Pioneers Fill War Chest_ Then Capitalize

Document Sample
Pioneers Fill War Chest_ Then Capitalize Powered By Docstoc
					                                                                                                                                                 DAILY 05-16-04 MD M1 A1 CMYK




                           Smarty Jones Wins Preakness, Closes In on Triple Crown                                                                                                                               SPORTS, Page E1




                                    ABCDE
Weather
Today: Thunderstorm.
High 79. Low 62.
                                                                                                                                                                                                                                          Inside: Book World, TV Week,
Monday: Thunderstorm.
                                                                                                                                                                                                                                            The Post Magazine, Comics
High 78. Low 64.
                                                                                                                                                                                                                                          Today’s Contents on Page A2
Details, Page C14
                                                                                                                                                                                                                                                                        $1.50
                                                                                                                                                                                                                                           Prices may vary in areas outside metropolitan
127th Year No. 163    M1       DC   MD   VA   K                                                          Sunday, May 16, 2004                                                                             M1 M2 M3 M4 V1 V2 V3 V4                    Washington. (See box on Page A4)




D.C. Region                                                                                         THE BUSH MONEY MACHINE Fundraising’s Rewards
Job Market                                        Pioneers Fill War Chest, Then Capitalize
Has Look                                                                         First of two articles                                  skeet with Cheney, played golf with pros Ben
                                                                                                                                        Crenshaw and Fuzzy Zoeller and laughed at the
                                                                                                                                                                                                          money in electing a president. Their way to do it
                                                                                                                                                                                                          was to create a network of people who could get

Of a Boom                                                                        By Thomas B. Edsall, Sarah Cohen
                                                                                 and James V. Grimaldi
                                                                                 Washington Post Staff Writers
                                                                                                                                        jokes of comedian Dennis Miller are the heart of
                                                                                                                                        the most successful political money operation in
                                                                                                                                        the nation’s history. Since 1998, Bush has raised
                                                                                                                                                                                                          at least 100 friends, associates or employees to
                                                                                                                                                                                                          give the maximum individual donation allowed
                                                                                                                                                                                                          by law to a presidential candidate: $1,000.
                                                                                                                                        a record $296.3 million in campaign funds, giv-                      The Pioneers have evolved from an initial
Government Policy,                                                                  GREENSBORO, Ga.—Joined by President                 ing him an overwhelming advantage in running                      group of family, friends and associates willing to
                                                                                 Bush, Vice President Cheney and a host of celeb-       against Vice President Al Gore and now Sen.                       bet on putting another Bush in the White House
Spending Give Boost                                                              rities, hundreds of wealthy Republicans gath-          John F. Kerry (D-Mass.). At least a third of the                  into an extraordinarily organized and disci-
                                                                                 ered at the Ritz-Carlton Lodge here in the first       total—many sources believe more than half—                        plined machine. It is now twice as big as it was in
By Neil Irwin                                                                    weekend in April, not for a fundraiser but for a       was raised by 631 people.                                         2000 and fueled by the desire of corporate CE-
Washington Post Staff Writer                                                     celebration of fundraisers. It was billed as an           When four longtime supporters of George W.                     Os, Wall Street financial leaders, Washington
                                                                                 “appreciation weekend,” and there was much to          Bush in 1998 developed a name and a structure                     lobbyists and Republican officials to outdo each
   To find enough new workers for all its                                        appreciate.                                            for the elite cadre that the then-Texas governor                  other in demonstrating their support for Bush
building projects, Bozzuto Construction           K A look at Bush’s                As Bush “Pioneers” who had raised at least          would rely on in his campaign for president, the                  and his administration’s pro-business policies.
Co. had to hire a headhunter. Consulting                                         $100,000 each for the president’s reelection           goal was simple. They wanted to escape the re-                       “This is the most impressive, organized,
firm Booz Allen Hamilton Inc. is wooing           political network.             campaign, or “Rangers” who had raised                  straints of the public financing system that Con-
MBA students with fancy dinners and               Page A17                       $200,000 each, the men and women who shot              gress had hoped would mitigate the influence of                   See PIONEERS, A15, Col. 1
cocktail parties. Pohanka Automotive
Group created a new position just to fill
all the other vacant jobs.
   After three years of standing still, the
Washington region’s job market is hop-
ping, adding 60,600 jobs in the year end-
ed in March, on pace with the boom                                                     At Andrews, the Good Times Fly By
                                                                                                                                                                                                                     Divided
years of 1997 and 1998. “This year ev-
eryone is starting to feel good again,”
said Ralph W. Shrader, chief executive
                                                                                                                                                                                                                     Iraqi South
of Booz Allen, which has been on a hir-
ing binge.
   What is different this time is the
source of the new jobs. Instead of a roar-
                                                                                                                                                                                                                     Posing New
ing expansion driven by businesses, 4
out of 5 local jobs being created can be
attributed to extremely low interest
rates, created by government stimulus,
                                                                                                                                                                                                                     Obstacles
and booming government spending.
   The Federal Reserve Board lowered                                                                                                                                                                                 Shiite Foes of Militia
the federal funds rate to 1 percent last
June, its lowest level since 1958, a key                                                                                                                                                                             Fail to Stem Uprising
factor last year in booming sales of
houses and autos in the Washington                                                                                                                                                                                   By Scott Wilson
area.                                                                                                                                                                                                                Washington Post Foreign Service
   Federal spending in the region rose by
7 percent in 2003, pumping an extra                                                                                                                                                                                     BAGHDAD, May 15—The battle for
$6.1 billion into the local economy, driv-                                                                                                                                                                           Iraq’s Shiite-populated south that en-
ing hiring by government contractors                                                                                                                                                                                 gaged U.S. forces again Saturday is pre-
while a tax cut put more money in the                                                                                                                                                                                senting U.S. officials with a more serious
hands of local consumers.                                                                                                                                                                                            political challenge than the insurgency’s
   Business and professional services                                                                                                                                                                                still potent strongholds farther north,
firms, a sector that is dominated in the                                                                                                                                                                             U.S. officials and Iraqi political leaders
Washington area by federal contractors,                                                                                                                                                                              say.
                                                                                                                                                                                                                        In heavy fighting over the past week,
See ECONOMY, A8, Col. 1                                                                                                                                                                                              U.S. forces have inflicted substantial cas-
                                                                                                                                                                                                                     ualties on the Shiite Muslim militia loyal
                                                                                                                                                                                                                     to Moqtada Sadr, a breakaway cleric
                                                                                                                                                                                                                     wanted by U.S. forces on murder charg-
                                                                                                                                                                                                                     es. U.S. and British troops battled Sadr’s
Pennsylvania                                                                                                                                                                                                         forces Saturday in four southern cities,
                                                                                                                                                                                                                     including new fighting in Amarah near
                                                                                                                                                                                                                     the Iranian border. Firefights between
Pollution                                                                                                                                                                                                            U.S. forces and insurgents in the east
                                                                                                                                                                                                                     Baghdad slum named for Sadr’s assassi-
                                                                                                                                                                                                                     nated father left 14 insurgents and two

Muddies                                                                                                                                                                                                              U.S. soldiers dead overnight Friday.
                                                                                                                                                                                                                        The fighting reflects the U.S. strategy
                                                                                                                                                                                                                     of squeezing Sadr militarily while al-

Bay Cleanup                                                                                                                                                                                                          lowing a group of local Shiite leaders to
                                                                                                                                                                                                                     broker a deal, much as Sunni Muslim
                                                                                                                                                                                                                     leaders did this month in the western
                                                                                                                                                                    PHOTOS BY RICH LIPSKI—THE WASHINGTON POST
                                                                                                                                                                                                                     city of Fallujah. The Americans contend
                                                                                                                                                                                                                     that Sadr is deeply unpopular among
State Lags in Curbing                             Two F/A-18s of the Navy’s Blue Angels fly by—one inverted—at the air show at Andrews Air Force Base. Watching the Canadian Snowbirds
                                                  perform are Kenneth Anderson, his wife, Judith, and their godchildren Omari Singleterry, 4, and Kymesha Cheeks, 6. Story, Page C1.                                 many Shiites in the holy cities of Najaf
                                                                                                                                                                                                                     and Karbala, where his men are ruining
Runoff From Farms
                                                                                                                                                                                                                     See IRAQ, A27, Col. 1
By David A. Fahrenthold
Washington Post Staff Writer                      Massachusetts Clergy Are Divided
   MANOR TOWNSHIP, Pa.—The sail-
boat harbors and crabbing grounds of the          On Eve of Historic Same-Sex Unions                                                                                                                                 Knowledge of
Chesapeake Bay are miles from this shal-
low stream that runs through fields reek-
ing of manure.
                                                  By Alan Cooperman
                                                  Washington Post Staff Writer
                                                                                                         hauled before an ecclesiastical court and lose
                                                                                                         her ordination as an Episcopal priest.
                                                                                                                                                                                                                     Abusive Tactics
   But the problems of the west branch of
Little Conestoga Creek in Lancaster
County become the bay’s problems, soon-
                                                     LINCOLN, Mass., May 15—If there are no
                                                  last-minute legal hitches and Massachusetts on
                                                                                                            “Frankly, I find Cathy’s ministry so important
                                                                                                         that I would not want to jeopardize it,” Tetreault
                                                                                                         said.
                                                                                                                                                                                                                     May Go Higher
er or later.                                      Monday becomes the first state to allow same-             Six months after its Supreme Judicial Court                                                              By R. Jeffrey Smith
   The animal waste that washes into the          sex marriages, Lois Tetreault and Lois Johnson         ruled that the state constitution guarantees the                                                            Washington Post Staff Writer
water here contains pollutants that even-         would like the pastor of the church they have at-      right to marry the partner of one’s choice, Mas-
tually are carried into the Susquehanna           tended for more than a decade to perform their         sachusetts is poised to put that historic decision                                                             Army intelligence officers suspected
River and then into the bay, where they           wedding later this year.                               into action by granting civil marriage licenses to               BY ELISE AMENDOLA—ASSOCIATED PRESS
                                                                                                                                                                                                                     that a Syrian and admitted jihadist who
feed blooms of harmful algae.                        But they have not asked the Rev. Cathy              gay couples. Legally, the ruling does not bind re-   The Rev. William G. Sinkford is                        was detained at Abu Ghraib prison out-
   “It’s all based on a very sophisticated        George of St. Anne’s in-the-Fields here, to offici-    ligious institutions in any way. Churches, syna-     president of the Unitarian                             side Baghdad knew about the illegal flow
scientific principle: Water runs downhill,”       ate, because they think she would have a hard                                                               Universalist Association, which                        of money, arms and foreign fighters into
said William C. Baker, president of the           time saying no. If she said yes, she could be          See WEDDINGS, A12, Col. 1                            has welcomed gay couples.                              Iraq. But he was smug, the officers said,
Chesapeake Bay Foundation. “The Chesa-                                                                                                                                                                               and refused to talk. So last November,
peake Bay is downhill from Pennsylva-                                                                                                                                                                                they devised a special plan for his in-
nia.”                                                                                                                                                                                                                terrogation, going beyond what Army
   The Keystone State does not have an                                                                                                                                                                               rules normally allowed.
inch of Chesapeake waterfront. But it is a                                                                         INSIDE                                                                                               An Army colonel in charge of in-
major source of the bay’s pollution, be-                                                                                                                                                                             telligence-gathering at the prison, spell-
cause Pennsylvania includes so much of            Rescuing the                                                                                                   Struggling to                                       ing out the plan in a classified cable to the
the watershed for the Susquehanna, a                                                                                                                                                                                 top U.S. military officer in Iraq, said in-
massive river that provides half the bay’s        Past                                                                                                           Save the Children                                   terrogators would use a method known
fresh water.                                      After centuries of neglect                                                                                     As children continue to die                         as “fear up harsh,” which military docu-
   A partner in the bay cleanup effort            and years of hassles,                                                                                          at the hands of violence in                         ments said meant “significantly increas-
since 1983, Pennsylvania dumps more ni-           Maryland’s rich African                                                                                        D.C., sadness and anger                             ing the fear level in a security detainee.”
trogen and phosphorus into the bay than           American history is about                                                                                      remain. Loved ones tell the                         The aim was to make the 31-year-old Syr-
Maryland or Virginia and has made far             to have a bona fide                                                                                            stories of 13 young victims.                        ian think his only hope in life was to talk,
less progress than those states in reduc-         showcase.                                                                                                                                                          undermining his confidence in what they
                                                                                                                                                                 STYLE, Page D1
ing the flow of those pollutants, the U.S.                                                                                                                                                                           termed “the Allah factor.”
                                                  THE MAGAZINE
Environmental Protection Agency said.                                                                                                                            Why Chelsea Cromartie’s                                According to the plan, interrogators
                                                                                                                                                                 case got top priority.                              needed the assistance of military police
See PENNSYLVANIA, A10, Col. 1                                                                                                                                    METRO                                               supervising his detention at the prison,
                                                                                                                                                                                                                     who ordinarily play no role in interroga-
                                                                                                                                                                                                                     tions under Army regulations. First, the
           The Post on the Internet:                                                                                                                             The Third Man                                       interrogators were to throw chairs and
        washingtonpost.com                                                                                                                                       The FBI has lost track of a                         tables in the man’s presence at the prison
                                                                                     Smarty Jones Sets Preakness Record

                 7
                                                                                                                                                                 Yemeni who sought photos
    Contents                                                                                                                                                     of lower Manhattan in May                           See COMMAND, A28, Col. 1
     2004                                                                           Smarty Jones will enter the Belmont Stakes with a chance to
    The                                                                              become the first Triple Crown winner since 1978 after winning               2001.
    Washington
    Post                                                                             the Preakness by a record 111⁄2 lengths. SPORTS, Page E1                    NATION, Page A7                                     K Missionaries get a mixed
    Company
                                                                                                                                                                                                                     reception in Iraq. | Page A24
                                                                                                                                                                                                                              DAILY 05-16-04 MD SU A15 CMYK


The Washington Post                                                                                           x                                                                                                                                                                              K     S      Sunday, May 16, 2004 A15

                                                                                                                                       THE BUSH MONEY MACHINE Fundraising’s Rewards                                                                                                                                                                     350

