The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Tuesday, October 29, 1996             TAG: 9610290263
SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: ASSOCIATED PRESS 
DATELINE: RALEIGH                           LENGTH:   56 lines

OUT-OF-STATE ``SOFT MONEY'' POURS IN TO AID N.C. PARTIES

Money, unlike ballots, knows no boundaries, so out-of-state dollars are pouring into the accounts of the state Democratic and Republican parties.

For example, Mississippi's Choctaw Indians gave $12,000 to the Republicans. Carl Lindner of Cincinnati, the chairman of Chiquita Brands International, gave $10,000 to the Democrats.

The list includes lawyers from Washington, commercial real estate brokers from Chicago, business executives from Massachusetts, New York and Delaware. And those contributions worry some people in North Carolina, The News & Observer of Raleigh reported.

``I find it hard to think of a public purpose of why citizens in North Carolina would want to encourage folks from out of state to make donations to the parties,'' said Ran Coble, executive director of the N.C. Center for Public Policy Research. ``That's really just a way to beat the campaign finance laws.''

Campaign finance laws limit how much individuals and political action committees can contributeto political candidates. There are no limits, though, on how much they can contribute to political parties.

And the parties can then use this ``soft money'' to help their candidates get elected.

State Republican Party spokesman Robert Wilkie acknowledged that contributors give to the party when they have given all they can to a candidate like U.S. Sen. Jesse Helms.

He said the Republican National Committee urges its biggest givers to contribute to various state parties.

``A lot of people give to our party to help Senator Helms because he is a national figure,'' Wilkie said. ``We are able to get money sent to us from conservatives all over the country.''

Wilkie likens that to what organized labor has done on behalf of Democratic congressional candidates this year.

``There is nothing that we do on our side of the aisle that can compete with the money the AFL-CIO is putting in,'' he said. ``We do have to ask all over the country to combat the money the AFL-CIO is spending.''

Gail Nardi, communications director for the state Democratic Party, has mixed feelings about all the out-of-state contributions.

``These kinds of gifts come from people who are loyal Democrats from across the country who look at states across the country where they think their contribution can make the most difference,'' she said.

But Nardi also said the whole business of campaign finance is in need of reform. Until then, she said, both parties will continue their chase for campaign cash.

The money is used to pay for such political staples as consulting, polling, opposition research, mailings, yard signs and television and radio commercials.

``It's obvious that it's gotten out of hand,'' Nardi said. ``It's kind of like a nuclear standoff. You can't quit until the other guy does.''

KEYWORDS: CAMPAIGN FINANCE by CNB