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I Viewpoint The Battalion Friday Texas A&M University > April 27, 1979 Interest groups waste our taxes By DONALD LAMBRO WASHINGTON — The government pours hundreds of millions of tax dollars into thousands of lobbying organizations, “public interest” law firms, associations and other special interest groups across the country. Little is known about how these organi zations and associations spend the money. They are rarely, if ever, examined by Congress even though the funds often are used to influence legislation and policy ranging from food stamps to the Equal Rights Amendment. Many of these organizations are estab lishing tax-exempt spin-off groups — so- called educational and research foun dations through which the funds are spent. United Press International conducted a five-week investigation into this federally financed world of private groups and or ganizations. UPI discovered: —Grants and contracts for low-priority or dubious projects and studies going to rich and influential organizations with multimillion dollar budgets. —Political organizations such as the Americans for Democratic- Action are re cipients of federal funds. —Law firms are among the biggest be neficiaries of these funds, in some cases spending the funds in behalf of the actual recipient group. —The federally-paid staffs of tax exempt research groups often provide advice, data, and other support to the lobbying arms of the parent groups. The extent to which this federal funding is supporting lobbying is not clear, but the evidence suggests that tax dollars often are indirectly supporting the lobbying pro grams of many special interest groups. Federal law states that it is illegal for federal funds to be used “directly or indi rectly” to influence a member of Congress in his legislative duties. Among the biggest recipients of federal funding are the U.S. Conference of Mayors, which has a total budget of nearly $3 million; the National Governors Associ ation (NGA), whose total budget is over $3.5 million; and the National League of Cities which receives over $2.7 million annually in government grants and con tracts. The Mayors got more than $1.6 million in federal funds during fiscal 1978; the NGA will get close tp $2:million this year. The Mayors’ well-appointed suites cover five floors of a modern office build ing near the White House. They employ 95 persons requiring a yearly payroll of $938,490 in addition to $738,000 in over head costs. Spokesman Eugene Russell says federal contracts are performed by the tax exempt and federally supported Research and Education Foundation. Lobbying is hand led by a separate staff paid out of dues from some 600 cities. But executive director John Gunther says the organization’s lobbyists — who have pushed legislation from ERA to more federal aid for the cities — frequently make use of the research staff. “We do get a lot of information out of it which we use in our lobbying efforts,” Gunther, the group’s chief lobbyist, said. “It enlarges the capacity of the information The extent to which this federal funding is supporting lobbying is not clear, but the evidence suggests that tax dollars often are indirectly sup porting the lobbying programs of many special interest groups. we have at our disposal. Sometimes, he added, “The lobbying staff meets with the foundation experts” in the preparation of congressional testimony.” Here is a sampling of the contracts these organizations receive: —$75,000 to the National League of Cities for a film on urban conservation. —$90,000 to the Mayors to hold semi nars on local financial management and other HUD-related topics. —$262,035 to the National Hispanic Coalition for Better Housing in part to provide “a channel for input from such groups to HUD.” One knowledgeable Se nate Appropriations Committee aide called this project “nothing more than thinly disguised lobbying.” Many of these groups are getting fund ing simultaneously from many different federal programs and agencies. The Mayors are funded by at least 15 different departments and agencies, in cluding HUD, HEW, Commerce, Labor, Transportation, the National Endowment for the Humanities, the State Depart ment, and the National Science Founda tion. Sometimes, agencies and departments are unaware they are financing a project, service or report that is also being funded by another government unit. Thus, or ganizations looking for federal dollars can shop around for as much funding as they can find. For example, six different federal de partments and agencies financed a confer ence of 60 women organized by a nonprofit group known as Rural American Women, which also got money from the