                                                                                                                                                                                                                                                                                                                              $338.6 million




                                                                                                                                                                                                                                                                                                                                                        300
Giving to George W: Dollars Mount and Smash Records
From his first run for governor of Texas in 1994, George W. Bush has demonstrated a
knack for fundraising. In 1998, as Bush contemplated running president, four of his
advisers created the Pioneer program as a way to introduce competition and accountability
among fundraisers. The Bush Pioneers, who each raised $100,000 in individual
                                                                                                                                                                                                                                                                                                                                                        250
contributions of $1,000, allowed Bush to forgo federal funds and escape the $40.5 million
cap on spending in the 2000 GOP primaries. The strategy allowed him to break all previous
records within months of entering the race. In the 2000 general election campaign, Bush
and Al Gore accepted federal funds and were limited to $68 million each in spending.
This year’s take will nearly double the last election’s.                                                                                                                                                                                                                                                                           $200 million
                                                                                                                                                                                                                                                                                                                                                        200




                                                                                                                                                                                                                                                                                                                                                        150

                                                                                                                                                                                                                                                          cumulative total in millions of dollars




                                                                                                                                                                                                                                          $96.3 million
                                                                                                                                                                                                                                                                                                                                                        100




                                                                                                                                                                                                                                                                                                                                                         50
                                                                                                                                                                                                                                                                  federal spending cap

                                                                                                                                                                                      $25.3 million
                           $16 million

                                              1st Texas Gubernatorial Campaign                                                                        2nd Texas Gubernatoria Campaign                         1st Presidential Campaign                                                                        Current Presidential Campaign

                 1994                                      1995                                      1996                                      1997                         1998                           1999                     2000                       2001                              2002                 2003                         2004

                                                                                                                                                                                 Creation of Pioneers.                                                    Bipartisan Campaign Finance Reform Act signed into            Creation of Rangers,
                                                                                                                                                                                                                                                          law March 27, 2002. Went into effect Jan. 1, 2003.            July 2003
SOURCE: Washington Post research, Federal Election Commission, Texas Ethics Commission, Center for Responsive Politics, Texans for Public Justice

                                                                                                                                                                                                                                                                                                                GRAPHIC BY LOUIS SPIRITO—THE WASHINGTON POST




Four Advisers Came Up With the Idea of Pioneers
PIONEERS, From A1                                                                                                                                                                                                                                                                                 $1,000 contribution limit.
                                                                                                                                                                                                                                                                                                     Francis came up with the idea of making
focused and disciplined fundraising opera-                                                                                                                                                                                                                                                        it a competition. “We purposely set the bar
tion I have ever been involved in,” declared                                                                                                                                                                                                                                                      high,” Francis said. “These are very suc-
Dirk Van Dongen, president of the National                                                                                                                                                                                                                                                        cessful, very competitive people,” and the
Association of Wholesaler-Distributors,                                                                                                                                                                                                                                                           requirement of raising at least $100,000 in
who has been raising money for GOP candi-                                                                                                                                                                                                                                                         contributions of $1,000 or less was designed
dates since 1980. “They have done just                                                                                                                                                                                                                                                            “to tap into their competitive instincts.”
about everything right.”                                                                                                                                                                                                                                                                             Not only would the fundraisers compete
   For achieving their fundraising goals,                                                                                                                                                                                                                                                         to make Pioneer, they would also vie to see
Pioneers receive a relatively modest token,                                                                                                                                                                                                                                                       who could raise the most money, and, even
the right to buy a set of silver cuff links with                                                                                                                                                                                                                                                  more significantly, who could recruit the
an engraved Lone Star of Texas (Rangers                                                                                                                                                                                                                                                           largest number of other Pioneers.
can buy a more expensive belt buckle set).                                                                                                                                                                                                                                                           The second problem was accountability.
Their real reward is entree to the White                                                                                                                                                                                                                                                          Fundraisers are notorious for making ex-
House and the upper levels of the adminis-                                                                                                                                                                                                                                                        travagant promises and claiming credit for
tration.                                                                                                                                                                                                                                                                                          every name they recognize on a donor list.
   Of the 246 fundraisers identified by The                                                                                                                              BY ERIC GAY—ASSOCIATED PRESS                                                               BY KEVIN LAMARQUE—REUTERS
                                                                                                                                                                                                                                                                                                  “You can have an event that pulls in $3 mil-
Post as Pioneers in the 2000 campaign,                                                  Then-Texas Gov. George W. Bush with one of the four founders of the                                              President Bush and Labor Secretary Elaine L. Chao, one of three Pio-                     lion, and there will be 20 guys each saying
104—or slightly more than 40 percent—                                                   fundraising Pioneer organization, Donald L. Evans, a Texas oilman.                                               neers placed in the Cabinet. Twenty-three were named ambassadors.                        they raised $1 million,” said a Republican
ended up in a job or an appointment. A                                                                                                                                                                                                                                                            fundraiser who spoke under the condition of
study by The Washington Post, partly using                                                                                                                                                                                                                                                        anonymity.
information compiled by Texans for Public                                                                                                                                                                                                                                                            A system was needed to make certain
Justice, which is planning to release a sep-                                                                                                                                                                                                                                                      there was no double or triple counting, that
arate study of the Pioneers this week, found                                                                                                                                                                                                                                                      when a check came in for $1,000, proper
that 23 Pioneers were named as ambassa-                                                                                                                                                                                                                                                           credit was given to the fundraiser who had
dors and three were named to the Cabinet:                                                                                                                                                                                                                                                         solicited the money.
Donald L. Evans at the Commerce Depart-                                                                                                                                                                                                                                                              Phillips proposed a solution: Every fund-
ment, Elaine L. Chao at Labor and Tom                                                                                                                                                                                                                                                             raiser would be assigned his or her own
Ridge at Homeland Security. At least 37                                                                                                                                                                                                                                                           four-digit tracking number. A Pioneer
Pioneers were named to postelection transi-                                                                                                                                                                                                                                                       would get credit only for those checks that
tion teams, which helped place political                                                                                                                                                                                                                                                          arrived with the correct tracking number
appointees into key regulatory positions                                                                                                                                                                                                                                                          clearly printed on them.
affecting industry.                                                                                                                                                                                                                                                                                  In addition, prospective Pioneers would
   A more important reward than a job, per-                                                                                                                                                                                                                                                       have a direct line into the Bush campaign
haps, is access. For about one-fifth of the                                                                                                                                                                                                                                                       finance offices. There they could routinely
2000 Pioneers, this is their business—they                                                                                                                                                                                                                                                        find out where they stood, compared with
are lobbyists whose livelihoods depend on                                                                                                                                                                                                                                                         the rest of the field. Every month, they
the perception that they can get things done                                                                                                                   BY J. SCOTT APPLEWHITE—ASSOCIATED PRESS                                                        BY NOEMI BRUZAK—ASSOCIATED PRESS
                                                                                                                                                                                                                                                                                                  would get printouts of donations. Everyone
in the government. More than half the Pio-                                              Bush tours the District police department with another Pioneer in-                                               U.S. Ambassador to Hungary Nancy Goodman Brinker, left, in Buda-                         assigned a number could check regularly to
neers are heads of companies—chief exec-                                                stalled in the Cabinet, Homeland Security Secretary Tom Ridge.                                                   pest with a visiting Laura Bush. Brinker is one of 23 Pioneer envoys.                    see if their $1,000 pledges had been fulfilled.
utive officers, company founders or manag-                                                                                                                                                                                                                                                           Soon after the 1998 Midland strategy ses-
ing partners—whose bottom lines are                                                     the entire 2000 list of Pioneers, saying it is                                ans for Public Justice, a public interest                    money for the primary season before, in                        sion, Francis, Evans, Phillips and Meyer
directly affected by a variety of government                                            contained in computer files they can no lon-                                  group that has tracked the Pioneer network                   order to spend their own wealth. Bush, in                      joined other campaign operatives in Dallas
regulatory and tax decisions.                                                           ger access.                                                                   for five years.                                              contrast, was not going to use his own                         to put the plan to work. The four reported
   When Kenneth L. Lay, for example, a                                                     Bush campaign spokesman Scott Stanzel                                                                                                   money—he was going to raise it from hun-                       directly to Karl Rove, Bush’s principal polit-
2000 Pioneer and then-chairman of Enron                                                 said, “Our campaign enjoys support from                                       First Goal: $50 Million                                      dreds of thousands of donors.                                  ical adviser. Francis took charge of the Pio-
Corp., was a member of the Energy Depart-                                               nearly 1 million contributors from every                                                                                                      The early signs were favorable. For                         neer program. In addition to Bush family
ment transition team, he sent White House                                               county in this nation. We’re proud of our                                        No candidate in recent history was better                 months, Bush’s handlers had been signaling                     members and friends, Francis had essential-
personnel director Clay Johnson III a list of                                           broad-based support, and the Bush cam-                                        positioned than George W. Bush to draw on                    that the Texas governor was ready to run for                   ly four spheres of money to mine, all of
eight persons he recommended for appoint-                                               paign has set the standard for disclosure.”                                   so many disparate sources of wealth. The                     the White House. Big givers, in turn, were                     which overlapped at various points.
ment to the Federal Energy Regulatory                                                      M. Teel Bivins, a rancher, Pioneer and                                     task for the four Bush friends who met in                    promising support. The pledges posed two                          The first sphere was formed by the group
Commission. Two were named to the five-                                                 member of the Texas Senate awaiting con-                                      Midland, Tex., in late 1998—Texas Repub-                     problems.                                                      of men who had repeatedly gambled on
member commission.                                                                      firmation as ambassador to Sweden, spoke                                      lican fundraiser and public relations special-                  The first was that the Bush network was                     George W. Bush as an entrepreneur, in-
   Lay had ties to Bush and his father, for-                                            more openly in an interview with the BBC                                      ist James B. Francis Jr., fundraiser Jeanne                  made up of men, and a scattering of women,                     vesting in failed Bush ventures in the oil
mer president George H.W. Bush, and was                                                 in 2001. “You wouldn’t have direct access if                                  Johnson Phillips, state Republican chair-                    who were used to writing big checks. Dona-                     business and then joining Bush in the highly
typical of the 2000 Pioneers. Two-thirds of                                             you had spent two years of your life working                                  man Fred Meyer and Don Evans, then a Tex-                    tions to Bush’s gubernatorial campaigns, to                    profitable acquisition of the Texas Rangers
them had some connection to the Bush fami-                                              hard to get this guy elected president, rais-                                 as oil man—was to figure out how to capital-                 the Republican National Committee’s                            baseball team. The Rangers made millions
ly or Bush himself—from his days in college                                             ing hundreds of thousands of dollars?” he                                     ize on the extensive network of rich and                     “Team 100,” to Jeb Bush’s Florida Repub-                       for Bush and his partners.
and business school, his early oil wildcatting                                          said. “You dance with them what brung ya.”                                    powerful people that the governor, his fa-                   lican Party and to the Bushes’ earlier oil and                    The second sphere was made up of the
in West Texas, his partial ownership of the                                                For the 2004 election, the composition of                                  ther, brothers, uncles, grandfather and                      baseball ventures had no contribution lim-                     Texas political elite and business communi-
Texas Rangers baseball team and the politi-                                             the Pioneers has changed, reflecting the                                      great-grandparents had built up over the                     its. Transfers and gifts of $100,000 or more                   ty that supported him as governor. Many
cal machine he developed as governor.                                                   broad support the Bush administration has                                     past century.                                                were commonplace within this universe.                         were involved in the energy industry.
   “It’s clearly the case that these net-                                               given and received from industries ranging                                       This account of the founding of the Pio-                     Federal elections, however, were differ-                    Others sought tighter restrictions on law-
working operations have been the key driv-                                              from health care to energy.                                                   neers is drawn from interviews with three of                 ent. A key provision of the 1974 Watergate                     suits against corporations and physicians.
ing Bush fundraising,” said Anthony Corra-                                                 Of the 246 known Pioneers from the 2000                                    the four participants.                                       reforms for the first time set a limit on indi-                Gov. Bush had won approval of state legisla-
do, a visiting scholar at the Brookings                                                 election, about half—126—are Pioneers or                                         Two wings of the family, the Bushes and                   vidual contributions to a presidential cam-                    tion favorable to both of these constituen-
Institution and a political scientist at Colby                                          Rangers again. They are joined by 385 new                                     the Walkers, had long been entrenched in                     paign: a relatively paltry $1,000.                             cies.
College. “The fact that we have great num-                                              Pioneers and Rangers whose backgrounds                                        the industrial Midwest and on Wall Street.                      “We had to turn these people into money                        The third sphere was made up of the Re-
bers of these individuals raising larger and                                            are less from Texas and the Bush circle than                                  This establishment, in turn, had produced                    raisers instead of money givers,” Francis                      publican financial elite with strong ties to
larger sums means there are going to be                                                 from the nation’s business elite, particularly                                the investors who had bankrolled the ven-                    said in a recent interview—to get them to                      Bush’s father, the 41st president.
more individuals, postcampaign, making                                                  Wall Street and such major players as Bear                                    ture of George H.W. Bush into the oil in-                    do the dirty work of politics, to make hun-                       During the Nixon and Ford administra-
claims for policy preferences and ambassa-                                              Stearns & Co. Inc., Kohlberg Kravis Rob-                                      dustry after World War II, his acquisition of                dreds of calls to clients, subcontractors, to                  tions, the senior Bush had cemented allianc-
dorial posts.”                                                                          erts & Co.; Goldman Sachs Group Inc.,                                         wealth through oil and his ascent to national                their corporate subordinates, to their law                     es on crucial fronts, serving in top posts at
   Asked whether the president gives any                                                Merrill Lynch & Co. Inc., Credit Suisse                                       prominence.                                                  partners and fellow lobbyists and plead for                    the United Nations, the Republican Nation-
special preference to campaign contributors                                             First Boston Inc. and Morgan Stanley & Co.                                       The 41st president had, in pursuing his                   cash.                                                          al Committee and the Central Intelligence
in making decisions about policy, appoint-                                              Inc.                                                                          own political ambitions, built up a financial                   Their problem can be illustrated by look-                   Agency. More importantly, during three
ments or other matters, White House                                                        The campaign’s most productive Zip                                         network that he in turn could pass on to two                 ing at the $41 million Bush had collected for                  runs for the presidency, two terms as vice
spokesman Trent Duffy said, “Absolutely                                                 code this year is Manhattan’s 10021: the Up-                                  of his sons, George W. and Jeb.                              his two gubernatorial bids under rules                         president and one as president, the elder
not.” The president, Duffy said, “bases his                                             per East Side, bounded by Fifth Avenue,                                          At the time of the 1998 Midland meeting,                  allowing unlimited contributions. If the                       Bush had cultivated and assiduously main-
policy decisions on what’s best for the                                                 East 80th Street, East 61st Street and the                                    Evans, Phillips, Francis and Meyer had the                   same number of people had contributed                          tained a national base of major donors and
American people.”                                                                       East River.                                                                   relatively modest goal of raising a minimum                  under federal campaign rules with a limit of                   fundraisers. Many were ready and willing to
   Pioneers interviewed for these articles                                                 “This is the most successful political                                     of $50 million to reject public financing for                just $1,000 each, Bush would have raised                       support his son—including some of the 252
were reluctant to discuss on the record their                                           fundraising mechanism in the history of pol-                                  the 2000 Republican primaries and to be                      only $14.3 million.                                            members of the Republican National Com-
contacts with the administration. “That’s                                               itics, and it will be emulated by other candi-                                free to spend without limit until the summer                    At the 1998 Midland meeting, the goal                       mittee’s “Team 100,” each of whom had
dead man’s talk,” one said. The Bush cam-                                               dates and campaigns in the future,” said                                      nominating conventions.                                      was to figure how to get “two steps
paign declined repeated requests to reveal                                              Craig McDonald, executive director of Tex-                                       Other Republicans had rejected public                     ahead”—to use Meyer’s phrase—of the                            See PIONEERS, A16, Col. 1
                                                                                                                                                     DAILY 05-16-04 MD SU A16 CMYK



