NEWSLETTER OF THE CENTER FOR PUBLIC INTEGRITY VOL. 2 NO. 5 AUGUST 1996 Fat Cat Hotel Where to stay in the nationÕs capital? If youÕre one of the Democratic PartyÕs big donors or fund-raisers, your hotel of choice isnÕt the Four Seasons or the Ritz-Carlton. ItÕs the White House. BY MARGARET EBRAHIM n June 1996, Forbes magazine report- get a donor two meals with President The Center for Public Integrity has ed that the Democratic National Clinton, two meals with Vice President determined that, since 1993, more than ICommittee was using overnight stays Albert Gore Jr., a slot on a foreign trade 75 Democratic contributors and fund- at the White House as a perk to entice mission with DNC leaders, and other raisers have spent the night in the White wealthy donors to make six-figure con- benefits, such as a daily HouseÑmostly in the tributions to the party. For a contribu- fax report and an Lincoln or QueenÕs tion of $130,000, Òyou can spend the assigned DNC staff ÔThis has become an BedroomsÑas guests of night in Abraham LincolnÕs bed,Ó ABC member to assist with President and Mrs. NewsÕs David Brinkley, picking up on their Òpersonal urban myth, like the Clinton. the Forbes item, said on This Week With requests.Ó alligators in the When guests spend David Brinkley, the Sunday-morning tele- Fowler responded to the night in the Lincoln vision show. ÒBut be warned. I am told charges that the party sewers of New York.Õ or the QueenÕs Bedroom, LincolnÕs bed is hard and lumpy.Ó and the President were they receive five-star ÒThis has become an urban myth, like selling access and influ- AMY WEISS TOBE, PRESS SECRETARY, treatment. At night, the DEMOCRATIC NATIONAL COMMITTEE the alligators in the sewers of New ence to contributors by beds are turned down York,Ó Amy Weiss Tobe, the DNCÕs saying that such fund- and breakfast menus press secretary, told the Center for raising efforts would continue until the placed on the beds. Guests may choose Public Integrity. ÒIt is just not true.Ó law requires both parties to operate dif- where they would like to eat breakfastÑ ThereÕs nothing unusual, of course, ferently. ÒUntil the system is changed, possibly in the solarium or the sitting about politicians and political parties we will not unilaterally disarm,Ó Fowler room next to the Lincoln BedroomÑand ÒservicingÓ their donors and fund-rais- reportedly said, accurately reflecting the which newspapers they would like to ers. In the summer of 1995, the DNCÑin fact that every party and administration read in the morning. Most guests receive a letter signed by the partyÕs co-chair- have given special treatment to its a pass to roam the White HouseÕs resi- men, Senator Christopher Dodd of biggest supporters. A Democratic lobby- dential quarters. Almost every guest Connecticut and Donald Fowler, and ist familiar with perks for contributors with whom the Center for Public Integrity spoke said that spending the night in the White House was an honor. SPECIAL ISSUE It is important to note that not all of the overnight guests at the White House first disclosed by the Chicago Sun- told National Journal that spending the are contributors or fund-raisers. Ann TimesÑoffered potential supporters a night at the White House was like hav- Lewis, the Clinton campaignÕs deputy ÒmenuÓ of rewards. A contribution of ing access to Òthe best candy store in manager and director of communica- $100,000 or more, for example, would town.Ó tions, sent a letter to Brinkley in which she pointed out that many others have spend the night at the White House was slept in the Lincoln Bedroom, including Lew Wasserman, the former chairman of Òthe cook from ClintonÕs old governorÕs MCA Inc., an entertainment conglomer- The Public i is the newsletter of mansion in Little Rock, a theology stu- ate. Although Wasserman has spent the the Center for Public Integrity. dent with his wife and two children, and night in the White House at the invita- The Center for Public Integrity an old friend who is not well, and the tion of various presidents, his clout was established in 1989 to create presidentÕs pastor and his wife, and within the Democratic Party has given a mechanism through which none of them paid as much as a dime,Ó him special access to Democratic presi- important national issues can be Brinkley said on the following weekÕs dents. investigated and analyzed by program. Other overnight guests have In the late 1970s, the late John White, talented, responsible journalists included former President George Bush; then the chairman of the Democratic over a period of months and the former President and Mrs. Jimmy National Committee, informed written material can be Carter; Leah Rabin, the widow of Yitzak Wasserman that the Democratic Party presented in full form without Rabin, the late Israeli Prime