expose

DNR Watch Inside Governor Thompson's DNR

The Natural Resource Accountability Project Research Report No. 1 August, 1998 Thompson Defends Fox River Polluters Against Responsible Cleanup

DNR Report Study Methods

Numerous state and federal documents, files, letters, databases, and several Internet homepages were analyzed while preparing this report. (See references) Wisconsin paper industries were identified using the 1997 Lockwood-Post's Directory. Landfill industries were identified from DNR lists and interviews
with staff.

Several federal, state, tribal and local officials were interviewed at length and are the source of many of the uncited statements in the report. Agency staff are not named, to protect them from reprisals. Most agency staff were reluctant to speak openly. A few of the uncited statements are based on the 12 years experience of the author of this research report.

The campaign finance tables (7) underestimate actual campaign contributions, because of limitations in reporting requirements and alternative methods for funding campaigns. All figures included in this document relating to political contributions should be considered minimal estimates and the actual political influence may be much greater. Specific donor data limitations include:

Small Donors --- Donations of less than $100 were not included, because small donors aren't required to disclose their employers' names.
Unknowns ---Some donors' employers were unclassified or listed as "unknown." They couldn't be included.
Spouses --- Paper company executives may have listed contributions under the spouse's occupation, which would obscure the paper company connection.
Team Approaches --- Other types of businesses may team up with paper industry leaders, and make large parallel contributions when mutual interests benefit.
Parties --- Industry leaders can also funnel money through the funds of political parties to help candidates.
Independent Money --- The paper industry can also spend large amounts of money for "issue campaigns" which benefit specific candidates, but these "independent expenditures" are not identified in state records as campaign contributions.

For example, in the 1996 state legislative campaign, Wisconsin Manufacturer's and Commerce (WMC), a statewide lobbying coalition on behalf of industry, spent $413,000 attacking six Democratic candidates. WMC refused to name the source of the money, but the money could easily have come from the paper
industry and its allies. The 1997 Wisconsin Business Guide produced by WMC lists WMC's Executive Committee, which included Kathleen Hempel, of Fort Howard Corporation (Fort James) and John MacIver, of Michael, Best & Friedrich, a law firm which frequently represents Fort Howard Corp.34   WMC's 1998 Board of Directors includes three other paper industries: Hayes Manufacturing Group, Inc. of Neenah; Georgia-Pacific Corp., and Kell Container Corp.35

Ordinarily, it is illegal for corporations to donate money directly to Wisconsin candidates.   All funds are supposed to come from individuals, parties or PACs and the source of funds must be disclosed. "Issue campaigns" by WMC are a loophole in those rules.

WMC's internet homepage states, "WMC sponsors a comprehensive political program providing assistance to pro-business candidates for the Legislature and statewide offices.   Our political action committee and conduit program help our members support pro-business candidates of both parties."35

Donors categorized as "Manufacturing & Distributing" donated $1,042,615 to the campaigns for Gov. Thompson and Lt. Gov. McCallum,1990 thru 1997. WMC staff donated $750 in1994.7

Report Sections

The Purpose of this Report

Twelve Years of Delay - A Fox River Clean-up Timeline

Deals, Consultants, Paper Industry Allies, and Tourism

The Health Risks of PCBs and Landfilling Contaminated Sludge

Legislative Connections, Paper Company Economics, and Industry Control of the Process

The Fed's Step In

Conclusions and Recommendations

The Paper Money Trail - Political Campaign Contributions to the Governor

DNR Report Study Methods

References

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