A16      Sunday, May 16, 2004                 S   K              x                                                                                                                                                                   The Washington Post

                                                                                 THE BUSH MONEY MACHINE Fundraising’s Rewards
Suns of the Pioneers




              Karl Rove                                              Jack Oliver                                     Fred Meyer                                  Jeanne Johnson Phillips                                         James B. Francis Jr.
        Adviser to the president                                     Family insider                           Former Texas GOP chairman                                       Fundraiser                                       GOP public relations specialist
The Pioneer strategy team reported directly           Trusted insider in Bush’s political family        One of four Bush friends who helped figure           Phillips proposed a solution to the problem of               Francis was in charge of the Pioneer
to Rove. Rove has become a “little gun-shy”           who managed the fundraising effort for            out how to capitalize on the extensive               giving Pioneers proper credit: Every                         program. He took part in the 1998 Midland
when dealing with association executives              both of his presidential campaigns. Oliver’s      network of rich and powerful people that             fundraiser would be assigned a four-digit                    meeting that set the goal to raise a
and lobbyists, fearful that his involvement           main function was to tell Rove “what              Bush and his family had built up over the            tracking number. A Pioneer would get credit                  minimum $50 million to reject public
with any special interest might produce               people had really done” to raise money,           past 50 years.                                       only for checks that arrived with the correct                financing for the 2000 Republican
adverse publicity.                                    one Republican official said.                                                                          tracking number clearly printed on them.                     primaries.




Donors Asked to Build Pioneer, Ranger Networks
PIONEERS, From A15                                                                                                                                                                                                  liaison office. Those people know who you
                                                                                                                                                                                                                    are and can usually deal with the issue,” an-
given the party at least $100,000.                                                                                                                                                                                  other Ranger said. “You don’t seek out the
   The importance of this legacy to George                                                                                                                                                                          maitre d’ unless you really need to.”
W. Bush is clearly reflected in the composi-                                                                                                                                                                            Several major fundraisers in the lobbying
tion of the 246 men and women who would                                                                                                                                                                             community complained that as the election
become Pioneers in 2000. At least 60—24                                                                                                                                                                             approaches, Rove has become a “little gun-
percent—had been supporters of Bush’s                                                                                                                                                                               shy” when dealing with association exec-
father in the 1980 or 1988 campaigns.                                                                                                                                                                               utives and lobbyists, fearful that his involve-
   The fourth sphere was composed of the                                                                                                                                                                            ment with any special interest might pro-
supporters of Bush’s fellow Republican gov-                                                                                                                                                                         duce adverse publicity.
ernors, most importantly those of his broth-                                                                                                                                                                            “It’s different now that we are in cam-
er, Jeb Bush in Florida. By November 1999,                                                                                                                                                                          paign mode,” the lobbyist said. “Karl
well before any primaries or caucuses had                                                                                                                                                                           doesn’t even want to be involved in courtesy
been held, George W. Bush already had the                                                                                                                                                                           visits [with clients]. ‘Don’t bring this to my
endorsements of 26 of 30 GOP governors.                                                                                                                                                                             office,’ he’ll say. He’s been snakebitten” be-
   The Bush campaign tapped these sources                                                                                                                                                                           cause of past controversies over his alleged
to raise a then-record $96.3 million for the                                                                                                                                                                        involvement with groups seeking special
primaries in 2000, far outdistancing Demo-                                                                                                                                                                          favors, especially decisions involving steel
crat Gore’s $49.5 million. Both candidates                                                                                                                                                                          import tariffs.
received $68 million in public financing for                                                                                                                                                                            In response to questions about his con-
the general election campaign.                                                                                                                                                                                      tacts with Pioneers and Rangers, Rove said,
   In 2002, Congress enacted the McCain-                                                                                                                                                                            “I talk to a wide variety of people, members
Feingold bill banning contributions to politi-                                                                                                                                                                      of the campaign from the grass roots on up.
cal parties of what is known as “soft                                                                                                                                                                               . . . It’s part of my job to keep an open ear to
money”—unlimited donations from corpo-                                                                                                                                                                              what people are saying around the county.”
rations, unions or the wealthy. Instead, the                                                                                                                                                                            White House sources said that if anyone
legislation raised the “hard money” limit on                                                                                                                                                                        refers to fundraising while seeking some-
contributions to candidates from $1,000 to                                                                                                                                                                          thing from the administration, the policy is
$2,000.                                                                                                                                                                   BY THOMAS B. EDSALL—THE WASHINGTON POST
                                                                                                                                                                                                                    to then “vet” the request with the White
   “The organization of the Pioneers and          At a resort in Georgia last month, Republicans gathered to celebrate success in collecting money for the candidacies of George W. Bush.                           House counsel’s office to make sure no reg-
Rangers is significant, and it is the way of                                                                                                                                                                        ulations or laws are being violated.
the future,” said Ken Goldstein, a University                                                                                                                                                                           Commerce Secretary Evans also plays a
of Wisconsin political scientist. “People                                                                                                                                                                           key role. “Evans acts as a kind of court of
with Rolodexes and the ability to raise           For $235 a set, Bush Pioneers,                                                                                                                                    appeals . . . everybody knows that Evans is
money have always been valuable, but with         who raise $100,000 each, are                                                                                                                                      one of the president’s best friends. So he can
the passage of McCain-Feingold, they have         eligible to purchase silver cuff                                                                                                                                  be very effective intervening for you with
become especially valuable. . . . [T]he abili-    links, right, with black onyx                                                                                                                                     just about any department,” one fundraiser-
ty to get friends, colleagues and business as-    inlays. Bush Rangers, who                                                                                                                                         lobbyist said.
sociates to give the maximum hard money           raise $200,000 apiece, are                                                                                                                                            This lobbyist described the following sit-
amount is now even more valuable.”                eligible to purchase a sterling                                                                                                                                   uations as the type in which Evans can effec-
   With soft money banned, the 2004 Bush          silver belt buckle set, below,                                                                                                                                    tively help: “Say you’ve got a bunch of tele-
campaign has greatly expanded the Pioneer         for $900.                                                                                                                                                         com companies that are frozen out of doing
program, setting a new record of more than                                                                                                                                                                          business in Russia, and [the] State [Depart-
$200 million raised so far. This year, Kerry,                                                                                                                                                                       ment] won’t do anything, or your sugar peo-
the presumptive Democratic nominee, fol-                                                                                                                                                                            ple can’t get a fair hearing at USTR [the
lowed Bush’s lead and rejected public fi-                                                                                                                                                                           Office of the U.S. Trade Representative] in
nancing for his primary campaign, fearing                                                                                                                                                                           negotiations with Mexico. . . . [Evans] can
he would be crushed by the Bush organiza-                                                                                                                                                                           make them stop and listen. He can get some-
tion if he were forced to abide by the                                                                                                                                                                              thing unstuck.”
$45 million spending limits that accompany                                                                                                                                                                              Evans was the one fellow Pioneer Ken
public financing. Kerry recently released a                                                                                                                                                                         Lay turned to in desperation in the fall of
list of 182 people who have each raised a                                                                                                                                                                           2001, when Enron spiraled toward bank-
minimum of $50,000, helping to bring his                                                                                                                                                                            ruptcy. Lay wanted help with the company’s
total to at least $110 million.                                                                                                                         M. Teel Bivins, a Pioneer and Texas politician              credit rating, but Enron was in too much
   The Democrats are increasingly relying                                                                                                               awaiting Senate confirmation as U.S.                        trouble, and Evans was unable to oblige.
on independent groups known as 527s, after                                                                                                              ambassador to Sweden, told the BBC in
their designation in the tax code. They cur-                                                                                                            2001: “You dance with them what brung ya.”                  For 2004: Super Rangers
rently raise unlimited funds for political ads
that have been used to attack Bush. Two                                                                                                                                                                                Last month at the Ritz-Carlton Lodge on
prominent examples are the Media Fund             that can be singled out from the pack and          ing them credit—and supposedly all the             specifically did not want to go—I could                     Lake Oconee, after the golf and the enter-
and Moveon.org. Financier George Soros            tracked with precision. Some of their trans-       access and influence that comes with huge          not—be farther than a 10-hour plane ride                    tainment and a reception with Bush for the
and Peter B. Lewis, chairman of the Pro-          actions with the administration can also be        campaign contributions,” said McDonald of          because of my [elderly] parents. I wanted to                elite Rangers, the “appreciation” of the cam-
gressive Corp., have each given more than         tracked.                                           Texans for Public Justice. He said the Bush        be in the European continent somewhere,                     paign’s leading fundraisers gave way, inevi-
$7 million to these organizations.                   Sometimes the interests of Pioneers are         campaign has never released a complete list        particularly a country like this, where I                   tably, to a business meeting.
   For the general election campaign, Bush        relayed in subtle, indirect ways, through          of Pioneers and Rangers with the specific          thought I could try to make some kind of dif-                  On a bright Saturday morning, more than
and Kerry are accepting public money; each        members of Congress or Republican lead-            amounts of money they have raised. Once,           ference.”                                                   300 of Bush’s Pioneers and Rangers es-
will get $75 million.                             ers, especially in the case of major adminis-      in response to a lawsuit, campaign officials          Patronage decisions for Pioneers and oth-                chewed the links to gather in a windowless
   Until the conventions this summer, Bush        tration bills enacted since Bush took office:      said that such a list was not available.           er friends of the president are made largely                conference room. Sipping imported mineral
can enjoy his spending advantage over             three bills granting tax relief to the wealthy        “It is unbelievable that the most suc-          by Rove, the White House senior political                   water and coffee, Wall Street mingled with
Kerry, saturating the airwaves with ads that      and to corporations, the 2003 Medicare bill        cessful fundraising list in the history of poli-   adviser, and Andrew H. Card Jr., the chief of               Texas.
help to define Kerry, particularly in the         supported by the drug industry and other           tics has been misplaced,” McDonald said.           staff, in consultation with the Office of Pres-                A Post reporter walked into the session,
battleground states.                              major health lobbies, and pending legisla-            Gary C. Jacobson, a University of Califor-      idential Personnel, which handles the vet-                  which the campaign described later as an
   The Bush reelection campaign is current-       tion providing tax breaks and regulatory           nia at San Diego political scientist who spe-      ting process, according to senior Repub-                    event closed to the media. The speakers
ly riding a wave of Wall Street money and         relief to the energy sector.                       cializes in campaign finance, said the Pio-        licans who would speak only on the                          “were under the belief that they were speak-
has consolidated the Republican establish-           At another level, requests for tickets to an    neer program “is a way of allowing                 condition of anonymity. Any donor who                       ing privately with our contributors,” cam-
ment with the backing of prominent Wash-          event, such as a White House party, are like-      individuals to accumulate political clout de-      wants to be considered for a major job must                 paign communications director Nicolle
ington lobbyists and trade association exec-      ly to be more overt than the nuanced               spite the fact that contribution limits are rel-   indicate interest to one of those two men,                  Devenish said.
utives. They are not only highly effective        approach needed to get on the radar for a          atively low.”                                      the Republicans said.                                          There they learned that the Rangers
fundraisers themselves but also their client      presidential appointment.                             “You can no longer give $100,000 and be            These Republicans acknowledged that fi-                  would soon lose their top status, just as the
and membership lists include some of the             “It is noticed that you are doing extra         an ambassador, but you might be able to            nance issues were taken into account, but                   Pioneers had before them. Raising $200,000
most regulated, and most politically active,      work and you have a lot of friends in the ad-      raise that amount and accumulate the same          said there were instances of donors being                   was a starting point, they were told. But to
corporations in every state.                      ministration,” said Rep. Jennifer Dunn (R-         kind of political debt,” Jacobson said.            disappointed and people getting plum posi-                  qualify as a “Super Ranger,” they would
   At least 64 Rangers and Pioneers are           Wash.), a Pioneer who was considered for a            Nancy Goodman Brinker, one of the 23            tions who had done little to help the cam-                  have to raise an additional $300,000 for the
lobbyists, including Jack Abramoff, who           presidential appointment. Her son, Reagan          Pioneers from the 2000 campaign who be-            paign treasury.                                             Republican National Committee, where the
until recently specialized in representing        Dunn, was hired by the Justice Department,         came an ambassador, said she does not re-             In making decisions immediately after                    individual contribution limit is $25,000.
Indian tribes with gambling interests; Kirk       and her new husband, E. Keith Thomson,             member exactly when or who first brought           the election, Rove consulted Jack Oliver, a                    “The name of the game is maxing out the
Blalock, whose clients include Fannie Mae,        was appointed last year as the director of         up a diplomatic appointment. She said it           trusted insider in Bush’s political family                  dollars,” Oliver told the gathering.
the Health Insurance Association of Amer-         the Office of Trade Relations. “A lot [of Pio-     “seemed to evolve” after someone asked her         who managed the fundraising effort for both                    As the Super Ranger notion was unveiled,
ica, and the Business Roundtable; Jack N.         neers] have a particular interest and you          whether she wanted to serve. The next              of his presidential campaigns. Oliver’s main                attendees shifted in their seats. Some
Gerard, president of the National Mining          have lots of contacts, and you say, ‘I’d like to   thing she knew, she was talking to Clay            function was to tell Rove “what people had                  looked up eagerly, but others demurred.
Association; and Lanny Griffith, whose            sign up to be an ambassador when one               Johnson in the White House personnel of-           really done” to raise money, one of the se-                 “The rest of us, who don’t have members or
clients include the American Trucking Asso-       comes along.’ ”                                    fice about her choices. “One of the reasons        nior Republicans said. Now, such decisions                  clients with deep enough pockets to come
ciations, Brown & Williamson Tobacco                 The Pioneer tracking system ensures that        why I chose and asked to be placed in Buda-        are made entirely within the White House,                   up with $25,000 said, ‘Oh, [expletive],’ ”
Corp., the Southern Co., a major energy           hard work gets noticed. That’s why Rep.            pest,” Brinker said at her Senate confirma-        the official said, and Rove and Card also                   said one attendee who asked to remain
concern, and State Street Corp.                   Rob Portman (R-Ohio) signed up this year.          tion hearing, “was because I think there’s         have sway over lesser favors, and “scrub the                anonymous.
                                                  He read that Dunn, Speaker J. Dennis Has-          been an amazing story of loyalty by this           lists” of invitations to White House holiday                   To reach the new goals, Travis Thomas,
On Track to Appointments                          tert (R-Ill.), and others were Pioneers. Port-     country.”                                          parties.                                                    the Bush-Cheney finance director, explained
                                                  man had already raised money, “but I didn’t           Brinker said one of her primary concerns,          “I can call Karl, and I can call about half of           to the gathered Rangers and Pioneers how
   Big donors, Republican and Democrat,           have a tracking number. I finally decided to       before accepting the nomination, was her           the Cabinet, and they will either take the call             they could hold fundraisers in their homes
have always received benefits from the ad-        get one. I wanted to be supportive, and be         parents, who are in their eighties. The presi-     or call back,” said one lobbyist Ranger, who                featuring an appearance by the president
ministrations that received their largess.        viewed as supportive.”                             dential personnel team works with a poten-         described such access as “my bread and but-                 that would bring in $2 million to $3 million
Bill Clinton brought big donors into the             Critics complain that the Pioneer and           tial nominee to find a good fit, which she         ter” and spoke only on the condition of ano-                in bundled contributions. Private homes, he
White House and let them sleep in the Lin-        Ranger program allows the campaign to              called “matching talent with interests.” She       nymity. He and others noted that going to                   pointed out, are more comfortable for the
coln bedroom and appointed some to gov-           track those who raise big money while              knew George W. Bush from his days in               top officials in either the White House or in               president.
ernment jobs.                                     cloaking details about them from the public;       Texas, where she founded the Susan G.              Cabinet departments is only used as a last                     And, Thomas added, “If it is in a private
   The Bush campaign’s innovation in the          campaigns are required to report the names         Komen Breast Cancer Foundation, named              resort on important issues and not always                   residence, it can be closed to the press.”
late 1990s was to institutionalize what other     of the individual donors, but not the fund-        for her sister who died of breast cancer.          with success.
administrations had done more informally,         raisers who solicit the donations.                    “There were discussions where your                 “It’s much better to start with an assis-                Staff writer Mike Allen and researcher
which is to create a special class of donors         “The campaign is tracking them and giv-         talents fit in which country,” Brinker said. “I    tant secretary or the White House public                    Alice Crites contributed to this report.
                                                                                                                                                                                                                                                                                                  DAILY 05-16-04 MD RE A17 CMYK


