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Semerjian:
Ladies and gentlemen, may I have your attention, please.
Annoucer:
Moderator Evan Semerjian has just called tonight's meeting to order.
Semerjian:
Good evening, and welcome to The Advocates. Tonight's program focuses on the role that money plays or should play in political campaigns, and specifically our question is this: Should the federal government subsidize political campaigns and limit individual contributions? Advocate Allard Lowenstein says, "yes." Mr. Lowenstein?
Lowenstein:
I think everyone knows that at the heart of democracy are elections. And if elections become corrupted, then democracy is in bad shape. Tonight, to discuss two major efforts to change the corruption that everyone now realizes has eaten away at our democracy, we have two of the most committed fighters in Congress for fair elections, two of the most honest men there, Congressman Anderson of Illinois and Senator Biden of Delaware.
Semerjian:
Thank you. Advocate Tom Bourdeaux says, "no." Mr. Bourdeaux.
Bourdeaux:
Any proposal to subsidize campaigns and limit contributions—and there are many such bills lurking in the wings of Congress—are not only ineffective but dangerous. To support the structure of our political process, I have with me tonight George Webster, a Washington attorney who represents many trade and business associations, and David Wilson, a columnist for the Boston Globe.
Semerjian:
Thank you, gentlemen. Now, tonight we welcome two new advocates. Allard Lowenstein is an attorney from New York, who served one term as a Congressman from Long Island district from 1968 to 1970. He is now a member of the Democratic National Committee. And Thomas Bourdeaux is an attorney from Mississippi and was President of that state's Defense Lawyers Association. He is a member of the American College of Trial Lawyers. We'll be back to these gentlemen for their cases in a moment, but first this word of background on tonight's question.
Perhaps more than any election campaign in the history of our democracy, the 1972 Presidential election and Watergate related scandals have raised concern over how we elect public officials. Since then, more than seventy bills have been introduced in Congress to reform various aspects of election procedures. These bills raise several essential questions. Should the federal government subsidize in full, or in part, the cost of campaigns for federal office? Should private contributions be abolished or limited? And should there be an absolute ceiling on campaign expenditures? Tonight our debate will focus on the principles underlying one of these bills introduced by Congressman Morris Udall of Arizona and John Anderson of Illinois. It provides a limitation on contributions by individuals or organizations: $1,000 for any Congressional or Senate race and $2,500 for a Presidential campaign. There would be no limit, however, on the total amount any candidate could spend. This Anderson-Udall bill calls for federal subsidy, using taxpayers' money to match contributions of up to $100. It would be limited, however, to a sum of 10$ per eligible voter for every candidate in any election year. The merits of these principles—limitations on individual contributions and a partial government subsidy—are what we will be concerned with tonight. Current laws governing elections prevent unions or corporations from contributing to campaigns, although officers are allowed to give in their own name. Current laws also place a limit on how much candidates can spend for television or newspaper advertising, a limit on how much they or their families can contribute, and they require disclosure of contributions over $100. And now to the cases. Mr. Lowenstein, why should the federal government subsidize political campaigns and limit individual contributions?
Lowenstein:
Well, if you were to set out to create a country in which you would have one man-one vote, free speech guaranteed to everybody, and then you'd have candidacies in which one side would be able to spend $22,000,000 and the other side $500,000, you'd realize that that kind of democracy was a hoax. Nobody would even argue about it. Yet those instances in our society have become frequent, and the fact that they don't always occur doesn't mean that they're right when they do occur. What we're proposing tonight is that there be a way in which everybody, even if they are not born rich, have a fair chance to be elected to public office. Today in the United States 90% of the political contributions come from 1% of the population. What we hope we can do is to amend the law so that there will be a guarantee that people will have access to funds so they can run if they have enough support to merit it, and then to put a limit on how much any one individual can give so nobody can purchase through wealth an undue share in the decision-making process. To start the testimony for the evening, I call Senator Biden of Delaware.
Semerjian:
Senator Biden, welcome to The Advocates.
Biden:
Thank you. Good to be here.
Lowenstein:
Senator Biden, it's nice to have you here, as the youngest member of the Senate, the one, therefore, who may expect the longest career there. I wonder if you'd say to us, since it's clear you're not corrupt, and you got elected, why should people think that the system produces corrupt results when there you are?
