Industries help fund McCain PAC

WASHINGTON (AP) -- Sen. John McCain has raised nearly $1 million for his new political action committee, giving him a formidable war chest to use in spreading good will among Republicans in the fall elections.

McCain's fund-raising for his Straight Talk America PAC was boosted in part by several industries -- from telephones to railroads -- that he oversees as Senate Commerce Committee chairman.

Representatives of those companies were part of a crowd of almost 200 people invited to a daylong seminar on McCain's trademark issue -- reforming the political process. He held the seminar at a downtown Washington hotel in the spring, and included fund-raising receptions at lunch and dinner, McCain spokesman Todd Harris said.

The Arizona senator, who set up the PAC after abandoning his campaign for the Republican presidential nomination in March, reported raising $924,606 through June 30, Federal Election Commission records show.

He's already contributed $11,000 to Republican congressional candidates, and spent nearly half the money he has raised on travel, staff and events that have helped him maintain his visibility on the political landscape. His PAC finished June with $473,609 in the bank, the FEC report showed.

Increasingly, politicians with national ambition are creating so-called leadership PACs to raise money outside their normal campaigns. They use the PAC money to make trips, contribute to fellow candidates and stage events that keep their visibility high while sowing good will at the state and local level.

McCain's PAC took in $65,000 from other special interest political action committees through June. About $42,000, or 65 percent, came from the transportation and telecommunications industries that fall under the jurisdiction of the Commerce Committee.

Harris defended the special interest donations. "There's not a single person in Washington who thinks that they can write a check to John McCain and receive any kind of special access," he said.

Harris noted that unlike other politicians with leadership PACs, McCain refuses to accept unregulated soft money contributions that often total six figures from corporations, unions and individuals.

"The problem that we have in American politics is not in the $1,000 check or even the $5,000 check," Harris said. "It's in the $500,000 check and the million dollar check."

Among the special interests to donate to McCain's new PAC were Union Pacific and Burlington Northern Santa Fe, each which gave $5,000. A third major rail company, CSX, gave $2,000.

The Commerce Committee is considering legislation to renew the Surface Transportation Board, which oversees the railroad industry.

"We support his reform agenda," Union Pacific spokesman John Bromley said.

Other companies that have long donated to McCain or benefitted from letters he wrote on their behalf as a Senate chairman were also among the donors.

SBC Communications, one of the remaining Baby Bell telephone companies, contributed $5,000.

In April 1999, McCain wrote Federal Communications Commission chairman William Kennard that he and some of his colleagues were "extremely troubled" by the agency's handling of the proposed merger between SBC Communications and Ameritech.

"Your improvisational process will only kill more time and raise the chances of a legally flawed decision," McCain wrote then.

McCain has said there is no connection between donations and his letters to federal agencies. Lawmakers routinely write to federal agencies on behalf of constituents or companies.

McCain also received $5,000 contributions from Lowell Paxson and his wife. Paxson is the head of Paxson Communications, which owns a television network and several TV stations.

The senator in December sent a letter to the FCC asking the agency to rule on Paxson's request to buy a Pittsburgh television station. Paxson officials had contributed $20,000 to McCain's presidential campaign and the senator used the company's jet.

Copyright 2000 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Wednesday, July 19, 2000

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