sign in sign up
<<
Home , Coal Miner (statue), Dan Coats, Edgar Whitcomb, Indiana Republican Party, Joe Kernan (politician), John Mutz

V22, N18 Thursday, Dec. 15, 2016

Bicentennial: 20 events shaping The voices of two centuries speak out to us By BRIAN A. HOWEY – Can you hear their voices? “We are going to have Indiana for Old Abe for sure. By the Lord, we promised them everything they asked.” “Even in our sleep, pain which can- not forget falls drop by drop upon the heart un- til, in our own despair, against our will, comes wisdom through the awful grace of God.” “Don’t mistake the edge of the rut for the U.S. Sen. Robert F. Kennedy and wife Ethel campaign in Indiana in 1968, where he horizon.” won his first primary. “The gloom of this night is the wind- the minds and mouths of ’s campaign, ing sheet of my political career.” from Robert F. Kennedy eulogizing Rev. Martin Luther King, Indiana celebrated its bicentennial on Sunday. The from Gov. , to the destroyed political career 19th state of the Union has played an indelible role in the of Sen. Ned Hannegan. evolving American experiment. The quotes above stirred political passions from Continued on page 4

Mike Pence, of Washington By BRIAN A. HOWEY INDIANAPOLIS – Gov. has left the building, telling the Hoosier Boy Scouts on Monday in his “last major address” to “be prepared.” The press had scant minutes to realize, in the parlance of the Slippery Noodle Inn, “Dis is it.” The eagerness to “If it is worth a bloody struggle leave Indiana of the Pence team was inescapable. to establish this nation, it is And Vice President-elect worth one to preserve it.” Pence has arrived as an emerg- ing national power center. On - Oliver P. Morton, Republican the 2016 Howey Politics Indiana Power 50 list, Pence ranked candidate for lieutenant third, low for a governor. And on governor, during the 1860 the Forbes Most Powerful People List released on Wednesday, campaign. Pence stood at 69. What we’re watching is Page 2 the emergence of Mike Pence in his slipped, we were getting consistent rightful sandbox. Perhaps the most feedback at the agency head level ambitious Hoosier in a generation, of a lack of direction, a chafing over his decision to run for governor in budget reversions for the sake of a 2012 was all about resume building to $2 billion surplus that were leaving prepare for national office. He would state functions threadbare (something run, serve a term or two if it had to be the Holcomb transition team is hear- that way, then run nationally in 2016 ing loud and clear this month), and or 2020, just as he had pondered a fear over what was a shaky, ominous 2012 campaign until the Mitch Daniels reelection bid. Howey Politics Indiana specter persuaded him otherwise. Our final observation on the WWHowey Media, LLC 405 As governor, you could see 2016 Power 50 List: “With polls show- Massachusetts Ave., Suite Pence systemically checking off the ing his reelect in the upper 30s to low 300 Indianapolis, IN 46204 boxes on behalf of a national resume. 40s, he faces an arduous campaign, He pushed for the income tax cut in with many elements, including who www.howeypolitics.com 2013. He pulled out of Common Core. He Brian A. Howey, Publisher signed social legislation Mark Schoeff Jr., Washington designed to curry favor Jack E. Howey, Editor with the evangelicals and pro-life activists. Mary Lou Howey, Editor He went a bridge too Maureen Hayden, Statehouse far with the Religious Mark Curry, photography Freedom Restoration Act, where his commu- nication skills suffered Subscriptions a temporary lapse. HPI, HPI Daily Wire $599 In formulating HPI Weekly, $350 the 2016 HPI Power 50 Ray Volpe, Account Manager List, our writers and 317.602.3620 readers had watched a governor with a email: [email protected] 60% approval rat- Contact HPI ing at the beginning [email protected] of 2015 fall into the Howey’s cell: 317.506.0883 lower 40th percen- tile, mostly due to his Washington: 202.256.5822 mishandling of RFRA. Business Office: 317.602.3620 Gov. Mike Pence shakes hands with Andrew Pudzer, the in- There was a misread of coming labor secretary, in Bedminister, N.J., as President-elect public sentiment and follows. © 2016, Howey Politics poor staff work. What Indiana. All rights reserved. we meant by that was, for instance, surprising Speaker Brian will head the GOP national ticket, well Photocopying, Internet forward- Bosma on a third $42 million Regional beyond his control.” ing, faxing or reproducing in Cities option. Or letting the “JustIN” So que up Alanis Morissette any form, whole or part, is a propaganda proposal eclipse HIP 2.0, and her 1995 “Ironic.” violation of federal law without the governor’s most significant policy On the Forbes’ World Most permission from the publisher. achievement. There was a conversa- Powerful People list, there is Pence tion with lobbyists about who Pence’s at No. 69, with the observation, “The legislative director was, and the ques- next president of the tion drew blanks. Pence’s legislative is the current , a director was inconspicuous.There was darling of conservative evangelicals, no fear of Pence retribution if some- and potentially the most powerful one didn’t fall in line, something that VP in U.S. history. When President- was keenly evident during the Daniels, elect Trump’s staff were interview- Bayh, Orr and Bowen administrations. ing prospective running mates in the As Pence’s political standing spring of 2016, they reportedly told Page 3 one candidate the new vice president would be in charge see a man who would rather inhabit despite of ‘domestic and foreign policy,’ leaving the president free the 50,000 or so windows within the scope range than the to concentrate on ‘making America great again.’ Trump’s White House. Asked about whether he’d serve a full term camp denied the reports, but now that the transition to a last July, Trump’s answer a week before he picked Pence Trump administration is under way, Pence already appears was a startling, “I’ll let you know how I feel about it after to be picking up traditionally presidential responsibilities, it happens.” including receiving daily briefings from the U.S. intelligence This is what we now know about Vice President- community.” elect Pence. This is a man who played his political cards As the Trump cabinet unfolds, there is a sig- adroitly. Pence raced toward a power vacuum when others nificant rightward bent and it has Pence’s fingerprints and fled in the opposite direction. While dozens of heavyweight world view all over it, even though he wasn’t able to land Republicans told the Trump veep searches to bug off, to date a Hoosier into the exclusive club. It belies the pres- Pence not only came to the table, he flew out to Teterboro ident-elect who didn’t seem to have an ideological station, to retrieve the prize as it flickered. It was an absolute roll flitting from position to position with little rhyme or rea- of the dice. Had Trump flicked Pence away with a “get him son. It is filled with skeptics, coal revisionists, an energy secretary who once advo- cated his coming agency be eliminated, advocates of school vouchers, and opponents of increased minimum wage. It came with Pence wresting the transition team helm away from Chris Christie, attending the big game interviews while, presumably, skipping face time with . MSNBC’s Joe Scarborough asked why Pence was at No. 69 and was told by a Forbes editor that a vice president (or elect) had never been on the list. Scarborough predicted that Pence would end up in the 20th percentile by year’s end, perhaps joining the likes of Elon Musk, Jeffrey Im- melt, , Francoise Hollande, Christine Lagarde, and perhaps ahead of the 30th percentile group (Charles Koch, Tim Cook and Rupert Mur- doch). O! The irony! So clearly, clearly Pence is not taking a free ride when he’s already paid, or suffering from the outta here” and gone with Christie or a Newt, the gover- good advice he just didn’t take. nor’s political career would have been in shambles. Many I know are amazed at the transfor- As we now know, Pence not only secured the mation of a mediocre governor who has been thrust into a prize while Trump was sparring with Gold Star families worldwide power center. But history is full of these epi- and beauty queens, he’s been a stabilizing force, and his sodes, of Napoleon escaping a disastrous invasion of Egypt pre-RFRA communication skills have roared back to life. It only to arrive in Paris with a few too many heads rolling was Pence’s homestretch appeal to Republicans to “come away from the guillotine and a gaping power vacuum. home” that became the clarion call in one of the most The epic parlor game at hand is how will Donald stunning political upsets in history. Trump govern? Is he bat crap crazy? Or crazy like a fox? As the singer would say, “And life has a funny Is he winging it? Or does he truly have a master strategy way of helping you out when, you everything’s gone that only he and his magnificent brain truly understand? Is wrong and everything blows up in your face.” he a Reagan macro guy, or a Carter micro stiff? Will Pence This is an ambitious man who looks in the mirror be pulling the levers of “domestic AND foreign policy? and sees a future addressee at 1600 Pennsylvania Ave. What else is left, NASA and more Carrier deals? Given the curious and sensational set of circumstances we In Trump, we find a man addicted to his stare at in utter amazement with 2016 on the wane, per- account despite the political cost. He will continue as an haps this could be a reality sooner than you might think. executive producer of “The Apprentice.” He watches “the Be prepared. As I’ve been saying all year, anything shows” and doesn’t read books. He’s not only uninterested can happen. Anything. v in the intel briefings that you’d think a fledgling president would consume with a voracious appetite, but he’s de- The columnist is publisher of Howey Politics Indi- clared war on the intelligence establishment that could ana at www.howeypolitics.com. sink his presidency with leaks and a thousand cuts. We Page 4

