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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Blackwell, Morton: Files Folder Title: Conservative PACs (Political Action Committees) Box: 5 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ Conservative file PACs LAW OFFICES OF MILLER, CANFIELD, PADDOCK AND STONE ROBERT P. GRIFFIN* CLEVELAND THURBER A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS SIDNEY T. MILLER (1564-1940) JAMES F. SCHOENER* LAWRENCE D. OWEN SUITE 300 GEORGE L. CANFIELD (1656-1928) LEWIS H. PADDOCK (1866-1935) COUNSEL 2555 M STREET, N.W. FERRIS D. STONE (1882-1945) EMMETT E. EAGAN GEORGE T. STEVENSON WASHINGTON, D.C. 20037 DENNIS K. LOY GERALD E. ROSEN WILLIAM G. BUTLER JOHN A. THURBER, P.C. FRANK L.ANDREWS KEVIN TRIMMER JOHN A. GILRAY, JR. R.C. ORIN D. BRUSTAD THOMAS W. LINN STEVEN D. WEYHING JAMES E. TOBIN CARL H. VON ENDE GORDON A. BECKER TELEPHONE (202)-822-9333 STEPHEN G. PALMS BRANT A. FREER STRATTON S. BROWN GILLIAN BTEINHAUER JOHN D.STOUT RICHARD B. GUSHEE, P.C. DAVID D. JOSWICK, P.C. TELECOPIER (202) 463-8071 JEROME R. WATSON AMANDA VAN DUBEN PETER P. THURBER CHARLES L. BURLEIGH, JR. DONNA J. DONATI SRIAN A. KASER LAWRENCE A. KING, P.C. JOHN A. MARXER, P.C. 2500 DETROIT BANK & TRUST BUILDING WABEEK BUILDING DONALD W. KEIM GARY A. BRUDER ROBERT E. HAMMELL GREGORY L. CURTNER, P.C. LARRY J. BAYLOR JOSEPH F. MAYCOCK, JR. DENNIS R. NEIMAN DETROIT, MICHIGAN 48226 BIRMINGHAM, MICHIGAN 48012 RONALD J. CLAPHAM CHARLES E. SCHOLL DAVID F. DIXON ALLEN SCHWARTZ KENNETH E. KONOP (313) 963-6420 (313) 645-5000 RICHARD J. SERYAK JOHN W. GELDER, P.C.® SALLY L. GEID LEONARD D. GIVENS MICHAEL R. ATKINS GEORGE E. PARKER m* KAY 1.JOHNBON W. MACK FAISON EXECUTIVE CENTRE 13999 WEST BAY SHORE DRIVE MAUREEN P. AUGHTON RICHARD A. JONES, P.C. E. ELIZABETH PERLMAN MICHAEL D. MULCAHY LELAND D. BARRINGER STEVAN UZELAC, P.C. JAMES W. WILLIAMS 214 EAST ELM AVENUE TRAVERSE CITY, MICHIGAN 49684 FREDERICK STICHNOTH EDW. D. EINOWSKI GILBERT E. GOVE THOMAS G. SCHROETER J.SCOTT TIMMER MONROE, MICHIGAN 48161 (616) 946-1000 TIMOTHY D. SOCHOCKI WOLFGANG HOPPE THOMAS P. HUSTOLES (313) 243-2000 THOMAS c. PHILLIPS CONRAD L. MALLETT, JR. ROBERT S. KETCHUM, P.C. JOHN D. PIRICH HUGH M. SMITH JOHN D. RAYIS SAMUEL J. McKIM III,P.C. WILLIAM J. DANHOF MARJORY G. BASILE BTEPHEN J. OTT ROCQUE E. LIPFORD, P.C. CLARENCE L. POZZA, JR. 110 BUSINESS & TRADE CENTER TERRENCE M. CRAWFORD LINDA O. GOLDBERG JOEL L. PIELL JERRY T. RUPLEY 200 WASHINGTON SQUARE NORTH STEPHEN R. GOOSTREY THOMAS .APPLEMAN ROBERT E. GILBERT MICHAEL W. HARTMANN RYAN H. HAYWOOD KAREN A. PULLIAM BRUCE D. BIRGBAUER KENT E. SHAFER LANBING, MICHIGAN 48933 GEORGE G. MARTIN TANYA Y. HILL DAVID OLMSTEAD JOHN J. COLLINS, JR. (517) 487-2070 CHARLES M. McCUEN NANETTE RUTKA . ADMITTED IN MICHIGAN & DISTRICT OF COLUMBIA March 9, 1982 John Maxwell, Esquire Subcommittee on Committee on Judiciary 4-B Russell Senate Office Building United States Senate Washington, DC 20510 Re: Taxation of Administrative Costs of P.A.C.'s Dear John: Yesterday we discussed the Dole-Grassley Tax Reform provi- sions and a possible addition which would equalize an inequitable situation presently created relating to administrative costs of political action committees. Historical Background Prohibition on contributions or expenditures by corpora- tions, directly or indirectly, in varying degrees, have been in effect since 1904. Since the Taft-Hartley Act of 1947, such prohibitions have also applied to labor organizations. The landmark case of United States V. Pipefitters Local Union No. 562, 407 U.S. 385 (1972), triggered the exemption from such prohibition that was contained in the Federal Election Campaign MILLER, CANFIELD, PADDOCK AND STONE John Maxwell, Esquire -2- March 9, 1982 Act of 1971. In that case, the carve out from the prohibited acts was the sponsoring of a voluntary fund, strictly segregated, that could be used for political purposes. The Court held that the political organization need not be formally or functionally independent from union control. The law codified the Pipefitters decision in 18 U.S.C. S 610. After the 1974 amendments, that provision is now found in 2 U.S.C. S 441b. The legislative debates and commentaries clearly indicate that the Congressional intent was to treat corporations and labor organizations equally in the application of this law. Permissible Activities Pipefitters and the legislation following it permitted corporations and labor organizations to: a. Communicate to their members (labor), stockholders and administrative personnel (corporations) on any subject. b. Political communications had to be reported to the Federal Election Commission under certain circumstances. C. Non-partisan registration and get-out- the-vote campaigns could be held. d. Separate, segregated, and voluntary political funds could be established and administered by a corporation or labor organization. e. Solicitation of such contributions to the separated fund could also be made from the labor organization or corporate funds. f. The same provisions also applied to membership organizations and cooperatives as well as corporations and unions. MILLER, CANFIELD, PADDOCK AND STONE John Maxwell, Esquire -3- March 9, 1982 Taxation of Administrative Costs Since these were permitted corporate activities and were in connection with business connections, most corporations deducted those expenses incurred in setting up such segregated funds under Section 162 (e) of the Internal Revenue Code. A prior Revenue Ruling, 68-414, seems to indicate that these indirect expenses should be deductible. On January 20, 1982, however, the I.R.S. issued Letter Ruling No. 255 which confused the "grass roots" lobbying taxation provision with separate segregated funds. It acknowledged that the I.R.S. was not following the F.E.C. inter- pretation (in spite of clear Congressional dictates to "consult" for mutual consistency, 2 U.S.C. $ 438 (f) ) and held such expenses not deductible as business expenses by a corporation. Since labor organizations use tax free dollars for similar administra- tive costs, this letter ruling produced a definite tilt toward labor political action committees. Proposed Remedy Since the obvious Congressional intent has been disrupted, it will probably require legislation to correct the problem. A possible approach by finding labor organizations subject to Section 527 (f) of the Internal Revenue Code and taxable for political expenditures has drawn little interest at the I.R.S. The solution proposed would incorporate language such as: "notwithstanding other provisions of the law, activities which are permitted to corpora- MILLER, CANFIELD, PADDOCK AND STONE John Maxwell, Esquire -4- March 9, 1982 tions, labor organizations, membership organizations, cooperatives, or corporations without corporate stock shall be treated similarly for tax purposes. The Secretary of the Treasury shall promulgate regulations to provide that administrative, establishment, solicitation, communication and registration and get-out-the-vote campaign expenditures as allowed in 2 U.S.C. § 441b to such organiza- tions are taxable income subject to the normal tax and surtax as if the organization were a corporation without specific deduc- tions nor net operating loss deductions or special corporate tax deductions." Language of similar import without involving the Secretary of the Treasury could probably be drafted by someone from Legis- lative Counsel's office who is expert in the Internal Revenue Code. Obviously, if the House refuses to adopt such equalizing provision, then legislation which would provide as an addition to I.R.C. 162 would be in order: "Expenditures by corporations, membership organizations and cooperatives which are made as allowed render 2 U.S.C. § 441b shall be deductible as ordinary and necessary business expenses.' If you desire, I would be glad to meet with you and others who are interested in this problem. Sincerely, JFS MCO James James F. 7. Schoener Schoener Anti-abortion PAC gives aid where By Robert Timberg Washington Bureau of The Sun 7-17-82 THE Washington-"hat would you do if your best friend was in trouble? Wouldn't you offer PAC POLITICAL ACTION him the shirt off your back? Lend him needed money or give whatever assistance you could? COMMITTEE "Well, one of the pro-life movement's very best friends is in serious trouble-Congressman BUSINESS Henry Hyde of Illinois." Thus began a direct-mail fund-raising letter Last of a series earlier this year from Paul A. Brown, director of the Washington-based Life Amendment Polit- In fact, Mr. Hyde said he neither ical Action Committee, the nation's wealthiest LAPAC was the first of many con- needed nor wanted LAPAC's help, anti-abortion PAC. servative groups to target Maryland and when he got wind of the letter he Democratic Senator Paul S. Sarbanes The Brown letter caused a stir in Washington called Mr. Brown to protest, then for defeat in 1982. Almost immediate- anti-abortion circles when Mr. Hyde, a Republi- fired off a curt, two-paragraph note ly after the 1980 elections it labeled can and perhaps the chief congressional spokes- demanding the anti-abortion group him one of the Senate's "deadly man for the pro-life movement, flatly repudiat- "cease and desist" using his name in dozen." ed it and demanded Mr. Brown stop using his its fund-raising letters. LAPAC also is part of the conser- name. "Confirming our conversation of vative, largely Republican New Right In addition, Representative Hyde-in an in- this afternoon, I want you to know coalition, an affiliation neither en- terview with The Sun-explained that Mr. that the letter, copy enclosed, with joyed nor sought by all anti-abortion Brown's fund-raising solicitation misrepresent- my name used therein, was prepared groups, many of whom count Demo- without my personal knowledge," he ed the political realities in his home state. crats and liberals among their mem- said in the note to Mr. Brown. The Brown letter described "the political sit- bers. uation inaccurately and promised to provide "I hereby ask that you cease and Within the pro-life movement, campaign help for me that I did not want," Mr. desist sending any more letters of this which by no means is free of paro- Hyde said. type without my express permission," chial rivalries and petty jealousies, Mr. Hyde contended he was not in trouble in he said. Mr. Brown is viewed by some ele- his new district, although the boundaries now Sources said Mr. Hyde's note, ments as given to inordinate self- are substantially different from those that ex- brusque as it was, did not begin to promotion. isted in the 1980 election. convey the depth of the congress- LAPAC, which Mr. Brown founded Mr. Brown denied any impropriety, said he man's outrage when he learned of the several years ago, raised $625,748 had agreed not to use Mr. Hyde's name in future Brown letter. during the 1979-80 election cycle, letters, but maintained that he was not legally "The story is, Henry Hyde went di- more than any other anti-abortion po- obligated to make such an agreement. rectly through the roof-no ifs, ands litical action committee, according to "As a PAC, the law says we can get involved or buts about it," said one source in Federal Election Commission in any race we want," he said. "We are an inde- Washington anti-abortion circles. "He records. pendent PAC. We can do anything we want to." went bananas." Through March of the current The incident illustrates a little-known but "He went off the wall on it," said election cycle, which began January important fact about the PAC business-that another source. "Hyde is basically a 1, 1981, LAPAC has raised $233,797, competent moderate Republican and FEC records show. But FEC records PAC operators like Mr. Brown legally can raise he doesn't want to be geared up into further reveal that LAPAC's political funds for their organizations by playing on a this one-issue (process) all the time." activities may lag well behind its candidate's supposed political problems wheth- Representative Hyde, reflecting pace-setting fund-raising efforts. er the candidate likes it or not. the pro-life movement's reluctance to During the 1979-80 cycle, the most Confusing the issue still further are provi- air internal conflicts, at first refused recent for which complete records sions of federal election law which, in an effort to discuss the matter. He finally con- are available, for example, LAPAC to enforce the integrity of campaign-contribu- sented to a brief telephone interview reported that $536,091 of the $625,748 tion limits, inhibits PAC operators from seeking in which he maintained that the pri- it raised had been eaten up by operat- permission to use the candidate's name. mary factor prompting his strong ing costs. Mr. Brown, in fact, said he might have been note to Mr. Brown was the unauthor- Even with more money than any in violation of the law had he approached Mr. ized use of his name. other pro-life PAC, LAPAC reported Hyde, since LAPAC's intention, before the con- "I think it's highly improper for giving only $20,121 in direct or in- gressman objected, was to make so-called inde- anyone to use your name to raise kind contributions to candidates; pendent expenditures on his behalf. money without at least asking your $4,000 to other pro-life PACs; $59,901 An independent expenditure, in law, is permission to do so," he said. in independent expenditures on behalf money spent to help elect or defeat a clearly In arguing that Mr. Brown had of candidates it supported, and $5,635 identified candidate for federal office and must misrepresented the difficulties the in independent expenditures against be made without cooperation from or redistricting process had created for candidates it opposed. consultation with any candidate or him, Mr. Hyde said his new bailiwick In all, exclusive of operating costs, political committee. was "a staunch, strong Republican LAPAC reported spending only Mr. Hyde's district, the Brown let- district" even though he agreed it was $89,657 for the 1980 political races. ter continued, has been "radically 96 percent new to him. By contrast, the National Right to gerrymandered." Prospective con- The district, he said, is "very win- tributors also were told that "96 per- nable not one where I'm in trou- cent of his new district is NEW ble." He added, "Every night before I TERRITORY! Only 4 percent re- go to bed, I thank God for my dis- mains of his old district where he trict." could count on his constituents to sup- "I don't like being taken for grant- port him for reelection." ed and I don't like letters going out This means, the letter said, that that are not so," he continued. "I'm "one of the preborn child's greatest not fighting for my life. They allies in the U.S. Congress is being painted me as a victim they were go- redistricted out of a job!' ing to save from the jaws of death.' Mr. Brown further warned that Mr. Brown, for his part, said there pro-abortionists were building a large was no intention to mislead. "All I financial war chest and were "ready knew was that he was going to be to pounce" on Representative Hyde redistricted and simply made the as- and other friends of the pro-life sumption it would be a tough fight," movement. he said. "That's why I must turn to you for He did not claim to have done ex- help again -not for LAPAC-but for tensive research for the fund-raising the most valiant of our pro-life letter, saying he learned from Con- friends in Congress: Henry Hyde!! We gressional Quarterly, a publication can and must win if we fail, there that reports on the federal govern- will be no future for countless thou- ment and national politics, that Mr. sands more of God's most defenseless Hyde's post-reapportionment district children. PLEASE, send your would be more than 90 percent new. check at once!! Congressman Hyde "We just made the assumption 1-2 needs our help immediately!!" that would not bode well for Henry Hyde," Mr. Brown said. THE SUN, Saturday, July 17, 1982 Henry Hyde's letter to Paul Brown Congress Douse of of Life PAC, the newest of the pro-life - nc 20515 PACs, raised considerably less- $126,676-but pumped $109,120 into campaigns, FEC records show. NRLPAC was only established in Brown January, 1980, but its fund-raising benefited by its association with the Dear flibrary, Paul: Court D. c. 8. 