Monday, Jun. 08, 1987

American Notes THE CAPITAL

Since Washington's flamboyant Mayor Marion Barry was elected in 1978, municipal scandal has been as much a perennial in the nation's capital as cherry blossoms. Barry's ex-wife, two deputy mayors and a host of other officials have been found guilty of crimes from diversion of federal funds to fraud. Two weeks ago, as U.S. Attorney Joseph diGenova wound up a 17-month undercover probe into the awarding of city contracts, a subpoena was served on the mayor ordering him to hand over two pairs of alligator shoes supposedly given to him by a contractor. Investigators also disclosed that they are seeking evidence that former City Employee Karen Johnson, who went to prison for refusing to testify about allegations of drug use in the city government, had received hush money from two city contractors.

Barry angrily denied the charges and accused federal officials of abusing their subpoena powers. "My administration has been investigated to death in almost every conceivable way," he complained. The timing, however, could have been better. On the day Barry denounced the inquiry, his chief financial adviser took a leave of absence with pay to fight charges that he had traded contracts for gifts.