Ethics

THE NEW YORK TIMES FRIDAY, AUGUST 16, 1996 Corporate Receptions Provide Lawmakers With Loophole in Ethics Rules By SAM HOWE VERHOVEK as it is here in San Diego - at events don't pass the straight-face test," someplace else." benefits. "As a company," he said, SAN DIEGO, Aug. 15 - No self- like a cruise for House freshmen said Ellen Miller, executive director Generally, and not too surprising- "you really don't gain anything by respecting, ethics-rules-abiding sponsored by the United States of the Center for Responsive Politics, ly, members of Congress insist that doing this." member of Congress at the Republi- Chamber of Commerce; a reception a nonprofit group in Washington, neither their votes nor their ethics Many of the delegates here have can Convention here would be caught sponsored by the securities industry D.C., that follows money and Federal are compromised by being hailed at been showered with gifts, like Fris- accepting a fancy restaurant meal in for Representative Jim Leach of politics. Even if he or she is the guest a dinner or cocktail reception. bees and disposable cameras embla- the company of a lobbyist. Iowa, the chairman of the House of honor at a reception, a member of Mr. Shuster, the Pennsylvania zoned with cigarette brand logos. On the other hand, plenty of mem- Banking Committee; or a dinner Congress is not required to list the Congressman who was the guest of aboard a refurbished Union Pacific Congressional ethics rules allow bers of Congress have been the event as an in-kind contribution, nor honor at a dinner on Tuesday aboard guests of honor this week at elabo- train evoking the glory days of pas- members to accept "items of nomi- is the sponsoring company or group the vintage railway cars, has made senger rail travel, given by the rail required to report It as anything oth- nal value or "home state products rate receptions here costing thou- that point in the past; he did not sands of dollars and hosted by corpo- company to honor Representative er than a business expense. respond to messages left for him. for display or distribution." rations or trade organizations that Bud Shuster of Pennsylvania, the Some experts argue that in impos- Drew L. Lewis, the chairman and There are plenty of other kinds of just may have matters pending be- chairman of the Transportation and ing the new rules, Congress may chief executive of Union Pacific, who fund raising going on inside the con- fore their .committees. Under House Infrastructure Committee. have taken away a lobbyist's incen- is both a Pennsylvania delegate and vention hall here and at the estimat- and Senate ethics rules, it is perfect- Democrats, meeting at their own tive for a small-scale gift, like dinner a former Secretary of Transporta- ed 800 parties associated with the ly O.K. for them to show up. convention in Chicago later this or a golf game, and substituted moti- tion, has held several receptions and Republican gathering this week. The That is because of the "widely month, will probably not be shy vation to give something of much meals here in the past week. The San Diego Host Committee, which is attended event" exception to the about invoking the exception either. greater financial value: yellow, red and gray railroad cars on in charge of putting on the conven- much-talked about ethics rules that The theory behind it is that at big "The one-on-one lunch is out the a special siding extension built for tion, has collected more than $11.8 both the House and Senate imposed gatherings, no lobbyist could succeed window," said Kenneth Gross, a for- the convention have been a popular million in corporate contributions, upon themselves last year. While in monopolizing the time of a repre- mer chief of enforcement at the Fed- feature of both Democratic and Re- and a fund-raising event for 3,500 those new rules for the most part sentative or senator, the way he eral Election Commission who is publican conventions in past years. Republicans on Wednesday night forbid free meals or other gifts from might while lingering over Cognac at now in private practice and teaching "Sure, people do enjoy coming took in $6 million to $7 million, party individual lobbyists, they do not ban The Palm. Nonetheless, to many campaign finance and ethics at aboard," Mr. Lewis said at a lunch- officials said. lawmakers from being feted at watchdog groups, the exception is a George Washington University. eon here the other day in one of the bashes for more than 25 people. loophole big enough to push a buffet "But it's like the air in a balloon," domed observation cars, but he ( And there are few places where table through - or dozens of them. he continued. "If you squeeze it in played down the notion that its hospi- this loophole is so vividly on display "The bottom line is, these rules one place, it's going to manifest itself tality translated into any important