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Editorial: GOP dilemma 

It's easy to see why Senate Republicans in Harrisburg are upset with worthy last-minute budget changes by House Democrats after the two sides had reached an accord.

House Democrats now want to replace two unpopular taxes with a tax on cigars and the extraction of natural gas. But Republican opposition suggests a link to campaign money from tobacco and energy companies. . . . House Democrats instead proposed to tax cigars and smokeless tobacco, two ideas with broad public support everywhere but in the Senate GOP. Could this be because the tobacco industry donated more than $415,000 to political candidates and their committees in Pennsylvania in 2008 - 81 percent of it to Republicans?

Lobbyists for tobacco giant Altria reportedly persuaded legislative leaders to tax cigarillos but not big cigars. Altria owns cigar-making plants in Limerick and King of Prussia.

That may help explain why Pennsylvania is the only state without a tax on smokeless tobacco, and one of only two (Florida is the other) without a tax on cigars.

It may also explain why when deals get cut in a smoke-filled room, fat cigars remain tax free.

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Barrett: Leslie Crocker Snyder's Unsavory Campaign Donors  

Tobacco profiteer Bennett LeBow ($10,000), the CEO of the country's fifth largest cigarette maker, gave Snyder $10,000. When the Dana-Farber Cancer Institute named him to its board of trustees in 2005, a media stir forced his immediate resignation. LeBow testified under oath in 1993 that he was unaware of any linkage between cigarettes and cancer; but a few years later, he became the first tobacco mogul to settle with the states suing tobacco companies. His Vector Group sells about ten billion cigarettes a year.

The Daily News noted this week that billionaire Ron Perelman gave Vance $25,000 through his company Mafco Consolidated, which the News said includes a company that makes "a moistening agent used in the making of tobacco products." Not only did the News not mention LeBow's virtually simultaneous $10,000 donation, it missed the fact that Perelman, through his holding company MacAndrews & Forbes, had already given Snyder $25,000. Perelman has weathered many a messy news story, including when his Revlon jet flew then police commissioner Howard Safir to the Oscars in Hollywood, inducing the Conflict of Interests Board to rebuke the commissioner. The Post then revealed that Perelman used bogus NYPD permits to illegally park his limos outside his two spectacular upper eastside townhouses.

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CITIZENS UNITED v. FEDERAL ELECTION COMMISSION (PDF) 

GENERAL KAGAN: Well, all I was suggesting, Mr. Chief Justice, is that corporations have actually a fiduciary obligation to their shareholders to increase value. That's their single purpose, their goal.

CHIEF JUSTICE ROBERTS: So if a candidate - take a tobacco company, and a candidate is running on the platform that they ought to make tobacco illegal, presumably that company would maximize its shareholders' interests by opposing the election of that individual.

GENERAL KAGAN: But everything is geared through the corporation's self-interest in order to maximize profits, in order to maximize revenue, in order to maximize value. Individuals are more complicated than that. So that when corporations engage the political process, they do it with that set of you know, blinders -- I don't mean it to be pejorative, because that's what we want corporations to do, is to -

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• US court questions company campaign spending limits 

Corporate spending limits in U.S. political campaigns may be too broad and silence free-speech rights of small businesses like a local hairdresser, Supreme Court conservatives said on Wednesday.

But the court's four liberals, including new Justice Sonia Sotomayor, said more harm than good could be done by overturning precedents upholding the restrictions on corporations and labor unions.

The comments came during arguments in a special session to consider ending long-standing limits on corporate and union spending in political campaigns. . . .

During the arguments, Roberts said a tobacco company might want to run an ad opposing a candidate who wanted to make tobacco illegal. The law restricts broadcast ads by companies and unions right before elections.

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Drake joins quest for governorship  

Dwight Drake, a lobbyist and former staffer for Gov. Dick Riley, Tuesday joined the race for the Democratic nomination for governor.

Drake, 64, is a fixture in Columbia politics. Earlier this year, he helped lead the lawsuit that forced Republican Gov. Mark Sanford to accept $700 million in federal stimulus money.

