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If our fearless leader is going to keep giving donations to the Democrats, I wish he would at least donate Loral stock to the Republicans with the condition they hold the shares for one year. That way the Republicans would have a vested interest in seeing Loral's share price appreciate.
US Democrats Collect Record $2.4 Mln as Donors Hedge Bets
Washington, May 12 (Bloomberg) -- The Democratic Party collected more than $2.4 million in unregulated ''soft money'' political contributions, a record for the first three months of the year and a sign that donors think Democrats have a reasonable chance to take over the U.S. House of Representatives next year.
Republicans still outraised the Democrats in the first quarter, but the gap narrowed. The Republicans collected $4.3 million, down from $5.5 million in the first three months of the last election cycle. The Democrats' $2.4 million, in turn, was higher than the $2.1 million they collected in the previous cycle, according to data provided by Public Disclosure Inc. and Common Cause, two campaign watchdog groups.
The Democrats' gain in fund-raising is directly related to their improved chances of taking over the House. The Republicans now control the House by a 222-211 margin so a loss of just six Republican seats would give Democrats a majority.
''These donors have to hedge their bets much earlier and try to plan a strategy to reach both parties,'' said Public Disclosure co-founder Kent Cooper.
At least 20 companies, associations and executives gave more than $100,000 in the first quarter, including Amway Corp. and Paine Webber Group, Inc. which gave to Republicans, and Loral Space & Communications Ltd. Chairman Bernard Schwartz, who gave to the Democrats.
Soft money donations refer to unregulated and unlimited contributions to political parties and not individual candidates. Federal election laws limit donations to individual candidates, and the parties are forbidden to use soft money donations to directly benefit specific candidates. Critics say the distinction means little because the parties pick up millions in costs that would otherwise be borne by the candidates and their campaigns.
Biggest Givers
The American Federation of State, County and Municipal Employees union was the largest single donor, contributing $410,000 to the Democrats. Philip Morris Cos. was the largest corporate donor, contributing $251,500 to Republicans.
Democrats netted more from the 20 top individual donors, all of whom who gave more than $100,000 in soft money contributions.
Democrats collected $1.45 million in soft money from large individual donors, including $100,000 from Walter Shorenstein, a San Francisco developer, and another $100,000 from Sol Price, the founder of San Diego-based Real Estate Investment Trust, Price REIT Inc.
Republicans netted $1.31 million, including $100,000 from Koch Industries executive vice president David Koch, who gave $100,000, and Kadish Real Estate Inc. owner Lawrence Kadish, who gave $150,000.
Connell Company Inc., a privately held firm with real estate, commodities, mining and import/export business gave $200,000 to the Democratic congressional campaign committee.
Alexander Spanos, the chairman of A.G. Spanos Construction Co. and owner of the San Diego Chargers, made a $250,000 contribution to the Republican National Committee.
The National Rifle Association, facing a host of gun control bills before Congress and a Democratic president firmly committed to gun control, gave $110,000 to Republicans this year.
Securities Firms
Securities firms, which were the largest single industry contributing to political campaigns in 1998, according to campaign watchdog Center for Responsive Politics, donated hundreds of thousands of dollars to both Republican and Democratic campaign committees this year.
Paine Webber gave $100,000 to the Republican National Committee's account benefiting Republican governors. That contribution comes two months after the RNC returned $100,000 to Paine Webber that it had used for an account supporting state and local officials.
Paine Webber officials requested the refund after being told the funds were used to support state and local officials, which could run afoul of a 1994 Municipal Securities Rulemaking Board regulation preventing securities firms from donating to state and local officials with control over the issuance of municipal bonds.
Salomon Smith Barney Inc., a division of Citigroup, gave $30,000 to the Republican Governors Association, which supports candidates for state governorships. Lehman Brothers Inc. gave $15,000 to the same account.
Those donations came just two months before New York Governor George Pataki unveiled a financial services modernization bill in New York State, legislation strongly supported by securities firms and banks.
Securities firms, along with banks and insurance companies, are also strongly pushing legislation now moving through the U.S. Congress that would rewrite depression-era laws and allow the firms to compete in each others' businesses. Passage of the legislation, which could happen this year, could bring in millions of dollars in profits for banks and securities firms.
Technology
Technology firms, facing a growing list of tax and regulatory issues before Congress, continued to increase their political donations to both parties.
Microsoft Corp., the world's largest software company, gave $60,000 to Democratic campaign committees this year. The Redmond, Washington firm is currently the target of an antitrust trial brought by the U.S. Department of Justice and 19 states.
Oracle Corp., the number-one database software manufacturer, gave $40,000 to the Republican National Committee, while Teligent Inc., which provides networks for Internet service, gave $27,000 to Democrats.
America Online Inc. Chief Technology Officer Marc Andreessen, who is one of Vice President Al Gore's leading supporters in Silicon Valley, gave $12,500 to Democratic party committees.
Cisco Systems Inc., chief executive John Chambers, an early supporter of Texas Governor George W. Bush's run for the presidency, gave $25,000 to Democratic campaign committees.
Technology companies have a growing number of issues before Congress that affect their businesses; from legislation before Congress to limit Year 2000 Computer Bug lawsuits to bills to extend the number of high tech visas issued to new taxes for commerce on the Internet.
May/12/ 99 12:33
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(C) Copyright 1999 Bloomberg L.P.
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