Biden:
Well, I'm not sure you should assume I'm not corrupt, but I thank you for that. The system does produce corruption—I think implicit in the system is corruption. In fact, whether or not you can run for public office—and it costs a great deal of money to run for the United States Senate, even for a small state like Delaware—you have to go to those people who have money. They always want something.
Lowenstein:
Well, I wonder whether you would feel that there's some virtue in forcing candidates to go out and try to raise money. I've heard people—probably people who didn't run for office—say that it's uplifting to go out and try to get money. Do you think that there's something un-uplifting about putting a limit to how much you can ask one man to give you?
Biden:
I think it's the most degrading experience in the world to have to go out and ask for money because you know that unless you accidentally agree with the position taken by the person or group that has the money, that you run the risk of deciding whether or not you're going to prostitute yourself to give the answer you know they want to hear in order to get funded to run for that office. And it's coincidental in many instances when in fact you happen to agree with where they are, and you run the risk, by the way, of rationalizing, of saying, "Well, if I compromise on this one—give them one—I get ninety percent of what I want, and I don't have to give in too much."
Lowenstein:
So you feel it's a difficult temptation not only for the candidate, not only for people who give the money, but for the people trying to raise it.
Biden:
Well, you know, we were told that we politicians, as the young kids say, rip off the American public. I think the American public in a way rips off we politicians by forcing us to run the way they do. To raise $300,000 is no mean feat, and unless you happen to be some sort of anomaly like myself, being a twenty-nine year old candidate, who can attract some attention beyond your own state, it's very difficult to raise that money from a large group of people.
Lowenstein:
Well now, some people who agree with the problem—or our definition of the problem—turn around and say, "If you just have full disclosure, that would solve it." Do you think that would have a major effect on the problems you're describing?
Biden:
I think full disclosure is essential. We have that now, allegedly, but that's not going to get to the question of how you have to raise the money and the influence of those who come forward with the money, whether they be a labor union or a corporate executive.
Lowenstein:
Well, if we put a limit on what individuals can give, and if we have public assistance for candidates, do you think that would work, as someone suggested, to make incumbency even more powerful, that there would be no way, then, that challengers could succeed?
Biden:
No, I don't, but I do think you run the risk, in limiting the amount that can he spent, of continuing the tyranny of the incumbent. For example, I'm on this show for one reason: I'm an incumbent United States Senator. Were this an election year, this would be, allegedly, votes for me back home. A challenger of mine would have to pay a great deal of money to get this kind of TV time. We have a lot going for us when we're incumbents, and we use it.
Lowenstein:
Well, but this process that we're suggesting tonight, in your view, would not make it more difficult for people to challenge incumbents.
Biden:
Absolutely not. As long as you have a bill like the Anderson bill which doesn't limit the amount that can be spent, but limits the amount that an individual can contribute, and that way you further broaden the process, further broaden the participation, because why does a guy want to give $50 when he knows Clement Stone is giving $7,000,000? What influence is his $50 going to have?
Lowenstein:
Now, you might say, what makes it clear that a person is more effective at raising funds if he happens to know one man who can give him a million, while someone else may know a hundred who can give $100 each? That problem of access to money, rich people tend to know rich people. Would you say that's a fair statement?
Biden:
I think that's correct, and those who aren't rich tend to move toward people who have ideas that can raise a lot of money.
Lowenstein:
And in the present atmosphere would you say that with Watergate that we're reacting hysterically to this problem?
Semerjian:
Make this very brief.
Biden:
I don't think so at all. I think this is the single most important issue that can be resolved by this Congress, to clean up the process.
Semerjian:
All right, I'm sorry. Let's go to Mr. Bourdeaux. I think he's eager to ask you some questions,
Bourdeaux:
Senator, I know that you said that it was degrading to go out and raise money. Does this mean that you are not in favor of the Anderson bill, which does permit contributions up to $1,000?
Biden:
No, it doesn't. I think it's degrading to have to go out and know that that is your only source of money, when the man you're talking to, for example, knows that, in fact, he's the only means by which you can even begin to run for office . . .
Bourdeaux:
But are you in favor of the Anderson bill?
Biden:
Yes, I am in favor of the Anderson bill.