solid bloc for Lincoln on the first ballot and those that fol- Bicentennial, from page 1 lowed, helping Lincoln to an improbable third ballot victory. They become a colorful and As the nation dissolved into Civil War, Lincoln sometimes sensational patchwork quilt of won the fall election, then left Springfield, times and events, of oratory and pas- Ill., for the final time in February, 1861, with sion that make Indiana an important the nation fractured. He would make his first political enterprise. Some are quick to stop on the way to Washington in Indianapo- consign us as “fly-over country” or a red lis. Met by Gov. Oliver P. Morton and 20,000 state likened to the “middle finger of the Hoosiers, Lincoln received a 34-gun salute South.” We tend to produce more vice and then gave a brief speech. “While I do not presidents than presidents. And just as expect, upon this occasion, or on any occa- easily, those stereotypes are overridden sion, till after I get to Washington, to attempt by coincidence, opportunity and deft any lengthy speech, I will only say that to operations that changed the course of the salvation of this Union there needs but history, sometimes for a city, or our state, one single thing: The hearts of a people like and sometimes the entire nation. There yours,” Lincoln said. “When the people rise in have been vision and destruction, graft, masses in behalf of the Union and the liber- despair, hope and opportunity. Elections ties of their country, truly may it be said, ‘The have been won and lost by a single vote. gates of hell shall not prevail against them.’” Notions of victory can vanish just minutes Lincoln, the Great Emancipator, would return after the polls close at 6 p.m. to Indiana in April, 1865 in his funeral train Hoosiers have written amend- with stops in Indianapolis, City and ments to the U.S. Constitution, played Hammond before returning to Springfield for host to presidents, and altered history by eternal rest. becoming, in the words of President-elect Donald Trump this year, “Importantville.” 2. Trump and Pence join With input from Howey Politics forces for the White House Indiana contributors Jack Colwell, Chris In the Harrison County town of New Sautter, and Craig Dunn, we Salisbury in August, 2015, one of those recount in this, our Bicentennial Edition, portable business signs on a trailer stood 20 of the most significant moments in at the intersection of SR135 and SR64 our state’s political history. simply reading, “Please No more Bush or Can you hear their voices? Clinton.” It was a prescient statement for a billionaire turned Republican 1. Indiana Republicans cut named Donald Trump, and a Socialist turned Democrat named Bernie Sanders who came decisive deal with Lincoln to Indiana feeding off the same energy. The The system was “rigged” they said of politics was less than a decade old, but in May, and the economy. Trump and Sanders would 1860, in , the delegation cut a win Indiana primaries with 53% of the vote. cunning Republican National Convention Sanders wounded . Trump deal with a dark horse candidate from Il- Donald Trump and Gov. Pence bask defeated Jeb Bush and other establishment linois named Abraham Lincoln. The native at the Republican National Conven- Republicans, then turned his sights on Clin- Hoosier, whose family moved into Indiana tion last July. (HPI Photo by Randy ton. When the dust settled on Nov. 8, Trump just days after statehood, was widely Gentry) had defeated both the Bush and Clinton believed to be an also-ran as he faced Wil- dynasties with Indiana as his “Important- liam Seward, Salmon Chase and others. But his campaign ville.” Not only did Trump clinch his improbable Republican employed shrewd operatives like Chicago Tribune publisher nomination in Indiana on May 3, he returned to the state and Richard J. Oglesby, who worked on two months later to select embattled Gov. Mike Pence for the Indiana and Pennsylvania delegations while packing his ticket. That set in motion a scramble to replace Pence the galleries with whistling partisans. Medill would hear a on the gubernatorial ticket, with his newly minted Lt. Gov. report from an employee, who said, “We are going to have winning a 22-vote Republican Central Com- Indiana for Old Abe for sure.” How did you get it? Medill mittee caucus on July 26. This trio would complete one of asked. With huuuuuuge deals. “By the Lord, we promised the most stunning political upsets in history with Trump/ them everything they asked,” he was told. Caleb B. Smith Pence headed to the White House while Holcomb defeated was to be secretary of the Interior and William P. Dole, Democrat John Gregg. commissioner of Indian affairs. Indiana would vote as a Page 5

3. Henry Lane and Oliver Morton’s deal napolis Star regularly run editorials in opposition to his Oliver P. Morton had been a member of the Know campaign (including a front page editorial on Election Nothing Party and had lost to Ashbel Willard in the 1856 Day with the headline “Vote for Branigin”), but the entire gubernatorial election. He was viewed as a radical Re- Democratic establishment opposed Kennedy and sup- publican. So a deal was struck with a former Whig named ported Gov. Roger Branigin, who had been placed on the Henry Lane. The two formed the Republican ticket in 1860 ballot as a “favorite son” stand-in for President Lyndon with Lane on top. During the campaign, Morton (pictured) Johnson. Jumping into the race late, Kennedy ceded the made clear where he stood on the coming succession. “If anti-war vote to Sen. Eugene McCarthy. As Kennedy him- it is worth a bloody struggle to self used to say, he was the only candidate to ever run for establish this nation, it is worth the presidency who was opposed by both organized labor one to preserve it,” he said. With and business. RFK won the Indiana primary, as former Abraham Lincoln in a strong posi- aide and journalist Jack Newfield pointed out, by stitching tion to carry the state, and with a together an unlikely coalition of “black power and white compliant General Assembly likely, backlash.” No national political figure since has been able the deal was that the legislature to speak comfortably and forcefully for both the unem- would choose the governor-elect ployed black teenager and white blue collar worker. South for an open U.S. Senate seat, al- Bend Tribune reporter Jack Colwell, who covered Ken- lowing the more savvy Morton to nedy, often in the same car, noted that Kennedy “drew assume the governorship. On Jan. huge and enthusiastic crowds in Indiana in a must-win 18, 1861, the General Assembly 1968 presidential primary that he did win big.” Colwell elected Lane to the Senate, he continued, “If he had not been assassinated a month resigned, and Morton became the 14th governor. It was later in California on the night he also won the primary a fateful turn of events. As the Union faltered in the early there, I think he certainly would have won the Demo- stages of the Civil War, Morton lost the support of Cop- cratic presidential nomination and then defeated Nixon for perhead Democrats who controlled the General Assembly, president.” During the campaign, the assassination of Rev. particularly after word leaked of the coming Emancipa- Martin Luther King on prompted Kennedy to make tion Proclamation. Morton engineered a situation where what is arguably known as the greatest extemporaneous Republicans failed to provide a in 1862 after the speech in American history in Indianapolis, concluding by GOP lost more seats and in 1863. Most of the Republicans quoting the ancient Greek playwright Aeschylus: “Even fled to Madison where they could quickly get to in our sleep, pain which cannot forget falls drop by drop if the Copperheads attempted to round them up. After the upon the heart until, in our own despair, against our will, war efforts turned in Lincoln’s favor following victories at comes wisdom through the awful grace of God.” Gettysburg and , the Republicans rebounded in the Kennedy did a classic whistlestop tour on the General Assembly in 1864 and funding was restored to Wabash Cannonball. As it stopped in Peru, a Republican the nearly bankrupt state. Morton became one of Lincoln’s town, thousands showed up at the N&W tracks on the most trusted governors, though on occasion the president north side. Kennedy and wife Ethel appeared, and the had to admonish the Hoosier executive for his heavy hand candidate gave a brief speech while a singer sang “The with the executioner. The president once said of Morton Wabash Cannonball.” As the train departed for Wabash, that he was “a good fellow, but at times he is the skeeredest person I know,” par- ticularly with the concern that Kentucky would leave the Union, exposing Indi- ana’s southern flank. Morgan’s Raiders in July, 1863, exacerbated those fears. Mor- ton won a second term, then was elected to the U.S. Senate, where he supported the who wanted to punish the South despite Lincoln’s call for charity and reunion.