The Washington Post                                                                                                       x                                                                                                                                                                                                                                                                           K         R               Sunday, May 16, 2004 A17

                                                                                                                                                       THE BUSH MONEY MACHINE Fundraising’s Rewards


     Spheres of Influence
     George W. Bush reached into each of the spheres surrounding his life to find                                                                                                                                                                                business ventures and contacts made through the Republican Governors Association
     fundraisers for his first presidential bid. These Pioneers, who raised a minimum                                                                                                                                                                            and his partial ownership of the Texas Rangers baseball team. He also drew from
     of $100,000 each in individual contributions of $1,000 or less in 2000, have                                                                                                                                                                                his family’s storied political life, tapping appointees and fundraisers from his
     changed the face of national campaign finance. They helped him raise a record                                                                                                                                                                               father’s presidential bids, his brother’s political supporters in Florida and supporters
     $96.3 million and allowed him to turn down federal matching funds that would                                                                                                                                                                                and appointees from his six years as Texas governor. The Post found that about
     have limited his spending during the primary elections. For Bush, they include                                                                                                                                                                              170 of the 246 Pioneers in 2000 fell into one of these realms. Of the Pioneers, more
     classmates from Yale and Harvard, childhood friends, investors in his early                                                                                                                                                                                 than 100, or 40 percent, won a federal appointment after the election.

                 D S Goddard Jr                        S Mitchell                J Fourquet                         Goldman
                                                                                                                    Sachs
                                                                                                                                     P Montgomery III                          R Wright
                                                                                                                                                                                                                             A R Sanchez Jr
                                                                                                                                                                                                                                                                                                                                 R Letbetter                             Reliant Energy                                                 Key to symbols:
                                                                                                                                                                                                                                                            D Branch
                                                                                                                                                                                                      G W Ceverha

                                                                                                                                                                         Communities                                                                                                       T Loeffler                                                                                                                                                     Bush appointee
                                                                                                                                                                         Foundation of Texas
                                                                 R Kinder                          J Huffines                        P Coneway                                                                                                                                                                     P Oxford                                          D Jordan                                                Pioneers
                  Enron                                                                                                                                                                                                   R Heath                          N Serafy Jr                                                                                                                                                                                    Non-appointee
                                                                                                                                                                             A Shivers Jr

                                                                                                                                                                     L Beecherl Jr                D Nixon                                                                                D Laney                                                                                              T Kuhn                                                      Other key
                                                                                                                                                                                                                                                                                                                                                    Edison
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Bush supporters
                    K Lay                                                                                                               Univ Texas /                                                                                                                                                               R Romero
                                                                                                                                                                                         G Williams                                                                                                                                                Electric
                                                                                                                                        UTIMCO                                                                                                                                                                                                    Institute
                                                                                                                                                                                                                                                                                                                                                                                              F Webber                                                    Organization
              R Whilden                                                                                                                                              A W Riter                                                                                                                                             D Powell
                                                                                                                                                                                                                                                                                                                                                                                                                                                          Names that appear in
                                                                                                                                                                                                                                                                                                                                                                     E Nye                                                                                boldface are
                                                                                                                                                                                                                                                                                                                                                                                                                                                          referenced in the
                                                                                                                                                                                                                                                                                                                                                                                                                                                          accompanying article.
                                                                                                                                                                                                                                                                                                                   J Vaughn Jr

       J B Allen Vinson & Elkins                                                                            R Reed Jr                        R Kjellender
                                                                 T Marinis Jr
                                                                                                                                                                                                                                                                                                                                                                                                                             Many of the closest members of this circle
                                                                                                                                                                                                                                                                                                                                                                                                                             touch on several spheres of the Bush
                                                                                                                                                           Associated                                                                                                                                                                                                                                                        family’s lives. For clarity, not all of these
     W Danhof                        B Paxon                                                                                                            General Contractors                                                                                                                                    T Hicks                     R S Hicks
                                                                                                                                                             of Texas                                                                                                                                                                                                                                                        connections are shown. The Bush
                                                                                                                               K Rove                                                                                                                                                                                                                                                                                        campaigns would not provide a full list of
                                                                                                                                                                                                                                                                                                                                                                                                                             Pioneers for the 2000 election and never
                                      Akin,                                               G Bayoud Jr                                        K Johnson                        T Johnson                                                                                                                                             M Payne                                                                                  released a complete list at the time. The
    Federalist
      Society                        Gump                                                                                                                                                                                                                                                                                                                                                                                    membership of the group is based on
                                                               J O’Neill III
                                                                                                                                                                                                                               TEXAS                                                                                                                                                                                         individual releases from the 2000
      B Kilberg                 J Langdon Jr                                                                T Bivens                         J Francis Jr                                                                   GOVERNORSHIP                                        R Farmer                                            R Staubach                       S Brauer                                                campaign, lists compiled by Texans for
                                                                                                                                                                                                                                                                                                                                                                                                                             Public Justice, other published reports
                                                                  R Spogli                                                                                                                                                 M Reynolds III                                                  J Reynolds III                                                                               J O’Donnell                          and interviews by The Washington Post.
                                                                                                                   T Foley                                           J Bush
                                                                                                                                                                                   BUSH OIL                                                                                                                                                                                                                                  More detailed information on individual
                                                                                                                                                                                   VENTURES                                                                                                                                                                                                                                  Pioneers can be found in our interactive
     R Freeman          B Freeman                                                                                                                                                                                                                            W DeWitt Jr                                                                                                                       J Paul Jr                     graphic at www.washingtonpost.com
                                                                                                                                                                                                                                                                                                               TEXAS RANGERS
       D Evans                             R Holland III                                                                                                 S Kass                                                           R Betts

                                                                                                                                                                                                                                                                                                                                                                                                          D Muchmore

                                                                                                                                                                                                                        E Rose III
                                                                                                                                                                                                                                                                                                                               PROFESSIONAL
                                                                                                                                                                                                                                                                                                                                   BASEBALL
    T Bridgewater         N Bush                                                                                               FRIENDS                                                                                                                                                                                                                                                                    L Coleman Jr
                                           D Bush Koch                                                                         & FAMILY                                                       D Stapleton
                                                                                                                                                                                                                                          C Stapleton

                                                           V Miller                                                                                    M Boone
                                                                                                                                                                                           Harken                                                                                                                                                                                 W Huizenga                                 J C Huizenga
                                                                                  R Pickens                                                                                                Energy
      K Hubbard                    A Hubbard                                                                                                 J Click

                 H Hertell                                       F Lavin        W H T Bush                                                                                     L Bass

                                                                                  F Meyer

     L Bathgate II            R Day Jr
                                                                E Chao                    R Schnabel        C Wyly Jr
     N Brinker                                                                                                                                                                                                                                                                                                                                                                                            J Blosser                 J Arrizurieta



              W L Brown Jr                                                                                                                                                                                                                                                                                                                                                                                                          A P Anderson

                                     H Leach                                                                                                                                                                                                                                                                G Argyros                                                                                                                                Z Zachariah

           R Boschwitz

                                                                                                                                                                                                                                                                                                                                                                                                                                    N Siegel                             S Siegel

     C McMillian

                    R & A Wagner                                                                                                                                                                                                                                                                                                        FLORIDA                                                                       A R Carpenter                                             J Bogosian
                                                                                                                                                                                                                                                                                                                                      GOVERNOR
                                                                                                                                    GEORGE H. W. BUSH                                                                                                                                                                                  JEB BUSH                                                                                                          CSX

       M Estrin                                                                                                                                                                                                                                                                                                                                                                                                                                                          T Petway III


                    M Hightower                                                                                                                                          Carlyle Group
      C Evers III                                                                                                                                                                                                                                                                                                                                                                                                                           W Foley II

                                                                                                                                                                                                        W Berman
     J Palmer Sr
                                             R Wallace
                                                                                                                                                                                                                              REPUBLICAN                                                                                                                                                                                            J Fuqua         H G Morse
                                                                                                                                                                                                                              GOVERNORS
              P Durkin                                                                                                                                                                                                        ASSOCIATION                                                                                        A Hoffman Jr                 A Austin       M Guzzetta                    J Rood
                      D Van Dongen
                                                                                                                                                                                         R W Johnson IV                                                                                                                                                                                                                  R Martinez

                  Donaldson                                                                                                                                                                                                                                                                       M Racicot         C Cawley              C Brown II               W Scherer Jr              T Fiorentino
                  Lufkin &
                  Jenrette                                                                                                                                                                                     G Pataki
                                     J Price                                                                                                  L Ruvo

                                                                                                   J Dunn                                                                A Hall                                                                                                                                                    T Ridge                                     C Todd Whitman                                                E Havens

      D Hedley                                 C Pruet                                                             A Spanos                                                              D Berman     J Hennessy                                                                     P Terpeluk Jr

                                                                           H Collins                                                                          J Austin                                                                                                                                E Rose                                       D Girard-                                                                 M Kazmir                                    W Palatucci
                                                                                                                                                                                                       S Rogich                                                                                                                                    diCarlo
                                                                                                      S Kamins                P Secchia       K Boyd                                                                            W Weld                                         D Metzner

     C Burnham                                        J Mermoud                  R Dedman Jr                                                                                  J Simmons                                   Progress                                              J Engler                                                                             C Sobel         G Medina
                                                                                                                                                                                                                                                                                                                                                                                                                              Republican                                  Dughi, Hewit
                     M Greenberg                                                                                                                                                                                          For America                                                                                                                                                                                         Jewish Coalition                            & Palatucci
                                                                                                           H Prechter                C Glazer                                                                                                     B Owens                                                           A Novak      M Stamatakis

    R O’Connell                                                  R Devlin

                                   American                                                                                                                                                                    D Miner                    J Connolly                  J Nicholson        C Kojaian                                                                 Net2Phone        S Goldsmith              S Fox M & J Silverstein                           C Christie
                              International Group




    74 Pioneers were less closely connected.


    A Alexander               W Brisben               L Brorsen            C Carrington            M Chayet              M Fong              A Gioia              R Grand          T Hammonds             J Haslam II            J Hirl            R Weiser                    C Jenny                H Kozlov           E Kvamme              W Martini          S Minikes                J Ong                    R Egan              D Schar                G Steil              C Swindells




                 S Trujillo              R Vazquez            J R Williams             K Zangara            G Slayton             D Albert             J Barton             H Beck III          J Canizaro          S Canton              R Chernin                  N Conti               B Corker            J Culberston         J Dwyer            J Fairbanks              R Fee                 C Floyd         A & D McWilliams            G Gilmore              W Gormley




     J Harless                  F J Hall               J Haver              D Horowitz          N Horton, Jr            R Hubbard            R Hug            G Hughey Jr            W Johnson            C Keeland          E G Kendrick              J Kittle Jr             F Lazenby                J Love           J Mahaffey        S McCutchin            R Murphy                P Murray              C Nash Jr               P Nesbitt          A Nevares                 A Parker




                  S Payne                  J Rainey            J Saltsman Jr           J Schleicher         J Stafford            T Wagner             M Walda              P Welday            J Westcott




     104 Pioneers won jobs after the election:                                                                                          About half of the 246 Pioneers from 2000 have made it onto the 2004 Bush campaign’s fundraising                                                                                                                                                                Pioneers include:
                                                                                                                                        list of 511 Pioneers and Rangers. The campaign has broadened its reach across the country, relying
                                                                                                                                                                                                                                                                                                                                                                                                          Department of
                                                                                                                                        less on the Bush family’s powerful networks in Texas and Florida.                                                                                                                                                                                              Homeland Security
                                                                                                                                                                                                                                                                                                                                                                                                               Secretary
                                                                                                                                                                                                                                                                                                                                                                                                              Tom Ridge
                                                                                                                                                                            2000 Pioneers                                                                                                          2004 Pioneers and Rangers
                                                                                                                                                                                                                                                                                                                                                                                                       Former Enron CEO
                                                                                                                                                                                                                                                                                                                                                                                                          Kenneth Lay


                                                                                                                                                                                                                                                            0
                                                                                                                                                                                                                                                            1-5
                                                                                                                                                                                                                                                            6-20
          23 ambassadors                                                                                                                                                                                                                                    21-50
          13 full-time jobs (including Cabinet members)                                                                                                                                                                                                     > 50
          44 board or commission members
                                                                                                                                                                                                                                                                                                                                                                                                                                   ormer
                                                                                                                                                                                                                                                                                                                                                                                                                                  Former NFL
          24 transition team members                                                                                                                                                                                                                                                                                                                                                                                             quarterback
                                                                                                                                                                                                                                                                                                                                                                                                                              Roger Staubach
           At least 13 members of transition teams were later
           appointed to other posts by the administration.