Bourdeaux:
All right. Now, let me ask you this question. The Anderson bill provides a $1,000 limitation on contributions. Is—are you saying that going out and asking for $1,500 is degrading?
Biden:
No, I think you missed the point, or else I haven't made the point properly. If, in fact, you know that the only way you can raise any money to get to run for public office is to go to vested interest groups, then, in fact, you're put in the position that you have to begin to wonder whether or not you prostitute the ideas that you have about government in order to get the money to begin to run.
Bourdeaux:
Of course you've had recent experience with this, having been elected in 1972.
Biden:
That's correct.
Bourdeaux:
And I believe that you just said that your campaign cost some $300,000.
Biden:
$276,000.
Bourdeaux:
All right, sir, and you raised that money by public contributions, did you not?
Biden:
That's correct.
Bourdeaux:
And you raised that money in a race against an incumbent, did you not?
Biden:
That's correct.
Bourdeaux:
Yes, and Senator, I'm sure that you would agree that your service in the Senate up to this point has not reflected any particular concern for the larger contributors.
Biden:
Well, the fortunate thing is that I didn't have many larger contributors and the only reason…See, I went to the big guys for the money. I was ready to prostitute myself in the manner in which I talk about it, but what happened was they said, "Come back when you're forty, son." And so I had to go out . . . so I had to go to a number of small contributors.
Bourdeaux:
Well, I think we all are grateful, son, that you didn't take no for an answer. Now, in this Anderson bill there's a provision for the federal government to match, dollar for dollar, contributions, small contributions up to $100, is that correct?
Biden:
I believe so.
Bourdeaux:
So that means that federal tax moneys are going to be used in political campaigns in Delaware, or Illinois, or Mississippi, or wherever. Is that correct?
Biden:
That's correct.
Bourdeaux:
Now, Senator, isn't it the history of this country that federal control follows federal money? A recent example: Didn't the President decide it was expedient to have a 55 mile an hour speed limit on all the highways, and didn't he get the Congress to pass a bill that says to a state that "You get no more federal money unless you pass a 55 mile an hour speed limit"?
Biden:
Can't blame it all on the President, but yes, he did.
Bourdeaux:
Well, but, and the fact is that in any instance where federal money goes into any given area, there is federal control as to how that money is going to be spent.
Biden:
There is federal control right now, sir, in exactly how the money can be spent, what manner in which it can be raised. The only question is whether or not there will be taxpayers' money involved directly-
Bourdeaux:
Who is going to exercise the control over the spending of this taxpayers' money?
Biden:
The control will be exercised by, as you point out, the federal government In terms of whether or not the means of distribution—in terms of how it can be spent, whether or not you can buy a balloon or a billboard with that money, there is no control in this legislation or any that I am aware of.
Bourdeaux:
That is correct, but doesn't history tell us that ultimately there will be that control?
Biden:
Well, that sort of smacks at the argument always heard about civil rights. You know, once we get into that field, we . . . You know, that foot-in-the-door argument that you're making applies to just about every means of legislation, every particular piece of legislation, that we pass.
Bourdeaux:
Well now. Senator, I haven't been in many political campaigns, but . . .
Biden:
Neither have I.
Bourdeaux:
. . . the few I have been in, there's always somebody that comes up with what I call a damn fool idea. Now . . .
Biden:
I've got to say the same.
Bourdeaux:
You going to have any protection in these bills against the "damn fool" factor?
Biden:
No, I think that's human nature. There are an awful lot of damn fools in the Congress and the Senate and those who want to get there. There's no way you can legislate against that.
Bourdeaux:
Right. But you think in the long run the American people are going to put up with their money being squandered on all sorts of wild political notions.
Biden:
The question is, how long is the American public going to put up with a small group of men and organizations determining the political process by deciding who can run and who can't run.
Bourdeaux:
But, Senator, aren't you a living example of the way...
Biden:
I'm an anachronism. I'm a twenty-nine year old oddball. The only reason I was able to raise the money is that I was able to have a national constituency to run for office, because I was twenty-nine. I'm like the token black or the token woman. I was the token young person.
Bourdeaux:
We're talking about this national constituency . . . some of the money . . .
Biden:
That's not an announcement for office, by the way.