20003 well-established National Right-to- Life Committee. In addition, the par- ent organization picked up its operat- ing costs, which a spokesman, Warren Sweeney, estimated at $40,000. Mr. Brown, seeking to explain his high operating costs, said there is "a very gray line between actual inde- more used you letters I to hereby therein, Confirming know of 48k that was this our that the prepared type conversation you letter, without cease without copy and my of my enclosed, desist express Vory this personal truly afternoon, sending permission. with yours, knowledge. my any I name want pendent expenditures and operat- ing costs." He said he could have legitimately pro-rated some of his staff salaries in Henry 1979-80 and reported them as inde- pendent expenditures, saying that such bookkeeping would have result- ed in a lower figure for operating costs. The LAPAC director further sug- gested that such questions were prompted by his rivals in the anti- abortion movement. "I called them operating ex- penses," he said, "because then (in 1979-80] we were not fighting any- body but the abortionists. Now I see we have to be more concerned with our friends." Sun graphic The Hyde-Brown affair highlights Mr. Hyde's letter asks head of PAC "that you cease and desist sending any a growing problem regarding politi- more letters of this type without my express permission." cal action committees, especially the free-standing types referred to by the dependent expenditure committee FEC as "non-connected" PACs. independent expenditure, said Mr. called "Friends for Hayakawa." Just as the First Amendment cov- Brown could well be correct. Since Mr. Hayakawa, now Repub- ering freedom of speech protects any- "This is campaign finance," she lican Senator Hayakawa, had used the one trying to defeat a candidate, it said, "it's not necessarily fair politi- name "Friends of Hayakawa" for the also sanctions individuals or groups cal practices." exploratory committee to advance who say they want to assist a candi- The FEC some weeks ago asked his senatorial ambitions as far back date whether that assistance is de- Congress to prohibit persons from so- as 1974, his attorneys demanded that sired or not. liciting contributions by "fraudulent- Mr. Jarvis change the name of his As a result, Mr. Brown has the ly misrepresetting" themselves as group. same right to raise money by saying acting in the nime of a candidate or Hayakawa attorney Vigo G. Niel- he wants to help Mr. Hyde as he does political party. sen, Jr., in a September 2, 1976, letter by saying he wants to defeat Senator "The commission has received a to Mr. Jarvis on file with the FEC, Sarbanes or the Progressive Political number of complaints charging that said the Jarvis committee had adopt- Action Committee has by targeting substantial amounts of money were ed a "confusingly similar name" and conservative Senator Jesse A. Helms raised fraudulently by persons or promised legal proceedings to "stop (R, N.C.). committees purporting to act on be- your unfair solicitations and the use "Suppose Jack the Ripper says he half of candidates," an FEC legisla- of our client's trademark." wants to support you," said FEC tive task force reported to the com- Currently, the FEC is investigat- spokeswoman Sharon Snyder. "You missioners. ing a complaint against a group might not want his support but he has Mr. Brown never purported in his called the 1980 Republican Presiden- a right to make independent expend- letter to be acting as a representative tial Campaign Committee, which itures on your behalf. It's freedom of of Mr. Hyde, but the FEC recommen- used a Washington mail drop to col- speech." dation reflects a growing awareness lect $400,000 in 1980 supposedly to Ironically, Mr. Brown might have of the problems created by seemingly promote Ronald Reagan's candidacy. violated federal election law govern- friendly solicitations that use a candi- The committee was not affiliated ing so-called independent expend- date's name. with either the Republican Party or itures had he sought Mr. Hyde's per- The problem is not a new one. the official Reagan campaign, and mission to use his name. Back in 1976, supprters of California earlier press reports said much of the "If I'm doing independent expend- senatorial candidite S. I. Hayakawa money raised was funneled to busi- itures, I can't be in contact with the reacted angrily when anti-tax advo- nesses formed by the committee's or- candidate," he said. cate Howard Jarvs established an in- ganizers. The FEC's Ms. Snyder, without ex- pressing an opinion as to whether the Brown letter qualified as a bona fide 2-2 PACs, principles and profits: This activist is a one-man band By Robert Timberg His activities are a further example of the Mr. Clinkscales's National Alliance rated him PAC, which technically is separate from the Washington Bureau of The Sun interplay between nonprofit and for-profit or- THE at 100 percent, presented him with its Golden National Alliance but shares its right-wing Washington-Conservative political activ- ganizations, and the manner in which individ- Age award and inducted him into its Hall of spin. ist, nuclear-energy advocate, direct mail ad- uals closely associated with each benefit financially. PAC POLITICAL Fame. In addition, Mr. Clinkscales and his busi- vertising specialist, mailing list broker- put ACTION Closer to home, conservative Representa- ness partner, Douglas O. Lee, use the town- them all together, blend in a soft South Caroli- Back in 1976, Mr. Clinkscales achieved COMMITTEE tive Marjorie S. Holt (R, Md., 4th) was rated house office for their business, CLCO Inc., a na drawl, and that's Curt Clinkscales. brief celebrity when he was sniffed out by 100 percent by Mr. Clinkscales last year while C. C. Clinkscales III, 35, has come a long syndicated columnist Jack Anderson's blood- BUSINESS direct mail firm, and its three subsidiaries, liberal Representative Barbara A. Mikulski C&L Communications, C&L Compositions and hounds and his operation was pronounced a (D, Md., 3d) was given a zero. Old people are way since the dog days of 1976 when he was the 5 M List Company. "political sideshow." Sixth of series major elements in the constituencies of both. running his fledgling National Alliance of Sen- Today, Mr. Clinkscales-a product of the Mr. Clinkscales has thus managed to com- ior Citizens from the tiny back room of the What Mr. Clinkscales was doing from his Carolina Piedmont whose first dentist was bine his ideological concerns with his business Needle and Thimble, a Georgetown-tailor one-room command post was mounting a shop. a compassion largely defined by Mr. Clink- Energy Secretary James B. Edwards-runs activities-though not, he quickly pointed out challenge to the well-established, similarly scales's own views. the alliance from a new suite of offices in the in an interview, to an extent be considers im- Mr. Clinkscales's latest venture is a politi- named National Council of Senior Citizens for The ratings were a reverse image of those northern Virginia suburb of Falls Church. proper. cal action committee, the Save Social Securi- the right to speak for the nation's elderly. of the liberal-oriented National Council. Rep- Also bivouacked there are Americans for "You're right to ask-I'm surprised no one ty PAC, an organization he established in In particular, he was rating, and publiciz- resentative Lawrence P. McDonald (R, Ga.), Nuclear Energy, a pro-nuclear-power lobby asked before," Mr. Clinkscales said in re- March to expand his role as the youthful ing, the voting records of congressmen to a John Birch Society member, for example, that Mr. Clinkscales co-founded with his busi- sponse to questions concerning the manner in champion of conservative old people. determine their compassion for old people- was condemned for his votes by the council. ness partner, and the Save Social Security See PAC, A8, Col. 1 The Sun 7-16-82 1/2 which he may have profited from "TV names don't sell by direct nonprofit organizations he has estab- mail," he said. again interviewing Mr. Clinkscales as lished. What about Americans for Nu- well as Mr. Lee. "The key is, I believe it is com- clear Energy, the lobbying group he Mr. Clinkscales was not present, pletely legitimate and I wouldn't do it and his business partner, Mr. Lee, according to Mr. Deangelo. Mr. Lee if I didn't," he said. "If I were making jointly founded to promote the cause closeted himself in his office, refusing a lot of money it'd be one thing." of nuclear energy on Capitol Hill? to be interviewed. Mr. Clinkscales pointed out that he "I have nothing to do with AFNE," "He cannot talk to you unless Curt takes no salary from the alliance he said firmly. gives him approval to talk to you," even though, as executive director, he In fact, although he is neither an Mr. Deangelo said. devotes "countless hours" to its officer nor director of the pro-nuclear Later the same day, however, Mr. operation. group, Mr. Clinkscales was taking a Deangelo visited the Washington Bu- He also said that his direct mail rather narrow view of his involve- reau of The Sun and provided Mr. advertising firm does not do any work ment with the organization. Clinkscales's written responses to for the alliance, either. Instead, he In addition to being a founder, his written questions presented to the said, that is handled by a company in business partner, Mr. Lee, is its first press secretary that morning. Mr. the Philadelphia area with which he and only chairman. Clinkscales's comments in this article has no connection. Moreover, having "nothing to do thus are drawn from the earlier inter- with AFNE" seems overly modest view and his subsequent written an- "Watergate did something for since CLCO does the group's direct swers. me,". he said. "It made me very con- mail fund-raising and 5 M brokers the Mr. Clinkscales has been associat- scious of ethics." mailing list, currently viewed as one ed with a number of conservative In subsequent correspondence with of the best in Washington. causes over the years. He was nation- The Sun, Mr. Clinkscales added, "At "The list responds exceptionally every turn since we began this busi- al director of Accuracy in Media, an well to strong pro-freedom, conserva- ness, we have sought to avoid both tive and political appeals," 5 M says organization that monitors the press conflicts of interest and the appear- of the list in promotional material. for left-wing bias and unfairness, in ance of same. The list is one of the most expensive 1976-1977. "This has meant the loss of plenty on the market, renting for $100 per He also worked as political con- of business which could have made sultant and fund-raiser in 1979 for a 1,000 names. our road much easier, but the public Philadelphia-based PAC that sought "It's hot," Mr. Clinkscales readily nature of our work has mandated that to persuade former Treasury Secre- acknowledged. "It's the best list we we not follow the easy route." tary William E. Simon to run for have, period." He estimated its worth president in 1980. In many ways, Mr. Clinkscales to the company at $500 to $600 a does appear to have passed up a num- month. In addition, Mr. Clinkscales serves ber of money-making opportunities CLCO began doing AFNE's direct on the executive committee of the naturally flowing from his relation- National Conservative Political Ac- mail by necessity, he said, because ship with both nonprofit and for-prof- when it was formed, no one else want- tion Committee. As previously report- it organizations. But not all of them. ed the job, seeing little future in fund- ed in this series, his firm, CLCO, has received from NCPAC payments For example, asked who handles raising for a pro-nuclear group. the National Alliance's mailing list, totaling about $35,000. "We couldn't get anybody to do it," he conceded that his list company had he said. "Really, there was no alter- Moreover, his firm also does direct the account. mail fund-raising for the National "We do ent the list, when it is native." Even then, he said, CLCO re- Conservative Foundation, a NCPAC rented," he aid. He said 5 M List fused to take on the job until AFNE's spin-off, although Mr. Clinkscales Company gets 20 percent of the rent- board passed a resolution saying "we said he has no formal tie to that or- al fee, the allia nce 80 percent. were the only ones who would do it." "It has not b een rented lately," he ganization. He refused to divulge how much said. His compa ny has