[Peace-discuss] Cui bono coronationis?

[C. G. Estabrook]

[A surprisingly good account from the WP of who profits from the
inauguration and from the government inaugurated. The Arnall/Ameriquest
story sounds particularly rotten.  --CGE]

	washingtonpost.com
	Big-Money Contributors Line Up for Inauguration
	By Thomas B. Edsall and Jeffrey H. Birnbaum
	Washington Post Staff Writers
	Thursday, January 13, 2005; Page A01

President Bush wants to lower barriers to building nuclear power plants,
and the lobby that promotes nuclear energy could not be happier. To show
its thanks, the group has given $100,000 to help pay for his inauguration.

"He's a big supporter," said John E. Kane, chief lobbyist for the Nuclear
Energy Institute. "Our donation is just a small way of supporting him."

The nuclear energy industry's contribution is part of a record-breaking
outpouring of corporate cash for next week's inaugural festivities. At
least 88 companies and trade associations, along with 39 top executives --
all with huge stakes in administration policies -- have already donated
$18 million toward a $40 million goal for the country's 55th inaugural
celebration.

Wall Street investment firms seeking to profit from private Social
Security accounts; oil, gas and mining companies pushing the White House
to revive a stalled energy-subsidy bill; and hotels and casinos seeking an
influx of immigrant labor are among the 44 interests that have each given
$250,000 and the 66 that have donated $100,000 to $225,000. And the money
keeps pouring in.

Practically all the major donors have benefited from Bush administration
policies, especially from corporate and individual tax cuts, deregulation
and the new prescription drug benefit that is part of Medicare. Most also
stand to boost profits further because of Bush's second-term proposals,
which include limiting medical malpractice suits, creating private
investment accounts as part of Social Security and making a tax-code
revision that is expected to reduce taxes on investments.

Many donors are corporations and executives that are regulated by the
federal government, dependent on government tax and spending policies, or
both. At least 16 donors are from the finance industry, 14 are from the
energy sector, six are real estate developers, and at least five are from
both the health and telecommunications industries. The Washington Post Co.
has pledged $100,000.

In the era of campaign finance reform, such largesse is all but forbidden.
Federal law limits individual donations to $2,000 per election, and
corporations cannot give from their own treasuries directly to candidates
or parties. But for the inauguration, the law does not apply, and the
administration has decided that private interests may contribute as much
as $250,000 each. That is a 150 percent increase over the $100,000 maximum
accepted during Bush's first inauguration four years ago.

An inaugural committee spokeswoman said the higher ceiling is needed to
meet its fundraising goal. The committee plans to raise $35 million to $40
million to help defray the costs of the four-day celebration, including
fireworks, the swearing-in, a parade and nine balls. In 2001, the
committee raised $40 million.

In 1993, President Bill Clinton's inaugural committee spent $33 million,
raised primarily from souvenir and ticket sales, although there were 13
donors who gave $100,000 apiece and one who gave $250,000.

Critics see the high contribution limit as a vehicle for groups with
business before government to buy more access to the people who make
big-dollar federal decisions.

"Donors are going to say it's civic participation that motivates them, but
they also use their contributions to buy access to lawmakers and the
administration," said Sheila Krumholz, research director of the Center for
Responsive Politics. "The advantage is enormous."

"The donations give executives another chance to rub up to politicians,"
agreed Bill Allison, managing editor at the Center for Public Integrity, a
nonpartisan watchdog group.

For corporations in particular, the benefit is almost unique. With the
exception of the presidential nominating conventions, companies do not
have legal ways to give significant amounts of cash to assist politicians.
Even the now-ubiquitous independent groups, called 527s, that bought
millions of dollars of advertisements during the presidential campaign
have proved to be ill-suited to company contributions.

As a result, Krumholz said, "The inaugural committee provides
opportunities to corporations that are hampered by the 'soft money' ban."
Three years ago, Congress passed the McCain-Feingold law barring companies
from donating unlimited amounts of money -- also called soft money -- to
the political parties.

The only restraint on giving is the voluntary $250,000 limit, but that has
been circumvented. In a few instances, both the parent company and its
subsidiaries have donated. Marriott International Inc. delivered $250,000
to the committee, as did each of two units: Marriott Vacation Club
International and the Ritz-Carlton Hotel Co.