Drake also comes with large questions about his lobbying clients -- tobacco companies, payday lenders, toxic waste companies, video poker and others. . . .

Trav Robertson, a veteran Democratic campaign adviser currently unaligned with any of the candidates, said Drake's lobbying history is a gift to embattled S.C. Republicans. Drake's clients include Altria, parent of tobacco giant Philip Morris, video poker interests and garbage companies that bring toxic waste to South Carolina.

"Republicans have to be jumping for joy," Robertson said. "Drake will take the pressure and scrutiny off of Governor Mark Sanford and his problems."

Robertson noted Drake's efforts to kill an increase in the state's cigarette tax, the nation's lowest.

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• Political Contributors Do an End-Run in New Jersey Gubernatorial Race 

New Jersey's campaign finance system may have restricted the flow of big money into statewide elections and cut down on the abuses known as pay to play, but determined donors and fund-raisers always seem to find a loophole.

Indeed, newly available records show that big donors to the Democratic and Republican Parties -- along with law firms, engineers and others who do business with the state -- are sidestepping the state's contribution limits and pay-to-play rules by giving to the parties' governors' associations, which turn around and spend heavily in New Jersey.

Harry Pozycki, chairman of the Citizens' Campaign, a nonpartisan group that is an advocate of the pay-to-play rules, said on Monday that the two associations were providing "a huge back door for the evasion of contribution limits." He added, "Following the money becomes that much more difficult." . . .

The Republican Governors Association, which has spent nearly $3 million already in support of Christopher J. Christie, the former federal prosecutor who is challenging Mr. Corzine, has raised $90,000 from the National Rifle Association since December. . . .

Big tobacco also seems to be backing Mr. Christie, who as a securities lawyer once represented the industry in an antismoking lawsuit: Tobacco interests have given the Republican group nearly $300,000.

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• Senators say tobacco votes based on regulations, not campaign contributions  

The 17 senators who voted against allowing the Food and Drug Administration to regulate tobacco included some of the top recipients of campaign contributions from tobacco manufacturers.

Georgia Sen. Saxby Chambliss is the third highest recipient of the group.

The historic anti-smoking legislation that the Senate passed Thursday sped to final congressional passage on Friday. Lawmakers and the White House quickly declared that it would save the lives of thousands of smokers of all ages. Even more important, they said, the measure could keep countless young people from starting in the first place. . . .

"I voted against the FDA tobacco bill because I'm opposed to the overregulation of an industry that's already highly regulated, from farmer to manufacturer," Chambliss said. "The bill saddles the already overburdened FDA with even more oversight duties, and does nothing to reduce the rate of smoking among Americans -- cigarettes already on the shelves will remain on the market."

Bunning, whose campaigns received $42,500 from R.J. Reynolds, says his vote reflects his state's interests. According to 2007 figures from the U.S. Department of Agriculture, Kentucky ranks second in overall tobacco exports, and the crop pumps $386.4 million into the state's economy.

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Tobacco: Money to Congress: All Senators  

Dodd, Chris (D-CT) $202,849

Bunning, Jim (R-KY) $194,166

Helms, Jesse (R-NC) $180,230

Faircloth, Lauch (R-NC) $173,069

Burns, Conrad (R-MT) $162,700

McCain, John (R-AZ) $145,182

Dole, Elizabeth (R-NC) $138,800

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Tobacco: Money to Congress: Top 20 Members 

All Cycles

Top 20 Members

Candidate Amount

Tobacco: Money to Congress: Summary 

Party Split:

Dems: $9,864,918 $9,864,918

Repubs: $18,938,926 $18,938,926

Other: $-4,809,956 $-4,809,956

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Senators who opposed tobacco bill received top dollar from industry 

Among the 17 senators who voted against allowing the Food and Drug Administration to regulate tobacco are some of the top recipients of campaign contributions from the tobacco industry, which has donated millions of dollars to lawmakers in the past several campaign cycles.

Over the course of his nearly quarter-century Senate career, Minority Leader Mitch McConnell, who hails from the tobacco-rich state of Kentucky, has received $419,025 from the tobacco industry, more than any other member of Congress, according to the Center for Responsive Politics, a nonprofit, nonpartisan organization that analyzes the influence of money on politics and policy.

