041041 Wal-Mart, Tyson Foods Open Campaign Wallets

Washington, DC - The two largest corporations in Northwest Arkansas have spent hundreds of thousands of dollars on political contributions, aimed largely at dozens of federal lawmakers who have the power to help or hurt the companies' bottom lines.

Wal-Mart Stores, Inc., and Tyson Foods, Inc., have directed donations through their political action committees (PACs) to members of Congress who sit on panels with jurisdiction over agriculture, banking, trade, taxes and commerce.

Tyson Foods, the Springdale-based meat and poultry giant, distributed $65,146, or one-third of its $202,063 in PAC donations, to campaigns or committees affiliated with members of the House and Senate agriculture committees, according to an analysis of 2003 and 2004 campaign finance reports filed with the Federal Election Commission.

Wal-Mart gave $165,500 to campaigns or committees affiliated with members of the powerful House Ways and Means Committee, which handles corporate tax and trade bills.

The Bentonville-based retailer also gave $225,000 to members of the House Committee on Financial Services, and $165,000 to lawmakers on the House Committee on Energy and Commerce.

Targeted company donations are not uncommon, said Candice Nelson, director of the Campaign Management Institute at American University.

"PACs typically give to members of committees that have jurisdiction over issues that they care about," Nelson said. "They give money to gain access. So if there is an issue before Congress or before the committee, they can get the ear of a member of the committee."

Larry Noble, executive director of the Center for Responsive Politics, said lawmakers are singled out "in recognition of the fact that committees are where a lot of the action takes place."

Noble said that money invariably buys access.

"These companies are very bottom line-oriented," Noble said. "If they didn't think this was helping their business, they wouldn't put the work into it. Often the legislation that they can influence is worth millions of dollars if not more to these companies."

Art English, a political science professor at the University of Arkansas at Little Rock, said the contributions raise the issue of whether monied corporations enjoy special privileges from lawmakers that are unavailable to regular citizens.

"The American public perceives, generally speaking, those relationships as too cozy," English said.

Jay Allen, Wal-Mart's senior vice president of corporate affairs, said donations are a normal course and Wal-Mart owes it to shareholders, employees and customers to be involved in the political process. No quid pro quo is involved, he said.

"If you don't have a seat at the table, you're probably not going to like the meal," said Allen, who is treasurer of the company's PAC, called the Wal-Mart Stores, Inc., PAC for Responsible Government.

"You have to be there to represent your interests," he said. "Nobody else will and we learned that."

Tyson Foods and Wal-Mart are among a handful of Arkansas companies to run PACs that have donated large sums to political candidates and committees leading to Election Day on Nov. 2.

The state's largest contributors also include Stephens Group, Inc., the Little-Rock investment firm (and parent of Stephens Media), which gave $364,349, and New Orleans-based utility holding company Entergy Corp., which gave $273,627, according to the Center for Responsive Politics. The center grouped donations from the companies' PACs, executives, employees and their immediate families in compiling the totals.

Tyson Foods gave $24,500 to nine lawmakers of the 21-member Senate Agriculture, Nutrition and Forestry Committee in the 2003-2004 election cycle. The company gave $40,646 to 24 members of the 49-member House Committee on Agriculture, with chairman Rep. Bob Goodlatte, R-Va., securing $5,000.

The agriculture committees handle issues such as mad cow disease, country-of- origin labeling, child-nutrition programs and others of significance to Tyson Foods.

Tyson Foods also has supported home-state incumbents in Congress. Sen. Blanche Lincoln, D-Ark., received an $8,000 campaign donation and an additional $2,500 for her leadership PAC. Rep. John Boozman, R-Rogers, got $5,500, while Rep. Mike Ross, D-Prescott, received $4,000 and Rep. Marion Berry, D-Gillett, got $5,000.

PACs can give up to $5,000 to individual candidates in a primary and then again in a general election. PACs also can give $15,000 annually to a national party committee, and $5,000 annually to another PAC, a state or local party or other political committee.

In all, the Tyson Foods PAC, called TYPAC, distributed $202,063 to more than 100 candidates and committees, up from $138,000 in the 2002 elections.

Some 65% of Tyson Foods donations went to Republicans in 2003 and 2004, according to federal records.

"We contribute to people who have demonstrated an interest in the company and a willingness to listen to our concerns about issues that arise," said Archie Schaffer, Tyson Foods senior vice president of external relations. "We do it to support the government process and to be able to have a voice about the decisions that are made that affect our company."

Wal-Mart donates to candidates who favor a "pro-business" agenda, Allen said.

"We are supportive of incumbents and people that are generally appreciative of the role business plays in the country and open to discussing those issues," Allen said.

Funded by Wal-Mart management, the PAC distributed 77% of its donations to Republicans over the last two years, with the bulk of funds going to incumbents.

Donations for this election have gone to 29 of the 41 members of the House Ways and Means Committee, with $165,500 directed at 20 Republicans and nine Democrats.

The retailer also gave $165,000 to the campaigns or committees affiliated with 29 members of the 57-member House Committee on Energy and Commerce, including donations totaling $10,000 to committee chairman Rep. Joe Barton, R-Texas.

The committee has jurisdiction over interstate and foreign commerce, consumer protections, public health, and food and drug safety.

Wal-Mart also donated $225,000 to 34 members of the 70-member House Committee on Financial Services, which oversees the securities, insurance and banking industries.

The committee chairman Rep. Michael Oxley, R-Ohio, received $8,500 in contributions from Wal-Mart. A leadership PAC he operates got another $7,500.

On the Senate side, Wal-Mart gave $98,000 to the campaigns or committees affiliated with 11 members of the 21-member Senate Committee on Finance, which addresses such issues as Medicare and taxes. Seven of the 11 recipients were Republicans.

Campaigns or committees affiliated with 10 of the 21 members of the Senate Committee on Banking, Housing and Urban Affairs received $67,500 in donations.

After years of sitting on the sidelines, Wal-Mart has emerged as one of the country's largest corporate contributors.

The retail giant has given nearly $2.1 million to candidates through its PAC, nearly double the $1.3 million donated in the 2002 cycle and more than triple the $576,050 donated in 2000.

Like Tyson, Wal-Mart also gives to Arkansas lawmakers. Lincoln's campaign got $4,000 in contributions while her leadership PAC got $10,000. Sen. Mark Pryor, D-Ark., received a $1,000 donation. Boozman, Ross, Berry and Rep. Vic Snyder, D-Little Rock, each got the maximum $10,000.

"We need an effective PAC to be effective in Washington today," said Allen, noting that the PAC is one facet of a growing government-relations program that includes six lobbyists working in Washington.

Wal-Mart, which employs 1.5 million people worldwide, is affected by a host of issues pending in Congress ranging from trade and health care to labor and taxes, Allen said.

"We've learned that its expected that we're there because of our scope and visibility," he said. "We're the leading employer in a number of states, not to mention the country."

Allen noted that Wal-Mart receives solicitations from lawmakers "all the time."

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