(From Tulsa World, August 11, 1999)


Politicians sidestep limits on fund-raising

By JONATHAN D. SALANT
Associated Press
8/11/99

WASHINGTON -- From tobacco companies to high-tech investors, Senate
Majority Leader Trent Lott is raising money in chunks much larger than
the strict limits imposed by Watergate-era federal laws.

The Mississippi Republican collected the money legally by setting up a
state political committee in Virginia, which imposes no limits on the
size or source of donations.

Other congressional leaders also are raising huge contributions from
corporations and wealthy individuals through nonfederal entities,
which allow them to get around the campaign finance laws that ban
corporate donations and limit individuals to $2,000 per candidate,
$1,000 for the primary and $1,000 for the general election.

The national political parties have exploited similar loopholes for
state politics to raise six-figure donations from wealthy individuals,
labor unions and companies. The contributions are known as "soft
money."

Lott set up his political committee in Richmond, Va., on Oct. 9, 1997,
and has reported a total of $197,373 in donations so far, including
$10,000 apiece from R.J. Reynolds and U.S. Tobacco last year while the
Senate was debating proposed increases in the cigarette taxes.

His Democratic counterpart, Senate Minority Leader Tom Daschle, report
ed contributions of $10,000 apiece from Northwest Airlines and
American Airlines. Congress is debating legislation to renew Federal
Aviation Administration programs. Overall, Daschle, who began his
political action committee earlier this year, raised $274,491 in soft
money through June 30.

At least a dozen lawmakers are raising money outside federal limits,
including House Majority Whip Tom DeLay, R-Texas; and Rep. Patrick
Kennedy, D-R.I., chairman of the Democratic Congressional Campaign
Committee.

Lott said the contributions have nothing to do with his positions on
issues.

He said he set up his committee in Virginia because that's where his
federal PAC is based as well.

Lott has spent $188,130 so far from his Virginia PAC, including
$30,000 to the Foundation for a Responsible Gov ernment, a group
affiliated with the centrist Republican Leadership Council.

Lott also gave $5,000 to the Committee for a Strong and Effective NRA,
a group led by some National Rifle Association board members. The
April con tribution came two months before he spoke at an NRA
conference in Philadelphia.

The committee is in addition to Lott's own campaign committee that
collects donations for his Senate re-election, and a separate federal
political action committee he controls. Those entities are bound by
the federal contribution limits.

But his Virginia committee boasts numerous donations that Lott
otherwise would have been forbidden to collect under federal control.
For example, venture capitalist L. John Doerr gave $20,000 -- 10 times
more than he could give to Lott's re-election campaign.