made nothing hire a firm less intimately associated from it this year", he said, although a money CLCO is paid by the founda- with the group, Mr. Clinkscales said: tion, which like NCPAC is headed by list of former alliance members, "The question is, could they do it his old Georgetown University friend which 5 M also brokers, has been John T. (Terry) Dolan, but said NCF rented. In the last yea r, the National Al- CLCO continues to handle AFNE's "could be one of our largest clients." liance has experier nced a phenomenal direct mail even the ugh it has proved Mr. Clinkscales in March regis- growing spurt, that nks to a television to be more lucrative than originally tered with the Federal Election Com- advertising campail gn that Mr. Clink- viewed. Explaining the decision not to mission his latest non-profit organiza- scales said had inc. reased the mem- as well as I do? No one really reads tion, the Save Social Security PAC, bership from about 35,000 to about energy issues the way I do. I under- which has been promoted in National 560,000. stand politics and emotion and I un- Alliance publications. The $8 million Ca ampaign, which derstand what makes something "I believe Social Security is a con- featured actors Burl Ives and Harry click. This is like any other product. servative issue, not a liberal issue," Morgan (Colonel Potter on You're marketing an idea." he said. "It's been given over to liber- "M*A*S*H"), was fin anced by the He estimated that AFNE's direct als because conservatives run away, Academy Life Insuranc e Company of mail business means about $25,000 a because of fear that taking a respon- Valley Forge, Pa. year to CLCO. "It helps," he said. sible stand on Social Security will get The insurance compt any offered a "Darn right it does." them defeated at the polls. So "Senior Security Group Health Plan" As a mailing-list broker, Mr. for which anyone over 45 could quali- Clinkscales's firm also receives com- fy by joining the National Alliance for missions when AFNE rents other lists Save Social Security PAC will try to: to expand its fund-raising base, but he put some gut behind certain con-- $1 a year. "This is a very good way of in- said the $25,000 figure included those gressmen." payments. "This issue is going to blow upin creasing your members hip," Mr. Asked if he saw any conflict of in- the liberals' faces," he continued, Clinkscales said. "We don 't get any- thing but the member's llar- and terest in his private companies' prof- "and I want to be the man who puts: the charge under it." the name." iting from nonprofit organizations with which he is affiliated, Mr. Clink- Mr. Clinkscale said he would, He scoffed, however, at t he notion scales said: write the solicitat letters for the that the hundreds of thousand is of new PAC free of charge, but CLCO will. names for the alliance's ma iling list "I don't think so. You understand, not handle the direc t mail business, would vastly increase its worth, we fulfill every promise we make to "Again, I'm the n nost qualified per- maintaining that persons who respond people. We deliver exactly what we son to write this stufi'," he said. to TV pitches do not necessaril y make say we're going to do III gave the Who will broker th e mailing list? good targets for direct mail. [AFNE] list to another list broker, "The SSSPAC list d'oesn't exist yet, they would get 20 percent. Why so I am unsure who wi. 11 handle it," he should I do that? Why should that not replied. go to a firm I own, especially when I did the direct mail?" TOMORROW: Anti-al ortion PAC' Mr. Clinkscales was interviewed in sought to help the can paign of a: mid-May at his Falls Church office. congressman who say.s he didn't For more than a month thereafter, want it. The Sun made persistent efforts to reach him with additional questions, but he failed to return any calls. "I can't explain it," Mr. Clink- scales's press aide, Steve Deangelo, said on Sunday, June 27. "I guess you'd say he's incommunicado." Two days later, a Sun reporter went unannounced to the Falls Church office with the intention of Anti-abortion PAC sticks to fund- 7-15-82 By Robert Timberg THE Washington Bureau of The Sun raising Washington-A political action PAC POLITICAL ACTION committee headed by an Ohio state COMMITTEE senator and boasting an Idaho con- gressman as honorary chairman has BUSINESS papered the nation in recent years with letters seeking money to defeat Fifth of a series tently and totally original concepts public officials it calls "baby kill- are really startling." ers." pursue and develop their projects in "Well, I was quite surprised and But the ambitious political pro- the hope that they will make a major thrilled to get the award," Dr. Witten gram laid out in the letters-includ- contribution to society. So far, the said when told the foundation bad se- ing campaign contributions, political program has resulted in awards to 60 lected him for his "original" and seminars for anti-abortion activists individuals, 19 of whom were selected "startling" work. and "on-the-spot, up-to-the-minute" last week. "One of the main developments in campaign aid for pro-life candidates "The criteria for who gets fellow- physics in the last 10 or 15 years has -has never materialized. ships is sort of hard to pin down," said been to understand that protons and Instead, most of the money has Rachel Newton, assistant director of neutrons are made out of quarks- been recycled to pay for more fund- the MacArthur Prize Fellows Pro- smaller particles, that is. And one raising letters, which is virtually all gram, based in Chicago, "but it seems thing I'm working on is to understand to be evolving into this: We are look- the group has done during its three- new aspects of quark interaction," he ing for someone who has an excep- year existence besides give its honor- said. "But I never expected anything tional dedication to an endeavor in like this." ary chairman a $200 contribution a any field-the humanities, arts, Others, however, who knew Ed- few months ago. sciences, for instance-and has In fact, of the $189,215 raised by ward Witten in his high school days achieved an outstanding accomplish- the group during the last three years, are not at all surprised at the news ment in that field. But even more im- $145,623 (77 percent) went to pay that the young man who went on to portant than the accomplishment of receive a BA from Brandeis Univer- three northern Virginia firms with the individual is his future promise. direct ties to the organization itself. sity and a doctorate in physics from "The question we ask ourselves is The firms-Martin Advertising Princeton University now is the re- 'Will it make a difference to this per- Agency, Inc., of Vienna; Metro Print- cipient of a prestigious award. son if we give them five years of free- Park School English teacher Ken- ing and Mailing Services, Inc., of dom from economic constraints?' Be- neth Greif, who taught young Witten Sterling, and Caging Corporation of in the ninth and tenth grades and was Virginia, also of Sterling-bandled singled out by his former student as separate elements of the direct-mail "There is the an inspirational teacher, recalls that operation. both teachers and peers regarded him The group's actions demonstrate feeling that he really as "brilliant." the ease with which a free-standing is going to come up Dr. Witten's aunt, Ethel Klavens, "non-connected" political action of Pikesville, recalls that her nephew committee can disregard statements with something very always had a natural scientific bent it makes to contributors and spend important. He's and often was ahead of his teachers. money it collects from them in a dis- made a large "The public schools didn't know tinctly different way if PAC leaders what to do with him. They skipped so choose. number of original him from the fifth to the seventh And, even though the nonprofit theoretical proposals grade and then when be was at Park group bragged in fund-raising letters School, they had a professor from about low overhead and supposedly in the area of Hopkins teaching him math. all-volunteer leadership, its opera- unified quantum "But Edward always liked to tion further illustrates the extent to write, too. When he was 12 years old, which tax-free contributions flow to field theory.' he was always writing letters to the private, for-profit firms in the unreg- editor And they were printed. lated PAC business. Rachel Newton, Usually they were about politics. He MacArthur official was very opposed to the war in Viet- The PAC is called Americans for nam." Life, but for a time it also called it- Dr. Witten's parents now live in self "Stop the Baby Killers." Repre- cause, essentially, that is what it is: Cincinnati, where his father teaches sentative George V. Hansen (R, five years of freedom. We make no physics at the University of Cincin- Idaho) is honorary chairman. The demands on them to report to us dur- nati. (His parents were unavailable chairman, Donald E. (Buz) Lukens, ing that five years. We tell them there for comment yesterday.) is an Ohio Republican state senator are no strings attached and we mean Dr. Witten, who lives in Princeton, and former congressman long active it." N.J., with his wife and 2-year-old in the conservative New Right move- The amount of the award is based daughter, says he is not sure how he ment. on the recipient's age, with a $24,000 will use the money. "This just came Representative Hansen failed to annual minimum for individuals 21 or out of the blue and I haven't had any return phone calls, but his executive under, and a maximum of $60,000 for time to make plans or think about it assistant, L. Arlen Withers, said the winners 60 and over. The awards in- much." congressman had merely "lent his crease by $800 increments for every The MacArthur Foundation was name" to the group. something be year over 21. Recipients also receive established in December, 1978, a has done for 15 to 20 organizations in full health coverage, so the total month before the death of its founder, recent years. value of Dr. Witten's award will be John D. MacArthur, who amassed a "To none of them does he lend any $164,000. Checks are mailed monthly fortune in insurance and real estate. time," Mr. Withers said. Asked how to the grantees. The stated assets of the foundation, much responsibility the congressman At 30 Dr. Witten, who grew up in according to Ms. Newton, are $935 Baltimore county and Northwest Bal- million but "could turn out to be quite timore and attended Wellwood Ele- a bit more once some large pockets of mentary School, Sudbrook Junior real estate are sold off, which is in the High and Park School, is one of the works right now." youngest of this year's award win- Some estimates place the eventual ners. assets figure around the $2 billion Ms. Newton explained the selec- mark, which would make it one of the tion of Dr. Witten: "There is the feel- country's wealthiest foundations. ing that he really is going to come up The foundation, which is run by the with something very important. He's founder's son, J. Roderick MacAr- made a large number of original theo- thur, has an elaborate selection retical proposals in the area of process. unified quantum field theory. He is In 1981 the foundation named 41 very, very productive and his consis- MacArthur Fellows 1-3 Balt. Sun 7-15.82 took for the actions of such groups, be Hammering home its message, the "STOP THE BABY KILLERS replied, "Hopefully none." letter continued: "Abortion means will help anti-abortion candidates State Senator Lukens, a Washing- killing a living baby, a tiny human be- hire the best political pollsters ton public relations consultant, said ing with a beating heart and little fin- available. With our help, the Pro- Americans for Life was unable to fol- gers killing a baby boy or baby Life candidates will have accurate low through on the plans it set forth in girl with burning deadly chemicals or political polls and know the politi- its mailings to contributors because a powerful machine that sucks and cal weaknesses of the Baby Killers of recurring financial difficulties. tears the little infant from the moth- we want to defeat." "We've been in money trouble er's womb. No expenditure for this purpose is since the day we started," he said. "And to my way of thinking, that's shown on FEC reports. "We were slaughtered by the cost of just plain murder," said the letter, Americans for Life, in its fund- stamps. The postage just de- signed by Senator Lukens. raising letters, also informed pro- stroyed us." The letter told contributors that spective contributors that it "keeps But he also maintained, as did their money was needed to imple- its overhead to a bare minimum so James L. Martin of Martin Advertis- ment a plan to defeat the 1980 reelec- your gift of $15, $25, $50, or whatever ing, that direct mail proved to be an tion efforts of five Democrats- you can afford will be put to maxi- ideal political weapon in the 1980 Senators McGovern, Frank Church mum use." campaign, when all four of the (Idaho), Birch Bayh (Ind.), John C. "In fact," the letter continued, group's senatorial targets were de- Culver (Iowa) and Representative "STOP THE BABY KILLERS has no feated. Robert F. Drinan (Mass.), a Catholic paid staff. The Officers and Advisors "We banged them and hurt them," priest who subsequently bowed to a of STOP THE BABY KILLERS are said Mr. Martin, arguing that the tar- papal edict and did not seek reelec- all volunteers." geted senators never were able to tion. Despite that claim, FEC records shake the "baby killer" label once it "Here's how we're going to defeat and interviews with those involved had been applied to them in Ameri- these 5 Political Baby Killers," the demonstrate that some of those close cans for Life fund-raising letters. 