ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, May 18, 1995                   TAG: 9505180066
SECTION: NATL/INTL                    PAGE: A-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium


GRAMM: MOVIE DEAL WENT BAD

Texas Sen. Phil Gramm said Wednesday he made a blind $7,500 movie investment 20 years ago that turned into a proposal for an R-rated spoof called ``Beauty Queens.'' The movie never was made, and he lost the money, he said.

In acknowledging the investment, the Republican presidential hopeful vehemently disputed accounts of it given by his former brother-in-law, attributing them to ``an old family vendetta.''

The former in-law, George Caton, told the New Republic magazine that Gramm's interest in a movie investment stemmed from watching a soft-porn film, ``Truck Stop Women,'' during a visit to his Los Angeles home.

``Totally false,'' Gramm said. ``I never saw any movie.''

Caton also said Gramm was offered his money back after plans for ``Beauty Queens'' were scrapped. Caton said Gramm insisted it be invested in a film sharply critical of Richard Nixon.

``Nobody ever offered me a chance to get my money back'' or told him about plans for an anti-Nixon movie, Gramm said in an interview with The Associated Press. ``The statement he has made about my drooling over this movie film is just totally false. We obviously have an old family vendetta here.''

Also false, Gramm said, was Caton's assertion that Gramm had a business associate's wife sign the contract because he was planning to run for office and did not want his name on the investment.

He said he used a joint business account because ``it was the only place I had the money.'' The wife of Gramm's partner signed the contract. She referred reporters' phone calls to Gramm's office.

Gramm said he was confident voters would accept his account over the one of his former brother-in-law. He said he had called key supporters of his presidential campaign around the country to reassure them.



 by CNB