4. Robert F. Kennedy wins 1968 Indiana primary U.S. Sen. Robert Kennedy’s vic- tory in the 1968 Democratic primary was arguably the biggest upset in Indiana political history. Not only did the India- A big crowd in Peru, Ind., follows the “Wabash Cannonball” in April 1968 as Bobby and Ethel Kennedy bid farewell. Page 6 the crowd watched Robert and Ethel 6. The Constitutions that Kennedy wave goodbye. shaped Indiana The very beginning of Indiana’s transfor- 5. Speaker mation from a territory to the state had 43 men, helps President Lincoln pass all but nine having lived at one time south of the the 13th Amendment Mason-Dixon Line, often meeting under a large In January, 1865, as Speaker elm tree in Corydon. In his book “Hoosiers: A of the House, Schuyler Colfax of South New ,” James H. Madison noted Bend presided over a stirring House de- that one delegate named John Badollet regretted bate on adopting the 13th Amendment, the state’s tiny population left “a want of men of which became President Lincoln’s final intellect and political knowledge.” The constitu- policy victory. On Jan. 31, 1865, Colfax tion process split into two camps, once associ- announced passage after a month of ated with the chair and future first Gov. horse trading. He took the unusual step , the second of old of casting a vote, rare for a speaker, for allies, five of the amendment that forever abolished whom fought at the Battle of Tippe- in the United States, directing canoe. They used recent constitutions the clerk to call his name during the roll from Ohio and Kentucky as a template, call. Colfax then joined Gen. U.S. Grant created a preamble, a bill of rights and to win the vice presidency in 1868, the noted that “all men are born equally two at age 46 and 45 the youngest ticket free and independent.” It guaranteed in history. An 1873 Congressional inves- the freedom to worship, of the press, tigation into the of speech and the right to bear arms. Voting was restricted to white men at named Colfax as one of the members of Speaker Colfax (top) and composer Hoagy least 21 years old who had resided Congress who likely received payments Carmichael’s painting of the Constitutional in the state for a year. It called for a of cash and discounted stock from the Elm in Corydon. The painting hangs in the “general system of education.” And it . Indiana Memorial Union in Bloomington. Page 7 took a stance on slavery, more to quell Harrison won the Electoral College, 233 to 168. He economic competition. “There shall be was known as the “Centennial president” after taking neither slavery or involuntary servitude the oath of office 100 years after President George in the state,” it read. Slavery, they deter- Washington. In a rematch four years later, Cleveland mined, “can only originate in usurpation returned to the White House, winning the popular and tyranny.” It added, “No alteration vote 5,556,918 to 5,176,108 and the Electoral Col- of this constitution shall ever take place lege 277-145. so as to include slavery or involuntary servitude.” 8. Mitch Daniels defeats The first constitution was signed Gov. on June 29, 1816. Elections in August Since the the constitution was changed in the ear- saw Jennings defeat ly 1970s to allow governors to serve two consecutive 5,211 to 3,934 in the first gubernatorial terms, Govs. Doc Bowen, Robert Orr, and race. On Dec. 11, 1816, President James Frank O’Bannon had all been reelected. It had been Madison signed the congressional resolu- assumed that Lt. Gov. Joe Kernan would run in 2004, tion admitting Indiana into the union. A but in an internal showdown with O’Bannon over the few days later, Thomas Lincoln moved his selection of Peter Manous as Democratic chairman, family across the into Spencer Kernan stunned the state by announcing he wouldn’t County. run. Republicans, now out of power for four terms, It took a panic in 1836 and turned to White House Budget Director Mitch Dan- unsustainable debt created by the Mam- iels. His allies, including Bob Grand, Randall Tobias month Internal Improvement Acts, which and Jim Kittle, formed a shadow party called the author Madison observes was “conceived Phoenix Group, which set the stage for Kittle to win in madness and nourished by delusion … Presidents William Henry Harrison (top) and his the state chair in 2002. It paved the way for Daniels’ in a lunatic climate” to create the environ- return. O’Bannon’s death in 2003 brought Kernan ment for the Constitution of 1851 that grandson Benjamin Har- rison. back into the race after former Democratic National restricts the state from going into debt. Chairman (along with Bren Simon) and Hoosier voters elected 150 delegates in State Sen. Vi Simpson waged a donnybrook fight for the 1850, of which 42% were farmers and a quarter were nomination. Daniels was campaigning in a Franklin cafe lawyers. There were no minorities or women, who were when Kernan appeared on TV saying, “We came to the restricted to the gallery. The new constitution emerged conclusion that in the next year, we will be able to get a after four months with a Jacksonian influence. While it great start to did not radically alter state affairs, it reflected a distrust achieve our of government that we still find today, and it pushed for goals. But there local control. It established the biennial General Assembly wasn’t enough budget sessions of 61 days and it made a commitment to time to get the create a system of “common schools.” And it propagated job done and I injustice, the 13th Article prohibiting African-Americans don’t want to sit from settling in the state. on the side- lines.” Daniels 7. The Harrisons defeat told the crowd, “No one can predict the ultimate political two incumbent presidents effect, but from a citizen’s standpoint, this is absolutely The Harrisons are the Hoosier presidential pedi- for the best. It makes the questions before us completely gree, both achieving the White House by defeating the plain. Do we have the kind of economic opportunity we incumbent. William Henry Harrison was the former 12-year want for our kids and for the least fortunate among us, Indiana territorial governor who won the office in 1840 by or should we aim higher? As taxpayers, are we satisfied invoking his role in the in 1811, his with the quality and performance of state government, or candidacy fueled by the classic slogan “Tippecanoe and should we expect more? After 16 years of one-party rule Tyler too.” Harrison had defeated Tecumseh and Prophet, by career politicians do we want to start fresh, or not?” and destroyed the Indian coalition they led. Harrison won Daniels campaigned in RV1, with signatures on the sides a landslide victory in the Electoral College, 234 elec- from thousands of Hoosiers and used the Milan Miracle toral votes to President ’s 60, although theme, kicking off his campaign at Hinkle Fieldhouse while the popular vote was much closer. He died after only a uttering folksy slogans like, “After 16 years every garden month in office. Forty-eight years later, his grandson, Civil needs weeding,” and “Don’t mistake the edge of the rut for War Gen. , defeated President Grover the horizon.” When the dust settled, Daniels returned the Cleveland. While he trailed by 90,000 in the popular vote, GOP to power with a 53.2 to 45.5% win over Kernan. As Page 8 governor, Daniels would call Kernan back 26th Amendments to the U.S. Constitution to service, asking him to head a govern- that dealt with presidential transition of ment reform commission with Chief Justice power due to death or disability, and low- Randall Shepard. ering the voting age to 18. He authored Title IX that opened collegiate athletics to 9. upsets women. In 1976, he was an unsuccessful Sen. Homer Capehart presidential candidate. Bayh won three Birch Bayh became the young- Senate races against Capehart, Bill Ruck- est House speaker in Indiana history after leshaus and , but never won entering the legislature at age 26 in 1954. more than 51.7% of the vote. He was de- Eight years later, he challenged U.S. Sen. Sen. Birch Bayh, wife Marvella and feated in 1980 by the future Vice President Homer Capehart in a race where the sub- son Evan. . plot was the Cuban Missile Crisis. In the 2000 film “Thirteen Days,” President John F. Kennedy tells 10. Indiana Democrats rise an aide, “You see this goddamn Capehart stuff?” and the and fall with Evan Bayh aide responds, “Bayh’s going to lose.” But after Kennedy As a young graduate, Evan forced the Soviets to withdraw their missiles from Bayh managed his father’s 1980 Senate race, with U.S. and Bayh was buoyed. A campaign song penned by Mary Sen. Birch Bayh losing to Dan Quayle. He attended the Lou Conrad to the tune of “Hey Look Him Over” in one of University of Law School, then returned to the the first campaigns of the television age went like this: state in 1984 to campaign for Democratic gubernatorial “Hey, look him over, He’s your kind of guy. His first name nominee , who would lose to Gov. Robert is Birch, His last name is Bayh.” He entered the Senate in Orr. In 1986, Bayh revived Indiana Democratic fortunes 1963, endured the assassination of President Kennedy, by defeating Rob Bowen for secretary of state. It sent him survived a plane crash and pulled Sen. Edward Kennedy on a potential collision with State Sen. Frank O’Bannon in from the wreckage, split with President Lyndon B. Johnson 1988. But in the winter that year, the two forged a deal. over the after touring the war zone. With the Bayh would top the ticket and O’Bannon would run for help of key aide Larry Conrad, Bayh authored the 25th and lieutenant governor. Bayh defeated Lt. Gov. , Page 9 ending a quarter night and was on his way century of Republican to secure the nomination. rule, setting in motion He and campaign man- a 16-year run in “red ager David Plouffe made state” Indiana. Bayh an adroit calculation, had long coattails and believing they could carry helped Democrats take Indiana in November. control of the Indiana The Obama campaign House. He forged opened up dozens of bipartisan tax cuts and field offices in Republi- was quickly on the can environs like Goshen national veepstakes and Hartford City, then lists. After two terms, shaved off margins in the he ran for his father’s 8-to-10% range in dozens U.S. Senate seat in of Republican counties. 