1979 letter said, detailing its plans as to the organization were in a position A campaign aide to South Dakota's follows: to benefit from business the PAC gen- George McGovern, one of the target- "STOP THE BABY KILLERS erated. ed senators, seemed to support Mr. will give direct campaign contri- First there are the PAC's founders, Martin's contention in a Sunpapers butions to the anti-abortion oppo- whom Senator Lukens identified as interview shortly after the 1980 elec- nents of these Political Baby Kill- himself, Mr. Martin and Jeffrey tion. ers up to the $5,000 per cardi- Coman. "We had cases when a Catholic priest would step down from the-pul- date that's allowed by law There is no indication on FEC pit, lift up a baby and say, 'I ask you "Just imagine how much $5,000 records that Senator Lukens profited will do to help defeat George personally from the operation of the to vote for life. Vote against the baby killer,' recalled George V. Cunning- McGovern in a thinly populated PAC. state like South Dakota!" Mr. Martin, however, owns the ham, the aide. But according to reports on file at Martin Advertising Agency, a direct- Mr. Martin also cited heavy start- up costs to explain the PAC's failure the Federal Election Commission, mail advertising firm. Mr. Coman to carry out the plans mentioned Americans for Life did not make a works for him. In addition, Mr. single contribution to any candidate Coman's father, Edward F. Coman, prominently in the fund-raising let- during the 1979-80 election cycle. was the assistant treasurer of Ameri- ters. cans for Life. "Give us three or four more years The sole contribution made by the and we'll be making those contribu- group was in February, 1982, barely FEC records show payments total- four months ago, FEC records show ing $90,916 to Martin Advertising, the tions," he said of the three-year-old PAC. The beneficiary was Representative Vienna (Va.) firm which handled the Regarding what he termed "al- Hansen, the group's honorary chair- so-called "creative" end of the direct- most an incestual relationship" be- man, who received $200. mail operation. tween the PAC and the firms that Senator Lukens said he recalled Mr. Martin said he did not consid- serve it, Senator Lukens said, "You authorizing "four or five $100 contri- er himself a founder of the PAC and deal with people you trust the most." butions to key members of Congress" saw nothing improper in his efforts on "I do not think you can say fairly and was at a loss to explain their fail- behalf of Americans for Life. Neither that these guys are rolling over a lot ure to show up in FEC documents. "I Edward Coman or Jeffrey Coman of money," he said. specifically authorized it," he said, could be reached for comment. He also maintained that a hard- seemingly nonplussed. The PAC's treasurer, Michael T. hitting direct mail campaign was "I felt it was important that we at Patrick, is a Sterling (Va.) account- "the major thing" the group planned least stake a claim that we were ant who Senator Lukens said also to do. "Direct mail is our newspaper," making contributions," he said. helped start Americans for Life. he said. "The educational value of di- The letter continued: Mr. Patrick is identified on Virgin- rect mail is almost as important as "STOP THE BABY KILLERS ia corporate records as secretary- the money." will sponsor campaign seminars, treasurer of Metro Printing and Mail- Asked why contributors were nev- free of charge, for anti-abortion ing Services, Inc., a Sterling firm er told that their money would go to political activists. owned by his brother, Larry A. Pat- underwrite a direct-mail campaign, "Our campaign experts will rick, which printed and otherwise be said, "It is not something that teach Pro-Life campaign staffers processed the fund-raising letters. lends itself to selling the people how to get out the vote, how to or- Michael Patrick also is listed as a you're talking to." ganize a political precinct, how to member of Metro's board of direc- Asked if contributors had been recruit volunteers, how to effec- tors. misled, he said, "I sure hope not." tively use political advertising and Americans for Life has made pay- "I see what you're saying and it's a other essentials of a winning, anti- ments to Metro Printing and Mailing good point," said Mr. Martin, who abortion campaign." totaling $49,693, FEC records show. wrote the letters. "It certainly wasn't But FEC reports show no expend- According to the most recent FEC re- meant to be misleading." itures for campaign seminars, and port, which covers the first three "We've never said it directly," he Senator Lukens said none was ever months of 1982, the PAC still owes added. "I think we've implied it." held. the-firm $17,206. Americans for Life registered with "The question is whether you do Michael Patrick also owns the the Federal Election Commission as a that rather than just building the Caging Corporation of Virginia, es- "non-connected" political action com- (mailing) list," he said. sentially a counting house for direct mittee-one not connected to a fixed- "STOP THE BABY KILLERS mail contributions. The firm received membership organization like a cor- will fly campaign experts into payments totalling $5,014 for count- poration or labor union -in May: states where we've targeted Baby- ing the money contributed to Ameri- 1979. Not long after, it fired off its killing incumbents for defeat. Our cans for Life. first fund-raising letter. political experts will provide on- Mr. Patrick said he does not re- The letter was graphic. Prospec- the-spot, up to the minute advice ceive any salary or benefits from his tive contributors were told that for the problems that each Pro- brother's printing firm. Americans for Life was devoted to Life campaign faces." He also said that even though he is defeating four senators and one con- No such payments are shown on the PAC's treasurer, he is not in- gressman-"men who apparently FEC reports, and Senator Lukens said volved in the selection of contractors think it's OK to slaughter unborn in- none was ever made. who service the organization, most of fants by abortion." 2-3 Balt.Sun 7-15-82 which be said was done by Mr. Mar- NECESSARY IF MAILED IN TME tin. I do is the accounting "We and UNITED STATES bookkeeping "All work," be said. contract with Martin. He rental gets have printing, 2 mailing [and] list Asked whether he saw a conflict as of BUSINESS 12192 REPLY MA!- WASH NGTON, D.C wherever the he can get the best price." resulting from his position substan- FIRST CLASS interest of a PAC that does firm, BABY KILLERS treasurer business with his brother's to tial Patrick said, "I have nothing and STOP for LIFE Mr. with who does the printing 418 N.E. Suite 301 . Washington, D.C. LIFE 20002 c A Street, Political Action . Project of Americans for do mailing for Americans for Life." Asked if there might be a conflict Dear Friend: as a result of his company's he handling problem the PAC's caging businss, of. I "None that I know abortion And Please political take a propaganda second right I've now to look at the outrageous replied, haven't been paid for a while. That's $5,834 a (You'll ing find a list of anti- all U.S. abortion postcards to your by signing U.S. and mail- the enclosed then help me STOP THE BABY enclosed. KILLERS pro- problem." FEC records show a debt to Mr. Patrick for bookkeeping services. Regarding the failure of Ameri- its for Life to follow through on lot Massachusetts McGovern, raising baby These killer money anti-life propaganda.) to THE Senators on the back of that Senators. sickening George and cans Mr. Patrick said, "We had a the plans, plans, but we never did plans." get of big big money. That changes your OK Idaho It's to slaughter Birch Bayh, unborn infants men by abortion.,arently lowa. think Frank it's perfectly Church, Drinan, think," "It's he said of Americans for not anything like you might Life. against abortion. cards to urgent your U.S. that senators you sign and keep send the the pressure enclosed Pro-Life post- Abortion Because "abortion" is just a fancy word for on them to vote "It's hard-core, legitimate." Patrick, of Metro Printing do and the formation of the PAC. said. Larry Mailing, said he had nothing to "It's tears burning beating heart deadly means and chemicals little killing fingers. or a living killing baby, a baby a tiny boy murder. human or baby being girl with with a And the to little infant from its mother's a powerful machine that just a do a lot of work for some to with business relationship," he of the sucks As / write my you way of thinking. that's just womb. plain and fund-raisers, "We and this just happens and frantically for their 1980 this letter, political the goal: Baby Killers murder. are already working be one does in fact serve a records of them." Metro Printing number tives with men and women To pack the U.S. Senate an Mailing of political accounts, FEC . of Representa- free ab- show. Of Americans for Life, be said, to even $25, or $50. So / am asking. pleading, for you "They pay for half the printing costs didn't raise enough money and who STOP We else need to THE turn $275,000 to. to STOP THE BABY KILLERS and / don't know . gift of at least $15, postage." Ex-Senators McGovern, Church. for and Culver were targeted Bayh defeat by numerous organizations, in- more man feat visors So with our of please. STOP 5 your targeted THE BABY help BABY KILLERS STOP pro-abortion KILLERS THE has no are BABY paid allvolunteers. Senators staff. KILLERS The Officers help us and de- Ad- not the Republican National Senato- just Americans for Life. They Com- and mail generous your postcards contribution today! of $15, and $25, Congress- $50, or cluded National Republican Sincerely, mittee, Committee, National Conserva- with rial Political Action Committee, tive elements of the New Right BeyLukens Donald E. Lukens other coalition, and several anti-abortion Ohio Senator, Fourth District groups. This year Americans for Life has Sun Graphics targeted senators, including Maryland's for defeat four Democratic Paul S. Sarbanes. TOMORROW: C. C. Clinkscales heads a political action the com- So- 'Americans for Life' PAC's III that wants to take mittee cial Security issue away from payments to insiders Relationship Payment liberals. Name & Company to PAC $90,916 PAC founder James L. Martin Martin Advertising Agency Brother to Metro Larry A. Printing Patrick & Mailing Service Inc. PAC treasurer $49.693 of Vienna Va. PAC treasurer $5.014 Michael T. Patrick Caging Corporation of Total Virginia payments (77%, of funds collected) $145.623 'Americans for Life' raised $189.215 in the last three years. Sun Grapivcs 3-3 Librar racs Liberal PROPAC set up to counteract "I'm prepared to say that Mr. Kamber, defending his deci- what's happened on the right is a THE sion not to create a board, says he disaster today and we better start purposely set up PROPAC as he did PAC POLITICAL addressing it, and if they need a to "show up" a flawed system that ACTION disaster on the left before they has fostered the growth of right-wing COMMITTEE start addressing it, then we're pre- PACs, encouraged their tactics and pared to give them that disaster." BUSINESS ignored their cozy business relation- Victor Kamber. ships. 7-14-82 Fourth of series He says the loopholes in federal election law that have made possible By Robert Timberg a NCPAC will never be plugged until Washington Bureau of The Sun Mr. Kamber, 38, avoids such liberals show they can create and potentially sticky problems simply by groups on Washington-1 disaster is what fund organizations of equal ferocity. he's cooking up, Victor Kamber has operating with no board, no executive Mr. Kamber says he intends to be precisely the recipe. In a field notori- committee-nothing to oversee "as outrageous as you can be within ously lacking in safeguards, his lib- PROPAC's business and political ac- the bounds of decency and propriety eral Progressive Political Action tivities. For all practical purposes, and responsibility, but by being outra- PROPAC begins and ends with Victor Committee is moving toward new Kamber. geous, to point out the inequities of heights of unaccountability. the system." Thus, if NCPAC bruises voluntary But Mr. Kamber knows he's play- guidelines for soliciting organizations "Right now, the Democrats and ing with fire. He swears he planned it by failing to have an active, indepen- liberals can scream all they want that way, insists he's not making any dent board of directors or similar about NCPAC," he said. "Republicans money on the venture and is willing governing body, PROPAC all but nod their heads and say we don't like to show you his books to prove it. Of shatters them. it, but they're not about to do any- course, Mr. Kamber keeps his own Lending an even more striking thing about it as long as they get the books. aspect to PROPAC is the fact that the benefit of it. "I really believe if you're going to throw stones, you've got to live in a private business most deeply imbed- "The minute you start getting two ded in its operation is The Kamber glass house and I'm prepared on this Group, a two-year-old Washington equal forces doing something that is issue to live in a glass house," he public-relations firm with a growing counter to the system as we know it, says. -direct-mail advertising arm. it seems to me they will either close PROPAC is one of the literal political-action committees that The Kamber Group, headed by Mr. up the loophole or in some way start Kamber, houses PROPAC at its suite addressing it." emerged in the wake of the 1980 of offices in a downtown Washington Mr. Kamber, in fund-raising let- high-rise. The firm also collects and ters to contributors, has sworn eter- elections with the avowed intention counts PROPAC's contributions and nal vengeance on NCPAC and the of counteracting the rough-and-tum- pays many of its bills, for which the resurgent right wing. ble tactics of similar, more estab- company is reimbursed. lished groups on the right. But those contributors have not PROPAC thus embodies many of been informed in those letters that an The organization has won the sup- the things that are questionable about important, if secondary, part of Mr. port of two Maryland representa- the creation and business practices of Kamber's agenda-at least as he ex- tives, both liberal Democrats. Barba- political-action committees, especial- plained it to The Sun-is to highlight Γa A. Mikulski (3d) is quoted on a ly the free-standing types called NCPAC's lack of accountability by brochure as saying, "We need con- "non-connected" PACs by the Federal going it one better. structive organizations like Election Commission because they Nor is that element evident in PROPAC as one of our frontline are affiliated with no parent organi- PROPAC brochures and other litera- S.W.A.T. teams." zation ture he provided. And Parren J. Mitchell (7th), in a As Mr. Kamber acknowledges, fund-raising PROPAC is not only the brainchild of At times during an interview, Mr. letter endorsing Kamber sounds like a deeply motivat- PROPAC, said, "We simply can't sit a respected political activist long ed political activist trying through back and let the progressive tradi- identified with the labor movement, legal if somewhat bizarre methods to tion of American polities be over- but also of a hustling public-relations purify a system he believes is pollut- turned by right-wing reactionaries man with direct mail fund-raising ex- ed by the PAC phenomenon. and fundamentalist fund-raisers. pertise. At other times, his comments re- Mr. Kamber established PROPAC In addition, his private firm sends veal another side, that of a business in January, 1981, primarily to wage out the letters. The money that comes war against the National Conserya- in moves first through his company man acutely aware that PROPAC at tive Political Action Committee, the before reaching the PAC. Some of the some point could prove financially heavily financed, freewheeling right- money makes its way to private ven- beneficial to him. wing juggernaut. dors via the same route. And no one is He says, for example, that through Financially, it is a David-and-Go- watching. PROPAC he hopes to demonstrate liath battle. According to the latest No independent watchdog group that "an absolute nobody could go out Federal Election Commission re- monitors the business practices of po- today and, if they have the technologi- ports, NCPAC-established in 1975 litical committees, but two organiza- cal skills, generate dollars and be- -has raised $6.8 million for the tions oversee charities and have for- come a political force." 