DATE: Sunday, March 30, 1997                TAG: 9703300065

SECTION: FRONT                   PAGE: A1   EDITION: FINAL 

SOURCE: BY ROBERT LITTLE, STAFF WRITER 

DATELINE: RICHMOND                          LENGTH:  112 lines

GILMORE IS CHIDED FOR HIS TIES TO TOBACCO HIS CRITICS AGAIN CALL FOR HIM TO RESIGN WHILE HE CAMPAIGNS FOR GOVERNOR.

While 22 states awaited the first-ever admission from a cigarette manufacturer that tobacco causes cancer, Virginia's attorney general was in New York for a $50,000 fund-raiser courtesy of tobacco giant Philip Morris.

That revelation fueled criticism last week that Attorney General James S. Gilmore III is too cozy with the cigarette conglomerates, and it rekindled calls for him to quit while he campaigns for governor.

As the state's top lawyer, Gilmore kept Virginia out of the lawsuits other states have filed against tobacco manufacturers to recover Medicaid money spent treating smokers. He has sided with the tobacco companies in opposing new federal tobacco regulations.

And since the start of last year, Gilmore has collected more than $86,000 in political contributions from tobacco workers, manufacturers, farmers and lobbyists.

Gilmore's relationship with cigarette manufacturers, coupled with his power to steer Virginia's position on tobacco-related litigation and legislation, raises unique questions about potential conflicts.

But little is unique about Gilmore being a Virginia politician who is happy to support tobacco interests - and to take their money.

Tobacco interests have generally been equal-opportunity money-givers in Virginia, according to a computer survey of campaign finance reports. The data is compiled by the Virginia Public Access Project at the Center for Public Policy at Virginia Commonwealth University.

All the candidates for governor and lieutenant governor have taken some tobacco-related money in the past two years. So have 96 of Virginia's 140 state legislators.

And party affiliation seems to matter only slightly when tobacco companies decide which candidates to finance.

Gilmore, a Republican, led all recipients with $36,500 in tobacco money last year. When he flew to Philip Morris' New York headquarters March 19, he collected $50,000 more.

But his Democratic opponent, Lt. Gov. Donald S. Beyer Jr., raised $11,700 in tobacco money, including $10,000 from Philip Morris.

L.F. Payne, the likely Democratic nominee for lieutenant governor, collected $10,000 from Philip Morris in December. The company has offered to host its own reception for the Democrat later this year, and Payne's aides say he plans to accept.

Payne led all candidates for lieutenant governor in tobacco contributions with $23,250 last year. That's almost twice the total of Republican John Hager - a former executive for American Tobacco.

In General Assembly races the past two years, Republicans got the most help from tobacco interests, receiving $108,000. But Democrats still pulled in $67,600.

``Tobacco saved Virginia at Jamestown, it saved Virginia after the Civil War and it's a huge part of people's lives all over Virginia today,'' said Hager, who was American Tobacco's vice president for leaf and special projects.

``I'm not going to hide from having worked in a legal and honorable business.''

Gilmore flew to New York on Philip Morris' corporate jet the night before tobacco manufacturer Liggett publicly acknowledged that nicotine is addictive and that smoking causes cancer. The admission will bolster the states' lawsuits against larger, better-financed companies like Philip Morris.

When Gilmore's trip was disclosed last week by the Richmond Times-Dispatch, his critics growled.

Beyer called the timing ``bad judgment at best.'' Political commentators suggested that such a strong, conspicuous alliance with cigarette companies is a blow to his campaign.

Others, like Democratic attorney general candidate Bill Dolan, called for Gilmore to erase any potential conflicts by resigning to run for governor - as his predecessors have done.

Said Dolan: ``You can't be in that office with one hand full of legal briefs stating Virginia's position, and the other hand filled with money raised from the very people who will be affected by your decisions.''

While other candidates criticized the appearance of it all, few differ significantly with Gilmore on tobacco-related issues.

Most of the statewide candidates agreed last week that the U.S. Food and Drug Administration is not the best regulator for cigarettes. However, not all would have joined a Philip Morris lawsuit against the FDA, as Gilmore did.

Every candidate supports tight restrictions on the access minors have to cigarettes, though some differ over whether the state or federal government can best ensure them.

But none of the candidates for statewide office said he thinks Virginia should join the 22 other states seeking a reimbursement from tobacco companies for Medicaid money spent on smoking illnesses.

And none could criticize Gilmore for taking Philip Morris' money.

Nearly every candidate for office in Virginia, Democrat and Republican alike, has accepted some money from tobacco manufacturers, farmers or lobbyists to help finance his campaign.

And there seems to be more to come.

The five candidates for attorney general didn't receive any tobacco money in 1996. But Republicans Mark L. Earley, Kenneth W. Stolle and Jerry Kilgore got $1,500 each from Philip Morris the other week, even though they're running against each other. The fourth Republican, Gil Davis, had not received any, but his campaign is nearly all self-financed.

Kilgore, a former public safety secretary, is actively seeking tobacco-related support.

He mailed a letter to supporters in February that began: ``I was raised on a tobacco farm in Southwest Virginia. . . . I know first-hand the positive impact tobacco has on Virginia's economy and our families.''

Dolan, the Democrat, hasn't raised any tobacco money, but he said he wouldn't turn it away. He wasn't specific about his views concerning the lawsuits against cigarette manufacturers, but he said generally that he considers tobacco use ``an individual decision for adults to make.''

``I think tobacco is going to be a significant issue in this campaign, and something that will come up repeatedly over the next four years,'' he said. ILLUSTRATION: Color photo

James S. Gilmore III has kept Virginia out of suits filed against

tobacco companies. KEYWORDS: GUBERNATORIAL RACE REPUBLICAN PARTY

TOBACCO INDUSTRY

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