     SOURCE: Washington Post research and interviews, Texans for Public Justice, Bush-Cheney 2000 campaign, Leadership Directories, White House news releases, published reports

                                                                                                                                                                                                                                                                                                                                                                     GRAPHIC BY SARAH COHEN AND LOUIS SPIRITO, WITH RESEARCH BY ALICE CRITES—THE WASHINGTON POST
                                                                                                                                                                 DAILY 05-17-04 MD SU A1 CMYK




                                          ABCDE                                                                                                                                                                                                                             HOME
Weather
Today: Mostly cloudy,
thunderstorm. High 80. Low 65.
                                                                                                                                                                                                                                                                             EDITION
                                                                                                                                                                                                                                                            Inside: Washington Business
Tuesday: Partly sunny, storm
                                                                                                                                                                                                                                                           Today’s Contents on Page A2
or shower. High 84. Low 66
Details, Page B8
                                                                                                                                                                                                                                                                           NEWSSTAND         35¢
                                                                                                                                                                                                                                                                           HOME DELIVERY 31¢
                                                                                                                                                                                                                                                            Prices may vary in areas outside metropolitan
127th Year No. 164       S     DC    MD     VA      K                                                                   Monday, May 17, 2004                                                                               M1 M2 M3 M4 V1 V2 V3 V4                    Washington. (See box on Page A2)




                                                                                Israel Plans
                                                                THE BUSH MONEY MACHINE An Industry Gets Its Way

    Fundraiser Denies Link Between Money, Access To Destroy
    EPA Rule on Hazardous Waste Favored Ohio Businessman Who Is a Big GOP Donor
    Second of two articles
                                                                                More Gaza
                                                                publican Party and Republican candidates.         quarters here, Farmer said his campaign        inated with chemical solvents be wrung

    By James V. Grimaldi
    and Thomas B. Edsall
                                                                                Dwellings
                                                                   Farmer’s family controls Cintas Corp., a
                                                                $2.7 billion company that rents and laun-
                                                                ders uniforms and industrial shop towels.
                                                                                                                  donations were made with no strings at-
                                                                                                                  tached. He said he supports Republicans
                                                                                                                  because they believe in “less government,
                                                                                                                                                                 dry for them to be treated as laundry, not
                                                                                                                                                                 hazardous waste. Last November, the EPA
                                                                                                                                                                 changed its position, adopting a more
    Washington Post Staff Writers                               For years, Farmer’s industry has been at          more individual freedom, more individual       lenient proposal for the woven towels.
                                                                odds with the Environmental Protection            responsibility.”                               Farmer and his industry were overjoyed,                          Palestinians Flee Homes;
      MASON, Ohio—Richard T. Farmer is                          Agency over increased regulation of shop             “If you think I’m giving money to get ac-   because the change promised to save them
    one of America’s richest men and a Bush                     towels, particularly a Clinton administra-        cess to [President Bush], you’re crazy,”       millions and preserve their advantage over                       Powell Voices Criticism
    Pioneer by virtue of having raised at least                 tion proposal that, though not fatal,             Farmer said. “I’m just trying to get the       the competition—paper towels. “It would
    $100,000 for the 2000 campaign. Over the                    “would have cost us a lot of money,” Farm-        right guy elected. That’s all I care about.”   have been a big problem,” Farmer said.
    past 15 years, he and his wife have given                   er said.                                             The Clinton proposal would have re-
                                                                                                                                                                                                                                  By Robin Shulman and Glenn Frankel
                                                                                                                                                                                                                                  Washington Post Foreign Service
    $3.1 million to Bush campaigns, the Re-                        In a recent interview at company head-         quired that woven shop towels contam-          See PIONEERS, A8, Col. 2
                                                                                                                                                                                                                                     RAFAH REFUGEE CAMP, Gaza Strip,
                                                                                                                                                                                                                                  May 17—Dozens of Palestinians fled their
                                                                                                                                                                                                                                  homes here Sunday in anticipation of another
                                                                                                                                                                                                                                  wave of demolitions that Israeli military offi-
Two-Thirds                                                                                                 50 YEARS AFTER BROWN
                                                                                                                                                                                                                                  cials warned will be carried out soon. Secre-
                                                                                                                                                                                                                                  tary of State Colin L. Powell said the United
                                                                                                                                                                                                                                  States opposes the demolitions and appealed
                                                                                                      In Summerton, S.C., Divisions Remain
Of Federal                                                                                                                                                                                                                        to Israel to halt the destruction in the after-
                                                                                                                                                                                                                                  math of a week of violence.
                                                                                                                                                                                                                                     Israel’s Supreme Court on Sunday rejected
                                                                                                                                                                                                                                  a petition from a Palestinian rights group
Workers                                                                                                                                                                                                                           seeking to stop the razing of homes in Rafah,
                                                                                                                                                                                                                                  which is located on the border between the
                                                                                                                                                                                                                                  Gaza Strip and Egypt. The three judges said

Get a Bonus                                                                                                                                                                                                                       the army had a “real, imminent need” that
                                                                                                                                                                                                                                  justified the demolitions.
                                                                                                                                                                                                                                     A senior Israeli security official said the
                                                                                                                                                                                                                                  army was awaiting legal approval from the
By Christopher Lee and Hal Straus                                                                                                                                                                                                 state attorney general’s office before launch-
Washington Post Staff Writers                                                                                                                                                                                                     ing a new operation. “If we get a green light,
                                                                                                                                                                                                                                  we will move in,” said the official, who could
   Almost two-thirds of 1.6 million civilian                                                                                                                                                                                      not be identified under the ground rules of
full-time federal employees received merit                                                                                                                                                                                        the government briefing.
bonuses or special time-off awards in fiscal                                                                                                                                                                                         The official said the army had asked for
2002, according to a comprehensive exam-                                                                                                                                                                                          permission to widen its security corridor
ination of federal records obtained by The                                                                                                                                                                                        from 100 yards to between 200 and 300 yards
Washington Post.                                                                                                                                                                                                                  in a swath of territory where it says buildings
   Of the 62 percent who got awards, half                                                                                                                                                                                         are used by Palestinian gunmen and by smug-
received $811 or more. The typical bonus                                                                                                                                                                                          glers ferrying arms and ammunition from
amounted to 1.6 percent of salary. The                                                                                                                                                                                            Egypt to Rafah in deep tunnels. He would not
awards ranged from less than $100 to                                                                                                                                                                                              estimate the number of buildings that could
more than $25,000. At some agencies,                                                                                                                                                                                              be destroyed, but Israel Radio reported that
more than 90 percent of General Schedule
workers collected a bonus. Government-                                                                                                                                                                                            See RAFAH, A15, Col. 3
wide, about 2,900 employees received cash
bonuses totaling more than $10,000 each.
   The disclosure of the figures brought
varying reactions. Some civil service spe-
cialists said the proliferation of bonuses re-
inforces a common belief that many federal
workers are rewarded for little more than
                                                                                                                                                                                                                                  War Dangers
showing up. Some agency and union offi-
cials said it was evidence of a talented
workforce that performs admirably, and of-
                                                                                                                                                                                                                                  Don’t Deter
ten at salary levels inferior to those of the
private sector.
   For the Bush administration, the num-
bers underscore the challenge President
                                                                                                                                                                               PHOTOS BY KEVIN CLARK—THE WASHINGTON POST

                                                                 Adrian Lindsay, 16, left, helps Charles Hart, 15, with an algebra problem in a class taught by Lottie Fleming, standing, at Scott’s
                                                                                                                                                                                                                                  U.S. Workers
                                                                 Branch High School in Summerton, S.C. The school is 98 percent African American after whites fled in the wake of desegregation.
Bush faces in his drive to revamp person-
nel systems to more strongly tie pay to per-                                                                                                                                                                                      Jobs Offering High Pay
formance, an endeavor underway at the de-
partments of Defense and Homeland
Security. White House officials have called
the federal pay system broken, saying it re-
                                                                 Schools and Lives                                                                                                                                                Lure Thousands to Iraq
                                                                                                                                                                                                                                  By Jackie Spinner
See AWARDS, A10, Col. 1                                          Are Still Separate                                                                                                                                               Washington Post Staff Writer

                                                                                                                                                                                                                                     BURNET, Tex.—Late on the night of
                                                                                                                                                                                                                                  April 9, Sylvia and Allen Petty sat on the
                                                                 In Town That Helped Trigger Ruling,                                                                                                                              front porch of their small rental house here
                                                                                                                                                                                                                                  in the hill country northwest of Austin and
                                                                 The Desegregation Revolution Fizzled                                                                                                                             talked about the future. With six daughters,
                                                                                                                                                                                                                                  ages 4 months to 14, it was the only time of
                                                                                                                                                                                                                                  day they had to themselves, what they called
                                                                 By Michael Dobbs                         Court case known as Brown v.
                                                                                                                                                                                                                                  their “midnight dates.”
                                                                 Washington Post Staff Writer             Board of Education. On May
                                                                                                                                                                                                                                     They had been discussing for a couple
                                                                                                          17, 1954, Chief Justice Earl
                                                                                                                                                                                                                                  weeks the idea of Allen Petty, 31, going to
                                                                    SUMMERTON, S.C.—In the late Warren announced the court’s
                                                                                                                                                                                                                                  Iraq. Two fellow truck drivers at his compa-
                                                                 1940s a slim, bespectacled preacher decision that the doctrine of
                                                                                                                                                                                                                                  ny in the adjoining town of Marble Falls had
                                                                 named Joseph A. DeLaine became out- “separate but equal” had no
              BY MICHAEL LLOYD—OREGONIAN VIA ASSOCIATED PRESS
                                                                                                                                                                                                                                  already left for jobs driving trucks for KBR, a
                                                                 raged that the children of farmers who place in U.S. public schools. It
Former Oregon governor Neil Goldschmidt                                                                                                                                                                                           subsidiary of Houston-based Halliburton Co.
                                                                 lived on the cotton plantations down by was a ruling that helped trig-
had sex with a 14-year-old girl in the 1970s.                                                                                                                                                                                        That day, insurgents in Iraq had attacked
                                                                 the Santee River had to walk two hours ger the civil rights revolu-
                                                                                                                                                                                                                                  a KBR convoy and killed four contract em-
                                                                 each way to an all-black school. He per- tion—and change the face of
                                                                                                                                                                                                                                  ployees. But Allen Petty’s $30,000 salary just
Oregon Roiled                                                    suaded one of his parishioners to file a America forever.
                                                                 lawsuit seeking a school bus.
                                                                    That petition eventually grew into a revolution began.
                                                                                                                                            Headmaster Michael Connors gets a group hug
                                                                                                             But not the place where the from students at Clarendon Hall, the almost
                                                                                                                                            all-white private academy in Summerton.
                                                                                                                                                                                                                                  didn’t stretch far enough. The family had no
                                                                                                                                                                                                                                  insurance, no money for movies or new