1998, easily winning, He defeated Republican and won reelection John McCain, who made in a landslide. Bayh only two campaign stops at an April 2008 rally at Roberts Stadium in Evansville. (HPI believed he was po- including one on the eve Photo by Brian A. Howey) sitioned in 2008 for a of the election, by less presidential run, but the than 1%. Between the emergence of Barack Obama and Hillary Clinton prompted Obamas, the Clintons and four appearances by McCain him to withdraw in late 2006. He would become a finalist and , there were more than 150 presidential for Obama’s ticket in August 2008. In 2010, Bayh stunned rallies and events in Indiana that year and a man named the Hoosier political world by announcing he would not Barack Hussein Obama carried Indiana’s 11 Electoral Col- seek a third term, something he had confided to President lege votes. Obama would restructure the domestic auto Obama in September 2009. He cited the dysfunction in the industry in 2009, saving more than 150,000 good-paying Senate as the reason. The move left Indiana Democrats jobs in Indiana. He made his first appear- scrambling, filling the Senate void with U.S. Rep. Brad ance outside of Washington as president in Elkhart, but Ellsworth, while State Rep. Trent Van Haaften ran for the the summer of 2009 would be his high water mark. Indi- 8th CD. All would lose. ana fell outside of his reelection calculus in 2012, and by Bayh sat on close to a $10 million war chest for six the end of his term this year, Hoosier Democrats saw their years, then returned in July of this year, as Senate Demo- congressional, legislative and Statehouse quarters fall to crats asked nominee to step aside. Many be- near historic lows. lieved Bayh would easily defeat U.S. Rep. with a close to 10-to-1 money advantage. But Senate Majority 12. surges to win the Leader Mitch McConnell, the NRA and the U.S. Chamber of 1940 Republican presidential nomination Commerce threw tens of millions of dollars into the race, A business man with Hoosier roots and Young completed a trifecta, defeating Bayh, the third named Wendell Willkie won the 1940 Republican presi- former member of Congress he would conquer. Bayh’s dential nomination, setting up one of the most iconic defeat in the teeth of the Donald Trump wave leaves photos in political history. Willkie had roots in Rushville Indiana with only three congressional seats, no Statehouse and later Elwood. He entered the 1940 presidential race offices and only 39 of the 150 General Assembly seats. as a true dark horse. The leading candidates in 1940 were The Democratic Party has been consigned to Lake, Marion, Sen. Robert A. Taft of Ohio, Thomas E. Dewey of New St. Joseph counties and college towns. His 2010 decision York and Sen. of Michigan. While they set in motion a political trend that ended with Republicans campaigned vigorously for the right to take on two-term drawing the maps in 2011, setting the stage for Donald President Franklin D. Roosevelt, they had sewn up only Trump to dominate rural Indiana this year. 30% of the delegates. Taft was a non-interventionist, Dewey was a babe in the woods, and Vandenburg had a 11. Barack Obama wins Indiana in 2008 Jeb! Bush-style energy problem. Thus, an opening for a It had been 44 years since President Lyndon dark horse. Willkie had been an FDR New Deal backer, was Johnson carried Indiana’s Electoral College votes in 1964. a Wall Street-based industrialist and CEO of the Common- But in 2008, Hoosier Democrats were treated to an epic wealth & Southern Power Company. Like Donald Trump in primary showdown between Hillary Clinton and 2016, he had never run for office. The Nazi blitzkrieg into Sen. Barack Obama. The two spent two months at rallies France shocked Americans and Willkie moved into second across the state, with Clinton prevailing in the primary by a place behind Dewey in a May Gallup Poll with 17%. By mere 14,000 votes. Obama won North Carolina that same Page 10 the time the delegates signed into law by Gov. arrived in Philadelphia, . It Willkie had surged to gave Bulen’s Republi- 29%, trailing Dewey cans control of the city who had 47%. Willkie for a generation, finally finished third on the cracking in 1999 when first ballot, vaulted to Democrat second on the third won the mayoral elec- ballot with 259 del- tion over Sue Ann Gilroy. egates (Dewey at 315) before taking the lead 14. Klan era on the fourth (306, to govs indicted 254 for Taft and 250 The for Dewey). He would era of Indiana politics win on the sixth ballot resulted in the trials of with 655 delegates, two Indiana governors, with Taft second at 318 with one conviction. and Dewey falling to Gov. Warren T. McCray third at 11. After win- vetoed legislation that ning the nomination, would have allowed a he returned to Elwood Wendell Willkie at a GOP nomination victory parade in Elwood in 1940. Klan Day at the Indi- for a victory parade, the ana State Fair. In 1923, historic photo ending KKK Grand Dragon D.C. up on the cover of Life Magazine. But he was no match Stephenson was incensed and had Secretary of State Ed for Roosevelt, winning only 10 of 48 states. He sought Jackson offer a $10,000 bribe to McCray, who reacted by the nomination in 1944, but dropped out after losing the throwing Jackson out of his Statehouse office. McCray beat Wisconsin primary. a state embezzlement rap, but a year later, as McCray’s Kentland ranch fell into bankruptcy, he was charged with 13. Lugar, Bulen bring a federal mail fraud crime, was convicted and resigned to Indianapolis from office in disgrace, serving a three-year prison term. In one fell swoop, the city of Indianapolis became He was pardoned by President in 1930. the 11th largest city in the nation as Marion County Re- Jackson became publican Chairman L. and Mayor Richard Lugar Indiana’s 32nd engineered Unigov. It came after a contentious showdown governor in with powerful House Speaker Otis “Doc” Bowen. Not only 1925, known as had Indianapolis faced an eroding tax base, but after the “Klan Gov- Lugar’s Shortridge desegregation plan been passed, then ernor.” In 1927, rescinded, there was white flight to the suburbs. Unigov he was charged expanded the city into all of the Marion County townships. with bribery It wasn’t a complete union, as Lawrence, Beech Grove, involving McCray Wynndale, Meridian Hills, Crow’s Nest, Rocky Ripple, after Stephen- Speedway and Homecroft retained some autonomy. Ac- Govs. Ed Jackson (left) and Warren McCray son, now facing cording to an oral history by Colin Hammer, it was in early were both indicted on graft charges. McCray a murder rap 1968 when Lugar assembled civic leaders that included was convicted and was forced from office. for the death of John Burkhart, Statehouse clerk Beurt SerVass, Madge Oberholtzer, exposed Jackson for the 1923 McCray Thomas Has- bribe attempt. There were numerous calls for Gov. Jack- brook, Lewis son to resign, but he refused, then beat the charges in a Bose, Charles trial that ended in a hung jury. He left office in disgrace as Whistler and Wil- Stephenson was convicted of murder and the Klan’s power liam Ruckleshaus in Indiana collapsed. to set the plan in motion. It passed 15. Manslaughter charge derails the General As- Sen. Hannegan’s presidential bid Keith Bulen, Bill Ruckleshaus and Richard sembly in March Edward “Ned” Hannegan was a gifted orator and Lugar shake hands in 1968. 1969 and was attorney from Covington who consorted with Lew Wallace Page 11 and Daniel Voorhees. He entered Congress at age 25. As dent came to Indiana, a state where he author John Bartlow Martin notes in his book “Indiana: had won three of the four presidential primaries he ran in An Interpretation,” Hannegan “possessed both an Irish and would carry its Electoral College votes twice, to ad- wit and Irish temper, and a brooding melancholy as well.” dress the General Assembly. “In 1919 William Herschell, a The legendary observed, “Had Hannegan columnist for the Indianapolis News, came upon another entered Congress before I entered it, I fear I never should admirer of this State, an old man near Knightstown who have been known for my eloquence.” He rose to national was sitting on a log in the warm sunshine, fishing in the prominence in the political wave of 1840 that propelled Big Blue River. And with a sweep of his arm, the old boy William Henry Harrison to the White House. Two years encompassed the whole countryside, and he says, ‘Ain’t later he was elected to the Senate by one vote in the God good to Indianny?’” Reagan said in the House cham- General Assembly. In 1849 after years as a thorn in the bers. “Well, God certainly has been good to Indiana, but side of President Polk, he was appointed minister to Prus- unfortunately over the past few decades, the Federal Gov- sia, where he ended up in a steamy affair with the queen, ernment hasn’t been quite so kind. If the Federal Govern- once kissing her hand in court. “She was captivated,” Mar- ment had been around when the Creator was putting His tin would write. “Midwesterners delighted that he outdid hand to this State, Indiana wouldn’t be here. It’d still be European fops.” The jealous king demanded his recall from waiting for an environmental impact statement.” Berlin. He returned to Covington and lost a General As- Reagan then launched into a full broadside about sembly race. “The gloom of this night is the winding sheet federal overreach. “And it’s not an exaggeration anymore of my political career,” Hannegan said in despair. Within to refer to the almighty Federal Government. In recent two years, Hannegan became a years, power and tax dollars flowed to Washington like leading contender for the Demo- water down the Wabash. And yet things didn’t get bet- cratic presidential nomination, ter. We didn’t move closer to solutions; we moved farther gaining support in nine states, away. Hoosiers, like citizens all over this country, began to much better known than the ob- realize that the steady stream of money and authority to scure Franklin Pierce. But in early Washington had something to do with the fact that things May 1852, after drinking heavily, didn’t seem to work anymore. And the closer you look, the he quarreled with his brother-in- clearer it becomes. The Federal Government has taken too law, Capt. John R. Duncan, who much tax money from the people, too much authority from told him alcohol could deprive the States, and too much liberty with the Constitution. The him of the presidency. concept of federalism is like the green and gold quilt of It was a prescient ob- Indiana crops. There is protection in variety. Well, there’s servation with almost immediate protection in the quilt of the 50 States as well. What the results. Duncan called Hannegan current issue comes down to is whether or not we trust a “coward” and slapped his face. the people and those closest to them Hannegan seized a Spanish dag- to make governmental decisions – to ger and planted it into Duncan’s make government itself work.” body. Duncan absolved him as he Reagan then pivoted to the task at lay dying and Hannegan “threw hand in a state with an 11.9% jobless his arms about him and, sobbing, rate. “To the paid political complain- kissed him repeatedly.” Hannegan ers, let me say as politely as I can, was charged with manslaughter, ‘Put up or shut up.’ We have a solid but Fountain County Prosecu- plan already in place. What do they tor Lew Wallace presented such have? Either they give the American a weak case to the grand jury people a better alternative, or they that it refused to indict. Wallace join with us in our efforts to get the was so sullied in Covington that economy right.” Reagan stoked Hoo- he had to move to Crawfords- sier lawmakers, concluding by say- ville. The incident prompted the ing, “The great American experiment Democratic Party to shun him and will soon enter a new phase that will Hannegan left what he called “the last until the end of this century and dirty puddle of politics.” prepare us for the next. And you here are the ones who will carry this ex- 16. President Reagan periment forward. You are the public addresses the Indiana servants who offer the most creative U.S. Sen. Edward “Ned” Hannegan (top) and Presi- solutions and most promising hopes General Assembly dent Reagan addressing the Indiana General Assem- for our nation’s future. America needs On Feb. 9, 1982, Presi- bly in 1982. your vitality and her people need your Page 12 responsiveness. Let us join together to restore federalism, cob.” It would propel Capehart into the U.S. Senate six to restore the Nation’s vigor, and to restore the faith of our years later. It wouldn’t be until 1944 that the scandalized people in their government at every level.” Republicans from the roaring ’20s would reclaim the gov- ernor’s office with Ralph Gates. 17. Gov. McNutt reorganizes state government 19. The capital moves from Paul McNutt had been Indiana Democratic chair- Corydon to Indianapolis man in 1932, though he resisted Franklin D. Roosevelt, In 1821, with the population of Indiana moving who McNutt snubbed when he asked for support of the north, the General Assembly decided to move the capi- Indiana delegation. FDR would call McNutt “that platinum, tal from Corydon near the blond S.O.B. from Indiana.” But McNutt surfed the gigan- Ohio River to Indianapolis. tic New Deal tsunami, and with huge General Assembly Surveyed during a rainy majorities (91 seats in the House, 43 in the Senate), spring with the White River completely reorganized state government in the first few flooded, planners thought days of the 1933 session with his Executive Reorganization it was a navigable water- Act. It gave him authority over what had been a piecemeal way, which was a mirage. array of state agencies created over the previous de- Proposed names included cades, expanded the powers of the Tecumseh as well as Suwar- lieutenant governor, and created row and Tuwarrow. Jer- the gross income tax. He legalized emiah J. Sullivan proposed beer and wine sales ahead of the to associate the name of 21st Amendment, and created the the state, Indiana, with the framework to take advantage of Greek suffix polis, which the Workers Progress Administra- means city, the association and meaning “city of Indiana.” tion that would employ 75,000 Inspired by the layout of Washington, D.C., Alexander Hoosiers. So powerful was McNutt Ralston came up with the initial layout of one square mile, that he even cancelled the 1933 with the governor’s mansion originally intended for what municipal elections to save money. is now Monument Circle. The state moved its belongings McNutt pondered 1936 and 1940 from Corydon in 1824 and Indianapolis officially became presidential runs that were sidelined when FDR sought the capital in 1825. second and third terms. McNutt would go on to serve as high commissioner of the . 20. Bill Hudnut brings the Colts to Indy Becoming mayor of Indianapolis in 1976, former 18. Capehart’s 1938 congressman William Hudnut III Cornfield Conference sought to transform “Naptown” Indiana Republicans found into a sports mecca as the “Ama- themselves in disarray six years into the teur Sports Capital of the World.” New Deal. It prompted a Pike County He formed the Indiana Sports farm boy who made millions of dollars Corporation, led the move to off the Wurlitzer jukebox to convince build the Hoosier Dome and then Indiana Republican Chairman Arch in 1984, cut a deal with Robert Bobbitt to have a “cornfield rally” in Irsay to move the Baltimore Colts August. Bobbitt agreed and on Aug. 27, to Indianapolis. As the Mayflower 1938,some 28 tents went up in a mowed vans moved the team’s equipment field in Daviess County. Some in the dead of night, Hudnut would 20,000 precinct officials in 12 delega- declare it “one of the greatest tions, along with radio broadcasters days in the history of this city.” The and newspapermen showed up, gain- city would go on to host the 1987 ing national attention. The tables were Pan American games and the 2012 “filled with barbecued chicken, relishes, NFL Super Bowl. While Lugar’s mashed potatoes and country gravy, “Unigov” transformed the city geo- corn on the cob, watermelon, rolls and graphically, politically and finan- butter, iced tea, and coffee.” Guests Future Sen. Homer Capehart at the 1928 Corn- cially, Hudnut made Indianapolis a consumed “more than five thousand field Conference (top) and Indianapolis Mayor true “major league city” when the chickens, seventy thousand steamed Hudnut welcoming Bob Irsay and the Indianapo- NFL team joined the Indiana Pac- clams, and three tons of corn on the lis Colts in 1984. ers. v Page 13

10. U.S. Sen. Weigh in on the 2017 11. Supt. Glenda Ritz 12. Baron Hill 13. Indianapolis Mayor HPI Power 50 List 14. U.S. Sen. By BRIAN A. HOWEY 15. U.S. Rep. INDIANAPOLIS – Who will have the most clout in 16. Chris Paulsen Indiana politics for the year 2017? 17. Eric Miller, Curt Smith, Micah Clark and Jim Bopp Jr. In the first week in January, with a new presiden- 18. NCAA President Mark Emmert tial administration and governor coming into office, along 19. Tom New and Marty Obst with a biennial budget General Assembly session and a 20. Evansville Mayor Lloyd Winnecke Republican congress intent to repeal Obamacare and take 21. U.S. Rep. on tax and immigration reform, our annual Howey Poli- 22. Purdue President Mitch Daniels tics Indiana Power 50 list will be 23. Pence Chief of Staff Jim Atterholt instructive. 24. U.S. Rep. The obvious centers of 25. Ways & Means Chairman Tim Brown power will include Vice President- 26. Attorney General Greg Zoeller elect Mike Pence and Gov.-elect 27. South Bend Mayor Peter Buttigieg Eric Holcomb. There are also new 28. Indiana Republican Chairman Jeff Cardwell members of Congress and both 29. Indiana Democratic Chairman congressional and legislators on 30. Dean White the rise. And there will be jockey- 31. House Minority Leader ing for position heading into the 32. U.S. Rep. 2018 mid-terms and the 2020 election cycles. 33. Sen. Since 1999, the HPI Power 50 has been a compila- 34. Fort Wayne Mayor Tom Henry tion from HPI staffers, subscribers and readers. We ask 35. Kokomo Mayor Greg Goodnight that you create your own list and send it to us, or nomi- 36. U.S. Rep. André Carson nate specific individuals. We will also conduct a Survey 37. U.S. Rep. Monkey inquiry among our more 38. Monica Boyer than 3,000 subscribers to gauge 39. State Sen. Brent where the power lies. Steele We will also have sub 40. State Rep. Ben lists of influential Hoosiers with Smaltz municipal leaders, lobbyists, jour- 41. U.S. Rep. Larry nalists and political operatives. Bucshon Send in your contribu- 42. State Rep. Robert tions to HPI Publisher Brian A. Behning and State Sen. Howey at [email protected]. The list will be published on 43. Club For Growth Thursday, Jan. 5. For the sake of David McIntosh generating a great conversation, 44. Hammond Mayor for our annual assessment of the Thomas McDermott Jr. key public servants, movers and 45. Evan Bayh shakers and those generating 46. John Hammond III wisdom, action and intrigue, here 47. State Sen. Jim is our 2016 edition of the Howey Banks Politics Indiana Power 50: 48. Tim Henderson, and Matt Huckelby 1. House Speaker 49. House Road & 2. Senate President David Long Transportation Chair- 3. Gov. Mike Pence man Ed Soliday 4. John Gregg 50. Carmel Mayor Jim 5. Lt. Gov. Brainard v 6. U.S. Rep. Todd Young 7. State Sen. Travis Holdman 8. U.S. Rep. 9. State Sen. Page 14

Then there is the ridiculousness of the liberal ‘We will bury Democrats as defenders of the CIA and our intelligence services. President-elect Trump should be receiving daily intelligence briefings. Foreign policy and American safety you’ (phase two) is the primary Constitutional responsibility of the president. By MARK SOUDER The people elect the president, not his staff or cabinet, FORT WAYNE – When emptying out the basement so he needs to be in the intelligence loop more than any of my Mom’s house after she died, we found a partially other person in this nation. rotted chest of items meant to help our family survive a But the liberal Democrat whining is absurd. Russian nuclear attack. It was from the 1960s, a period The Hill pointed out that President Clinton had such a when all sides took seriously. chilly relationship with CIA director James Woolsey that in In 1983 President Ronald Reagan had the temer- 1994, when a man crashed a Cessna on the White House ity to call the the “evil empire.” Liberals back lawn, the joke was that it was Woolsey trying to get a then were upset that Reagan had such hostile views. In meeting with Clinton. fact, Democrats and liberals in Democrats systematically gutted HUMINT (i.e. general were rather Trumpian intelligence based upon human sources) which definitely about Russia. They wanted has flaws but, as anyone who takes the issue seriously closer trade ties, more ex- realizes, major breakthroughs at a minimum depend upon changes, and closer cooperation at least some human intelligence. Post-Woolsey, the CIA with Russia, not saber-rattling political direction steadily distanced the CIA from the dirty opposition. work of actual hard, albeit complicated, evidence, as op- Current liberal protesta- posed to desk-driven educated guessing. tions have