In addition, Ameriquest, a mortgage company specializing in financing
housing purchases in heavily minority neighborhoods, gave $250,000, along
with $500,000 from two subsidiaries, for a total of $750,000.

Marriott and other hoteliers are pushing hard for the type of liberalized
immigration laws favored by the president to gain a larger labor pool.
Ameriquest and others in what is known as the sub-prime mortgage industry
are seeking legislation that would set national standards preempting
tougher laws in a number of states.

Roland and Dawn Arnall of Los Angeles, the chairman and co-chairman,
respectively, of Ameriquest, and their companies are more than
contributors to the inauguration. They are also the single biggest source
of financial support for Bush since 2002. Over the period, they gave and
raised at least $12.25 million.

Dawn Arnall gave $1 million to the Republican National Committee in 2002
and $5 million to the pro-Bush 527 group called Progress for America Voter
Fund. She served as a co-chairman of the New York Republican Convention
Host Committee, with an obligation to raise at least $5 million.

Roland and Dawn Arnall were major fundraisers in 2004, earning the title
of "Ranger" for collecting at least $200,000 for the Bush-Cheney ticket
and "Super Ranger" for collecting at least $300,000 for the RNC. Roland
Arnall hosted a Bush-Cheney fundraiser at his home in August 2004 that
produced more than $1 million. Shortly after winning reelection, Bush
announced the appointment of the Arnalls as honorary co-chairmen of the
inaugural fundraising committee.

A spokeswoman said that "the Arnalls do not grant interviews."

Another $250,000 donor to the inauguration who played a major role in the
2004 election is T. Boone Pickens, a Texas oilman and corporate raider. He
gave $2.5 million to the Swift Boat Veterans for Truth, which attacked
John F. Kerry's record in Vietnam, and $2.5 million to the pro-GOP 527
organization Progress for America.

Similarly, the $250,000 inaugural contribution of Alexander G. Spanos, a
real estate developer and owner of the National Football League's San
Diego Chargers, was a small fraction of the $5 million he gave to Progress
for America and the $1 million he gave to the New York City Convention
Host Committee, which helped to fund the Republicans' presidential
nominating convention last summer.

Many of the inauguration's benefactors are veteran Republican and Bush
backers. Thirty-nine of the individual donors were substantial fundraisers
in 2004 for the Bush reelection campaign, the Republican National
Committee or both. Twenty-one entities or individuals also helped
underwrite the Republican National Convention. Nine inaugural contributors
funded one or more pro-Bush 527 organization.

Donors offer a range of reasons for participating in the inauguration. One
is simply to get good, guaranteed seats and tickets. All donors of
$100,000 or more receive benefits keyed to the four-day tribute. These
include 38 tickets to 10 balls, receptions, galas and the swearing-in
ceremony. Givers of $250,000 get 80 tickets to the 10 events. In addition,
big donors' names, or the names of their corporations, will appear on
official printed materials.

Edward L. Yingling, incoming president of the American Bankers
Association, which gave $25,000, said: "We gave enough to get the sets of
tickets we need for bankers, some of our staff and some friends of the
industry who want to go to certain events."

Patrick Butler, vice president of The Washington Post Co., said the
company, which is the parent of this newspaper, agreed to donate to be
sure that it has enough tickets to the Inaugural Ball to cover its major
corporate advertisers, which The Post fetes at the event every four years.

A spokesman for the Boeing Co., which gave $100,000, said the money is "to
help in celebrating the defining event in the American democratic
process." Boeing is dealing with federal probes into the tactics it used
to win a contract to lease and sell to the Air Force 100 refueling tankers
for $23.5 billion.

A few groups are forthright about their desire to see and be seen. "We
want our presence to be known here in Washington and at the inauguration,"
said Lucien Salvant, spokesman for the National Association of Realtors,
which contributed $50,000. "We consider ourselves the chief spokesman for
real estate issues and property rights, and we want people to recognize
that."

Research database editor Derek Willis contributed to this report.

© 2005 The Washington Post Company