Semerjian:
I'm going to have to interrupt here. Let's go back to Mr. Lowenstein for a question.
Lowenstein:
I just wondered. Mr. Bourdeaux seems worried about that $1,000 limit. If Mr. Bourdeaux would agree to support our principle, would you agree to go to a $1,500 limit?
Biden:
I'd agree to go to a $3,000 limit, which is a bill that I, in fact, co-sponsored. When I said I'd support Congressman Anderson's bill, I do; it's better than what we have now. I'd like to see some slight amendments to it, but I think the principle has to be adopted.
Semerjian:
All right, let's come back to you, Mr. Bourdeaux.
Bourdeaux:
Senator, aren't there some First Amendment problems in telling somebody that you can't give but $1,000 to a campaign?
Biden:
Quite frankly, I think there are, but we've already in the Federal Corrupt Practices Act broached that question, and if, in fact, we agree that it's legal to do what we're doing now, and that does not violate the First Amendment, it seems to me this is a natural transition, and if we haven't violated them now, I don't think we'll violate them with this legislation.
Semerjian:
Well, let's see if I understand you. As an example of the First Amendment question, if, let's say, I give $1,000 to a candidate of my choice, I take it I am limited, under this bill, from giving any more, is that right?
Biden:
That would be correct.
Semerjian:
And if something happened during the campaign that I wanted to speak out on and spend some money to put a newspaper ad in, I couldn't do that, isn't that right?
Biden:
That is correct.
Semerjian:
And I take it that's what you mean, isn't it, by the restraint?
Bourdeaux:
Absolutely.
Biden:
There are similar restraints that exist now, though, in terms of how we can spend our money. For example, we say now you can only spend up to a certain percentage, 10% per capita on media, 6% of that on television. I mean, we've already restricted it in that regard.
Bourdeaux:
But there are no statutory restraints on the amount of giving by an individual at this time, are there?
Biden:
No, there are not, but I fail to see the distinction between the amount and the means, but there may be, I . . .
Semerjian:
Well, Senator Biden, I want to thank you very much for being with us tonight.
Biden:
Thank you for having me.
Lowenstein:
I call now Congressman Anderson of Illinois, Chairman of the House Republican Conference.
Semerjian:
Congressman, welcome to The Advocates.
Anderson:
Thank you.
Lowenstein:
This is probably the grandest coalition since the Christian Democrats and Socialists were together in Bonn. I'm so glad that you're here. Congressman Anderson, because you're recognized as one of the great spokesmen for fiscal conservatism in the House of Representatives. How come you feel it's worth using taxpayers' money to finance public campaigns?
Anderson:
Well, actually, Mr. Lowenstein, we're talking about a relatively small amount of money. Based on 1972 figures, the average subsidy under my bill would be about $25,000 in the case of a Congressional campaign. There wore about 850 serious candidates for the Congress in 1972; that means we're talking about $21,000,000 to partially subsidize the campaigns for Congress in this country. Now, if you throw in the Senate campaigns and the Presidential race, you might get up to an overall figure of about $125,000,000. That's far less than the advertising budget for almost any major corporation in this country. We're talking about a very small sum in relation to the very important job that we've got to do, namely to try to cleanse the political process of the influence of too much money and big money coming from special interest groups.
Lowenstein:
But aren't you worried about what Mr. Bourdeaux calls the "damn fool factor," that every loose nut in the country would start running for office to get his share of the loot?
Anderson:
Well, in the first place, of course, our bill makes some provision for this by providing for a threshold amount. A candidate would have to raise $1,000 on his own—as a candidate for Congress, he would have to raise $1,000 on his own before he could begin to match from this federal matching entitlement fund. So I think this is going to screen out some of the obvious kooks who might otherwise be tempted to run just to see whether they can get some federal money. But, you know, I'm not nearly as alarmed about the kooks or the nuts who might be enticed into becoming a part of the political process as I am about the present situation, the fact that I think the evidence is overwhelming that there is corruption in the political process when we leave candidates at the mercy of a system where it's big money that speaks.
Lowenstein:
Is there a problem from your point of view that rich people will be denied their right to contribute all the money they want? Do you think that's a violation of some sound conservative doctrine that we ought to be worried about?
