all, that includes me too, hang in there, hang together. Despite damage from this year's hurricanes, soybeans continued to be Louisiana's number one cash crop valued at $450 million, followed by rice,

cotton and sugarcane. This year nearly two million acres of soybeans were planted across Louisiana, but that's a sharp drop from five years ago when three million acres were planted. Soybeans were on an up climb at that time. We were looking at prices $7, $8 or some over $8 a bushel for soybeans. And now we've got $5 for soybeans so that tells the story. Mr. Evans, a few years back, you were one of the sugarcane farmers in Louisiana who decided you had enough and you switched to soybeans. Was it a bad move? Well, at the time it wasn't a bad move. We were, the price of sugar was extremely depressed and until sugar was put back in the farm bill, it wasn't a profitable crop and so soybeans at that time were. So we switched to soybeans and now we are in a - due to several influences main one being government interference with our markets -- we've, we've lost a tremendous amount of our export markets and the price of soybeans is depressed

because there's more of them produced than we can use. Sugar farmers aren't faring much better this year. Before Hurricane Juan ripped through Louisiana's valuable cane belt, farmers were expecting one of their best crops in years. Then Juan huffed and puffed and blew the cane down. Now farmers are just trying to salvage what they can. Losses in some parts of the state could exceed 30 percent, the difference between making it and breaking it. I think so. We're right on the edge right now and even though we do have a very, very good crop this year the yields, because of the hurricane and everything like that, is going to be pretty tough. So we had we were having a real good crop, you know, and it just it looks like it, it really kind of devastated the industry now. What do you think then is the outlook for the agricultural community as a whole? Very bleak. Very bleak. I think sugar is one segment of agriculture that is not going to suffer near as much as the rest. But we're not going to grow. Those of us who are in it will stay in it, and I don't think we're going to attract any new people. I don't know it don't

look too good. If, while we were banking on the sugar bill, you know, to really help us. Without the sugar price supports in this country, you wouldn't be in business. Oh, no, unh unh. You could plow all this stuff into grass and just walk away from it. Many farmers have walked away from it, a lot more will. But others say they'll stick with it as long as they have money or until there's rain on the scarecrow, blood on the plow. Why do you stay in it? The love of it. It's in my blood. [Music] Louisiana farmers, of course, still have their fingers crossed. A final vote on the farm bill could come next

week. Right now the big stumbling block is President Reagan's insistence on a plan to begin cutting farm subsidies by 5 percent a year starting in 1987. The other big news story this week was the ongoing fraud and racketeering trial of Governor Edwin Edwards and his seven co-defendants. Laura Myers has a wrap-up of this week's key testimony. Laura. Ken, the 10th week of the federal racketeering trial ended this week after jurors listened to 18 witnesses who took the stand. Those defense witnesses include three mayors, a state representative and a Catholic priest -- each called to testify about the character of some of the defendants. During testimony the issue of whether certain nursing homes were needed emerged as a key issue. But a more controversial issue also came up. The state wants to close down a Shreveport nursing home owned by one of the prosecution's key witnesses. Defense attorneys changed strategy late this week when the state ordered more than 35 nursing home patients moved from a Shreveport nursing home owned by a key prosecution witness. The Medicaid patients, many of whom are elderly and

minority, were ordered moved from Highland Guest Care Center in Shreveport owned by Kevin and Kit Gamble to other nursing homes in the area. Kevin Gamble testified in late October he paid defendant Gus Mijalis $100,000 cash for state approval of two nursing homes in Shreveport and Monroe. The Department of Health and Human Resources ordered those patients moved, saying the Gamble brothers lost their state 1122 certificate for Highlands when they opened a new nursing home, Spring Lake. Governor Edwards denies that he knew of the patient transfer order. If you are interested in it, I would ask you again to go and talk to Mr. Sweeney or to Dr. Roberts or whoever in the Department was responsible for the action, whatever it was that was taken. Governor Edwards says had he known DHHR was taking that action at this time, he would have told the Department to issue the order after the trial ends. The state's action may be somewhat untimely for the defense's case. The Governor denies the action is political retaliation against the Gambles, instead