By Politician’s                                                  demand for school desegregation, and        Fifty years later, white chil-
                                                                 this small town’s dispute became the dren and black children in Summerton Branch High School, a segregated, all-
                                                                                                                                                                                                                                  clothes, no savings, no credit, and their car
                                                                                                                                                                                                                                  was on loan from Sylvia Petty’s father.
                                                                                                                                                                                                                                     “We really prayed,” she recalled. “This is a
                                                                 foundation of the omnibus Supreme still lead largely separate lives. Scott’s black school in 1954, is still more than
Sordid Secret                                                    K Secretary Paige says Brown ruling shaped his ideas. | Page A19
                                                                                                                                                      98 percent African American. Its 480
                                                                                                                                                      students include just six whites and two
                                                                                                                                                                                                                                  beautiful town, but we’re not making it here.
                                                                                                                                                                                                                                  I told him, ‘Baby, you have to go.’ ”
                                                                                                                                                                                                                                     Allen Petty applied to KBR for a truck-
By Blaine Harden                                                                                                                                                                                                                  driving job the next day, one of thousands of
Washington Post Staff Writer
                                                                 K Exempt from law, private schools slowly bowed. | Page B1                                      See SUMMERTON, A6, Col. 1                                        Americans competing, despite the dangers,
                                                                                                                                                                                                                                  for jobs with the contractors working to sup-
   PORTLAND, Ore.—Neil Goldschmidt,                                                                                                                                                                                               ply the U.S. military or rebuild the country.
the visionary former politician who trans-                                                                                                                                                                                        After a week of training, he left for Iraq on
formed this Northwest city into a cool and                                                                                                                                                                                        the first Saturday in May.
enviable place to live, was back this year
doing the deals he does so well.
                                                                 Standing on the Left? You Must Be on Vacation                                                                                                                    See RECRUIT, A16, Col. 1
   Not since his surprise retirement after                       By Lyndsey Layton
one term as governor in 1991, when he was                        Washington Post Staff Writer
only 50 and wildly popular, had his profile                                                                                                                                                                                       K CACI contract: From routine
been so high. The former mayor of Port-                             Here comes Sarah Shain, typical Metro                                                                                                                         tasks to interrogations. | Page E1
land and secretary of transportation under                       rider. The 22-year-old District resident is
President Jimmy Carter had taken com-                            hustling down the left side of the escala-
mand of a statewide push to improve high-                        tor to the lower platform at Metro Center,
er education. Now 63 and adept in the art of                     clacking on the moving metal steps in her
cashing in on his good name, he was also                         sensible pumps, until she hits a road-                                                                                                                                              INSIDE
the public face for an out-of-state attempt to                   block: a pair of tanned tourists in shorts
buy Oregon’s largest utility.                                    standing two abreast, talking and block-                                                                                                                         Nano Whatchamacallits
   Then, a sordid 30-year-old secret, one                        ing her path to the Orange Line train                                                                                                                            Creations in atomic-scale
that Goldschmidt had paid about $250,000                         idling at the bottom of the escalator.                                                                                                                           nanotechnology are so new and unusual
to hide away, oozed out of the shadows.                             “The train is right there and you see                                                                                                                         that scientists are just grappling with a
Willamette Week, an alternative newspaper                        the doors closing and it’s like, ‘Get out of                                                                                                                     standard terminology to name them.
in Portland, obtained court documents                            my way!’ ” said Shain, a behavioral and                                                                                                                          SCIENCE, Page A7
showing that Goldschmidt, while mayor                            social researcher who missed that train
during the mid-1970s, had sex on many                            by seconds.                                                                                                         BY BILL O’LEARY—THE WASHINGTON POST
                                                                                                                                                                                                                                            The Post on the Internet:
occasions with a 14-year-old girl. The reve-                        Then, a moment of empathy. “A lot of           A family riding four abreast on an escalator at Metro Center risks the wrath of                                         washingtonpost.com
lation, which continues to mesmerize and                         the people who visit here come here from          impatient commuters. Six million tourists are expected this summer.



                                                                                                                                                                                                                                       1
depress people across Oregon, has de-                            Middle America where there is no sub-
                                                                                                                                                                                                                                                                          Contents
stroyed the sterling reputation and lucra-                       way, so they’re not used to it,” said Shain,      capital of the free world, where every sec-   and briefing books. But it also is a place                                                                2004
tive career of the man who put Portland on                       who grew up in Kentucky. “You have to             ond counts. The people who live and           that attracts vacationers from around the                                                                The
                                                                                                                                                                                                                                                                          Washington
the national map.                                                just expect that if you live in this city. You    work here take themselves seriously,          globe, people who feel a familiarity with                                                                Post
                                                                                                                                                                                                                                                                          Company
                                                                 have to deal with the tourists.”                  striding purposefully with their written
See GOLDSCHMIDT, A11, Col. 3                                        This is the paradox of daily life in the       testimony, task force recommendations         See METRO, A12, Col. 1
                                                                                                                                                                                                                   DAILY 05-17-04 MD SU A8 CMYK



A8         Monday, May 17, 2004                                            S      K                        x                                                                                                                                                                                                   The Washington Post

                                                                                                                                  THE BUSH MONEY MACHINE An Industry Gets Its Way

Toxic Towel Timeline                                                                                                                       Writing the Rule
These are key events in the efforts to change the shop towel rule                                                                          In 2002, as the Environmental Protection Agency was drafting a proposed rule on shop towels
juxtaposed with major political donations by Richard T. Farmer,                                                                            contaminated with solvents, officials in the Office of Solid Waste consulted with an attorney
chairman of the Cintas Corp., the industry’s biggest company. The                                                                          representing two industrial laundry trade groups. What follows is part of an e-mail exchange.
EPA and Farmer say his giving had no influence on the process.
                                                                                                                                            1 Previewing the rule with the lobbyist
              Jan. 1 The industrial laundry industry is fighting a rule
                         proposed by the Environmental Protection Agency                                                                   In August 2002, the EPA’s Kathy
                         in 1997 to require laundries to pretreat wastewater.                                                              Blanton e-mailed to industrial laundry
                                                                                                                                           lobbyist William M. Guerry Jr. that
        March 12 Farmer gives to National Republican                                                                   $150,000            she’d been asked by a supervisor “to
                         Congressional Committee (NRCC).                                                                                   forward to you the language we have
        March 29 Farmer and immediate family members each                                                                                  put together to address the laundries’
                                                                                                                            $4,000         concerns on the rule’s impact.”
                         give the maximum allowable to Bush.
             May 6 Farmer gives to annual GOP dinner.
 1999




                                                                                                                         $50,000
                                                                                                                                            2 Sending it back, with edits
           Aug. 19 The EPA withdraws pretreatment wastewater rule,
                         saying the better way to control pollution is by                                                                  Ten days later, Guerry replied, saying,
                         removing solvents from towels at factories.                                                                       “Thank you for providing [the trade
                                                                                                                                           groups] with the opportunity to
           Aug. 19 Farmer gives to the Republican National                                                               $15,000           suggest the following clarification to
                         Committee (RNC).
                                                                                                                                           the EPA’s draft, proposed, shop towel
           Oct. 26 Farmer gives to RNC.                                                                                $250,000            preamble language.” He then sent
                                                                                                                                           back the language, edited.
           Dec. 30 Farmer and immediate family contribute to joint                                                     $144,000
                         fundraiser for state Republican parties.
            Jan. 21 EPA informally proposes a new rule to exempt                                                                            3 Edits in the proposed rule
                         contaminated shop towels from hazardous waste
                         regulations if wrung dry and stored in containers.                                                                This is how the language appeared
                                                                                                                                           in the Federal Register when the
        March 14 Farmer gives to joint fundraiser for GOP                                                              $200,000            proposed rule was published in
                         congressional candidates.                                                                                         November 2003.
 2000




           June 23 Cintas-affiliated Summer Hill Inc. gives to RNC.                                                    $100,000
           Aug. 31 Farmer’s sister gives to RNC.                                                                         $20,000           Guerry said the change was important to
                                                                                                                                           prevent “chaos” in the states, where the
          Sept. 27 Farmer’s brother-in-law and Cintas board                                                                                                                                                                                                                                                 Copies of the full e-mails can be
                                                                                                                         $19,950           language could have been misread. EPA                                                                                                                            found along with other documents
                         director give to NRCC.                                                                                            spokeswoman said Marjorie Buckholtz said                                                                                                                         at www.washingtonpost.com.
             Dec. 1 Farmer gives to the Bush-Cheney Recount Fund.                                                           $5,000         sharing language with a lobbyist “is a very
                                                                                                                                           common part of the process.” Laundry rivals
                                                                                                                                                                                                                                                                                                            Source: EPA documents obtained under
              Jan. 1 Farmer gives to the Bush-Cheney Inauguration Fund. $100,000                                                           said they were not given such an opportunity.                                                                                                                    the Freedom of Information Act

           Feb. 12 Trade groups write EPA Administrator Christine
                         Todd Whitman asking her “to ensure that this                                                                                                                                                                                                                                                            THE WASHINGTON POST

                         industry is not unnecessarily regulated.”
          March 6 Farmer gives to RNC.

        March 30 Farmer and wife contribute to NRCC.
                                                                                                                         $15,000
                                                                                                                         $50,000
                                                                                                                                         Changing Way Government Regulates
           April 24 Farmer gives to RNC.                                                                               $120,000 PIONEERS, From A1                                                                                                                                                   nient one that gives shop towels a
           April 25 Farmer and wife give to RNC.                                                                         $30,000
                                                                                                                                                                                      Top 10 Pioneers                                                                                               hazardous-waste exemption without
                                                                                                                                            After a series of telephone calls, e-                                                                                                                   the need to wring them dry or store
                                                                                                                                         mails, letters and meetings with rep-        Cintas Corp. chairman Richard T. Farmer is the No. 1 political                                                them in special containers.
             May 8 Whitman responds to letter: “Partnerships with our
                         stakeholders will be an important part of how we                                                                resentatives of the laundry industry,        contributor among Pioneers, elite Republican fundraisers who                                                     Laundry trade groups appealed
 2001




                         will do business at EPA.”                                                                                       the EPA had provided industrial-             have successfully solicited a minimum of $100,000 each in                                                     directly to EPA Administrator Whit-
                                                                                                                                         laundry lobbyists with an advance            individual contributions. Many of the Pioneers are also large                                                 man in February 2001: “The draft
           May 16 Farmer gives to the President’s Dinner.                                                                $50,000         copy of a portion of the proposed                                                                                                                          regulation in its current form . . . in-
                                                                                                                                                                                      individual contributors to Republican candidates and party
                                                                                                                                         rule, which the lobbyists edited and                                                                                                                       creases the regulatory burden.”
            July 11 EPA attorney John Michaud writes in an e-mail
                                                                                                                                         the agency adopted.
                                                                                                                                                                                      causes. Farmer’s campaign contributions have increased                                                           In May, Whitman sent a concilia-
                         “management asked us to ... address the laundry
                         industry’s concern over the reusable wipes being                                                                   That same opportunity was not             significantly over the past 15 years.                                                                         tory response: “Partnerships with
                         identified as a solid waste.”                                                                                   given to the rule’s opponents—envi-                                                                                RICHARD T. AND JOYCE FARMER’S
                                                                                                                                                                                                                                                                                                    our stakeholders will be an impor-
                                                                                                                                                                                            NAME                                          TOTAL
                                                                                                                                         ronmental groups, a labor union,                                                                                   FEDERAL POLITICAL                       tant part of how we will do business
            July 13 EPA meets with industry to discuss a solid and                                                                       hazardous-waste landfill operators            1   Richard T. Farmer                        $3,123,921              CONTRIBUTIONS                           at EPA.”
                         hazardous waste exemption for shop towels.                                                                      and paper towel manufacturers who                                                                                  In thousands of dollars                    To aid in the effort, the industry
                         Industry officials say EPA indicates the rule would                                                                                                           2   Sam Fox                                   1,832,789
                         not impose “any new additional requirements.”                                                                   argue their product should be treat-                                                                               All contributions                       urged contributions to its Textile
                                                                                                                                                                                       3   Alex G. Spanos                            1,725,177                                          $1,100
                                                                                                                                         ed as environmentally equal to laun-                                                                               were made to the                        Rental Services Association’s Politi-
                                                                                                                                                                                       4   Joseph C. Canizaro                        1,498,694              Republican Party             1,000
           Dec. 17 Laundry trade groups and their attorneys meet with                                                                    dered towels. The opponents say in-                                                                                or Republican                           cal Action Committee. “Will PAC do-
                                                                                                                                                                                                                                                                                              900
                         Michael Shapiro, EPA Solid Waste Office director,                                                               dustrial laundries send tens of               5   Charles J. Wyly Jr.                       1,354,613              candidates                              nations open doors, get appoint-
                         and provide a legal rationale for exempting shop                                                                thousands of tons of hazardous                                                                                                                       800   ments and allow your message to be
                         towels from hazardous and solid waste rules.                                                                                                                  6   Robert Addison Day Jr.                    1,143,222
                                                                                                                                         chemicals to municipal sewage treat-                                                                                                                 700   delivered? Absolutely,” Textile
                                                                                                                                         ment plants and landfills where tox-          7   James H. Click                            1,092,420                                                600   Rental magazine said in its March
            Jan. 31 Farmer gives to RNC.                                                                               $100,000
                                                                                                                                         ics can get into groundwater,                 8   Robert Wood Johnson IV                    1,067,836                                                500   2002 edition.
        March 18 The Office of Solid Waste and EPA’s Office of General                                                                   streams and rivers. Labor unions                                                                                                                     400
                                                                                                                                                                                       9   Howard H. Leach                           1,047,408
                         Counsel disagree over a solid-waste exclusion for                                                               contend that the towels expose                                                                                                                       300   Exemption Sought at EPA
                         shop towels.                                                                                                    workers to cancer-causing fumes.             10   Kenneth & Linda Lay                       1,036,320                                                200
        March 19 Farmer gives to the NRCC.
                                                                                                                                            Cintas said in a statement that the                                                                                                               100
                                                                                                                                                                                                                                                                                                       In Richard Farmer, the industry
                                                                                                                       $250,000          rewritten rule will prevent pollution        NOTE: Includes contributions from 1989 to 2004 from the contributor
                                                                                                                                                                                                                                                                                                    had one of the biggest political giv-
                                                                                                                                                                                      and his immediate family to Republican candidates, the Republican                                         0
        March 25 Farmer contacts Rep. Rob Portman and Sen. George                                                                        because “reusable shop towels are            Party and the Bush inauguration fund.                                 ’90 ’92 ’94 ’96 ’98 ’00 ’02 ’04         ers in the country.
                         V. Voinovich, who write Whitman, asking her to                                                                  friendlier to the environment” than          SOURCE: Center for Responsive Politics                                                    Through January        For President George H.W. Bush,
                         resolve the conflict between the Office of Solid                                                                disposable paper towels.                                                                                                                                   Farmer, now 69, was a member of
                         Waste and the Office of General Counsel.                                                                                                                                                                                                           THE WASHINGTON POST
                                                                                                                                            The proposed shop towel rule is                                                                                                                         “Team 100,” donors who gave more
                                                                                                                                         but one example of a policy change          illegal. There is nothing illegal, how-                                                                        than $100,000 to Republican Party-
        March 26 William M. Guerry Jr. sends the EPA office of Solid
                         Waste chief Bob Dellinger “the requested draft                                                                  by the Bush administration that fa-         ever, about the adoption of broad                                                                              building committees. When George
                         language” for a new rule outlining an exemption for                                                             vors a company controlled by a Bush         legislation or regulations benefiting                                                                          W. Bush ran for office in 2000, Farm-
                         shop towels from solid waste rules if they “contain                                                             Pioneer or Ranger, who as a group           sectors of the business communi-                                                                               er’s “golfing buddy,” Cincinnati fi-
                         no ‘free liquids.’” Under the proposal, towels would                                                            have helped the president bank a            ty—such as laundries disposing of                                                                              nancier Mercer Reynolds III, re-
                         not have to be wrung dry.                                                                                       record $200 million for the 2004            wastewater containing toxic chem-                                                                              cruited Farmer to be a Pioneer,
                                                                                                                                         election campaign. The shop towel           icals—that happen be a source of                                                                               Farmer said. This year, he earned
           April 25 Farmer gives to NRCC.                                                                              $150,000
                                                                                                                                         case reflects the subtle interactions       major fundraisers and donors.                                                                                  the more exalted Ranger status by
           April 29 Farmer gives to the President’s Dinner.                                                              $50,000         between corporations and an admin-              For example, securities and in-                                                                            raising a minimum of $200,000 in in-
                                                                                                                                         istration determined to roll back           vestment banking firms have bene-                                                                              dividual contributions.
           April 29 Whitman responds to Portman and Voinovich by                                                                         what it considers to be regulatory          fited enormously from reduced cap-                                                                                Farmer said that his big gifts are
                         confirming that EPA is considering a solid waste                                                                overkill. For many big donors, get-         ital gains and dividend taxes                                          BY MARK LYONS FOR THE WASHINGTON POST   not connected to political favors.
                         exemption for shop towels.                                                                                      ting “the right guy elected,” as Farm-      initiated by the Bush White House.                      Top donor Richard T. Farmer: “Just                        In the case of shop towel reg-
           May 20 EPA officials sign off on solid-waste exemption for                                                                    er puts it, is an end in itself.            Six produced 17 Pioneers and Rang-                      trying to get the right guy elected. ”                 ulation, Farmer said Cintas itself
                         woven shop towels.                                                                                                 EPA Assistant Administrator              ers this year, and employees in those                                                                          was unconcerned. “We huddled up
 2002