Anderson:
Well, frankly, I don't think that rich people ought to have a disproportionate voice in the political process. Merely because a man was born wealthy, or was able to make a fortune, doesn't mean that he ought to be able to that extent have a greater voice in the election of candidates any more than when we decided a few years ago on the one man-one vote principle, that we don't want weighted voting in this country. Every man's vote ought to be entitled to the same weight. I think the same principle applies in the field of the financing of political campaigns.
Lowenstein:
Of course, Vice President, at least in his post-felonious period has come to that conclusion also, so maybe it isn't an ideological question. I wonder if you'd develop for a moment the problem that may arise if funding is given on an basis that is open to everybody in terms of whether that means that incumbents will in fact gain great advantages. Senator Biden talked about that, but you're an expert also in a district where there has not been too much of a competition for you. What are your experiences along those lines?
Anderson:
Well, quite to the contrary, I think under the present system we have what might be called an incumbent security system. Any analysis of recent elections will show that about 93% of the members of Congress were re-elected, in 1972 over 901 of the incumbents were re-elected. Over half of the members of Congress were re-elected by margins of more than 60% of the vote. There were 12% of the contests in this country where they didn't even slate an opposition. I think incumbents do have an overwhelming advantage today, and the only way to redress that imbalance, to give the challenger a chance, to make our elections more competitive, is, I think, to try a mixed system of public and private financing, to let that fellow who wants to challenge an incumbent go out and raise his money in small amounts of $100 or less and then go to a federal fund and have that matched by an equal amount. Then I think he has some crack at the political process that today he has been denied.
Semerjian:
All right, thanks, Mr. Lowenstein. Let's go now to Mr. Bourdeaux.
Bourdeaux:
Congressman Anderson, you're not really advocating that all the rascals be turned out in 1974, are you?
Anderson:
Well, I'd like to make at least one exception to that general rule myself. No, I'm not suggesting there is anything wrong with being an incumbent. I'm not suggesting that all incumbents are venal. I do think that, given the statistics that I quoted to Mr. Lowenstein that our political process today is really less than as competitive as it should be.
Bourdeaux:
And the purpose of your bill is to try to equalize things. Is that not correct?
Anderson:
I think it would serve partially, I think, not completely. There are some advantages of incumbency, as Senator Biden pointed out, that are there like Mount Everest is there, they can't be removed. I don't think you're ever going to completely get a situation where everybody is on the identical plane.
Bourdeaux:
The way you are going to try to equalize things is by providing some matching funds from the federal government for people who get out and raise $100 from their sources.
Anderson:
Yes.
Bourdeaux:
That's correct.
Anderson:
Yes.
Bourdeaux:
I believe you already said that it's easier for an incumbent to raise money. Isn't that true? That's one of the advantages he has.
Anderson:
I think that to some extent that is true.
Bourdeaux:
So there are going to be more matching funds available to that incumbent than there would be to the challenger.
Anderson:
No, I don't think so for this reason: that I think that the advantage that the incumbent enjoys in raising funds all too often comes from special interest groups who contribute more than $100, who may contribute $1,000 or more. It's the challenger . . .
Bourdeaux:
But if they contribute more than $1,000, they'd be a crook under this bill, wouldn't they?
Anderson:
It would be violating the limits of the bill, that's true. But to go back to my point if I may, Mr. Bourdeaux, I think that the challenger, the fellow who's less known in the district, who hasn't served the district and therefore built up the whole network of contacts that the incumbent has, he, to a greater extent, I think, is going to be able to interest the relatively small contributor in putting some money on his candidacy and promoting his cause. So, I think that although there is some imbalance inevitably, and I wouldn't deny that. I think that under my bill, the bill that Congressman Udall and I and 140 others have co-sponsored in the House, that challenger would have a better chance than he has today.
Bourdeaux:
But there's nothing in the bill that's going to give that challenger more money to offset some of these built-in advantages that an incumbent has, is there?
Anderson:
I'm not sure that I read your question entirely accurately. I can only repeat that your…
Bourdeaux:
Let me make myself clear. There's nothing in the bill that says that a challenger is going to get $200 for every $100.
Anderson:
No, he would be limited to the same matching formula that the incumbent would have.
Bourdeaux:
Now, Congressman Anderson, your theory is that by limiting contributions and by providing this federal subsidy, that you are really going to get more folks interested in the political process. Is that not true?
