Free Thompson trips have risen sharply

Value of ‘95-‘96 travel nearly four times higher than all previous journeys

By Steve Schultze and Daniel Bice of the Journal Sentinel staff

August 7, 1997

Gov. Tommy Thompson took to the air more than 50 times in 1995 and ‘96 on trips funded by private groups or organizations with corporate funding—nearly quadruple the value of his free trips in his previous eight years in office, state records show.

The Republican valued such trips in ‘95-‘96 at $100,481, including a ‘96 trip to Australia worth an estimated $7,000 and a ‘95 trip to Africa worth $8,250. Ethical questions have been raised about cigarette maker Philip Morris’ indirect funding of the trips to Australia and Africa and a ‘92 trip to England through three separate non-profit organizations.

Thompson’s pace of travel picked up considerably during 1995 and ‘96, as he worked to burnish a national reputation and position himself as a potential presidential or vice presidential candidate.

The total value of the free trips he took during his previous eight years as governor was $25,198.

In 1996, Thompson took $61,189 in free trips; in ‘95 he took $39,292. Before 1995, his biggest free trip value was one valued at $9,287 in 1990.

Many of the trips provided at least an opportunity for access by firms with lobbying or procurement interests in state government. The state Ethics Board has been asked to determine whether any of Thompson’s travel violated state ethics law.

Some of his trips in 1995 and 1996 were linked to political speeches given by Thompson and paid for by Republican Party sources, which raise no legal questions. Those accounted for $12,738, or about 13%, of his two-year total. State law also wouldn’t bar such travel if it were linked to Thompson’s participation in a public issues seminar.

But many trips were funded directly by corporations or by trade groups or non-profit groups financed in part by corporate interests, potentially placing them on murkier legal ground.

By comparison, Nevada Gov. Bob Miller, who went with Thompson on the African trip, took seven trips worth $3,200 in 1996, his ethics report shows. Miller succeeded Thompson as chairman of the National Governors’ Association in mid-‘96.

Comparisons with other governors’ trips are difficult to make because most states have less strict gift-reporting rules. For example, officials in Minnesota, Iowa and Mississippi said there was no requirement that governors disclose most privately funded travel. Governors from those states accompanied Thompson on his recent overseas trips.

Thompson’s ‘95-‘96 travel tab had heavier corporate sponsorship than his earlier treks.

For example, he reported a $1,288 trip paid for by the Blue Cross Blue Shield Association, a $1,170 trip from Kohler Co., and a $1,200 outing from the Outdoor Amusement Business Association, all last year. In ‘95, he listed $1,157 in travel expenses from cable TV executive Don Jones, $1,106 for a trip from the National Association of Manufacturers, $1,070 from GTE Corp., $414 from Wausau Paper Co. and $450 from Johnson Controls.

Most have had regulatory or legislative interests in state government. For example, Blue Cross Blue Shield had concerns about a health insurance reform proposal, Kohler wanted state permits to develop a golf resort and GTE was interested in a major telecommunications deregulation plan.

Thompson rejected any suggestion that corporate interests could get their foot in the door of his office by paying for his travel.

"Absolutely not," he said. "Nobody gets special access. Take a look at Philip Morris. .

. . If they’re doing things to have influence with me, they’ve done a lousy job."

Trips and other types of corporate largess given to public officials have become more creative as campaign costs have risen and officeholders and their benefactors look for ways to trump donation limits, said Gail Shea, executive director of the non-partisan Wisconsin Democracy Campaign, which advocates for campaign finance reform.

"This is just another way for soft money to get into the process," Shea said. Soft money refers to largely unregulated donations to candidates. Officeholders should ask lots of questions about sources of trips and gifts to ensure there isn’t even an appearance of undue influence, she said.

Philip Morris substantially funded Thompson’s trips to Australia, Africa and England through three non-profit groups: the America-European Community Association, the New York Society for International Affairs and Libertad, all ostensibly formed to promote free trade, the Journal Sentinel reported last week.

Andrew Whist, a Philip Morris senior vice president, runs all three organizations, with the assistance of other Philip Morris employees. One of the groups received 98% of its contributions from the tobacco company between 1991 and 1995. Philip Morris had registered lobbyists in Wisconsin at the time of the trips.

The total value of those three trips: about $16,000.

State law bars officials from taking anything of value from lobbyists or firms that employ them. It is also illegal for lobbyists or their firms to provide anything of value to officials.

The State Ethics Board has not determined whether indirect trip funding by a firm that lobbies state government could constitute a violation of state lobbying law. That issue would lie at the heart of any case that might come out of Thompson’s travel to Australia, Africa and England.

Philip Morris, along with its subsidiaries Miller Brewing and Kraft Foods, reported more than $1 million in direct lobbying expenses in Wisconsin in 1995-‘96.

State Democratic Party Chairwoman Terri Spring last week called for a formal investigation of the trips. Ethics officials have declined to comment.

Thompson lists $41,830 in ‘95-‘96 travel from the National Governors’ Association. No breakdown is given, but much of that was likely linked to his ‘95-‘96 chairmanship of the organization and the frequent travel connected with it.

Travel is just one of many avenues that corporate interests have used to court Thompson; other access routes have included financial support for partisan and non-partisan governors’ associations.

The NGA itself is partly funded by corporations, some of them with lobbyists in Wisconsin. The NGA runs on a budget of some $6 million a year, through its non-profit arm, the NGA Center for Best Practices. Thompson is chairman of the center.

Corporate donations have been stressed as a result of dwindling government support. "Corporate fellows" of the center pay $12,000 to take part in exclusive policy-making sessions with governors. Philip Morris, General Electric, Blue Cross-Blue Shield, Johnson Controls and WMX Technologies are among the current and past donor firms listed by the NGA that have substantial Wisconsin ties.

The groups that funded the governors’ trips abroad also have sponsored or co-sponsored foreign trips for the National Conference of State Legislatures. Two Philip Morris-backed non-profit groups covered half the costs of the trips to promote trade, said Kathy Brennan Wiggins, a conference spokeswoman. The America-European Community Association and the New York Society for International Affairs also sponsored earlier trips, but she could not provide details.

Just how tight a relationship Thompson has with Philip Morris was underscored in records connected with his overseas trips.

Thompson wrote a thank-you note to Philip Morris Midwest lobbyist Jack Lenzi, who was on the Australian trip, for a scuba diving outing. "I am especially grateful you agreed to take the scuba diving plunge with me," he wrote. "You were definitely the star of the group."

Thompson also expressed his gratitude to Whist after the African trip. In a Dec. 26, 1995, letter to the Philip Morris senior vice president, Thompson called the trip "the experience of a lifetime" and closed by saying: "I value your loyalty and friendship and look forward to sharing many more great meals and exchanging many more unbelievable stories with you in the future . . . I eagerly anticipate our next adventure together—maybe it will be Australia."

It was—less than six months later.

Thompson and Whist have stressed that no lobbying took place on the trips or in phone calls that Thompson placed to Whist’s office at Philip Morris’ New York headquarters. Whist said his work for the non-profit groups was separate from his Philip Morris job. Thompson said he was aware only that the tobacco company had "indirect" involvement with the groups.

But a board member for the New York Society for International Affairs suggested last week that Philip Morris was intimately involved in the activities of his organization and the America-European Community Association.

"I think the (New York Society’s) budget was quite modest, and I suppose any deficits were covered by Philip Morris," said Ingo Walter, vice chairman of the society and a former consultant to Philip Morris. "I’ve viewed the whole thing as one of the company’s high-quality PR efforts."