Demo cratic National Committee. Each agency gave the group about $5,000 and several expected to receive re ports. HEW and the Environmental Pro tection Agency each received a copy of a 17-page report, most of which was about how to hold a conference. The Office of Minority Business Enterprise also spent $6,000 to videotape the conference, plan ning to offer the tapes to women’s groups. The National Governors Association gets about $1.6 million annually from the states, which in part pays for its nine Washington lobbyists, in addition to $2 million in federal funding. The NGA Cen ter for Policy Research receives the federal funds and shares offices in the NGA head quarters which houses 77 employes. “There’s no question that we are here to get more money for these programs (reve nue sharing, block grants, etc.),” says spokesman Joseph McLaughlin. He says the federally-funded research is often “valuable to the governors as lobbyists” when they testify before Congress. The organizations that get the grants say they are vital. Others disagree. One official of a group that receives heavy federal funding said, “I happen to believe that a lot of it (grants and contracts) is a crock. We didn’t build the system. The feds built it and we have to play the game. Otherwise we would be opting out to the other special interests.” Some contracts are geared to build interest group support for specific federal programs. “If I had to reduce it to its baldest terms,” one official said, “a number of the grants have been used by people in the federal agencies who want a program started and want the support of our or ganization. ” The National Conference of State Legis latures, with offices in Denver and Wash ington, gets nearly $1.4 million in federal funds, and an additional $1.7 million from the states. It has 30 employes in Washing ton, where the lobbying operation is run, and 60 in Denver where most of their fed eral contract work is done. Karl Kurtz, director of operations, said the two activities were kept totally sepa rate, but added that “some of the rent here is charged to those grants.” A prominent Washington attorney whose career began in the public interest movement says, “The purpose of most of these groups is to influence legislation and public policy.” He estimates public inter- A typical recipient. Midwest Academy, trains community activists. It was found to have issued training brochures urging VISTA workers, “Give people a 1 taste of blood.' Push your opponents so hard you can see them squirm." est and consumer groups alone receive about $100 million a year in federal funds. “Their traditional sources of financing are drying up,” he says, “so the only place left to look to is the government.” Some federal funding for these groups is coming from “public participation” grants. This program was set up to reimburse groups that cannot afford to present their views in a federal proceeding — such as a Federal Trade Commission hearing. Only the FTC is specifically authorized by law to make such payments. But other agencies are doing it under a controversial Justice Department ruling suggesting that they have the same kind of authority. An examination of groups given funds by the FTC — some have received more than $100,000 — reveals that many are well off financially. A lot of the public participation money goes to lawyers. Of $1.8 million in FTC public participation funds, more than $813,000 went for legal fees and costs, in cluding travel and secretarial salaries. Recipients of FTC payments include the liberal Americans for Democratic Action, Consumers Union, publisher of the suc cessful consumer magazine, the Consumer Federation of America, one of the nation’s largest consumer groups, and the National Consumer Law Center, which received close to $500,000 in funds from the gov ernment’s Legal Services agency in addi tion to funds from other federal programs. ADA, a liberal. Democratic activist or ganization, is listed on FTC documents as the principal recipient of more than $177,000 for participation in agency pro ceedings ranging from health spas to an tacids. ADA executive director Leon Shull says, “Not one penny of that money came to the ADA national office,” but instead was channeled through the ADA’s Con sumer Affairs Committee, run by Ann Brown, an ADA national board member who runs the committee out of her home. Her committee receives little of the money, either. The group’s presentations are handled by a lawyer who receives and spends virtually all of the funds. The at torney is Bruce Terris, whose public interest law firm employs nine lawyers. Terris said the views he presented to the FTC hearings reflected the views of the national ADA