the “I’m shocked, The left that is so appalled about Trump skip- shocked” resonance of the scene ping his intelligence briefings includes many of the same in Casablanca. Democrat elec- people who quoted or wrote largely paranoid conspiratorial tors requesting CIA briefings il- movies, TV shows, and books about the CIA. Democrat lustrate precisely why the people politicians and the liberal media spent the entire in Trump orbit have discredited period dissing our intelligence agencies. But apparently the CIA. Democrats have turned it into a branch of the when those same agencies partially conclude something DNC. negative about Trump then suddenly they are to be relied Do Democrats who blame alleged Russian email upon without question. leaks for Hillary Clinton’s defeat realize how ridiculous That said, President-elect Trump hasn’t exactly they sound? Hillary Clinton, in spite of warnings, set up an covered himself in glory during this protracted debate email server to get around the official system. She not only either. Trump apparently has little clue how intelligence ac- exposed her political emails but also classified material to tually works. It is as though he actually believed all those being hacked. Then, while under subpoena to turn her e- left-wing critics about the CIA and our intelligence agen- mails over to Congress, she brazenly destroyed thousands cies. Perhaps he watched and read too much of the liberal of them. The Clinton campaign and its supporters have no media. ethical standing to complain. Zero. The pre-Iraq War intelligence briefings illustrated The Democrats also continue to be in denial the complexity of intelligence gathering. The only way to that the contents of Clinton’s emails are relevant. Many have been 100% certain of Iraqi deployable large-scale voters felt the content illustrated why she brazenly dis- chemical and biological weapons would have been to have regarded government procedure and defiantly erased so potentially millions die. Prevention is harder. The small many once caught: She was guilty. And then the Demo- White House briefing I participated in by Secretary Rice crats abused power by politicizing the FBI to seemingly and the CIA consisted of primarily Democrats and most whitewash her actions. Having the attorney general meet were prominent senators. The questions were tough, and former President Clinton at an airport was more than just the answers made it clear that it was 80% this from these stupid politically, because it did long-term, direct credibility sources, 20% this, 50% that. Trump’s style seeks clear damage to the perceived integrity of the FBI when Ameri- answers – yes or no – but life does not work that way. If cans were paying near maximum attention. it did, he wouldn’t have gone bankrupt so many times. In I believe WikiLeaks people should be put in jail. foreign policy, bankruptcy is not an option. I believe that if Russia, or whoever else, meddles in our It is also clear that foreign powers, including election they should have sanctions strengthened not Russia and , are trying to destroy us. Attempting to weakened. But by tying this to the blame for Hillary’s loss, influence elections is one key way to toward that goal. It and then demanding a select committee so they could is a genuine threat to our nation. Trump is far too weak in pursue partisan gain, the Democrats have turned it into a his understanding the threat that strong armed, totalitar- circus rather than a bi-partisan, serious investigation. ian leaders pose to us. His seeming blindness could dam- Page 15 age this nation as badly as did the starry-eyed confusion It is also a legitimate, rising concern that Trump of the last group regarding, for example, an “Arab Spring.” and some of his appointees believe that Vladimir Putin is The way I read his CIA comments and skipping in- someone you make business deals with rather than some- telligence briefings is this: Once his people, Trump people, one who wants to bury us. His critics using the real threat are in charge of the agencies, he will listen or at least trust as an election pout has blurred the true challenge ahead. his chosen people. It isn’t as if he hasn’t selected General v Flynn as his national security advisor, who formerly headed the CIA, and Rep. as a solid new director Souder is a former Republican congressman from of the CIA. In other words, he doesn’t trust the Obama Indiana. holdovers, with some justification.

to Jeffersonville. We were “booming” according to Gov. Indiana’s economic Pence and then-Lt. Gov. Holcomb. However, the thrill was gone when the data were, as usual, revised. Indiana sank from first to 13th place for 2015 Qtr4. Now more air is out roller coaster of the state’s balloon as we have dropped to 25th place in By MORTON MARCUS 2016 Qtr2. INDIANAPOLIS – After the 2016 election, some Hoosiers still wonder, “How hard was the hit people saw sunshine ahead with a return to greatness. when the Great Recession took us down? How much of a Others expected moonless nights rebound did we have?” with a great nation degraded. The last peak, before the U.S. and Indiana Indiana has few anticipa- economies began to contract, was in 2007 Qtr4. Then, tions. We really don’t know Gov- Indiana ranked 16th in economic size with 1.92 percent ernor-elect Eric Holcomb. Is he of the nation’s output. By the bottom of the recession, in the second coming of Mike Pence, 2009 Qtr2, Indiana had lost $27 billion in constant 2009 as his supporters believed? Or dollars, or 9.5 percent of its pre-recession output. Dur- is he Pence 2.0 as the billboards ing the same six quarters, the nation’s GDP fell only 4.2 of his opponents declared? This percent. much we do know, the state’s Since that economic trough, Indiana’s GDP grew public relations folks aren’t as by 17.2 percent, helping us retain 16th place in size, but enthusiastic about the latest state with a slightly smaller share of the nation’s total output, economic news as they were just which grew by 14 percent. Over the course of this busi- six months ago. ness cycle, Indiana’s real GDP grew by only six percent Last week the U.S. Bureau of Economic Analysis compared with the U.S. advance of nine percent. reported Indiana’s real Gross Domestic Product (affection- If we feel we’ve been on a rollercoaster, but not ately known as GDP, the inflation-adjusted value of goods gone far, it’s true. Our decline was the fifth most severe in and services produced in the U.S.) grew in the Spring or the nation, but our upward movement since then has been second quarter of this year by a 1.25-percent annual rate. the 10th strongest. Only Michigan had a more dramatic fall This was a smidge over the 1.16 percent at which the and bounce back. whole country grew. Less volatility We enjoyed a very slim might be soothing, but our lead over Montana for the honor- total experience was better able 25th place in growth among than that of 23 other states the states. Contrast this with the and far better than the ballyhooing last June when Indi- three least volatile states, ana’s GDP growth was reported as , Maine and Missis- first among the nation’s 50 states sippi. v during the last quarter of 2015. First! The air up there Mr. Marcus is an econo- was so rarified, the height alone mist, writer, and speaker caused shivers down the Hoosier who may be reached at spine from South Bend through mortonjmarcus@yahoo. Plymouth, Kokomo, Franklin, Co- com. lumbus, Crothersville, all the way Page 16

licans who were against the auto bailouts in 2009. Never What’s a job worth? mind the small detail that Todd Young was not in Congress in 2009! By CRAIG DUNN Because of the controversy over economic incen- KOKOMO – The announcement that Donald Trump tives given to some employers and industry I decided to and Mike Pence had saved 1,000 jobs at Carrier Corpora- have my large staff of Harvard-educated Bonobos research tion from being shipped south of the border down Mexico the issue and render their findings. Here is what their way has set off a firestorm of discussion among Democrats research uncovered: Democrats and Republicans are hyp- and Republicans alike as to the economic value of a job. ocritters! Make no mistake about it. Donald Trump’s ad- People who have a job want to keep it. People vocacy on behalf of the Carrier who don’t have a good job want to get one. My job is workers and Gov. Pence’s struc- more valuable to society than your job. If you are unem- turing of an incentive package ployed it is a recession. If I am unemployed it is a depres- were absolutely brilliant political sion. One thousand jobs is not the same as 1,000 jobs. moves and just the right touch to Lastly, no one has an ironclad formula for calculating just begin uniting much of the country how much any job is worth. after a brutal presidential cam- As a general rule, I don’t believe that it is the job paign. However, the Carrier issue of government to pick corporate winners and losers. Fair and the Trump/Pence intervention and free markets allocate resources best. I also know that launched an interesting debate. this philosophy can create a lot of pain on individuals who This is not a new debate. are pretty good people. Incentives to industry and busi- In 2009, I hated to see the American auto in- ness to locate, relocate or to dustry go to the edge of the abyss. Thousands of those just plain stay in place have been around for a long time. autoworkers were my friends, neighbors and clients. The The controversy has been around just as long, with the complete demise of Chrysler and Delphi Automotive and antagonists and protagonists shifting like political sands. General Motors would have dealt a death blow to Kokomo Depending on who is offering the incentives and who is and much of Indiana. I was personally against an auto sitting on the outside looking in, the incentives offered by bailout but I am sure glad that President George W. Bush government to attract or retain industry are either wonder- and later President Barack Obama forked over the cash. It ful investments in the economic development of the state was a deal that ended up working pretty well. or a tragic waste of the taxpayer’s money. I still feel badly for Ford. They did everything they Let’s take another trip down Hypocrisy Lane to were supposed to do: Acted smart, refinanced debt in 1988. Back then, challenger Evan Bayh was aggressively advance of the crisis, prepared for the worst case scenario. pounding on Republican gubernatorial candidate John What did they get as