North Carolina Republican Sen. Richard Burr, who led the opposition to the bill, is the second highest recipient and netted $359,100 from tobacco-related political action committees and individual contributions. His state is the nation's largest tobacco grower and is home to R.J. Reynolds, the nation's second largest tobacco manufacturing company, which contributed $196,850 to Burr's campaigns.

Georgia Sen. Saxby Chambliss, the ranking Republican on the Senate Agriculture Committee, is the third highest recipient with $228,700. Kentucky Sen. Jim Bunning, who's up for re-election next year and is considered the most vulnerable Senate Republican, ranks eighth with $194,166.

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• Senators who opposed tobacco bill received top dollar from industry  

Among the 17 senators who voted against allowing the Food and Drug Administration to regulate tobacco are some of the top recipients of campaign contributions from the tobacco industry, which has donated millions of dollars to lawmakers in the past several campaign cycles.

Over the course of his nearly quarter-century Senate career, Minority Leader Mitch McConnell , who hails from the tobacco-rich state of Kentucky , has received $419,025 from the tobacco industry, more than any other member of Congress , according to the Center for Responsive Politics , a nonprofit, nonpartisan organization that analyzes the influence of money on politics and policy.

North Carolina Republican Sen. Richard Burr , who led the opposition to the bill, is the second highest recipient and netted $359,100 from tobacco-related political action committees and individual contributions. His state is the nation's largest tobacco grower and is home to R.J. Reynolds , the nation's second largest tobacco manufacturing company, which contributed $196,850 to Burr's campaigns.

Georgia Sen. Saxby Chambliss , the ranking Republican on the Senate Agriculture Committee , is the third highest recipient with $228,700 . Kentucky Sen. Jim Bunning , who's up for re-election next year and is considered the most vulnerable Senate Republican, ranks eighth with $194,166 . . . .

Virginia Democratic Sens. Mark Warner and Jim Webb supported the measure, as did Altria Group , the Richmond, Va. , company that owns Philip Morris . Altria contributed $78,418 to Warner.

"We think it's important to stay active in the political process," said William Phelps

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• Smoke-filled rooms? 

This year, however, the Legislature simultaneously raided the tobacco settlement fund and gutted the Hawai'i Tobacco Prevention and Control Trust Fund, which uses money from the tobacco settlement fund to run those anti-smoking programs. Senate Bill 292 diverts 25.5 percent of the settlement fund's money to the General Fund and shrinks the Prevention and Control Trust Fund's share of the settlement fund's money from 12.5 percent to 6.5 percent. SB 884, which raids various special funds to bolster the General Fund, finds that the Tobacco settlement fund has an "excess" of $20 million and appropriates it to the General Fund.

According to Evans, the tobacco settlement fund had already taken a beating from the bad economy: "The trust fund corpus was about 55 million last year, and it's been losing money ever since due to the market. The current balance is about 33 million." Subtract $20 million from that, and then cut 12.5 percent of that to 6.5 percent, and there's not a lot left for anti-smoking programs. . . .

Tracking tobacco money isn't always easy. Reynolds American, formerly RJ Reynolds, usually donates in its own name -- but the world's biggest tobacco peddler, Altria, donates under a host of names, including Altria, Altria Client Services, Altria Corporate Services, Philip Morris USA and UST Public Affairs. At least one company executive has donated in his own name. And the company also hires a whole network of lobbying firms. In Hawai'i, it uses the services of three lobbyists: Celeste Y.K. Nip, Dan Smith, and George A. "Red" Morris. Reynolds uses John Radcliffe to lobby in Hawai'i. Smith made a $2,000 donation to Honolulu councilmember Romy Cachola's unsuccessful bid for the Senate; Cachola's campaign spending report lists Smith as a District Director for Altria in Richmond, Virginia. Morris, Radcliffe and Nip distributed tens of thousands in campaign donations to dozens of candidates during the 2008 election season -- but since they represent multiple clients, it's difficult to say whether the money they pass out is tobacco money or not.