                                                                                                                                         Marianne Lamont Horinko said                firms have raised $2.53 million. Alto-                     In 1997, the Clinton administra-                    and [decided] no matter what hap-
             June 4 EPA officials Dellinger and Kathy Blanton meet                                                                       Farmer’s campaign contributions             gether, finance industry employees                      tion proposed a clean-water rule re-                   pens here, it will have no impact on
                         industry officials and Guerry and confirm that the                                                              had nothing to do with the agency’s         have raised $19.68 million for the                      quiring industrial laundries to pre-                   Cintas,” he said.
                         EPA plans a solid waste exemption for shop towels.                                                              decision. Although Cintas was rep-          2004 election campaign, according                       treat their wastewater to remove                          Later in the interview, when spe-
             Aug. 2 EPA’s Blanton e-mails Guerry “language we have                                                                       resented by the industrial-laundry          to an analysis produced for The                         chemical solvents. The Uniform &                       cifically asked about the Clinton-era
                         put together to address the laundries’ concerns.”                                                               lobbyists in discussions with the           Washington Post by Dwight L. Mor-                       Textile Service Association (UTSA)                     proposal, he said it would have hurt
                                                                                                                                         EPA, Farmer said he himself did not         ris & Associates.                                       and Textile Rental Services Associa-                   Cintas by making it difficult for the
           Aug. 15 Guerry writes back suggesting numerous changes,                                                                       directly contact the administration             Twenty-four Rangers and Pio-                        tion of America (TRSA) mounted a                       company to provide the full range of
                         including the deletion of a phrase stating that shop                                                            about the proposed rule. He did say         neers are either drug industry exec-                    $1.2 million lobbying campaign                         services its customers demand.
                         towels “remain regulated” and substituting                                                                      that, at the behest of the laundry in-      utives or lobbyists whose companies                     against the proposed rule, arguing                     Shop towels are now about 5 percent
                         “regulatory status...remains unchanged.”                                                                        dustry, he called members of the            stand to get more business from the                     that toxic pollutants are removed at                   of Cintas’s business, but they remain
           Aug. 20 Blanton’s presentation to an industry meeting in                                                                      Ohio congressional delegation, who          administration’s Medicare drug ben-                     the laundries or by municipal waste-                   an important service to customers
                         Baltimore sympathizes with industry’s “major                                                                    wrote to then-EPA Administrator             efit bill passed last year.                             water treatment plants. The trade                      who also rent uniforms.
                         concerns.”                                                                                                      Christine Todd Whitman.                         Twenty-five energy company ex-                      groups said the proposal would have                       Farmer said he never contacted
                                                                                                                                            In a summary of the rule, the EPA        ecutives, along with 15 energy in-                      cost them more than $400 million.                      the administration about the new
           Aug. 30 Farmer gives $250,000 and Farmer’s brother-in-                                                      $400,000          said it would improve “clarity and          dustry lobbyists, are either Pioneers                      In 1999, the Clinton EPA with-                      rule. He said he did complain about
                         law gives $150,000 to the National Republican                                                                   consistency” of regulation, “provide        or Rangers. Many have been deeply                       drew the rule. The next year, with                     the rule to Ohio Republican Sen.
                         Senatorial Committee (NRSC).
                                                                                                                                         regulatory relief, and save affected        involved in developing the adminis-                     Clinton still in the White House, the                  George V. Voinovich and Rep. Rob
          Sept. 12 Blanton and Dellinger meet industry in Alexandria.                                                                    facilities over $30 million.” Whit-         tration’s energy policy. Seven of                       EPA floated a new draft rule that                      Portman, a fellow Bush Pioneer and
                         Dellinger says the rule will be a “common sense,                                                                man—who resigned from the EPA               those Pioneers served on the Bush                       proposed to exempt shop towels                         chairman of Bush’s campaign in
                         non-intrusive approach ...EPA doesn’t want to make                                                              last year and has since become a            energy transition team. The admin-                      from hazardous-waste requirements                      Ohio this year.
                         this onerous. ... The agency doesn’t seek to add to                                                             Bush Ranger—declined to be in-              istration’s energy bill, which re-                      only if factories squeezed the towels                     Farmer said he made the calls in
                         generator facilities’ expenses.”                                                                                terviewed. But she said through a           mains stalled by a largely Demo-                        “dry”—defined as containing no                         2002 on behalf of the two laundry
           Oct. 24 Farmer gives to NRCC.                                                                                                 spokesman that contacts such as             cratic filibuster in the Senate, would                  more than five grams of solvents—                      trade groups. Cintas is the biggest
                                                                                                                            $5,000
                                                                                                                                         those from the Ohio congressional           provide billions of dollars in benefits                 before placing them in sealed con-                     company in the industry, but Farmer
             Nov. 5 Farmer’s sister gives to RNC.                                                                        $15,000         delegation “are helpful because they        to the energy industry.                                 tainers and sending them to laun-                      said that complaints from hundreds
                                                                                                                                         highlight an interest and a constitu-                                                               dries.                                                 of small laundries probably had
           May 23 Farmer gives to NRCC.                                                                                  $25,000         ent’s interest” and “that just feeds in-    Industry: $400 Million Cost                                Calling this “an extremist view in                  more impact than his calls. “It would
           June 20 Cintas CEO Scott Farmer and his wife contribute                                                          $7,000       to the deliberative process.”                                                                       the EPA,” the laundry industry                         have put small guys out of business,”
                         $4,000, the maximum allowable donation to Bush’s                                                                   Fred Meyer, the former chairman             The proposed shop towel rule                         forcefully opposed the new proposal                    he said.
                         reelection. Farmer’s sister and her husband                                                                     of the Texas Republican Party who           shows how the process can play out                      as overregulation.                                        Portman said in a recent inter-
                         contribute $3,000.                                                                                              in 1998 helped set up the Pioneers          to the advantage of a Pioneer.                             But environmental activists, labor                  view that he was first contacted by
                                                                                                                                         for then-Texas Gov. George W. Bush,            For more than two decades, the                       groups and paper towel makers said                     one of the trade groups, which he
           June 30 Farmer and his wife contribute maximum to Bush.
 2003




                                                                                                                            $4,000       said there is a good reason money           EPA has grappled with how to reg-                       the laundries and local treatment                      knew represented Cintas, “one of
           Aug. 12 Farmer gives to NRSC.                                                                                 $25,000         will always flow to political cam-          ulate the cloth towels used to wipe                     plants frequently exceed their man-                    those big companies in our district.”
                                                                                                                                         paigns. “There are too many things          up chemicals in printing plants, fac-                   dated pollution limits. Sixty-five Cin-                He said he considered it a constitu-
          Sept. 30 Bush attends Cincinnati fundraiser. Farmer helps                                                      $25,000         that are important to too many peo-         tories and industrial shops. Each                       tas laundries in 15 states and Cana-                   ent issue. “I do remember talking to
                         raise $1.7 million. His wife gives to RNC.                                                                      ple,” Meyer said. “The existence of         year, 3 billion of them sop up more                     da have exceeded pollution limits on                   Dick about it at least once,” he said.
                                                                                                                                         businesses and billions of dollars are      than 100,000 tons of hazardous sol-                     more than 1,100 occasions in the                          About the same time in 2002 that
           Nov. 20 EPA proposes rule folding in industry’s changes and
                         giving solid and hazardous waste exemptions for
                                                                                                                                         affected.”                                  vents such as benzene, xylene, tolu-                    past several years, according to pub-                  Farmer was making his calls and the
                         shop towels not dripping with waste.                                                                               Democrats have their own history         ene and methyl ethyl ketone.                            lic records gathered by the Sierra                     trade groups were contacting mem-
                                                                                                                                         of rewarding large donors. President           “Why should these materials be                       Club and the Union of Needletrades,                    bers of Congress, he made a major
          March 9 EPA holds hearing on rule.                                                                                             Franklin Delano Roosevelt appoint-          regulated as a hazardous waste?” the                    Industrial and Textile Employees                       contribution. On March 19, 2002,
                                                                                                                                         ed major contributor Joseph P. Ken-         EPA said in a document given to the                     (UNITE).                                               Farmer gave $250,000 to the Nation-
 2004




             April 9 EPA closes comment. Rule awaits final action.
                                                                                                                                         nedy to be ambassador to Britain.           laundry industry in 2000. “Because                         For the EPA and the laundry in-                     al Republican Congressional Com-
                                                                                                                                         Lyndon B. Johnson funneled con-             they have the potential to cause                        dustry, things changed when Bush                       mittee.
                                                                                                                                         tracts to Texas firms.                      fires, or to be the source of fugitive                  took office in 2001. The industry                         On March 25, Portman and Voi-
SOURCE: Environmental Protection Agency, trade groups, Center For Responsive Politics. Douments can be found at www.washingtonpost.com      Direct quid pro quos—specific            air emissions, and ground water con-                    pushed hard to derail the Clinton                      novich co-wrote a letter to Whitman
                                                                                                                 THE WASHINGTON POST     benefits in exchange for cash—are           tamination.”                                            proposed rule in favor of a more le-                   asking her to support a more encom-
                                                                                                                                    DAILY 05-17-04 MD SU A9 CMYK


The Washington Post                                     x                                                                                                                                   K   S       Monday, May 17, 2004 A9

                                                                     THE BUSH MONEY MACHINE An Industry Gets Its Way

EPA and                                   Pioneers and Power
The Shop
Towel Rule
passing waste exemption for shop
                                                                      Across Federal Spectrum
towels—this one from solid waste
regulation. Gaining a solid-waste ex-
                                                         The Bush Pioneers, who agree to raise a minimum of $100,000 each for the Bush campaign, are well-connected
emption would remove a further lay-               throughout the Bush administration. Here are some examples of the subtle interaction of political fundraising and public policy.
er of regulation because some states
apply additional taxes, fees and spe-
cial handling requirements to solid       Hunt Oil Co.                                                                                                                                Chemical Industry
waste.
                                                   ush Pioneer Jose Fourquet played a