their reward for their smart business Mutz for the economic incentive offered to attract Subaru decisions? They had two much stronger and debt-free Isuzu to Lafayette. Bayh battered Mutz for offering Subaru competitors courtesy of their own government. What is the too much and frankly, “Weren’t those people the same lesson to be learned from this? Hint: You won’t find it in ones who attacked Pearl Harbor?” The issue was a winning an economics book. one for Bayh and, after all, isn’t that really all that mat- This week my secretary told me how happy she ters? was that Donald Trump saved 1,000 jobs at Carrier. I Fast forward to April, 1994. Gov. Evan Bayh asked her that if I announced that I was going to eliminate proudly announced that because of a whopping new eco- her job, did she think that anyone in government would nomic incentive program, Lear Corporation was going to try and save her job. She said no. I then asked her if she locate a new factory in Hammond employing 300 workers thought that her job was any less valuable than a job at who would make seats for Ford vehicles. Democrats touted Carrier. She said no. the deal as the greatest thing since sliced bread. Demo- I can pretty much guarantee you that 1,000 crat politicians in Lake County took their hands out of the other jobs were lost last month around the United States taxpayer’s pockets long enough to applaud. due to outsourcing, international competition or govern- Here is the lesson to be learned: Incentives in mental regulations, but no one stepped forward to do a 1988 bad! Incentives in 1994 good! single thing to help those workers. Of course the world spins round and round and in This is the inexplicable, dangerous and frustrating the 2016 race between Evan Bayh aspect of government making decisions as to who receives and Congressman Todd Young, Young made the trip to its largess and who does not. The loses the job Lafayette to remind the 5,200 workers at the Subaru Isuzu because of a government decision and someone gets a job America plant that Evan Bayh didn’t think their jobs were making solar panels. Explain that to the coal miner! worth a plug nickel way back in 1988. Bayh was quick I would encourage government on all levels to with the comeback that it was Todd Young and the Repub- develop a transparent formula for offering incentives to Page 17 employers for both attraction and retention of jobs. All massive Obamacare costs, entitled to a government sub- jobs are valuable and contribute to society. It shouldn’t be sidy or tax abatement? If not, why not? impossible or impractical to develop a price tag. Were the Carrier employees rescued because But here is where the immutable Law of Unin- of good policy or good politics? I can’t say for sure. You tended Consequences raises its ugly head. Somewhere in decide. One final question: Is your job more valuable than Indiana there is another employer with a large workforce mine? v who is battling daily to make a profit and stay in business. Is every employer battling high labor costs, including the Dunn is Howard County Republican chairman.

over the “religious freedom” act that Pence pushed to pas- A fabulous year for sage amid contentions that it really provided for freedom to discriminate. His stance could have been popular with Republican presidential primary voters in New Hampshire. Pence and Holcomb Hoosier business leaders, however, and even Republican By JACK COLWELL leaders in the saw the contro- SOUTH BEND – For some people in politics, 2016 versy as hurting the state’s reputation and its economy, has been a lousy year. Names of a lot of Democrats come with national ridicule occurring and boycotts threatened. to mind, especially Hillary Clinton nationally and Evan Pence finally agreed to an amendment that didn’t please Bayh in Indiana. The year also hasn’t been kind to some either side. Republicans. Chris Christie, Jeb Pence also differed with legislative leaders of Bush and Ted Cruz come quickly his own party who would have preferred more spending to mind. This has been a fabulous on roads and smaller tax cuts than the governor wanted. year, however, for two Hoosier A record of holding down spending and cutting taxes is Republicans, Mike Pence and Eric great for a governor seeking the Republican presidential Holcomb. nomination. But many legislators would have preferred a Back at the start of the more pragmatic approach, getting things done even if it year, who of sound mind or with a did bring some costs and preclude big tax cuts. mind at all would have predicted His “surprise” refusal to apply for $80 million in that Pence, then with sagging ap- federal grants for preschool programs for Hoosier kids re- proval ratings and a difficult race ally was no surprise. Turning down federal funds goes over for reelection as governor looming well with conservatives of the type dominating the Iowa ahead, would be elected as the next vice president of the caucuses. United States, and that Holcomb, then regarded as likely As vice president, Pence will be at home in Wash- to finish third in an unspectacular bid for a U.S. Senate ington, working with many fellow ideologues in House and nomination, would today be governor-elect? Senate Republican majorities. He is in a job where he can Now? Holcomb will be a better governor than do well, guiding Donald Trump away from some potential Pence. Pence will be a better vice president than he was a disasters and enhancing his own prospects for president. governor. Holcomb, conservative but not so much an ideo- Pence, a conservative ideologue, had been logue, is more in the mold of former Gov. Mitch Daniels, more at home expounding that philosophy as a member of for whom he served as a key staff member and campaign Congress in Washington than he was in making executive manager. Holcomb will get along with Republican leaders decisions as governor in Indiana. Some controversies as in the General Assembly much better than Pence ever did. governor came about because Pence wanted to maintain They work together now on a way to implement a major his credentials with conservatives nationally in order to infrastructure program. reach his goal of one day becoming president. With that Things never envisioned at the start of 2016 goal in mind, Pence left a House Republican leadership came Holcomb’s way: Named lieutenant governor to fill role in Congress to come back home to Indiana to run a surprise vacancy. Selected as governor nominee after for governor in 2012. House leaders, especially with the Pence was picked for vice president. Elected governor over low ratings for Congress, aren’t likely to win a presidential a Democratic front-runner with help of the Trump tsunami. nomination. A popular governor? Much better chance. What now? Holcomb is qualified for governor. And But his popularity as governor wasn’t that high he isn’t seeking as governor to establish qualifications for as the time came to decide on a try for the Republican president. v presidential nomination. So he would seek reelection as governor. Colwell has covered Indiana politics over five de- Approval ratings for Pence sank amid controversy cades for the . Page 18

in the commercial casino industry. The study also projects Casino cities face a loss of $3.8 million in local development agreement pay- ments to the cities of Gary, Hammond, East Chicago and Michigan City over the next five years. a new, tough reality Those monies are critical to the host cities who By RICH JAMES use the revenue to substantially supplement their budgets. MERRILLVILLE – It seems like yesterday, but Spectrum Gaming, which conducted the study, alas, it has been 20 years since the first casino opened in said gambling revenue at Indiana casinos has dropped Northwest Indiana. It was June, $2.2 billion, or 21 percent over the year that ended in 1996, when the Majestic Star September. Casino opened in Gary. A day or Expanded competition in Michigan and Illi- so later, Trump Casino opened nois account for most of the loss. The study also predicts its doors adjacent to the Majestic Indiana gaming revenue will decline another $800 million Star. Showboat Casino soon fol- over five years with a decline of $282 million in gaming tax lowed in East Chicago, with the revenue. The less stringent taxing guidelines and revenue Blue Chip Casino in Michigan City dispersment requirements give the Native American casi- and Empress Casino in Hammond nos a substantial financial advantage over the commercial rounding out the five casinos in operations that opened 20 years ago. the northwest corner of the state. Consequently, Matt Bell, the casino association They, of course, were president and CEO, made it perfectly clear that casino competing with a couple of casi- industry needs to meet with state policy makers to discuss nos just to the west in Joliet, Ill. It seems hard to imagine ways to aid the existing industry. That likely will be a focus at this point, but the Joliet casinos were charging admis- of the General Assembly that convenes in early January. v sion when they first opened. There is something wrong with having to pay to gain the right to lose your money. Rich James has been writing about state and local With the gambling industry still relatively new in government and politics for more than 30 years. He Lake and LaPorte counties, already there is trouble on the is a columnist for The Times of Northwest Indiana. horizon. And those likely to suffer the most are the Gary, Hammond, East Chicago and Michigan City casinos that opened with the intent of returning luster to the industrial rust belt in that corner of the state. Now, the Pokagon Band of Potawa- tomi Indians has started construc- tion on a second Four Winds Casino in South Bend. The first opened in New Buffalo, Mich., a few years back. A study sponsored by the Casino Associa- tion of Indiana is forecasting some dire consequences for Indiana’s casino industry based on the 2018 opening of the South Bend casino. Among the consequences is a gaming and income tax revenue decline of $355 million over five years and the loss of 732 jobs Page 19