but it could reject any con sumer position he took. There is hardly a department or agency in the government that is not giving money to some outside organization. Recipients of $33.2 million in yearly grants made by the International Com munications Agency, the former U.S. In formation Agency, include the American Bar Association, the American Political Science Association, the National 4-H Council, the YMCA, and the U.S. Lawn Tennis Association. These grants include an exchange pro gram for Latin American theatre critics, symposiums for South American jour nalists, as well as world travel for young American political leaders, business executives and athletic directors. by Jim Earle Slouch J A^e Z6-79 “I think I made a mistake. I would have done better if I had sold them as a pair.” Iran —fewer nuts By DICK WEST WASHINGTON — As if the oil scram ble brought about by Middle Eastern tur moil weren’t bad enough, now comes word that cutbacks in Iranian exports are creating a shortage of pistachio nuts. According to the National Geographic Society, the United States depends on Iran for the major part of the 25 million pounds of pistachios we import each year. Already, the Geographic reports, America is feeling a pistachio pinch. Un less the political situation in Iran stabilizes soon, pistachios surely will become even more scarce, with a price tag that will add 47 points to the Cost of Munching Index. Is pistachio rationing down the road? That was the question I began putting to administration officials after reading the Geographic’s disturbing analysis of the supply situation. President Carter, I was assured, is keep ing close tabs on the crisis. He regards pistachios as “the moral equivalent of cheese dip,” one source said. It is, however, his intention to rely on voluntary restraints in coping with the crunch. Should standby controls be pro posed, they likely will stop short of ration ing. One possibility under consideration is a mandatory switch to unshelled nuts. Last year, Americans consumed 8,991 metric tons of preshelled pistachios as against only 148 metric tons they had to shell for themselves. Experts estimate that if only unshelled pistachios were available, the rate of con sumption would be slowed down by as much as 123 percent, thereby making existing supplies last that much longer. Another step might be to develop new pistachio substitutes. Bear in mind that the shortage is being felt most keenly by beer drinkers. As pis tachios gradually disappear from tavern counters and tables, beer drinkers are ob liged to move from bar to bar to satisfy their craving for munchies. This country has abundant supplies of peanuts, popcorn and little orange- colored, plastic-looking, nibble-size ob jects vaguely flavored of cheese. If beer drinkers switched to these alter nate sources of munchies, it would ease the pressure on pistachio prices and leave American less dependent on Iranian im ports. But much more research is needed to make the substitutes acceptable. A third remedial measure being dis cussed at the White House involves stepped-up domestic pistachio produc tion, which now totals about 13 million pounds annually. It would, however, take at least four years for America to become pistachio self-sufficient. Meanwhile, the administra tion may be forced to issue voluntary guidelines under which beer drinkers would limit consumption to seven nuts per bottle. Letters to the Editor Buses: no warning Editor: On April 24, a close friend of ours was .injured when getting off the shuttle bus at our apartments. She is now in traction for a term of six to eight weeks. While the bus was stopped and the stu dents were unloading, a motorcyclist failed to yield to the students crossing the street. We have observed other close calls such as this one. We feel that if the necessary precautions had been taken this incident might not have occurred. To prevent similar acci dents, we suggest: A. The installation of flashing lights to alert motorists that students will be un loading. B. A warning sign to be placed on the rear of the bus. C. Adequate enforcement of the law protecting pedestrians if such a law exists. Aggies, your concern about this matter might prevent another accident like the one witnessed Tuesday. —Debbie McDonald, ’82 Editor’s note: This letter was accom panied by four other signatures. Hopping mad Editor: In reference to the recent Corps Quad-Hop given by the Freshman Coun cil of Spence Hall on Friday, April 20, 1979: Hats off to the girls and to their efforts to provide a viable service to the Corps. From the feedback that I have received, a good time was had by the majority of those who attended. The success of the venture was