                                          B
   Whitman spokesman Joe Martyak                                                                                                                                                               t least half a dozen members of the
said such a letter from lawmakers
“helps to precipitate a meeting to
find out what’s the glitch. You help to
unglitch it, to move it along.”
   At this point, EPA attorneys were
                                                   pivotal role in the financing of a mas-
                                                   sive Peruvian natural gas project that
                                                   benefited Hunt Oil Co., whose chair-
                                          man, Ray L. Hunt, signed up to be a Pioneer
                                          and is a longtime ally of the president.
                                                                                                                                                                                      A        chemical industry became Bush Pio-
                                                                                                                                                                                               neers in 2000, among them Frederick
                                                                                                                                                                                               L. Webber, then-chairman and chief
                                                                                                                                                                                      executive of the American Chemistry Council;
                                                                                                                                                                                      J. Roger Hirl, former president of the group
balking at the solid-waste exemp-            The Camisea Natural Gas Project is set to                                                                                                and chief executive of Occidental Chemical
tion, Portman and Voinovich said in       extract fossil fuel from one of the world’s most                                                                                            Corp. in Dallas; and Allan B. Hubbard of E & A
their letter.                             pristine tropical rain forests and pipe it over                                                                                             Industries Inc., who attended Harvard Busi-
   A month later, Whitman wrote           the Andes toward Lima and the coast, where it                                                                                               ness School with Bush.
Portman and Voinovich that the EPA        will end up at a depot near a marine sanctuary.                                                                                                Before leaving the chemical manufacturers’
was considering the solid-waste ex-       Hunt is one of several participants in the proj-                                                                                            trade group in 2002, Webber had led a fierce
emption and assured that it would         ect. His company hired Halliburton’s Kellogg                                                                                                battle over plant security.
“incorporate suggested changes            Brown & Root to design a $1 billion export ter-                                                                                                After Sept. 11, 2001, chemical and petro-
where appropriate.”                       minal on the coast.                                                                                                                         leum plants faced the prospect of new in-
   Three weeks later, EPA officials          Fourquet, the Treasury Department’s U.S.                                                                                                 spections to ensure security was sufficient to
signed off on the exemption, accord-      representative to the Inter-American Devel-                                                                                                 prevent terrorist attacks. Reports for years
ing to the trade group’s timeline.        opment Bank, rebuffed the official written and                                                                                              had warned of chemical plant vulnerabilities.
   Jim O’Leary, the EPA official who      oral recommendation from other U.S. officials                                                   BY GERALD MARTINEAU—THE WASHINGTON POST
                                                                                                                                                                                      Federal studies said a properly mounted attack
wrote the original language that was      to vote “no” on the project. Instead, he ab-                                              Hunt Oil official Jeanne Johnson                  could kill millions. After the terrorist attacks,
rewritten, said there was no political    stained on $135 million in financing for the                                              Phillips, a founder of the Bush                   the Bush administration ordered the reports
interference from Whitman’s office.       project, allowing it to proceed. Opposition                                               Pioneers and former ambassador.                   removed from the Internet.
“That’s nonsense,” O’Leary said.          from the United States, a primary funder of the                                                                                                The Environmental Protection Agency took
“We called it the way we saw it. No       IDB bank, would have jeopardized the deal.                                                Pioneer and Bush ally Ray L. Hunt,                the lead in formulating a policy to regulate
one interfered.”                             In a strongly worded memo sent before the                                              left, chairman of Hunt Oil Co.,                   chemical plant security. EPA officials said that
                                          vote, the U.S. Agency for International Devel-                                            participated in a natural gas                     under the Clean Air Act these plants had a
A Rule That Isn’t ‘Onerous’               opment told the Treasury Department that fed-                                             project in a Peruvian rain forest.                “general duty” to secure their facilities against
                                          eral law required Fourquet to cast a “no” vote                                            A Hunt Oil official recently                      terrorist attack. Then-EPA Administrator
   On Aug. 2, EPA’s Kathy Blanton,        because environmental reviews were deficient.                                             became envoy to Saudi Arabia.                     Christine Todd Whitman ordered a policy de-
who replaced O’Leary, e-mailed to in-     In addition, others on a federal interagency                                                                                                veloped. In 2002, EPA outlined this new en-
dustry attorney William M. Guerry         task force urged opposition.                                                                                                                forcement regime, according to internal docu-
Jr. the “language we have put togeth-        A separate proposal for financing from the                                                                                               ments obtained by the Natural Resources
er to address the laundries’ con-         Export-Import Bank of the United States fell                                                                                                Defense Council.
cerns,” according to a copy of the e-     short over environmental concerns. April H.                                                                                                    Separately, Sen. Jon S. Corzine (D-N.J.)
mail obtained under the Freedom of        Foley, a Bush appointee and the Ex-Im Bank                                                                                                  proposed legislation that would mandate that
Information Act.                          board member who cast the deciding “no”                                                                                                     EPA take the lead role in enforcing plant secu-
   Guerry wrote back on Aug. 15           vote, said the president questioned her about it                                                                                            rity.
with proposed changes, documents          afterward. She told Friends of the Earth cam-                                                                                                  Chemical industry officials argued that the
show. Among them was deletion of a        paign director Jon Sohn, that President Bush                                                                                                plants were already bolstering security and
phrase in the preamble stating that       brought it up during an overnight stay at Camp                                                                                              they appealed to the administration to keep
shop towels “remain regulated.” In-       David. Bush asked her to explain her vote to                                                                                                EPA away from the issue.
stead, the lobbyist wanted the words      national security adviser Condoleezza Rice,                                                                                                    Webber and Greg Lebedev, who eventually
“regulatory status . . . remains un-      who was involved in providing direction to                                                                                                  replaced him as chief executive of the Amer-
changed.”                                 Fourquet in how to vote.                                                                                                                    ican Chemistry Council, took a group of in-
   Guerry, in an interview, said the         Foley declined to discuss her vote.                                                                                                      dustry executives to the White House, where
change was important to make sure            The Camisea project also encountered fierce                                                                                              they met with Bush political adviser Karl Rove
that states did not misread the rule      opposition from worldwide environmental                                                                                                     and the White House Council on Environ-
as a significant change in policy. Oth-   groups and some members of Congress, who                                                                                                    mental Quality in September 2002, Lebedev
erwise there would have been “cha-        predicted the massive extraction and pipeline                                                                                               said. The group urged the administration to
os” and a “train wreck,” he said. EPA     project would destroy the rain forest in the                                                                                                oppose the Corzine bill.
officials shared the language with        Southeastern Amazon and endanger its indige-                                                                                                   Afterward, Rove wrote one of the attendees,
him, he said, because “they recog-        nous people. Environmental groups issued re-                                                                                                the president of BP Amoco Chemical Co. “We
nized that we had the expertise they      ports recently saying their worst fears are com-                                                                                            have a similar set of concerns,” Rove stated in
needed.”                                  ing true—indigenous people coming down                                                                                                      a letter that was obtained under the Freedom
   Blanton said she sent Guerry just      with illnesses, a massive fish kill in Paracas                                                        BY RAY LUSTIG—THE WASHINGTON POST
                                                                                                                                                                                      of Information Act by Greenpeace.
part of the regulatory language. “I       Bay.                                                                                                                                           Webber, who now is president of the Alli-
can see how, from the outside, that it       Media releases from the Bush campaign do         Rep. Jennifer Dunn (R-Wash.),                                                           ance of Automobile Manufacturers, declined to
would look like colluding or some-        not say whether Hunt formally reached Pio-          above, whose district is home to                                                        comment. Lebedev, the lobbyist, said: “We had
thing. [But] these were the people        neer status, but court documents list Hunt as       Microsoft Corp., sought an end to                                                       a meeting with Karl Rove. We think that’s a
who were going to be most affected        being given Pioneer Solicitor Tracking No.          the Clinton administration’s                                                            good thing. We take people to meetings with
by the rule and they were the ones        1002. The Bush campaign has stopped an-             antitrust suit against the                                                              people in government around town all the
with the expertise.” She said at this     swering questions about who was in the pro-         software firm. She says there is a                                                      time.”
point the EPA had already had suffi-      gram.                                               “different atmosphere” now on                                                              In 2003, the White House gave responsibili-
cient input from the paper towel peo-        Hunt has declined repeated requests for in-      regulation. She is one of the first                                                     ty for chemical plant security to the Depart-
ple and others affected by the rule.      formation about the bank’s vote or his cam-         Bush Pioneers.                                                                          ment of Homeland Security. The new depart-
   Opponents, including the union,        paign contributions. Federal records show he                                                                                                ment, however, does not have authority to
environmentalists and paper towel         has given nearly $100,000 to Republican                                                                                                     enforce security upgrades at the plants, ac-
                                                                                              Microsoft chief financial officer
makers, say they were not given an        causes in the past four years, including individ-                                                                                           cording to environmental groups, members of
                                                                                              John Connors, right, is a Bush
advance look at the language. Ralph       ual donations to the Bush campaign.                                                                                                         Congress and the chemical industry. Lebedev
                                                                                              Pioneer, one of two at company.
Solarski, a Kimberly-Clark Corp. ex-         There are other significant Bush connec-                                                                                                 said the American Chemical Council is work-
ecutive who chairs a task force of pa-    tions to Hunt. His chief of public affairs, James                                                                                           ing with Congress on legislation to give the de-
per towel makers, said his group          Curtis Oberwetter, recently became Bush’s am-                                                                                               partment that authority.
would have been glad to have one.         bassador to Saudi Arabia. He was replaced at
   “Kathy Blanton and Bob Dellinger       Hunt Oil by Jeanne Johnson Phillips, one of the
at EPA were asked on multiple occa-       creators of the Bush Pioneer program, a cur-                                                                                                Friends in High Places
sions for advance copies and we were      rent campaign adviser and former ambassador
consistently denied,” Solarski wrote      under Bush to the Organization for Economic                                                                                                          om Loeffler, a 2000 Pioneer and a 2004
in an e-mail to The Post.
   EPA officials attended two in-
dustry meetings to discuss the pro-
posed rule, one in Baltimore on Aug.
20 and one in Old Town Alexandria
                                          Cooperation and Development in Paris.
                                             Bush also appointed Hunt to the Federal Re-
                                          serve Bank of Dallas and to the Foreign In-
                                          telligence Advisory Board.
                                             Fourquet, 37, who was an investment banker
                                                                                                                                                                                      T        Ranger, has been a Bush family loyalist
                                                                                                                                                                                               for more than a quarter century. Now,
                                                                                                                                                                                               Loeffler is marketing those ties in the
                                                                                                                                                                                      lobby shop he has opened here.
                                                                                                                                                                                         His firm, Loeffler Jonas & Tuggey, notes on
on Sept. 12. On Aug. 30, Farmer do-       before he joined the administration, resigned                                                                                               its Web site: “Members of the firm’s Govern-
nated $250,000 to the National Re-        his post last month. He did not return phone                                                                                                ment Affairs Group have strong ties to the cur-
publican Senatorial Committee.            calls.                                                                                                                                      rent Administration, having worked directly
   EPA’s Office of Solid Waste Direc-                                                                                                                                                 with the President, the Vice President, the
tor Dellinger spoke at the Alexandria     Microsoft Corp.                                                                                                                             White House Chief of Staff, Cabinet Secretar-
meeting. His comments later ap-                    mong the top priorities for Bush Pio-                                                                                              ies and their principal deputies and aides.”
peared in the trade group’s maga-
zine: “EPA doesn’t want to make this
onerous.”
   Instead of screw-on, sealed con-
tainers for transporting contaminat-
                                          A        neer and Rep. Jennifer Dunn (R-
                                                   Wash.) was an end to the Justice De-
                                                   partment’s antitrust lawsuit against
                                          Microsoft Corp. Dunn represents Redmond,
                                          Wash., where the software giant is based.
                                                                                                                                                                                         Those links were forged in President
                                                                                                                                                                                      George H.W. Bush’s 1988 campaign, when
                                                                                                                                                                                      Loeffler was Texas co-chairman. In 1994, Loef-
                                                                                                                                                                                      fler was finance co-chair of George W. Bush’s
                                                                                                                                                                                      gubernatorial campaign in Texas. In the two
ed woven towels from factories to            In 2000, the Clinton Justice Department                                                                                                  Bush campaigns for governor, Loeffler was the
laundries, which were proposed in         won the major parts of its case against Micro-                                                                                              largest donor, $141,000.
2000, Dellinger said, a piece of ply-     soft and proposed breaking the world’s largest                                                                                                 In the 1998 election cycle, he served as na-
wood over a barrel would meet the         software company in two. An appeals court                                                                                                   tional co-chair of the Republican National
new EPA proposed standard.                threw out the breakup plan the next year and                                                                                                Committee’s “Team 100” program for donors
   Also, the EPA opted not to require     sent the matter back to U.S. District Court.                                                                                                of $100,000 or more, and then held the same ti-
the towels to be wrung out. “The          The Bush Justice Department then settled the                                                                                                tle during George W. Bush’s presidential cam-
point of that is not to make it harder    matter on terms widely seen as favorable to Mi-                                                                                             paign in 1999-2000.
to do than what you would do              crosoft. Critics say that the settlement fails to                                                                                              In May 2000, Loeffler left the now-defunct
through your normal course of busi-       address the harm Microsoft’s monopoly power                                                                                                 Arter & Hadden, taking the Cleveland-based
ness,” Dellinger said.                    inflicted on other companies. The Justice De-                                                                                               firm’s San Antonio lawyers, to found his own
   However, he told the group, the        partment defended the settlement as a fair res-                                                                                             lobby-law firm, Loeffler Jonas & Tuggey, with
paper towel industry would have to        olution of the case. A federal judge accepted                                                                                               offices here and in San Antonio.
wring out its towels to make sure         the terms.                                                                                                                                     Since Bush’s election, Loeffler’s firm has
they had no more than five grams of          Last week, the Bush administration nom-                                                                                                  grown fivefold, an impressive feat for a K
solvent on them before being              inated the lead Justice Department negotiator                                                                                               Street newcomer. In 2001, its first year in
dumped.                                   in the Microsoft case, Deborah P. Majoras, to                                                                                               Washington, Loeffler Jonas & Tuggey received
   The new proposed rule was pub-         be chairman of the Federal Trade Commission.                                                                                                $1.01 million in lobbying fees.
lished in the Federal Register on            “I just think it is a different atmosphere
                                                                                                                                               BY KELLY WILKINSON—INDIANAPOLIS STAR
                                                                                                                                                                                         In the next two years, that total skyrocket-
Nov. 20, 2003.                            now,” said Dunn, who was one of the first Pio-                                            President Bush joshes with Allan                  ed, to $4.09 million and $5.71 million, re-
   Paper industry officials say that      neers, exceeding her $100,000 commitment                                                  B. Hubbard at a fundraiser in                     spectively. Among clients he picked up: Bris-
the EPA is ignoring its own studies       with the help of Microsoft donors. “In the Clin-                                          Indianapolis. Hubbard, a Bush                     tol-Myers Squibb Co., Lockheed Martin Corp.,
showing that laundries create 30 per-     ton administration, the Justice Department                                                Pioneer and chemical industry                     Motorola Inc., the National Association of
cent more waste than paper towels in      brought suit against them. President Bush said                                            executive, attended Harvard                       Broadcasters, SBC Communications Inc. and
the form of sludge—lint, debris, tox-     ‘I’m for innovation—not regulation.’ That was                                             Business School with Bush.                        Southwest Airlines Co.
ics and other substances extracted        important to Microsoft that he kept his word.”                                                                                                 Loeffler declined to be interviewed for this
from laundry wastewater—sent to              This year, Microsoft has two Pioneers, John                                            Pioneer Frederick L. Webber,                      article, but in January 2001 he told Roll Call, a
municipal landfills.                      Connors and John Kelly. More than 100 people                                              left, took a group of chemical                    newspaper that covers Congress, that he had
   “This is a case study,” Solarski       from Microsoft attended an event for Bush,                                                industry executives to a meeting                  recently “visited with the president-elect and
said, “for how an industry has used       Dunn said. Employees have given more than                                                 with Bush political adviser Karl                  said that any way that I can be helpful, I will be.
the regulatory process to gain a mar-     $160,000 in contributions, placing Microsoft                                              Rove. They were opposing the                      I will not be a part of the administration. I’m
ket advantage.”                           among the top companies donating to Bush, ac-                                             EPA on plant security.                            sure that as times go forward, wherever my
                                          cording to the Center for Responsive Politics.                                                                                              strengths can assist, I’ll be called upon.”
Post database editor Sarah Cohen                                                                                                                                                            — James V. Grimaldi and Thomas B. Edsall
and researcher Alice Crites
contributed to this report.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:7
posted:9/14/2011
language:Kurdish
pages:7