THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, November 4, 1995 TAG: 9511040331
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY LON WAGNER, STAFF WRITER
DATELINE: SMITHFIELD LENGTH: Medium: 87 lines
Sounding more like a political candidate than the CEO of one of Virginia's largest companies, Smithfield Foods Chairman Joseph W. Luter III chided the media and big government in his first face-to-face interview since his $100,000 contribution to Gov. George F. Allen's PAC created a flap last week.
``When I made the $100,000 pledge, I knew it was a large contribution, I knew it would receive scrutiny, I knew it would be reported, I knew it would be criticized,'' Luter said.
Smithfield Foods' $100,000 donation to Allen's political action committee drew fire not only because of the amount but also because Smithfield is under investigation by the state for violating water discharge limits.
Luter's response to the controversy over the initial contribution was defiant - Smithfield cut a check to Allen's PAC this week for an additional $25,000.
``I also know that once you make a large contribution to a candidate, that candidate has to adopt the role of Caesar's wife,'' Luter said. ``And in no way could that contribution help me; in fact, if anything it could hurt me.
``I fully expected to be criticized by the liberal media,'' he added. ``I'm not going to be intimidated. I consider 1995 a watershed year for the state of Virginia. I consider 1996 a watershed year on the national scene.''
Luter said his contribution signaled his dissatisfaction with ``big, intrusive government and the corresponding high taxes that go along with big government.''
With Smithfield's contributions making headlines for more than a week, University of Virginia political analyst Larry Sabato said Luter is right about one thing - the visibility of the large contribution won't make regulators back off of Smithfield.
``My guess is they'll be tougher than they would've been,'' Sabato said.
Virginia, unlike the federal government and many states, does not limit the amount of money a person or company can contribute to a political campaign.
Under federal election laws, which govern races for the U.S. House, Senate and presidency, an individual can contribute $1,000 in a party primary and an additional $1,000 in the general election. A political action committee can contribute $5,000 in the primary and $5,000 more in the general election.
Corporate contributions are prohibited, but corporations can create PACs and contribute through them.
Several times the General Assembly has considered limiting campaign contributions in Virginia, most recently during the 1995 session.
A failed House bill this year, for instance, would have capped contributions to candidates for statewide office at $5,000 and gifts to General Assembly candidates at $1,000. Contributions from PACs would have been limited to $10,000 and $2,500, respectively. A similar bill failed in the state Senate.
The state's politicians like the current rules, Sabato said, because it is easier to collect several $50,000 contributions from corporations and PACs than it is to tap hundreds of individual contributors.
Reports filed with the state Board of Elections show House Speaker Newt Gingrich's GOPAC gave $50,000 to the state Republican caucus last month and the Democratic Party collected nearly $100,000 from the Democratic National Committee.
Large contributions from PACs, companies and wealthy people give the impression that the political process is for sale, Sabato said.
``(Luter) gives the impression that government is being bought, and he promotes a cynicism among the electorate that little people don't matter,'' Sabato said of Smithfield's contributions.
But Luter said the checks were intended to show his support of Allen's push to ``attract businesses to Virginia and not scare them away.''
Virginia's environmental regulations have forced Smithfield Foods to expand in North Carolina, where it has invested more than $200 million and created 3,500 jobs in the past three years, Luter said.
``In regard to criticism that I made the contribution at a time when there was an ongoing investigation,'' Luter said, ``my response is that if I couldn't make a political contribution at any time there was an ongoing investigation of a company this size, I would never be able to make a contribution.
``I have never asked Gov. Allen for a favor. I would be the last person in the world to ask an improper favor.'' ILLUSTRATION: Photo
Smithfield Foods Chairman Joseph W. Luter III says, ``I'm not going
to be intimidated.''
KEYWORDS: CAMPAIGN FINANCES CAMPAIGN CONTRIBUTION POLITICAL ACTION
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