Anderson:
Well, the statistics, I think, show that only about 6% of the American people today ever donate to a political campaign, whereas about 35% of them would give if they were asked.
Bourdeaux:
But your purpose is to attract more people to the political game.
Anderson:
And I think that this would provide the incentive. If a candidate knew that he could have those small contributions of $100 or less matched from a federal fund, he would have added incentive to go out and raise that money from more people in small amounts, thereby involving a greater number of people in the political process.
Bourdeaux:
But, Congressman, isn't it true that in Puerto Rico, for example, where they have tried the full subsidy of elections, that there has been a decrease in citizen participation rather than an increase?
Anderson:
That could well be, and I am not for total public financing of political campaigns. I think to totally divorce the candidate from the necessity of going out to the grassroots and interesting people in his campaign to the point where they're willing to contribute money would be bad. I'm not advocating total public financing. Rather, what I would describe as a judicious blend, or mix, of public and private money.
Bourdeaux:
But, Congressman, isn't it true that if we take the first bite of the apple, we're ultimately going to eat the whole thing?
Anderson:
Well, I suppose your question assumes that if we go to this system, that ultimately it will be total public financing. I don't think that . . .
Bourdeaux:
I guess that's just like being a little bit pregnant, isn't it?
Anderson:
I don't think that totally follows at all. And I think the analogy is not particularly apropos, and I just believe that this system would involve more people, give the challenger a better chance and be far more satisfactory than the present system, which I think has been proven to be corrupt.
Semerjian:
Let me ask you a question, Congressman. In the bill there are ceilings of $2,500 for Presidential campaigns and $1,000 for Congressional campaigns, isn't that right?
Anderson:
Yes, sir.
Semerjian:
What was the reason for choosing those figures rather than something else?
Anderson:
Well, frankly, any limitations, I suppose, have a tendency to be somewhat arbitrary, and, as Senator Biden said, I'm not going to be absolutely rigid about that. If somebody wants to amend that and make it a somewhat higher figure, I suppose that I would agree. But the fact is in the last campaign we had contributions ranging up to a million dollars. I think I'm correct that at least one person gave a million dollars. I'm not suggesting that he did that with any venal motives, but I think inevitably the taint of suspicion has to attach itself to a gift of that size, that that person somehow is going to have a disproportionate influence on the political process.
Semerjian:
All right, excuse me. Let's go back to Mr. Lowenstein.
Lowenstein:
Congressman, isn't the central point of a matching proposal that the federal government only matches contributions up to $100, which means that small contributions double and larger ones don't?
Anderson:
Exactly. There is no matching for any contribution over $100.
Semerjian:
All right, Mr. Bourdeaux.
Bourdeaux:
You mentioned something about a million dollar contribution. Under a full and complete disclosure program, the voters would know that this candidate got a million dollars from somebody, wouldn't they?
Anderson:
Theoretically that's true. Unfortunately, however, under the present Campaign Finance Act that we passed in 1971 became effective April 7th of 1972. There are literally tons, I suppose, of those reports lodged in the Clerk's office, the Secretary of the Senate's office, and they really don't have the kind of expertise, or the kind of experience, to deal with those reports and get that information out to the public, so I don't think that just reporting things is enough. I think we've got to have an absolute limit.
Bourdeaux:
But that bill could be amended to make the reporting more specific and more definite, couldn't it?
Anderson:
Well . . .
Bourdeaux:
And then, Congressman, once that reporting is made full and complete, isn't it the right of every man to vote for the guy that takes on a million dollars if he wants to?
Anderson:
No, I don't think so. I think, again, that to give any person that disproportionate degree of influence, because you'll never convince me, and I'm a politician, have been for fourteen years, you're never going to convince me that a politician isn't going to listen a little bit more closely, a little bit more attentively, to the voice of that person who has given a million dollars than somebody who has given a very innocuous sum.
Semerjian:
All right. Congressman, I want to thank you very much for being with us tonight.
Anderson:
Thank you.
Semerjian:
Mr. Lowenstein.