1981-82 election- cycle; PROPAC mulated non-binding guidelines for Moreover, of NCPAC and PRO- raised $262,000, but Mr. Kamber so-called soliciting organizations - PAC, he says, "Hopefully both will said recent receipts have lifted his which PROPAC clearly is by virtue of die." group close to the $400,000 mark. its heavy reliance on direct mail He also says that he and The Kam- In addition to his frontal assault fund-raising. ber Group have gone to extraordinary on NCPAC, Mr. Kamber seems to be Both the National Information Bu- lengths to avoid making money from performing some audacious guerrilla reau, in New York City, and the Coun- PROPAC, accepting essentially a theater to dramatize his contention cil of Better Business Bureaus' token $1,000 monthly fee for services that in the PAC business, "you can Philanthrophic Advisory Service, in to avoid entanglements with federal say anything you want to say, do any- Arlington, say an involved, indepen- election law. That law forbids in-kind dent board with no financial ties to thing you want to do." as well as monetary corporate contri- His vehicle is PROPAC, a politi- the soliciting group is needed to pro- butions in connection with federal tect contributors. elections. cal-action committee so utterly lack- ing in controls that even libertarian The only other PROPAC money John T. (Terry) Dolan, NCPAC's na- that goes to him or his firm, he says, is reimbursement for such things as tional chairman, might be flabber- gasted. phone bills, messengers and delivery Mr. Dolan, as reported yesterday, services because there is "no way to separate the bills." runs NCPAC with a handpicked board and executive committee character- ized by interlocking relationships with the private firms that service his organization. 1-2 FEC reports covering the period a successful PAC," he said. "I have no January, 1981, to March, 1982, show qualms about that." payments totaling a modest $13,608 He also recognized the potential PROPAC (Progressive Political Action Committee) advertising to The Kamber Group but none to Mr. for abuse resulting from his associa- Kamber himself. He says he accepts tion with PROPAC. "I could create Jack Schmitt may no pay for his efforts on behalf of my own client," he said in an earlier not get much PROPAC. WHEN interview. "I could get rich. On done in the He also says The Kamber Group, PROPAC, Vic Kamber could get contrary to its usual company prac- rich." Senate, but ORRIN tice, has no rights to PROPAC's Asked if he is accountable to any- he sure 10,000-person mailing list, even body, he replies, "No. I mean, ac- looks KATCH WHEN though co-ownership of lists is preva- countable to my conscience, and to ORRIN good CRIES "WOLF", IF YOU THINK JESSE lent throughout the direct-mail indus- my integrity, and to the [extent] that HATCH SAYS try. we've indicated that everything is "All of this is to protect us," he doing it. BIG BUSINESS HE LIKES HELMS IS AGAINST open. But in fact, does anybody look says. "I made it a point that we did over our shoulder? No." THE HOUSTON BIG GOVERNMENT, not co-own the list so there could be He scoffs at the idea that boards of no question." SENDS MONEY. OILERS, HE'S NOT Despite such sentiments, he also directors provide safeguards for con- THINK AGAIN! TALKING ABOUT FOOTBALL says, for example, that if PROPAC tributors, saying he made a "con- were to start bringing in perhaps $1 scious decision" not to create one be- million a year, he might drop out of cause such bodies are little more than ARE MAYBE ORRIN TO GOVE AND a device "to make you look good or to Out of HELMS OUT OF YOUR the PAC management, establish a HATCH IS A WOLF IN is 1 BEDROOM YOU MUST FIRST respectable or clean." SHEEP'S CLOTHING. GET JESSE OUT OF board of directors and try to make DONE be does THE SENATE some money on the operation. "How do we differ from anything with a board if the boards are phony AGAINST JACK SCHMITT AGAINST ORRIN HATCH AGAINST JESSE HELMS "If there's going to be monies organizations, if the boards are paper earned in a real sense, as opposed to Sun Graphics tigers?" he asked. "To find 10 people hiring [other fund-raisers), I would to say, 'Right on,' I mean it's crazy. hope The Kamber Group would be re- Anybody can do that, or you shouldn't tained and could make the profit that be in this thing." PROPAC takes on Senator S.I. Hayakawa is made in the direct-mail field from He also says he is concerned about possible embarrassment if he were to recruit a board. "If you involve a When California bunch of prominent people, and you Balt. Sun fall on your face, you embarrass Needs the Best, them and you embarrass yourself," he said. Hayakawa's Among Having said that, however, he 7-14-82 adds, "A board restricts you, a board 'the Worst" frustrates you." "I found liberals eat themselves up," he says. "You get three liberals in a room and there are four separate ideas and five separate arguments that start about which way to go." But doesn't that mean that the 10,000 people who so far have bank- rolled PROPAC to the tune of $400,000 simply have to trust him and him alone to act responsibly, ethically and to spend their money wisely? "Hm, I guess in the simplest sense, has and defined in the simplest terms, trouble mastering of the rudimentary PAC probably that's true," he replied. details of his job six years after he started n: "They've got to trust, yeah, I guess they do, Vic Kamber." PROPAC AD 2-2 TOMORROW: One PAC has raised SENATOR S.I. HAYAKAWA money but restricted its activities Sun Graphics to mass mailings. Insiders in NCPAC operate group 7-13-82 "We feel the board of an organiza- By Robert Timberg THE tion should be active and responsi- Washington Bureau of The Sun ble," she said. "We feel the board Washington-The National Conservative POLITICAL members are trustees for the public. Political Action Committee, like other politi- They should be separate from the cal action committees, conducts its business ACTION management of the organization. In a activities in an atmosphere largely free of COMMITTEE sense, they're trustees of public regulation, with DO independent organization funds." monitoring its dealings. BUSINESS Ms. Heitbrink said the bureau does The few independent groups that do look at not generally approve of an organiza- soliciting organizations have confined their Third of series tion's paid legal counsel, fund-raiser efforts almost exclusively to charities. The or other provider of goods or services Federal Election Commission generally does -D. Richard Geske, 36, a direct serving on the board or other govern- not intervene in the relationship between a mail specialist who shared a house in ing body. political action committee (PAC) and its con- Arlington with Mr. Dolan for "two or "If a board member provides ser- three years," an arrangement that vices, are those services going to get tractors so long as transactions are reported ended in the summer of 1980, accord- the same thoroughness of evaluation accurately. As a result, PACs continue to ing to Mr. Dolan. Mr. Geske's Alexan- as the services of someone serving make up the rules as they go along. dria-based firm, Mediamerica, Inc., outside the board?" she said. "If If those agencies did extend their guide- lines to political organizations, however, has received payments totaling $1.3 you're sitting with your peers, do you million. NCPAC and many other pillars of PAC soci- want to look at your peers' perfor- J. Curtis Herge, 43, a McLean mance? It's awkward at the least." ety would not pass muster. (Va.) attorney who serves as The primary failing would be their organi- To the extent that anyone besides NCPAC's lawyer and as a member of zational structure, especially the failure to es- Mr. Dolan wields power within tablish internal safeguards to protect the bun- its executive committee, the group NCPAC, it is the executive committee that oversees NCPAC activities and dreds of thousands of small contributors who and, to a lesser degree, the board of bankroll the PAC business. spending. His firm, Sedam and Herge, directors. Guidelines for soliciting organizations in- has been paid $177,779. C. C. Clinkscales III, a Falls Mr. Dolan heads both bodies. The variably call for an active, independent board Church (Va.) conservative activist other members of the executive com- of directors or other governing body made up who combines politics with a direct mittee are Mr. Herge and Mr. Clink- like family business of individuals who are not making money on mail fund-raising business. He has scales, both of whose firms do busi- the group. served on NCPAC's board and has ness with the organization; Robert L. Stephen H. Winchell, a major Republican been a member of its executive com- Shortley, who is Mr. Dolan's brother- mittee since it was created in the late in-law; and Rhonda K. Stahlman, Party direct mail fund-raiser, strongly en- 1970s. His company and a subsidiary hired by Mr. Dolan as his secretary in dorsed standards calling for an arm's-length have been paid $34,761. 1978 and now head of NCPAC's lobby- relationship between boards and the nonprofit Mr. Clinkscales also confirmed ing arm, Conservatives Against Lib- organizations they oversee. that his company, CLCO, Inc., handles eral Legislation. "You absolutely have to have an independ- direct mail for a NCPAC affiliate, the Mr. Shortley has been identified in ent board that asks the tough questions," be National Conservative Foundation, news reports as a retired FBI agent said. "There's a bond here that can't be also headed by Mr. Dolan. The foun- selected by Secretary of Labor Ray- broken with those contributors-an implicit dation, Mr. Clinkscales said, "could mond Donovan's former firm, Schia- moral bond." belone of our largest clients." vone Construction Company, to look Lacking even voluntary standards, NCPAC Mr. Dolan neither disputed The into the backgrounds of government is able to operate like a family business in Sun's calculations nor apologized for officials who were probing Mr. Dono- which favored relatives share in the take. NCPAC's business methods. van. John T. (Terry) Dolan, in fact, thinks the "I don't take any of those as criti- The composition of the board of di- word "family" accurately portrays the tight cisms," he said. "To the extent they rectors is less clear-cut. In fact, it is circle of businessmen who have profited are criticisms, I don't care." thoroughly confusing. NCPAC's choice of contractors is According to Mr. Dolan, the board through their participation in NCPAC's con- based on getting the best job for the is made up of himself, Mr. Shortley servative crusade. lowest price, he said. and Miss Stahlman. The board is list- "Of course it's a little family," said Mr. Mr. Dolan himself does not seem ed that way on annual corporate re- Dolan, NCPAC's national chairman and a to share inordinately in the NCPAC ports filed with the state of Virginia major figure in the conservative New Right bounty. His annual salary, in the in 1979, 1980 and 1981. movement. "The whole movement's a little $33,000 range, is low by Washington On similar filings for the same family. We socialize with each other, we sign standards. years in the District of Columbia fund-raising letters for each other, we go to No independent, nonpartisan (where NCPAC was incorporated), each other's places for dinner Guilty, we watchdog group monitors the internal however, Mr. Shortley and Miss Stahl- are guilty." operations and business practices of man are listed as directors. Mr. Dolan The family does not starve. Five of its political groups, but two private, non- is not. The third member is Mr. Clink- members, by The Sun's calculations, have re- profit organizations have established scales. ceived payments totaling about $6.5 million standards for charities that solicit the Mr. Dolan had no immediate ex- from the $17.7 million pot the group has general public for contributions in planation for the discrepancy be- much the same way as NCPAC. tween the two jurisdictions. In addi- amassed since it was established in Spokesmen for both the National tion, he first said Mr. Clinkscales had 1975. Information Bureau, in New York never been on the board, then correct- All five have been part of City, and the Council of Better Busi- ed himself to say he had served one NCPAC's creation or development, or ness Bureaus' Philanthropic Advisory year. personally close to Mr. Dolan. Most Service, in Arlington, said their stan- Adding to the confusion is Mr. prominent, as reported yesterday, is dards should guide any soliciting or- Clinkscales's belief that he currently direct mail fund-raiser Richard A. Vi- ganization. is a member of the board and has guerie, who helped start NCPAC and :At the heart of those guidelines is been for some time. "I've been a di- whose firms received payments of the stricture that any soliciting orga- rector since 77, maybe '76," he said $4.72 million through January of this nization should have an active, inde- in a recent interview. year. pendent board of directors or similar Asked to assess the independence Other insiders who benefited from governing body, a criterion NCPAC of the executive committee, Mr. NCPAC spending include: cannot meet. Dolan said, "If I want something, Arthur J. Finkelstein, a Mount -The National Information Bureau they're going to give it to me. I Kisco (N.Y.) pollster and political says board members should have "no guess Lee Iacocca (the Chrysler Cor- consultant who was part of the found- material conflict of interest." The poration chairman] has the same ar- ing 'group and later served on Philanthropic Advisory Service, in a rangement." NCPAC's board of directors. Pay- similar vein, says soliciting organiza- Mr. Dolan belittled the role of the ments to Mr. Finkelstein and his tions "shall not engage in business board of directors, saying it does firms totaled $261,533. transactions in which board mem- "whatever is necessary to keep the bers, staff or their family have a fi- organization legal." That means, he nancial interest." said, that it fulfills certain nominal Margery K. Heitbrink, the bu- responsibilities set out in NCPAC's reau's assistant director, stressed the bylaws, such as holding an annual importance of the board. meeting. 