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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.