The Hundred Million Dollar Payoff
Steinberg, Arnold
"The Hundred Million Dollar Payoff" UNION MEMBERS MAY soon happen upon an unlikely hero, a man who does not fit the traditional image of a labor leader. Douglas Caddy is not a union leader. He is not even a union member. Rather, he is...
...instead, they assign their paid full-time political operatives to counsel, and even work actively in, their priority campaigns...
...That is, labor unions contribute only limited amounts of cash...
...The process would put any corporate manipulator to shame...
...Indeed, another book could be written on this intriguing subject—a comparison of the views of rank-and-file and the voting •records of elected officials supported by their unions...
...But he has written a fascinating book, which is essential, if difficult, reading for the would-be political reformer, and for union members concerned about the use of their dues money...
...Caddy's book provides a powerful prima facie case for the Departmentof Justice to seek indictments and prosecutions of those union leaders who have violated the Federal Corrupt Practices Act (now the Fair Elections Campaign Act of 1971), though the author is skeptical of the ability of the Department of Justice to initiate a thorough investigation and prosecution of the guilty parties...
...The list includes major political figures, among them some of the self-righteous members of the Watergate panel, like Senator Joseph Montoya (Dem.–New Mexico...
...It heavily emphasizes contributions "in-kind" rather than in cash...
...Caddy cannot be faulted for his limited treatment of issues and union member sentiment on those issues...
...A small coterie of chieftains decides how this massive political fund shall be disbursed—via the "goods and services" i.e., in-kind contributions, route...
...Caddy, however, does more than present a • detailed and lucid brief documenting significant labor union violations of federal election laws...
...Most rank - and- file are concerned about the social issues (e.g., crime, drugs, youth and campus unrest, pornography...
...The title of the book alludes to Victor Reisel's financial estimate of labor's political muscle for financing federal elections...
...Meanwhile, the individual union member, surely no match for his powerful union and its battery of attorneys, must acquiesce in the use of his resources for the support of candidates he has not selected...
...Caddy, however, directed his attention to an area of abuse long ignored by the media (and by the Watergate committee)—violations of federal campaign law by leaders of organized labor...
...foremost among them is his plea for a new special prosecutor to oversee the investigation...
...Yet union-supported candidates are among the big spenders in Congress—the advocates of precisely the kind of deficit financing which induces inflation...
...instead, they have become political machines, fueled by compulsory dues money from members...
...Caddy not only succeeds, but his examples depict a disturbing pattern—the labor unions have given illegal contributions to the chairmen and a majority of the membership of both committees in Congress with jurisdiction over labor union activities...
...Unions can also allocate their resources in other ways, including the provision of mobile loudspeaker trucks, organization of a registration and /or get-out-the-vote drive for the campaign, printing of posters, brochures and other materials, use of union halls for political meetings, etc...
...Otherwise, organized labor's political strategists may succeed in getting a "veto-proof" Congress—two thirds of the elected Senators and Congressmen beholden to organized labor...
...Caddy believes that unions have abandoned their traditional function of collective bargaining...
...Caddy relies primarily on union publications and documents (obtained from the public record) to explain precisely how unions support their favored candidates for federal office...
...The Hundred Million Dollar Payoff is the result of an investigation into campaign abuse which Caddy started after resigning from the Watergate case, in dismay at some of his clients' requests and practices...
...Although the book is sub-titled "How Big Labor Buys its Democrats," Caddy also takes on Republicans...
...Hopefully, many Americans will read the Caddy book before November...
...In the third section of his book, he proposes a number of remedies...
...Many of our most vociferous reformist Senators, like Sen...
...However, the union leaders support Democrats by a twenty-to-one margin, so most of the elected officials involved are Democrats...
...The results, based on my own study of organized labor's current favorites in Congress, would be catastrophic...
...John Pastore (Dem.–Rhode Island), limit their zeal to the prosecution of fat cats and corporate executives...
...Arnold Steinberg...
...It is their selective opposition to illegal campaign contributions which disturbs Caddy...
...Or consider the inflation issue, a source of profound concern among rank-and-file...
...Yet most liberal candidates and elected officials supported by the unions are soft on these issues, and generally weak in the entire area...
...Rather, he is a young Washington lawyer who served as the original attorney for the Watergate seven...
...The purpose of his book is to document a compelling legal case against the labor union leaders who violate federal law...
...Plenty of surveys are available to indicate the conclusions such a book might reach...
...Does the average man or woman who belongs to a labor union really want a strbnger federal government, higher federal spending, more inflation, and a squishy-soft law and order posture...
...He draws a distinction between the practices of union leaders and the views of most union members, and indicates that the candidates chosen by the union chiefs are not necessarily those preferred by the members who supply the funds to support union political operations...
Vol. 8 • October 1974 • No. 1