due to the outstanding organization by the girls, who somehow overlooked the fact there were probably going to be debts to be paid at the end of the evening, as there were. Among these debts was the cost of entertainment, an item that certainly can’t be considered as going for free when it is a well-known fact that good entertainment is hard to find in Bryan-College Station. It probably will remain unpaid for. But, despite all this, the Quad-Hop provided a fun time for most of those pres ent. It might be considered, however, that enrollment in some summer courses of business administration would insure an enjoyable time for all who attend future functions held by this fine women’s or ganization that graces the home of the Corps of Cadets. —Bill Price, ’82 Editor’s note: Bill Price furnished the sound system and played records for the quad-hop. Liz Campbell, president of Spence Hall, said that the council’s understanding with Price was that he would not be paid unless the council made a profit, which it did not. Arabs massacred Editor: In presenting “correct facts,” Mr. Nahir (The Battalion, April 24) talks about Pales tinian movement in Israel. It is common knowledge that Palestinians have been deprived of their rights in their own home land for over three decades. They have been systematically massacred, made homeless and humiliated since the forma tion of the state of Israel. It is in American news media that I read about the system atic torture of Palestinians in Israeli jails. I am talking about the “innocent citizens” and not the PLO. One can appreciate peace only when it is practiced, but not selectively. —W.E.K. Warsi Correction A typographical error in Mr. Maher Awwad’s letter to the editor (The Battal ion, April 26) concerning the Middle East crisis resulted in a sentence that read, “He seems to forget the excessive cruelty with which Israeli forces broke down Palesti nian protests in the occupied territories, in which tens of thousands of unarmed civi lians were shot to death in cold blood.” The sentence should have read “tens of unarmed civilians.” The Battalion regrets the error. Top of the News 1 7 CAMPUS Vets announce open horse show Te; The Texas A&M University Veterinary Medicine Class of 1981 is sponsoring an open horse show Sunday at 9 a.m. at the Brazos County Livestock Pavilion on Tabor Road in Bryan. The show will include English, halter, western and jumping classes of competition. More information can be obtained by calling Kent Daniels at 846- 0338. e t lllyh A « irofit oans itatic STATE pprc Th Summer camp positions open The San Jacinto Girl Scout Council is looking for students to work as counselers during the summer at one of the four summer camps. Positions available include food specialists, nurses, assistant cooks, programs assistants and workers on the waterfront staff. Anyone in terested may contact San Jacinto Girl Scouts at 1902 Commonwealth, Houston, Texas or call toll-free 1-800-392-4340. NATION Water projects halted by law According to the General Accounting Office in Washington, con struction of 49 water projects nationwide at a total cost of $615 mil lion has been delayed or stopped because of a 1970 law requiring states to guarantee full payment of their share of costs. Lloyd Bentsen, D- Texas, said the threatened projects include the deepening of the Gulf Intracoastal Waterway, which stretches 1,100 miles from Florida to the Mexican border with Texas, and the Garza-Little Elm Lake, Texas. “The problem is that 35 states, including Texas, cannot sign such contracts because their constitutions prohibit them from obligat ing future state appropriations,” Bentsen said in releasing the report. um esol loun A : (ryai ,nd 1 R.' id f ( n a tank: Hie 1 red t )< a Al ion Wed he )roc ege Space shuttle behind schedule pro]* M :om icho Work on the space shuttle Columbia is running about a month behind schedule, Kennedy Space Center officials said Wednesday at the 16th Space Congress in Cocoa Beach, Fla. The space shuttles maiden flight is set for Nov. 9, but few officials wanted to be pinned down Wednesday on whether the shuttle would actually be com pleted in time for a November launch. Dr. Robert Gray, space trans portation systems manager at Kennedy, said the shuttle was behind because of the installation of thousands of tiles to protect the shuttle from the heat of re-entry. md scho ingf ■Tl muc for i Uni' Unr horn apo: Wayne released from hospital John Wayne is home in Newport Beach, Calif, following hospital treatment for a bronchial condition, but the Duke had some harsh words for reporters who sneaked around bribing hospital officials during his week-long stay. “I haven’t lied to the press, but they