The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Wednesday, September 21, 1994          TAG: 9409210432
SECTION: FRONT                    PAGE: A5   EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: ARLINGTON                          LENGTH: Medium:   60 lines

ANTI-NORTH GROUP SAYS HE USED RELIEF FUNDS FOR POLITICS

A group dedicated to opposing Oliver L. North claimed Tuesday that the Republican's U.S. Senate nominee may have used hurricane relief money to further his political ambitions.

North's fund-raising machine roared to life when Hurricane Andrew sliced through South Florida and slammed into Louisiana two years ago.

North fired off an urgent direct-mail plea on behalf of hurricane victims to tens of thousands of supporters who had joined a group known as the Freedom Alliance. In the Sept. 25, 1992, letter, North asked for tax-free donations to help lift the spirits of families who would be living in tents and temporary shelters during the Thanksgiving and Christmas seasons.

It is unclear how much money the appeal raised, but available tax records show that by the end of 1992, the Freedom Alliance had dispersed only $200 in specific grants to hurricane relief.

The stop-North outfit - Clean Up Congress - held a news conference Tuesday to claim the Freedom Alliance may have diverted the hurricane money to efforts to advance North's political career.

``It looks mighty fishy,'' said Woody Holton, the chairman of Clean Up Congress and son of former Republican Gov. Linwood Holton.

Woody Holton acknowledged he has no proof, but challenged the Freedom Alliance to release its Form 990 tax statement for 1993, due two months ago.

The Freedom Alliance did not mention the challenge in a prepared statement. But the alliance claimed it spent nearly $50,000 on the hurricane relief effort, almost double the $26,000 in contributions it said was generated by North's appeal for help.

Freedom Alliance President Edward J. Bronars could not be reached for comment.

North established Freedom Alliance in 1990 with the stated purpose of encouraging a return to traditional values, conducting research on national security issues and registering voters in a non-partisan manner.

Through the former Iran-Contra figure's appeals by mail, the Freedom Alliance raised $9.2 million through the end of 1992. North left the group a year ago this month to concentrate on his bid for the Senate seat now held by Democratic incumbent Charles S. Robb.

Clean Up Congress contends the unstated purpose of Freedom Alliance was to promote the political career of North through development of a donor list, which is now the backbone of a Senate campaign on target to break the all-time spending mark of $17.8 million.

Holton suggested Tuesday that the Freedom Alliance was delaying the release of its tax forms until after the Nov. 8 election because the documents might show little was spent on hurricane relief.

Holton said he was not impressed with the Freedom Alliance's claim that it spent more on the hurricane operation that than it took in.

Holton said his group would wait until the final 10 days before the election and back whoever has the best chance of beating North. Holton said that the group's choice is more likely to be Robb.

KEYWORDS: U.S. SENATE RACE VIRGINIA CANDIDATES by CNB