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

DATE: Tuesday, October 4, 1994               TAG: 9410040432
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY ROBERT A. RANKIN, KNIGHT-RIDDER NEWS SERVICE 
DATELINE: WASHINGTON                         LENGTH: Medium:   56 lines

AGRICULTURE CHIEF ESPY RESIGNS

Agriculture Secretary Mike Espy, who reportedly accepted free football tickets and other favors from companies doing business with his department, abruptly resigned Monday.

Espy is one of President Clinton's most faithful political supporters, but White House aides signaled to Espy that it was time to go as an ethics investigation of his conduct neared completion.

In announcing his resignation, effective Dec. 31, Espy acknowledged that ``I was indeed careless in managing the details of my personal activities'' - a reference to an apparent practice of accepting gifts and trips from people and firms that do business with the Agriculture Department.

President Clinton accepted Espy's resignation ``with regret.''

In a statement released by the White House, Clinton added that ``although Secretary Espy has said he has done nothing wrong, I am troubled by the appearance of some of these incidents and believe his decision to leave is appropriate.''

Some friends theorize that Espy ran into trouble because he was in the habit of accepting gifts and other favors as a member of Congress. Members of the Clinton administration must follow more stringent ethical rules.

Espy's conduct also is being investigated by an independent counsel who will determine whether he has violated federal law.

Espy reportedly accepted gifts such as free tickets and skybox seats for Dallas Cowboys football games from Tyson Foods Inc., the nation's largest poultry producer and, as such, the object of regulation by Espy's department.

Espy's reputed girlfriend, Patricia Dempsey, also was awarded a $1,200 scholarship from a Tyson-sponsored foundation in September 1993.

Espy also routinely billed the government for dozens of trips to his native state of Mississippi. The trips reportedly appeared to have minimal public purpose, but often corresponded to weekends when Espy was allowed visitation rights to see his two children. Espy, 40, is divorced; his children live with their mother near Jackson, Miss.

Espy's series of ethical missteps raised questions of whether private firms or individuals were trying to curry favor with Espy, the administration official said. There is no evidence that any government action or policies were misapplied, the official stressed, adding: ``On the other hand, the appearance is very troubling.''

Lawyers from the White House counsel's office ``presented our concerns'' to Espy last Friday. White House Chief of Staff Leon Panetta ``told (Espy) these were serious concerns and he should think about it over the weekend.''

Espy insisted Monday that the decision to resign was entirely his own, although he admitted having met with the White House chief of staff again earlier Monday. by CNB