will not take our reports as truthful. They sneak around trying to bribe people to say something that won’t coincide with the official report ! don’t know why it is necessary, but I guess that is modern-day news It used to be considered yellow journalism.” Wayne had been ex pected to stay at Hoag Memorial Hospital until the weekend, but was released instead Wednesday morning. Social Security benefits to go up The nation’s 35 million Social Security recipients will get a 9.9 percent increase in their benefit checks beginning in July because of inflation, a spokesman for the Social Security Administration an nounced Thursday. Increases in Social Security benefits are tiedbya congressional formula to increases in consumer prices, which have been going up steadily for the past year. The Labor Department said Thursday prices went up 1 percent in March. A spokesman for the Social Security Administration said the July increase will mean the average monthly benefit will rise from a current $258 to $283. For people 65 and over and receiving the maximum monthly benefit, the spokesman said, the monthly benefits will increase from $503.40 to $553.30. Last July, the nation’s 35 million Social Security recipients received a 6.5 percent boost in their benefits to compensate for infla tion. cons cent for won of! syst extr pro; tro\ hint S D-C to a to t natc Doctors to discuss infant deaths The National Center for Disease Control (CDC) in Atlanta assem bled a panel of experts Thursday to review the results of an investiga tion into the sudden deaths of four Tennessee infants 24 hours after they received routine vaccinations against childhood diseases. The day-long meeting at the CDC Thursday will be devoted mainly to a discussion of information collected by public health authorities since the Tennessee infant deaths were reported by state health officials last month. The infants died after being vaccinated against diphtheria, tetanus and whooping cough with a vaccine manufactured by Wyeth Laboratories of Philadelphia. The vaccine was traced to one lot and was recalled by the drug company immediately after the Tennessee fatalities were reported to the CDC. Federal health au thorities said it was acting “out of an abundance of caution” in recal ling the vaccine and that no cause-and-effect relationship had been established between the vaccine and the of sudden deaths. Four of the children died within 24 hours of receiving the inoculation, accord ing to CDC and Tennessee health officials. WEATHER Fair to partly cloudy and windy. Winds N.N.E. at 15-20mph. High today 80 and a low of 60. The Battalion MEMBER LETTERS POLICY Texas Press Association Letters to the editor should not exceed 300 words and are Southwest Journalism Congresj subject to being cut to that length or less if longer. The p Mil editorial staff reserves the right to edit such letters and does ^ \jJ not guarantee to publish any letter. Each letter must be Managing Editor Andy signed, show the address of the writer and list a telephone Asst. Managing Editor DiW^j number for verification. Snorts Editor Sc Address correspondence to Letters to the Editor, The * , « f m Battalion, Room 216, Reed McDonald Building, College C/ity Editor Ro) Station, Texas 77843. Campus Editor Keith Represented nationally by National Educational Adver- News Editors Michelle Bun**! tising Services, Inc., New York City, Chicago and Eos Karen Con'll Angeles. Staff Writers DougC^J Mark Patterson, Kurt Abraham,^ The Battalion is published Monday through Friday from Blosser, Richard Oliver Diane ^ September through May except during exam and holiday .. ‘lurJ J Tlr Efl periods and the summer, when it is published on Tuesday Meril EuWaraS, Lyle Lovett, ) through Thursday. Moehlman, Robin Thompson w ^ ^ ok Editorial Directors Karenl^fl Mail subscriptions are $16.75 per semester; $33.25 per school year; $35.00 per hill year. Advertising rates furnished 5>C0tt rel)G*n on request. Address: The Battalion, Room 216, Reed Cartoonist DougGl^l McDonald Building, College Station, Texas 77843. Photo Editor Lee Roy Leschp e, fl United Press International is entitled exclusively to the .^ .4 use for reproduction of all news dispatches credited to it. r tlOtOgrapners ylin Rights of reproduction of all other matter herein reserved. Wyj Second-Class postage paid at College Station, TX 77843. Focus section editor Beth Opinions expressed in The Battalion are Regents. The Battalion is a non-proMI those of the editor or of the writer of the supporting enterprise operated by stAt article and are not necessarily those of the as a university and community nnafft University administration or the Board of Editorial policy is determined by Ine^j