referring questions to the deputy secretary of DHHR, H. K. Woody Sweeney. Sweeney was scheduled to testify this week but hasn't been called by the defense. According to the agreement that they made when they were given 1122 approval for Spring Lake Home, those 38 beds at Highland were to be transferred there. And they did not do it. Sometime during the Legislature someone told me that they were still operating Highland and we had our people check it out and they were. And that's when they were sent the first letter in August. Defense attorney William Jeffers, learning of the patient transfer, implied during testimony the Gambles were thus ineligible to collect $27,000 monthly from the federal government. They've been collecting that money since last December. The defense team is trying to undermine the credibility of Kevin Gamble, one of the prosecution's strongest witnesses. He was granted immunity from prosecution for his

testimony. So far only two defendants have taken the witness stand: architect Perry Segura and Shreveport businessman Gus Mijalis. Attorneys familiar with the case say that can be a risky defense, but one that can be done to convince the jury of a person's innocence. It made me nervous. Yes, it did. It wasn't tough, but when you tell the truth, it's not tough. And several character witnesses have taken the stand for the defendants, but several of those character witnesses have also proven to be good prosecution witnesses. Mijalis is the only one of eight defendants to be charged with obstruction of justice. Besides the RICO conspiracy violation, he's also charged with three separate counts of mail fraud. Taking the stand, Mijalis testified he's the hard-working son of Greek immigrants. He's made millions of dollars from a successful seafood business but he's also millions of dollars in debt. Attorney Risley Triche painted a colorful personality profile of his client as Mijalis told vignettes

about his life. Denying the obstruction of justice charge, Mijalis told the jury, I never told Kevin Gamble not to tell the grand jury about the $100,000. I told him not to tell his attorney Bob Pugh about the money. Mijalis said he and Pugh have a strong dislike for each other that goes back to the days of campaigning for Edwin Edwards. Mijalis described his close friendship with Edwards, a friendship that included shared ownership of a Texas ranch, a Pensacola beer distributorship, hunting trips and even a three-day Las Vegas trip for Mijalis's 50th birthday party. It was during that trip that Edwards accrued more than half a million dollars in gambling debts. Mijalis said the Gambles were like babes in the woods when it came down to arranging details for new nursing homes, so they agreed to pay him $100,000 for his help. When the Gambles backed out of the deal, Mijalis said he kept $30,000 cash as compensation and put it in a safe deposit box. Asked by U.S. Attorney John Volz about that cash transaction, Mijalis replied, "I have a

right to keep my books the way I want to. This is not Russia yet." Describing that deal as a $100,000 handshake, Volz questioned why Kit Gamble, who paid $16,000 dollars to go on Edwards' Paris fundraising trip and who was appointed by Edwards to the Louisiana Nursing Home Association, needed Mijalis to introduce him to the Governor. Character witnesses Bill Hannah and Calhoun Allen, former Shreveport mayors, describe Mijalis as tenacious and controversial. But the tune of the testimony changed when Mijalis's longtime accountant William Roberts took the stand. Volz asked him what Mijalis told him about the $100,000 cash for his personal account. In 17 years that's the first time you ever heard him say anything about a large cash transaction? Roberts replied, Yes sir. And later, Roberts said he told me they asked for his help in obtaining nursing home certificates. Volz repeated the question verbatim. Roberts added, also for building the homes. Another defense witness proved

to be a double-edged sword. Former Louisiana Nursing Home Association Executive Director William Kimbro. Kimbro testified the nursing home group strongly supported a moratorium on healthcare projects later supported by Governor Edwards. But Governor Edwards approved a Gambles' project, Caddo nursing home near Shreveport. Kimbro said he couldn't see a need for one there and also said the Association felt we were becoming overbuilt with nursing homes in the state. Asked by prosecutor Marilyn Barnes about a need for more nursing homes in minority race areas, Kimbro replied,"I have no knowledge of that at all." Earlier that day State Representative Alphonse Jackson of Shreveport told the jury he thought there is a need for more nursing homes. Yes, there is a need for nursing homes, nursing homes in minority areas. I have said that repeatedly as chairman of the Committee on Health and Welfare. It's unfortunate that in this state there are certain impacted areas located in poverty