1-4 Balt-Sun 7-13-82 Interlocking relationships also are "You got it," Mr. Dolan said. "His Mr. Dolan said this involved hun- routine. A few years ago, Harper's campaign office was here. Everybody dreds of thousands of dollars, the vast magazine said charts that purport to knew about it and nobody gave a display the links within the New majority of which went to TV sta- damn. But it was important. It was Right invariably wind up looking like tions, with Mediamerica taking only a important for us to control the Young commission. "an octopus shaking hands with it- Republican National Federation." self." Much the same can be said At the same time, Mr. Dolan did Mr. Stone, 29, who was cited by the about NCPAC. not deny the value of NCPAC's pa- Senate Watergate Committee for his Miss Stahlman, for example, not tronage to the company, especially in role at 19 in the 1972 "dirty tricks" only is a member of NCPAC's board the early stages of its development. campaign, runs a political consulting "We got them going, no doubt about and executive committee, but she firm, Black, Manifort and Stone. One It," be said. also sat on Mediamerica's board until of his partners is another NCPAC earlier this year. In addition, for veteran, Mr. Black. Mr. Dolan said Mediamerica origi- about three years, she has dated the "NCPAC certainly helped tremen- nally was a NCPAC spin-off, the prod- firm's president, Mr. Geske. dously in my bid to become YR chair- uct of an idea he had to cut costs for Miss Stahlman said she received man," said Mr. Stone, noting that the his organization and for other conser- no payment for serving on the Media- Young Republican chairmanship is an vative groups. merica board, which she said she unsalaried post. The company, he said, was initial- joined because "I was interested in He also said be saw nothing im- ly set up in 1978 with 50-50 joint own- having a company that was run effi- proper in going to work for Mr. Fin- ership by Mr. Geske and a NCPAC af- ciently and didn't have extravagant kelstein so soon after leaving NCPAC. filiate, the National Conservative Po- costs." "I don't think we awarded them any litical Action Committee-State Elec- "If that's a conflict, so be it," she huge contracts, but I don't think there tion Fund. NCPAC-SEF and Mr. said. was any conflict if we had," he said. Geske made small initial invest- Mediamerica's board until about a "The insinuations are outrageous," ments, between $2,000 and $5,000 year ago also has included Maiselle Mr. Finkelstein said. "I've known the each, Mr. Dolan said. Shortley, Mr. Dolan's sister, whom kid since 1969." NCPAC-SEF was created to assist Virginia corporate records for 1979- Through November, 1977, the last candidates for state offices and, un- 81 further identify as the company's month in which the Federal Election like NCPAC, accepts contributions vice president, a post she said she Commission reports show a salary from corporations, which are forbid- does not remember holding. payment to Mr. Stone, NCPAC had den under federal election law for Mrs. Shortley works in the White made payments to Mr. Finkelstein candidates for the U.S. House, Senate House as confidential secretary to totaling $58,693, including reim- or presidency. Morton C. Blackwell, a former Vi- bursed expenses. In addition to trimming costs for guerie executive and now a special Political pollster Finkelstein, such services as direct mail advertis- assistant to President Reagan. whose Mount Kisco headquarters is ing and media buys, Mr. Dolan said, Mrs. Shortley said she left the near New York City, also did well the plan was to funnel NCPAC-SEF's Mediamerica board about a year ago, through his affiliation with NCPAC. portion of any profits to conservative because she was not making its meet- The $261,533 he received in payments candidates in states where corporate ings regularly and thus did not feel was recorded in NCPAC spending re- contributions are permitted. she was making a contribution. ports as going to him or two firms- Within a year, however, it became "There WAS no money involved," Direction Services, of which he was clear there would be no profits, Mr. she said. "Should I have demanded part owner, and Arthur J. Finkelstein Dolan said. "From a financial point of some?" and Associates. Mr. Dolin himself was on the In his 1980 book, "The New Right: view, it was a disaster," he said. The problem, he said, was the con- Mediamerica board in 1978-79, but at We're Ready to Lead," Mr. Viguerie flict between his desire to minimize that time, le said, the firm was par- referred to Mr. Finkelstein as one of costs and Mr. Geske's desire for a tially owned by a NCPAC affiliate, an NCPAC's "founders," a fact not wide- reasonable profit. arrangement that no longer exists. ly known. As a result, Mr. Dolan said, the According to Mr. Dolan, neither he "NCPAC relies heavily on re- nor his sister ever had a financial in- search and polling, a reflection of one company was sold to Mr. Geske for the same amount NCPAC-SEF had terest in the company and have never of its founders, conservative pollster received money or other material Arthur Finkelstein," Mr. Viguerie put into it. "He just returned the in- benefits from it. wrote. vestment," the NCPAC chairman "I have never made a penny out of Mr. Finkelstein also sat on said. it, my sister has never made a penny NCPAC's board in 1978-79, but Mr. From that point on, Mediamerica out of it, and at the time NCPAC had Dolan said the pollster was uncom- was on its own, though Mr. Dolan said any involvement [through its affili- fortable about it because of potential NCPAC was the firm's "predominant ate Geske never made any money conflict-of-interest problems. client" at first. our o' it" be said. Said Mr. Finkelstein: "I helped "I think we helped, but on the oth- Another organization with which develop [an organization] which in er hand, I helped Art Finkelstein, Mr. Dolan is associated but from turn hired me to do work. Do I think too," be said. which be said be makes no money is a that was wrong? No, I don't think that Asked why be picked Mr. Geske to lobbying organization called Ameri- was wrong. If did, I wouldn't do it." assist him in creating Mediamerica, cans for Nuclear Energy. Regarding the $261,000, he said, Mr. Dolan replied, "Because I knew Mr. Dolan said he is treasurer of "It should have been a lot more. I un- him, and I knew he could do the job." the group, which was founded by Mr. dercharged. I'm a very creative Mr. Geske refused to be inter- Clinkscales and a business partner. guy, and I'm very good." NCPAC has dispensed another $1.3 viewed, saying he would only consider However Mr. Clinkscales said that Mr. Dolan was no longer treasurer. million since 1978 to a little-known answering questions in writing. He acknowledged receiving written ques- Mr. Clinkscales's company handles advertising firm headed by Mr. the direct mail soliciting and mailing Dolan's close friend and former tions May 27 but has yet to respond. Mr. Dolan offered no apologies for list rental for the organization. housemate, Mr. Geske. Then there is Roger J. Stone, a po- Mr. Dolan acknowledged that including Mr. Herge, the lawyer litical operative who helped found friendship played a part in the deci- whose firm has been paid $177,779, on the NCPAC executive committee, NCPAC and, along with Mr. Dolan sion M use Mr. Geske's company for some of NCPAC's work, but insisted even though that body functions like a and Charles R. Black, Jr., was part of board of directors in overseeing ex- the triumvirate that ran the group in that the overriding consideration was penditures and the quality of services, its early years. prompt, high-quality service at rea- including legal services, provided to When Mr. Stone resigned as sonable prices. He also contended that the $1.3 the organization. NOPAC's treasurer in late 1977, after "Curt Herge's experience with this he had won the presidency of the million figure was misleading, be- organization is why be's on the board Young Republican National Federa- cause Mediamerica, though primarily of directors," said Mr. Dolan, confus- tion, he went to work as a consultant a direct mail operation today, pur- ing the executive committee with the for Mr. Finkelstein, NCPAC's poll- chased the bulk of NCPAC's televi- board, as he often did during the in- ster. sion advertising time during the 1979- terviews. "If I put a totally unfamil- "That's true," Mr. Dolan said, 80 election cycle. iar lawyer on, he'd be no help to me." laughing. "You want to talk some Mr. Herge said be saw no problem more about connections? You know with his serving on the executive how Roger Stone became chairman of committee. "Every member of the the Young Republican National [Fed- executive committee and the board of eration]?" directors knows I'm the general coun- With NCPAC money? sel," he said. "In terms of any of the guidelines that govern attorneys, that complies with them." 2-4 Balt. Sun 7-13-82 Direct mail specialist Clinkscales, who is on the executive committee The NCPAC Family and believes he also is on the board, benefited from his association with Payments to family companies NCPAC through payments totaling $34,761 to two firms in which he is (since 1975) part owner. CLCO, Inc., a direct mail compa- ny, received $33,542 between May, Name & Company Relationship to Payments 1979, and January, 1982. A CLCO sub- NCPAC sidiary, the 5 M List Company, was paid $1,219. Mr. Dolan said Mr. Clinkscales D. Richard Geske Dolan ex-roommate $1,300,000 never participates in decisions con- Mediamerica, Inc. cerning the hiring of his companies. He added, "Clinkscales does [direct Arthur J. Finkelstein Board member mail) packages for us that almost al- $261,533 Arthur J. Finkelstein & Assoc. ways are cheaper than everybody else. That's why we use him. He's Richard A. Viguerie NCPAC founder $2,070,000 good at what he does. If be wasn't sit- The Viguerie Co. $1,570,000 ting on the board, I couldn't have his Diversified Mailing Services $904,549 ideas." Diversified Mail Marketing $139.925 Unlike Mr. Dolan, Mr. Clinkscales American Mailing List Corp. $4.435 confessed to being troubled by the ap- American Communication Corp. Total: $4,720,000 pearance of conflict resulting from his dual status as contractor and ex- J. Curtis Herge Executive ecutive committee member, saying Sedam & Herge committee member he once sought legal advice to clarify $177,779 the situation. C.C. Clickscales III Executive "I called Herge," be recalled. "I CLCO, Inc., & subsidiaries committee said, 'Is it OK?' He said, 'It's OK.' member $34.761 It's a difficult problem You're the first person to ask it, but I've often wondered why no one else asked it." NCPAC collected $17.1 million from donors since 1975. TOMORROW: PROPAC, a liberal committee seeking to counteract groups on the right. Sun Graphics-Ann R. Feild 3-4 THE SUN, Tuesday, July 13, 1982 Top 10 PAC Spenders* 1. National Conservative Political Action Committee $1,872,111 2. Independent Action $42,820 3. Life Amendment Political Action Committee, Inc. $28,692 4. Democrats for the 80's Inc. $20,104 5. Progressive Political Action Committee (PROPAC) $18,198 6. League of Conservation Voters $14,318 7. Ohio Right to Life Society Inc. PAC $7,820 8. NRA Political Victory Fund $7,788 9. Californians for Better Leadership $4,388 10. UAW-V-CAP (United Auto Workers) $3,408 *independent expenditures Candidates for or against whom the most money was spent: Senate Edward M. Kennedy Paul S. Sarbanes Robert C. Byrd 1. Edward M. Kennedy- D/MA $500 (for); $545,607 (against) 2. Paul S. Sarbanes- D/MD $20,634 (for); $406.038 (against) 3. John Melcher- D/MT $87,090 (against) 4.Robert C. Byrd-D/W $100.046 (against) 5. Lowell P. Weicker, R/CT $90,930 (against) .Daniel P. Moynihan- D/NY $60,665 (against) 7. Jesse Helms- R/NC $14,548 (against) B.Orrin Hatch- R/UT $14,054 (against) 9. Harrison H. Schmitt- R/NM **John C. Culver- D/IA $10,930 (for); $401 (against) .Malcolm Wallop-R/WY $10,705 (against) **1980 Senate Race House Jim Wright James R. Jones Les Aspin 1. Jim Wright- D/TX $216,960 (against) 2. James R. Jones-D/OK $115,540 (against) 3. Dan Rostenkowski-D/IL $57,507 (against) 4. Robert W. Edgar-D/PA $3,705 (for); $8,754 (against) 5. Paul Simon- D/IL $8,048 (against) 6. Raymond P. Kogovsek- D/CO $7,521 (against) 7. Stephen L. Neal- D/NC $7,390 (against) 8. Neal Smith- D/IA $7.389 (against) 9. James J. Florio- D/NJ $7.101 (against) 10. Les Aspin- D/WI $6,054 (against) Source: FEC Office 6/30/82 Sun Graphics 4-4 NCPAC means business for friends on the right moderate-to-liberal elected officials. By Robert Timberg Finkelstein, a Mount Kisco (N.Y.) pollster THE But in the course of its efforts to pro- and political consultant; D. Richard Geske, Washington Bureau of The Sun mote conservative candidates and causes, an Alexandria direct mail specialist; J. Cur- Washington-She jokingly calls herself PAC POLITICAL NCPAC has paid millions of dollars to indi- tis Herge, a McLean (Va.) attorney, and C. the "Miss Lillian of Connecticut" even ACTION viduals closely tied to its creation and C. Clinkscales III, of Falls Church, Va., an- though her political views have little in COMMITTEE development, or personally close to Mr. other direct mail specialist. common with those of President Carter's Dolan. BUSINESS Mr. Dolan, who runs NCPAC with a mother. Of the $17.7 million NCPAC raised since handpicked board and executive commit- The 66-year-old Fairfield (Conn.) its establishment in 1975, The Sun has cal- tee, said in the course of several recent in- woman, in fact, is much more at home with Second of Series culated from Federal Election Commission terviews that favoritism plays no signifi- the hard-edged, right-wing ideology of the records that about $6.5 million has been cant part in the selection of persons and National Conservative Political Action to Replace Lowell Weicker" as a "PR gim- spent through firms whose owners have firms to do NCPAC work. Committee and its swashbuckling chair- mick" that has been highly successful in at- been intimately linked to the organization. "We use them because they're the best," man, John T. (Terry) Dolan. tracting press attention. Profiting most handsomely from his ás- he said of Mr. Viguerie, Mr. Finkelstein, Mr. She is, as it happens, a NCPAC operative And, he added gallantly: "I'd much pre- sociation with NCPAC has been Richard A. Geske, Mr. Herge and Mr. Clinkscales. -the head of a $220,000 campaign the Ar- fer. having Lowell Weicker beating up on Viguerie, 43, the organization's primary He agreed, however, that all five could lington (Va.)