Coping with Carter's Code

THE TRANSITION Coping with Carter's Code

"It was a hard decision, but this was something I had to face." So said a sad-faced Jimmy Carter last week as he announced that he was getting out of the peanut business to prevent any conflicts of interest after he becomes President. "I don't have any regrets about it," said Carter. Then, after a brief pause, he added, "There are some regrets."

Carter was doing no more than other Presidents and officials have done. But his memories of his boyhood include the long dusty hours that he worked in the family fields. After he became a full-time farmer in 1953, Carter and Wife Rosalynn boned up on the latest agricultural techniques, gradually increased their holdings to 2,000 acres and greatly expanded the family peanut warehouse. The warehouse business now has annual revenues of about $1 million, and in 1975 paid Carter $119,244.

He will turn over to a trustee 92 1/2% of the holdings in the farm land, which has a total value of $353,890 and 62% of the holdings in the warehouse, which is valued at $1.5 million. The trustee, in turn, will rent out the lands at a price that will remain fixed during Carter's presidency so that he does not profit while in office from any decisions he may make. The trustee will also sell or lease the warehouse, probably to Brother Billy. In addition, Carter has sold all stock, worth about $140,000.

Carter will also require his 2,200 top-level appointees to abide by an unprecedentedly rigorous financial code. While they will be permitted to keep real estate, savings accounts and Government securities, they will have to:

1) Disclose all assets, liabilities and income sources in 1975, plus those of their spouses and minor children.

2) Sell or place in blind trusts all investments that might involve them in conflicts of interest.

3) Promise that for two years after they leave office, they will not take private jobs that involve contacts with federal agencies or officials on matters that were part of their Government responsibilities (this may be hard to enforce).

Carter's own ethical sense and the character of his appointees will be more important than any rules. The restrictions may also discourage some able people from joining the new Administration. On balance, however, the code sets a stern moral tone that the public clearly wants.

The code's first victim was Greg Schneiders, 29, who joined Carter in 1975 as a baggage carrier and became a confidential aide. After reading an FBI report on his bad debts and bounced checks, he withdrew from consideration as White House appointments secretary.

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