Minister; might have to vacate its Washington the traditional time and space former Texas Governor Ann Richards; headquarters because of a financial limitations. Published Center and Lee Iacocca, the former chairman short-fall brought on by the multimil- studies then become resources for journalists, academics, and and chief executive officer of Chrysler lion-dollar debt from the 1968 presiden- other researchers. Corporation. tial campaign. Wasserman proceeded to The Democratic fat cats whoÕve spent take out his checkbook and write a sub- A membership to the Center, the night at the White House include stantial check that kept the DNC offices which includes a subscription to Steven Grossman, the president of open, White told the Center in a 1993 The Public i, is $30 a year. Massachusetts Envelope Company, and interview. his wife, Barbara. They attended a state What did Wasserman seek in return? The Public i dinner for the president of Brazil in Not anything, really, White told the 1634 I Street, N.W. April 1995 and, later that evening, Center. But there was one occasion, he Suite 902 retired to the historic QueenÕs Bedroom. recalled, when Wasserman was coming Washington, D.C. 20006 Steven Grossman told the Center that it to Washington and couldnÕt find a hotel (202) 783-3900 http://www.essential.org/cpi was Òa memorable eveningÓ and that he room. He called White, who telephoned was ÒhonoredÓ to have been invited to the owner of WashingtonÕs expensive the White House. When asked what he Madison Hotel, imploring him to accom- THE CENTER FOR PUBLIC INTEGRITY thought about David BrinkleyÕs report modate Mr. Wasserman. Unfortunately, on sleepovers at the White House for no room was available. White smiled FOUNDER AND EXECUTIVE DIRECTOR substantial contributions to the proudly and recalled that he finally Charles Lewis Democratic Party, Grossman replied, ÒI found overnight lodging for the wealthy have no comment.Ó Hollywood mogulÑat BOARD OF DIRECTORS The Grossmans have the White House, in the Josie Goytisolo, Charles Lewis, contributed at least Lincoln Bedroom. This Susan Lowenberg, $400,000 to the ÔThey let you call favor for Wasserman, Charles Piller, Allen Pusey, Democratic Party and to anywhere, so I called White said, was Òjust a Marianne Szegedy-Maszak, Clinton since 1991. In my kids from the small thing.Ó Paula Walker 1994, Clinton appointed Wasserman and his Barbara Grossman, who Lincoln Bedroom.Õ wife, Edie, have spent MANAGING DIRECTOR Alejandro Benes is a professor of theater the night in the Lincoln at Tufts University, to Bedroom at least twice RICHARD DREYFUSS DIRECTOR OF the National Council for during the Clinton presi- INVESTIGATIVE PROJECTS the Arts. Steven dency and have con- Bill Hogan Grossman is the president of the tributed at least $450,000 to Clinton and American Israel Public Affairs the Democratic Party since 1991. He has DIRECTOR OF DEVELOPMENT Committee and has been a managing also contributed to ClintonÕs Legal Barbara W. Schecter trustee of the DNC. Grossman, a former Expense Trust, established by the SENIOR ASSOCIATES chairman of the Massachusetts President and Mrs. Clinton to help pay Margaret Ebrahim Democratic Party, told the Center for for their mounting legal bills from the Diane Renzulli Public Integrity that he has Òa working Whitewater investigation and the Paula relationshipÓ with President Clinton that Jones sexual harassment lawsuit. In THE PUBLIC I goes back many years. 1992, Wasserman invited 100 of his FOUNDING EDITOR Another Democratic contributor friends to attend a fund-raiser for Marianne Szegedy-Maszak whom President Clinton invited to Clinton and the Democratic Party spon- 2 THE CENTER FOR PUBLIC INTEGRITY sored by the Hollywood WomenÕs people to come because they owed me Bradbury was a member of the Clinton- Political Committee. The minimum price something or I owed them something. I Gore Arkansas Finance Council. In 1992, of admission: $5,000. In June 1996, told them to come because he [Clinton] while Bradbury was still with Worthen Wasserman hosted a fund-raiser that is a good man.Ó National Bank, the bank extended a $3.5 raised more than $1 million for the In 1993, the Orange County million line of credit to ClintonÕs presi- Democratic Party. Over the years, Commission hired Batchelor to lobby the dential campaign. ÒI would like to be in Wasserman has contributed more than federal government for a a position to think I $1 million to the Democrats. He declined slice of the federal trans- could call the President the CenterÕs request for an interview. portation pie. News of the United States and Here is a partial list of Democratic accounts at the time sug- ÔIt was really give him my views,Ó contributors and fund-raisers who have gested that Batchelor had specialÑa thrill.