-based group has mounted to Margaret K. Dolan than on me-and so fund-raiser, a major player in the conserva- be accurately described as part of what rid Capitol Hill of Connecticut's senior sena- would she." tive New Right coalition and a central fig- might be called the NCPAC family, a tight- tor, liberal Republican Lowell P. Weicker, Mr. Dolan also said his mother received ure in the group that set up NCPAC. ly knit group of private businessmen who Jr. no pay for her efforts on NCPAC's behalf. FEC records show that firms owned by have profited from NCPAC's political How did she qualify for the job? Among She thus enjoys a rare distinction. She is one Mr. Viguerie, perhaps the nation's best- operation. her other attributes, Margaret K. (Peg) of the few people associated with NCPAC known direct mail fund-raiser, received "You're saying it's tight. It's tighter than Dolan is well-connected. She is Terry who has not maraged to make money off it. payments topping $4.72 million during the you think. So what?" Mr. Dolan said. "If I Dolan's mother. NCPAC is the most prominent of the period reviewed by The Sun. had a sister in Montana [where NCPAC is Mr. Dolan, 31, explained putting his New Right political action committees that Lesser-known Insiders who benefited trying to unseat Democratic Senator John mother in charge of NCPAC's "Republicans have been waging guerrilla warfare against from NCPAC spending include Arthur J. See PAC, A6, Col. 1 JOHN T. (TERRY) DOLAN iNCPAC NCPAC means business for friends on right PAC, from AI "NCPAC wouldn't be here today if Melcher). she'd be running the Mon- Top 10 Non-connected PAC's, 1981-82 it hadn't been for Richard Viguerie," Mr. Dolan said in one interview. "He tame campaign probably. set it up." "But you see, I don't take any of Top 10 Money Raisers: In a later interview, Mr. Dolan ex- those as criticisms," he said. "To the 1. National Congressional Club $6,720,039 panded his statement, saying that Mr. extent they are criticisms, I don't 2. National Conservative Political Action Committee $5,879,040 Heims-the New Right's congression- care. Those criticisms, to my mind, 3. Citizens for the Republic $1,634,206 al champion- joined Mr. Viguerie in are a lot less than (saying) that this 4. Fund for a Conservative Majority $1,461,239 creating NCPAC. organization lies or that I said Repub- 5. Committee for the Survival of a Free Congress $1,408.678 "What I should have said is Jesse licans are nose-pickers, which I never 6. National Committee for an Effective Congress $1,335,895 Helms and Richard Viguerie started said. 7. Committee for the Future of America, Inc. $1,046,829 NCPAC," Mr. Dolan said: "Viguerie, 8. Fund for a Democratic Majority $1.031.713 "The payments we have given to based on the fact that Helms was 9. Republican Senate Majority Fund $843.344 anybody who is on the board of direc- 10. Independent Action $806,570 going to sign [fund-raising] letters, ters or who has a close relationship agreed to do the fund-raising." with me as a friend or anything else are always competitive and almost Top 10 Spenders: According to FEC records, NCPAC payments of $4.72 million always below the fair market value 1. National Congressional Club $7,328.354 went to five Viguerie firms, all but they would charge anybody else," Mr. 2. National Conservative Political Action Committee $5,860,173 the last named involved in different Dolan added. 3. Fund for a Conservative Majority $1,446,343 phases of the direct mail business, as "As I've said a million times, I 4. National Committee for an Effective Congress $1,416,058 follows: 5. Committee for the Survival of a Free Congress $1,403,905 don't give a damn if anybody makes 6. Citizens for the Republic $1,294.001 The Viguerie Company, $2.07 money off this organization or the 7. Fund for a Democratic Majority $938.532 million. conservative movement, if they're 8. Independent Action $800,478 Diversified Mailing Services, producing benefits that are clearly 9. Committee for the Future of America. inc. $719.819 $1.57 million. worth the cost." 10. Republican Senate Majority Fund $682.332 Diversified Mail Marketing, Mr. Dolan's comment about re- $940,549. ceiving services "below the fair mar- Top 10 Contributors to Candidates: American Mailing Lists Corpo- ket value they would charge anybody else" could cause problems for him 1. National Committee for an Effective Congress $106.169 ration, $139,925. 2. Dallas Energy Political Action Committee (DALENPAC) $89,500 American Telecommunications with the FEC. 3. National Conservative Political Action Committee $58,566 Corporation: $4,435. FEC regulations state that if there 4. Americans for Constitutional Action (ACA) $55,240 A sixth company, Diversified is a difference between what a suppli- 5. Republican Senate Majority Fund $54,353 Printing Services, was owned by Mr. er:of goods or services charges a po- 6. Citizens for the Republic $49,500 Viguerie for part of the period re- litical committee and the supplier's 7. Louisiana Energy National Political Action Committee $46,000 viewed by The Sun, but was seld on a "usual and normal charge," that dif- 8. Business Industry Political ActionCommittee $39.175 date that could not be determined. ference constitutes an in-kind contri- 9. HOUPAC $38.017 While operating under the name Di- bution. 10. Citizens Concerned for the National Interest $38,000 versified Printing, however, it re- But the law specifically prohibits Source: FEC Press Office, 6/30/82 ceived NCPAC payments of $132,000. corporations from making contribu- NCPAC reported to the FEC that tions, either monetary or in-kind, in Sun graphic at the end of January, 1982. it owed connection with a federal election. the Viguerie Company $29,649 and The businesses of Mr. Viguerie, Mr. overly generous share of the organi- trate the manner and extent to which American Telecommunications Geske and Mr. Clinkscales all are in- zation's bounty. Press secretary Joe money contributed to nonprofit or- $25,707. American Telecommunica- corporated. Steffen, of Reisterstown, for example, ganizations flows to private, for-prof- tions, a new Viguerie firm, does tele- "I'd love to have them come after said his pay is $13,000 a year. it firms in the burgeoning PAC indus- vision production. us," said Mr. Dolan, who has been in a NCPAC, like other PACs in this try. Mr. Dolan said the $4.72 million running battle with the FEC for series, is a nonprofit organization that The degree to which middlemen figure was misleading since postage years. "We get about a complaint a pays no taxes on contributions and profit from the solicitations of non- probably consumed 20 to 30 percent week." whose individualcontributors are eli- profit groups, of course, is not con- of the total. He also cautioned against FEC records give no indication gible for a tax credit of up to $50 fined to NCPAC, the conservative losing sight of the enormous costs as- that Mr. Dolan personally has shared ($100 on a joint return) on their fed- movement or political organizations. sociated with direct mail fund-rais- in the financial windfall created by eral income tax, according to Wilson Charitable groups also have providers ing. the organization he masterminds. His Fadely, a spokesman for the Internal of goods and services who must be At the same time, be agreed that salary, be said, was raised in the last Revenue Service. paid. Mr. Viguerie's work for NCPAC paid year or so to about $33,000, low for Historically, the group has raised In NCPAC's case, however, Don- a big extra dividend to the fund-raiser someone in his position by Washing- most of its money from hundreds of taxable money not only circulates since, by the terms of the contract, top standards. thousands of small, unrelated donors freely through a network of individu- the names of contributors are jointly Before that, be said, his salary was responding to Mr. Viguerie's direct als close to the organization, but a owned but only Mr. Viguerie can rent $25,000, and during one six-month pe- mail artistry. web of interlocking business and per- or trade the list. NCPAC can only use riod during the 1977-78 election cycle, An early Viguerie effort for sonal relationships lends, at the very the list if it sends out mailings when his salary was in the $15,000 NCPAC, signed by Senator Jesse A. least, a communal coziness to the en- through Mr. Viguerie. range, be chose not to take it because Helms (R, N.C.), for example, warned tire multimillion-dollar operation. And those names are gold? "Oth, NCPAC was in financial trouble. prospective donors that "your tax dol- Mr. Viguerie's direct mail activi- sure," Mr. Dolan replied. "Someday," he said, "probably lars are being used to pay for grade ties for NCPAC have never been a se- "Everybody with Viguerie has that sooner than most people think, I'm school courses that teach our children cret, but the fact that he was instru- contract,' be said confidently, adding: going to go out and make some that cannibalism, wife-swapping and mental in setting up the nonprofit or- "To the best of my knowledge every- money. But if I do, I won't be here." the murder of infants and the elderly ganization from which be subsequent- body with Winchell has that contract. There also is no evidence that are acceptable behavior." ly prospered has not been common I'd be shocked If they did not" NCPAC's youthful staff receives an NCPAC's spending patterns illus- knowledge. Mr. Dolan was referring to Ste- THE SUN, Monday, July 12, 1982 conservative Digest Volume 6 Number 10 October 1980 50 THE NEWRIGHT READY TOLEAD 2 4 3 1 5 7 6 8 (1) Phyllis Schlafly, (2) Dr. Jerry Falwell, (3) Howard Phillips, (4) Richard Viguerie, (5) Sen. Jesse Helms, (6) John T. Dolan, (7) Morton Blackwell, (8) Paul Weyrich. Sun graphic The New Right leadership, as seen from the right. hen H. Winchell, a major Republican a NCPAC founder, but added that Mr. lirect mail fund-raiser, who said the Dolan's "memory might be better NCPAC chairman was wrong. than mine." He said he has been so "That is not true," Mr. Winchell busy that "sometimes I can't remem- aid. "We do have joint ownership {of ber everything I did yesterday, let mailing lists] with some of our alone eight years ago." clients. We are free to use them, sub- Asked how much of the money ect to certain restrictions, and the NCPAC paid his firms was profit, he clients can use them in any way they replied, "I estimate gross profit, be- desire and they can mail with anyone fore we pay our expenses, at roughly they want to." 10 percent." Mr. Dolan said he frequently has been upset with Mr. Viguerie over the Mr. Viguerie said every decision he makes is based on "how I can ad- years, but invariably concludes he is the best in the business. vance my ideology," but added: "One of the reasons I took NCPAC was be- "If we ended our relationship to- morrow with the Richard A. Viguerie cause I thought it would be profitable Company, we would be worse off than for the Viguerie Company." they would-and that's why we don't "We don't try to do things that look end it," Mr. Dolan said. good in the press," Mr. Viguerie said. Mr. Viguerie said he had "no idea" "I will opt to defeat the liberal sena- if The Sun's figures were correct, tors and let the stories fall where they may." saying it could be "twice that much or TOMORROW: half that much." He said - did The political money machines: nected PACs are under DO such re- Right-wing PACs are the best By Robert Timberg Washington Bureau of The Sun 7-11-82 known and most well-heeled, primari- straint. They may ask anyone for ly because conservatives pioneered money. the political use of direct mail mar- Washington-Political action committees There is another distinction. Cor- -PACs-have exploded into a virtually un- keting, the major fund-raising mech- porate, union and trade association anism. regulated multimillion-dollar industry in PACs generally must answer to their which tax-free contributions are transformed -Mr. Viguerie, the New Right's di- parent organizations for, among other into handsome profits for scores of middle- rect mail expert, says the left may be things, how they spend their money. as much as a decade behind in terms men. Many non-connected PACs, on the Some PACs maintain an arm's length rela- of technology and know-how. other hand, justify their expenditures Larry A. Patrick, a conservative tionship with the vendors who provide them only to themselves or to their boards printer in Sterling, Va., who handles a with services such as printing and mailing. of directors, when such bodies exist But others, The Sun has found, are closely lot of political mail, agrees. "Demo- (no law requires their creation). crats and liberals count for almost tied to the vendors who benefit from the ac- Even when there is