pockets that aren't being served. Attempting to prove the eight defendants did not defraud Louisiana citizens, the defense called witness John Silvers, an economics professor. But Silvers testified that the cost of buying hospitals is repaid by the patients. In all this week, 18 defense witnesses took the stand. Defendant James Wyllie was described as straightforward and honest. Former New Orleans Mayor Moon Landrieu described defendant Philip Brooks as honest, with an excellent reputation. Mijalis' secretary Nancy Matthews described work Mijalis did to earn that $30,000 fee. Witness Robin Everett, a Health Services Development Corporation employee, said she did not know Governor Edwards was involved in the projects. And defendant Charles David Isbell's attorney Lewis Unglesby called bond attorney Steve Hicks to the stand. The state has reached the determination that there was a need. In fact, it was our understanding that the Terrebonne General Hospital was considering opening their own psychiatric wing within their own

hospital. So, considering that there were no other psychiatric facilities in the parish at all, I'm sure there was a justified need. Testimony in Governor Edwards' trial will resume Monday and continue on Tuesday. The trial will then recess for the Thanksgiving holiday. Well, there's one man in Louisiana who says every day should be a Thanksgiving of sorts. Philip Gould has spent the better part of the past 10 years photographing the people and places that make this state unique, from our festivals to our diverse cultures. Gould believes Louisianians all have something to be thankful about, and his photographs seem to capture that spirit. [Camera clicks] When award-winning photographer Philip Gould looks through his camera, he sees beyond people and things as subjects. He sees Louisiana, his home, as a microcosm, a miniature universe, a tiny world diverse in cultures, religious beliefs and heritages. If the United States is the melting pot of the world, then to Philip

Gould, Louisiana is the melting pot of the United States. It's a feeling that is deeply embodied in his work. Photographs that seem to talk, spirits that seem to live on paper. [Music] Philip Gould was born on the East Coast, raised on the West Coast. But today he calls Louisiana home. A former newspaper photographer, Gould's works have also appeared in numerous publications, including Louisiana Life and National Geographic. But he may be best remembered for a book entitled "Louisiana: A Land Apart." Gould and a close friend Nicholas Spitzer collaborated on it. The book includes fascinating chapters on Louisiana's land, its people, the celebration of life and death. It begins with an observation that Louisiana is riding into the future in pickups, pirogues, private jets and Mercedes Benzs, a land a part of and yet apart from its past.

One of nice things about Louisiana is that there are a lot of people who could be called characters, who could be found in some fine literature, who are full of contradictions. And I wanted to give a sense of that kind of person in Louisiana. And you find them in all walks of life. I think people here are pretty interesting. [Music] Louisiana has a reputation for being a fun and party state, and I think that's just a sign that people don't look too deeply. Because this is a hard-working state, too, and they make up for it in celebrations. I wanted to portray some of the more unusual things, Saint Joseph's altars, of course the Mardi Gras all over the

state, have a rural baptism of a black church, different religious things, televised Baptist service, all kinds of things. I don't know. It's just a collection of how people enjoy themselves. [Music] There's a lot of unusual things and ways that people in Louisiana deal with death.The whole question of All Saints Day, the jazz funerals. Also the book and the section begins with the people going to the in a jazz funeral to the grave site and it ends with them coming back and so there's a sense at the end of the book of rebirthing. It's almost a cycle and cyclical feeling. So you end on a real up note. [Music] Louisiana: A Land Apart, Philip Gould's new book, is filled with hundreds of spectacular

photographs, but you could probably put the same cutline underneath every one of them. This is what we are all about. It's a great book. That's our show for tonight. I hope you enjoyed it. Next week a special report on AIDS -- what people are doing about it and why you should know about it. That story and a lot more next week. I'm Ken Johnson. Thanks for joining us and have a great weekend. Good night. [Theme 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.