But even without counting Morris's, Radcliffe's and Nip's contributions, Altria, its subsidiaries and officers passed out at least $51,309 to Hawai'i politicians during the 2008 elections, while Reynolds chipped in at least $19,500. . . .

Cigarette paper

Who got how much and from whom

Rep. Henry Aquino

Altria Client Services $1,000

Reynolds American $1,000

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• Senator Kay Hagan Opposed FDA Tobacco Regulation  

Tough questions tonight for Senator Kay Hagan about her campaign funding from big tobacco and her opposition to the Food and Drug Administration regulating tobacco. In fact both of North Carolina's Senators oppose the idea. And both got thousands of dollars in support for their political careers from tobacco companies. We wanted to know the real reason behind the opposition. . . .

Reporter: "I know that in the past you've received some financial support from tobacco groups for your campaign. Does your current position on this bill have anything to do with that?"

Hagan responds, "You know I think tobacco companies have given quite a bit of funding to Republican candidates and it certainly has no bearing whatsoever. I am primarily interested in jobs in North Carolina and the impact this will have on the farming community and I am certainly here to advocate on behalf of North Carolina's best interests.

Which begs the question: is our states best interest the health of our people or the health of our tobacco industry?

Hagan says, "I think it goes back to the public at large knows that tobacco smoking is harmful and I think that's one of the things that's already currently known and the FDA has too much on their plate to deal with." . . .

We posted this story online before it aired and were immediately contacted by a member of Senator Hagan's staff, who questioned the accuracy of our story. When they could not provide a single example of anything factually incorrect, the staff member said they deeply resent the questions raised in this story.

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The Tobacco Lobby 

"To your health, Mr. President," the toastmaster said as 4,100 well-wishers at the Washington Convention Center lifted champagne glasses embossed with the words: "The United States Tobacco Co." Bush smiled and the black-tie gathering roared approval.

The U.S. Tobacco Co., along with five other tobacco giants - Lorillard Tobacco, Philip Morris, RJR Nabisco, the Smokeless Tobacco Council and the Tobacco Institute - were among 150 sponsors of last spring's gala, The President's Dinner.

These six concerns help form the core of the highly influential tobacco lobby, which campaigns each year against anti-smoking legislation and thwarts efforts to end tobacco's lethal status as the nation's least regulated consumer product.

Although tobacco has become unacceptable in many circles of U.S. life, it remains a strong presence in the inner sanctum of U.S. political life. A bona fide power broker, the tobacco lobby doles out money to politicians, Democrats and Republicans alike, in return for votes, favors and influence.

In 1988, the Tobacco Institute, the industry's trade organization, ranked first among special-interest groups in honoraria fees paid to Congress, at $123,400. RJR- Nabisco, the food and tobacco conglomerate, ranked fourth, at $69,500. Philip Morris, the nation's largest cigarette producer, paid $41,000 in congressional speaking fees, while the Smokeless Tobacco Council, which represents makers of snuff and chewing tobacco, shelled out $27,500. . . .

A random check of a dozen tobacco executives through the National Library on Money and Politics, which tracks campaign contributions, found that four had made contributions in the 1990 congressional campaigns. Louis Bantle, chair and chief executive officer of U.S. Tobacco, contributed $1,000 to Sen. Jesse Helms, R-North Carolina, $1,000 to Rep. Christopher Shays, R-Connecticut, and another $1,000 to Rep. Thomas Bliley, R-Virginia. James Johnston, chief executive officer of R.J. Reynolds Tobacco Co., gave $500 to the re-election campaign of Rep. Stephen Neal, D-North Carolina, while Michael Myers, chief executive officer of Philip Morris, donated $500 to Sen. Ernest Hollings, D-South Carolina. Andrew Tisch, chief executive officer of Lorillard Tobacco Co., contributed $1,000 to Hollings, $1,000 to Rep. Nita Lowey, D-New York, $500 to Sen. Claiborne Pell, D-Rhode Island, and $1,000 to Sen. John D. Rockefeller, D-West Virginia.

You get what you pay for

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