a board, there celerating flow of money from non-profit or- zero: On a scale of 1 to 100, they're are instances where it is virtually in- about 5. They just don't understand ganizations to private, for-profit companies. distinguishable from the PAC leader- the skills, and they don't have the lists Articles detailing these arrangements will ship, raising doubts about its ability or the PACs to support it," he says. follow this week in The Sun. to perform an independent oversight Liberals have been setting up role. PACs feverishly in the last year and THE In other cases, that ability is un- say they are catching up fast, but con- dercut because board members are oede they have a long way to go. closely tied through professional and PAC POLITICAL Right-wing dominance also came personal relationships to PAC lead- about because conservatives accu- ACTION ers, or profit through activities of the rately perceived PACs as an alterna- COMMITTEE organization they nominally oversee. tive route to political power in the John T. (Terry) Dolan, the NCPAC late 1970s, when the Democrats con- BUSINESS national chairman, whose board has trolled the White House and Congress. fallen into all these categories, brush- As a result, only one of the top 10 es off questions concerning possible money-raisers during the 1979-1980 First of a series conflicts of interest by saying the or- election cycle had a left-of-center ganization's ultimate accountability cast, the National Committee for an Most of the action swirls around the so- is to its contributors. Effective Congress, which placed called "non-connected" PACs, like the Nation- "If they don't like what they see, seventh. fat, fancy, free of curbs al Conservative Political Action Committee, they ain't going to give to us," he The PAC explosion has not been a which are independent, freewheeling and ac- says. "Who do you think the Republi- penny ante phenomenon. During the countable largely to themselves. can Party is accountable to? Do you two-year cycle that climaxed with the think it's accountable to registered Such PACs have defied tradition and election of President Reagan in Republicans? Garbage. They don't jumped into election after election in recent November, 1980, 471 such groups re- give a damn what registered Republi- years, becoming a force of hotly debated but ported raising more than $40 million. cans think. They care about what Those same PACs reported spend- still uncertain importance. their contributors think." In doing so, they-have moved in on the po- ing about $38.6 million. Some of it, Victor Kamber, on the other hand, about $5.2 million, was contributed litical action that previously had been the al- did not bother to create a board when most exclusive preserve of the major political directly to candidates for use in their he established the liberal Progressive parties or the campaign organizations of indi- campaigns as they saw fit. Political Action Committee, contend- Another $13.1 million was spent by vidual candidates. ing that such bodies are merely win- non-connected PACs in their own ef- NCPAC, which is working in Maryland to dow-dressing to lend an aura of re- forts to elect or defeat candidates for defeat liberal Democratic Senator Paul S. spectability to an organization. federal office through payments Sarbanes, is the biggest celebrity in the group, Non-connected PACs have experi- even though the National Congressional Club, known as independent expenditures. enced spectacular growth-from 110 Independent expenditures are the a group organized by North Carolina Senator in 1977, when the FEC first started emost feared weapon in NCPAC's ar- Jesse Helms, raises more money. tracing them in a separate category, senal, as well as the source of much At last count, there were more than 500 to 535 as of December 31, 1981. non-connected PACs in a PAC community of of its current notoriety. That growth resulted from the Such funds were used in 1979-1980 nearly 3,200. Some, like NCPAC, are known- unintended side-effects of 1974 post- to finance hard-hitting media cam- Watergate amendments to the Feder- to the degree they are known-by their ini- tials. Among others, there are PROPAC, al Election Campaign Act, designed paigns that contributed to the defeat BIPAC, AIMPAC, ARTPAC, BACKPAC, BIZ- to minimize the impact of big contrib- of incumbent Democratic Senators PAC, BIPARPAC, VALPAC, BALPAC, utors on the political process, and a George McGovern of South Dakota, 1976 U.S. Supreme Court decision. AMERIPAC, FISHPAC, IMPAC, IMMPAC, Frank Church of Idaho, Birch Bayh of The amendments imposed a $1,000 Indiana and John C. Culver of Iowa. IMPACT, EMPAC. limit on the amount an individual They cater to every taste. There are Such funds are being employed today Americans for a Conservative Congress, could contribute to a candidate in any against Senator Sarbanes. single election. Previously, an unlim- Americans for a Better Congress (not to be But what happened to the rest of ited amount could effectively be confused with Chicagoans for a Better Con- the $38.6 million-the $20.3 million pumped into the campaign of a fa- gress), Americans for Democrats and Demo- left over after deducting the $5.2 mil- vored office-seeker. lion in direct contributions to candi- crats for Democrats. In its landmark 1976 Buckley vs. Some have an ethnic flavor: the PAC to dates and $13.1 million in indepen- Elect Jewish Candidates, the American Indi- Valeo decision, however, the high dent expenditures? court-while upholding contribution an PAC, Concerned Italians for Better Gov- And what about the $13.1 million limits-held that individuals and po- ernment and Concerned Romanians for a labeled independent expenditures? litical committees, acting indepen- Can the hundreds of thousands of Strong America. dently, could spend any amount they Some clearly want to be taken seriously: small contributors whose money fuels the non-connected PACs have confi- Citizens Concerned for the National Interest, wanted to elect or defeat a candidate dence that their $15, $25 and $50 Citizens for an Honest Energy Policy, Citizens for federal office. checks are actually doing political for Traditional American Values and the The court ruling thus sanctioned battle against the liberals (or conser- Committee for Morality and Decency. the activities of non-connected PACs, vatives), the abortionists (or anti- Others seem less intense: Hawaiian Golf- primed them for the major role they abortionists), the peaceniks (or the ers for Good Government, for example, or the have come to play in the political pro- warmongers), the labor bosses (or the Whimsical Alternative Coalition, or WAC- cess and set the stage for the inde- robber barons)? PAC. pendent expenditures that have be- Those questions lead into a world The Federal Election Commission calls come their hallmark. rarely visible to those contributors, a them non-connected PACs to distinguish them In addition, the contribution limits world where middlemen reap the from the more traditional political action meant that wealthy individuals, such benefits of money moving from non- committees run by corporations, labor unions, as W. Clement Stone and Stewart profit political action committees to trade associations and other precisely defined Mott, were no longer as central to the private, for-profit firms. membership groups. political process as, for example, Those organizations are restricted by law Richard A. Viguerie or Roger Craver, to soliciting contributions from their own men who are able to raise vast members, executives or employees. Non-con- amounts of money from small con- 1-2 tributors bv direct mail The*fact is, much of that money takes a roundabout route into the po- their standards-which are similar. Of the $40 million raised by litical arena, and, because non-con- Spokesmen for both groups told PACs during the 1979-1980 election nected PACs depend so heavily on di- The Sun that those standards should cycle, the top 10. PACs raised $28.4 rect mail fund-raising, it often ar- guide any organization that solicits million. They also were the most rives sporting a postage stamp. the general public. At the same time, well-known and closely watched. The In addition, along the way a sub- they said they have not extended their remaining $11.6 million was divided stantial portion of the money often is criteria to cover political organiza- up by the other 461 non-connected diverted to an assortment of fund- tions. PACs. Who were they and what were raisers, direct mail experts, mailing Several states in recent years have they doing? list brokers, printers, envelope com- turned a critical eye toward the fund- Federal officials admit the possi- panies and a host of other contrac- raising practices of soliciting organi- bility of one or more ScamPACs, out- tors, who service and participate in zations. The Maryland General As- right attempts to defraud the public. what might be called the PAC busi- sembly, for one, set a 25 percent ceil- But they say the likelihood of a con- ness. ing on fund-raising costs in 1976 in viction-or even prosecution-is re- That business is booming, if the the wake of revelations by The Sun duced if the perpetrators spend even flow of money charted on FEC docu- of widespread abuses by the Balti- a small portion of the money they col- ments is any indication. The Sun cal- more-based Pallottine Fathers, a lect to do what they told contributors culates that NCPAC, for example, has Catholic missionary order. they would do. paid Mr. Viguerie, the conservative That law, however, specifically ex- "To the extent the cause is ad- fund-raiser, more than $4 million for empted any "political party, political vanced, the criminal case is dimin- direct mail services since the organi- committee, political club or agen- ished in its attractiveness," says zation was established with Mr. Vi- cy of the state government, or of a po- Craig A. Donsanto, director of the guerie's help in 1975. litical subdivision." Justice Department's elections The PAC business has a lot in com- Are such standards needed? Would crimes branch. "If they do anything mon with the charity business, includ- the PAC business and, more impor- at all, it would be very difficult to ing heavy reliance on direct mail so- tantly, the small contributors that make a criminal case." licitations of the general public. But fuel its operation, benefit from one or "A lot of things happen that aren't the similarities do not extend into one more watchdog groups that could fair that aren't criminal fraud," he important area. serve as a clearinghouse for informa- says. "There's a big difference be- Unlike charities, which have been tion on individual soliciting groups? tween knowing in your nose that it subjected to substantial public scruti- Here are some questions a watch- smells and making a criminal case." ny and some governmental regulation dog group might consider: Federal officials can make the in recent years, PACs have received What constitutes a reasonable criminal case. But who's to say if it little critical examination of their fund-raising expense? For established smells? business practices. charities, 25 percent to 35 percent of And, even though the impact of po- gross receipts is a usual standard. For affair. TOMORROW: NCPAC-A family litical action committees on the polit- PACs, however, the issue is compli- ical process has been the subject of cated because direct mail has impor- endless debate, no organization-pub- tant functions other than fund-raising, lic or private-has emerged to estab- among them advertising a candidate lish standards against which their ac- and identifying sympathetic voters tivities can be measured. and potential campaign workers. The FEC, of course, has primary Should a PAC's paid attorney sit Balt.Sun responsibility for overseeing federal on its board of directors, the body election laws. The agency, however, that is responsible for reviewing and has been handicapped by recent bud- approving payments for services, in- 7-11-82 get cutbacks that have severely cur- cluding his? What about its pollster or tailed its auditing of campaign spend- fund-raiser? ing reports. PACs usually promise centribu- But before the onset of the latest tors that their money will be used for budgetary restraints, the FEC had specific political purposes. Are they taken as its chief purposes assuring keeping those promises? To what ex- full and easily accessible disclosure tent are they obligated to do so, mor- of campaign finances and ensuring ally and ethically, if not legally? that the letter of the law is complied What about a PAC's name? with. When does a slick advertising gim- "What the loopholes are, that's not mick border on deception? During his our business," said Fred Eiland, an 1976 California Senate race, S. I. FEC spokesman. And, he said, "We do Hayakawa's campaign committee not get involved in the relationship was called Friends of Hayakawa. between a PAC and its vendors." Howard Jarvis, who two years later Two non-profit groups-the Na- was to lead the Proposition 13 tax re- tional Information Bureau, in New volt, started a PAC whose stated pur- York City, and the Council of Better pose was to help Mr. Hayakawa. Its Business Bureaus' Philanthrophic Ad- name, Friends for Hayakawa, was visory Service, of Arlington, Va- called "confusingly similar" by Mr. have set standards for charities to as- Hayakawa's lawyers, who demanded sist potential donors in evaluating or- the name be dropped. ganizations that seek their support. With small staffs and limited budgets, both groups try to monitor (number of PACs) charities. They also publish lists of or- Political Action ganizations that meet or fail to meet Committee Growth 1400 Yas of Dec.31,1981) 1300 1200 Corporate 1100 1000 900 800 Trade, Membership, 700 Health 600 500 Labor Non- 400 connected 300 Cooperative 200 Corporate W stock 100 o 1974 1975 1976 1977 1978 1979 1980 1981 Sun chart Once few, eorporate PACs have increased sharply, to some 1,300 in 1981. Laber PACs have been outstripped numerically by non-connected PACs.

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Conservative PACs (Political Action Committees)

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collections	Records of the White House Office of Public Liaison (Reagan Administration) Morton Blackwell's Subject Files
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