Matt Tully, IndyStar: So, I asked U.S. Sen. Joe gas and coal. You would never know that what has actu- Donnelly, how does it feel to be the last Indiana Democrat ally made America great is our ability to attract the world’s standing in statewide office? “I wish I had more com- smartest and most energetic immigrants and our ability “to pany,” he said with a smile. He’s not alone in thinking that. develop technology and to nurture our human capital” — But the reality is that Democrats last month lost bids for not just drill for coal and oil, remarked Edward Goldberg, governor, senator, superintendent of public instruction and who teaches at N.Y.U.’s Center for Global Affairs and is just about everything else. Post-Election Day, the state the author of “ The Joint Ventured Nation: Why America legislature remains ruled by a GOP supermajority and the Needs a New Foreign Policy.” Don’t misunderstand me: It state’s political power structure, after the defeat of big is excusable to raise questions about climate change. But Democratic names like Evan Bayh and Glenda Ritz, is as it is inexcusable not to sit down with our own government deeply red as it’s been in a long time. Then there’s Joe. A experts at NASA and the National Oceanic and Atmospher- moderate’s moderate, a rational voice in the middle amid ic Administration for a briefing before you appoint flagrant so much shouting on the fringes, Donnelly climate deniers with no scientific background to every is soon to be the state’s senior senator. He’s senior environmental position. It is excusable also all that Democrats in Indiana have left in to question if Russia really hacked our election. high office. The good news for Democrats is But it is inexcusable to dismiss the possibility that if you’re looking to rebuild your party in without first getting a briefing from the C.I.A., the era of Donald Trump, Donnelly is a good some of whose agents risked their lives for that start. Same goes if you’re an independent- intelligence. That is reckless behavior — totally minded voter desperate to see less partisan- unbecoming a president, a professional or just a ship in D.C. “I’m really optimistic about our future,” Don- serious adult.v nelly said on a recent afternoon, as he and other Senate Democrats prepared for two years in the minority during a Steve Chapman, Chicago Tribune: To anyone Trump presidency. “I know people are concerned. ... But I weary of 15 years of inconclusive war, Donald Trump’s hope Mr. Trump (understands) that he represents all Amer- recent foreign policy speech offered heartening words. icans.” In the end, he said, governing these next two years He thinks the United States should stop pursuing regime should be simple, if the politicians allow it. “It’s about change abroad and start fixing its own problems. “We will good jobs, more opportunity, and the chance to grow our stop racing to topple” foreign governments “that we know country,” he said. Donnelly is up for reelection in 2018, and nothing about,” he recently told a crowd in Fayetteville, he will run in what likely will be one of the nation’s most- N.C. “We’re guided by the lessons of history and a desire watched and hard-fought Senate races, though we don’t to promote stability — stability all over — and strength in yet know which Republicans will seek the GOP nomination. our land. This destructive cycle of intervention and chaos Despite the political clouds hovering above him, Donnelly must finally, folks, come to an end.” This promise is par- isn’t tossing out political rhetoric. Instead, he says he sees ticularly relevant to Syrian ruler Bashar Assad, whom Presi- room to work with President-elect Trump on issues such as dent Barack Obama once called on to leave. It also will trade and protecting manufacturing jobs. v reassure Egyptian strongman Abdel-Fattah el-Sissi, who restored an autocracy that Obama’s pressure had helped Thomas Friedman, New York Times: Maybe bring down. Trump has no interest in toppling dictators. it will all turn out O.K. If it does, put me down as promis- His goal is maintaining order. So he says. But Trump’s at- ing to applaud. But my fellow Americans, whatever mix tention to the lessons of history goes only so far. In other of motives led us to create an Electoral College majority places, he has heedlessly put stability at risk already. His for Donald Trump to become president — and overlook blithe disdain for long-standing commitments and under- his lack of preparation, his record of indecent personal standings invites a different destructive cycle that could behavior, his madcap midnight tweeting, his casual lying make the previous chaos seem like ripples on a pond. The about issues like “millions” of people casting illegal votes first danger involves China, whose government Trump of- in this election, the purveying of fake news by his national fended by taking a call from the president of Taiwan and security adviser, his readiness to appoint climate change indicating he may scrap our “one China” policy. For a long deniers without even getting a single briefing from the time, the three governments have operated according to world’s greatest climate scientists in the government he’ll a compromise: China leaves Taiwan alone to govern itself; soon lead and his cavalier dismissal of the C.I.A.’s conclu- Taiwan doesn’t declare its independence; and the United sions about Russian hacking of our election — have no States acknowledges China’s claim on the island while doubt about one thing: We as a country have just done selling arms to Taiwan. No one loves the arrangement, but something incredibly reckless. There is actually something it’s kept the peace. By calling it into question, Trump chal- “prehistoric” about the cabinet Trump is putting together. lenges the Chinese government on turf that it can’t give It is totally dominated by people who have spent their up. Are Americans ready to fight for Taiwan?v adult lives drilling for, or advocating for, fossil fuels — oil, Page 20

Holcomb said, “we’re going to have to Craig Holman, government affairs lob- Kenley eyes kill the drug epidemic.” • Deliver good byist for Public Citizen. “Trey has got state government at a great taxpayer more money than they have.” Holling- tax increase value. sworth has assets worth at least $58.5 million, according to his campaign INDIANAPOLIS — A key Re- Holcomb makes financial disclosure report. publican budget writer in the says a tax increase is likely appointments Putin directed needed to pay for road and bridge improvements across the state (As- INDIANAPOLIS — Governor- U.S. election leaks elect Eric Holcomb announced that sociated Press). State WASHINGTON — Russian Sen. Luke Kenley said Judge Mary Beth Bonaven- tura will be reappointed as President Vladimir Putin was person- Wednesday that Indiana ally involved in efforts to intervene doesn’t have enough the Director of the Indiana Department of Child Services in the 2016 U.S. presidential elec- money to keep up main- tion, NBC News reported, citing two tenance of its existing and Jessica Robertson will be reappointed as Commissioner unnamed “senior U.S. intelligence of- roads and bridges, let ficials.” New intelligence links Putin di- alone undertake new projects. GOP of the Indiana Department of Administration. “Judge Bonaventura is rectly to the leaks from hacked Demo- leaders who control the Statehouse cratic National Committee emails, say crafting a long-term solution to widely respected for her bold service in the Department of Child Services the officials told NBC News with “a the state’s infrastructure funding woes high level of confidence.” A high-level is a major priority. Kenley said a gaso- and I am proud to have her on our team,” said Holcomb. “Her relentless intelligence source said the campaign line tax increase and charging tolls to began as a “vendetta” against Hillary motorists are two possibilities. passion for child advocacy will serve Hoosier families and children well for Clinton. The goal grew into an effort Holcomb lays out years to come.” Jim Brown will be to expose corruption in U.S. politics reappointed as the Director of the In- and to undermine America’s credibility. 5 issue pillars diana Department of Veterans Affairs and Gen. Stewart Goodwin will be re- Romney McDaniel INDIANAPOLIS — Gov.-elect appointed as executive director of the Eric Holcomb laid out the five pillars Indiana War Memorials Commission. to head RNC of his legislative agenda Wednesday Holcomb also announced his legisla- DETROIT — President-elect but is saving the details for a Jan. 5 tive director will be Allison Karns, a Donald Trump announced on Wednes- release (Kelly, Fort Wayne Journal policy director for public safety for day that Michigan GOP chairwoman Gazette). “There will be more meat Gov. Mike Pence. Ronna Romney McDaniel is his choice on the bones,” he said after address- to succeed incoming chief of staff Re- ing the Bingham Greenebaum Doll Trey seeks help with ince Priebus as chair of the Republican Legislative Conference. Holcomb plans National Committee (Politico). to receive agency transition reports campaign debt next week to put the finishing touches Obama bars states on his ideas. He said Indiana needs to WASHINGTON — Incoming stay focused on five key areas: • Keep Indiana Congressman and multimil- from PP defund a relentless focus on the economy lionaire is asking and making Indiana a jobs magnet. his new colleagues for donations to WASHINGTON — With just “If we are not growing as a state that repay nearly a quarter million dol- weeks left in office, the Obama admin- opportunity will elude us for progress.” lars he owes to his pollster and other istration is barring states from deny- • Pass a long-term, data-driven – not political consultants (Groppe, Indy- ing federal family planning funds to politically driven – infrastructure plan. Star). Hollingsworth, who moved from organizations like Planned Parenthood He said it will be a 20-year program Tennessee shortly spent more than that also perform abortions. A final and focus on transformational projects $3 million of his own money on his rule from Health and Human Services such as a fourth port, upgrading U.S. race and his father spent another $1.5 says that states cannot deny funding 31 to an interstate-quality road and million through a super PAC he cre- to clinics for reasons unrelated to their double-tracking the . ated to help Hollingsworth win Indi- ability to provide basic family planning • Educate, recruit, train and retrain ana’s 9th Congressional District. But services. Although abortion is a legal the workforce. Holcomb said this rang- he still owes $246,246 to his pollster medical procedure, federal dollars es from an expanded prekindergarten and consultants. “I can’t imagine his cannot be used to pay for it, except in program all the way to retirement. • Republican colleagues wanting to chip restricted circumstances. in a dime to help pay for this,” said