Lowenstein:
I think the simple truth is that the fundamental corruption that we're dealing with is not even touched by disclosure because the fundamental corruption has to do with the fact that if you want to run for office and you're not rich, with costs soaring, with population soaring, you can't do it, and therefore you eliminate as candidates an enormous number of very qualified people if you don't make public funding possible as part of the process of running for office. And so I hope that we understand that unless we substitute for our national credo of one man-one vote a notion of one dollar-one vote, we better get around to doing some public funding.
Semerjian:
Okay, thank you. For those of you in our audience who may have joined us late, Mr. Lowenstein and his witnesses have just presented the case in favor of the federal government subsidizing political campaigns and limiting individual contributions. And now for the case against, Mr. Bourdeaux, the floor is yours.
Bourdeaux:
Ladies and gentlemen, we contend that tonight's proposal is both ineffective and dangerous. We agree that there is a crisis of confidence in our political process. People are appalled at what they've been seeing and hearing, and they are fearful of what they are going to be exposed to next. Something must be done to restore confidence, to stir the voters out of their apathy and their indifference that we all sense today. The trouble with Mr. Lowenstein's approach is that it doesn't really reach the real problem. Instead, subsidizing a campaign with tax dollars attacks the very structure of our political process. The idea of limiting campaign contributions makes the outrageous assumption that there is a price tag on corruption, and it will certainly make worse some of the problems it seeks to correct. These problems are real enough. There are people in and out of government who are dishonest. Let's prosecute them and convict them. There are illegal and secret contributions. Let's expose them. But let us not abandon confidence in the American people to make sound decisions when they have the facts. We all have the right to express ourselves politically within the law to any degree that we choose. We have the right also to resist supporting with our tax dollars the candidacies of people that we don't agree with. To speak to the real problems of money in politics, I call Mr. George Webster.
Semerjian:
Mr. Webster, welcome to The Advocates.
Bourdeaux:
Mr. Webster is a practicing attorney in Washington, D.C. He represents many trade and business associations in their dealings with government. Mr. Webster, the allegation has been made by the proponents of the Anderson bill that special interest groups get things done in Washington by making contributions during campaigns. You've been there for a long time representing various groups. Tell us how you do get things done in Washington.
Webster:
Mr. Bourdeaux, let me say this. Making contributions is not the way to get things done in Washington. I've watched it for over twenty years, and business and professional groups, unions, they get things done by doing their homework.
Bourdeaux:
What do you mean by homework?
Webster:
Homework means they do the research, they get the economists, the accountants, the lawyers, the people from business, or unions, or whatever they want, and they make the case, just like you do before a judge down in Mississippi. It's a matter of persuasion, and that's the way things are done in Washington.
Bourdeaux:
Well, now, you'll have to admit, of course, that we do have a problem, a crisis of confidence, in our government, in the integrity of the people that we sent to Washington.
Webster:
Yes, sir, I think that's correct.
Bourdeaux:
Well, what are we going to do about it?
Webster:
I think there are several things. One is not to adopt what I consider a fake bill because this bill would lead you to believe that it would help clean things up. It won't do anything like that. The way to get things done—I was amazed also that a man that I went to law school with, the head of the Watergate Committee, Archibald Cox, didn't prosecute some of those people in Washington that made the corporate contributions, because that's been...
Bourdeaux:
How long have corporate contributions been illegal?
Webster:
Since 1907, and there has not been one person that has ever gone to jail for violating that provision, so if you had some people who were tough and would go down there and prosecute, instead of going down there and making speeches, you would be a lot better off. That's one thing.
Bourdeaux:
What about full disclosure?
Webster:
Full disclosure is something, I think, that does a lot, and I think that if you really have full disclosure, that that would go a long way towards making honesty in elections. And I heard Congressman Anderson say that we didn't really have full disclosure because you'd have to go dig through all those papers. I've read the Mew York Times very carefully, and the Washington Post and the Washington Star during the last couple of years, and they have guys down there every day at the General Accounting Office going through those documents, and if you read those papers carefully, you'll find it has all been reported right in the press.
Bourdeaux:
It has also been said that we need to get government money into these problems, into these campaigns, so that the people who don't have money still have an opportunity to offer themselves for office. What do you say about that?
Webster:
Well, I don't think that makes any difference. Most of the people in public life today started out without a nickel. They started out like all of us. I'm a lawyer, I started out with nothing, I've had to work my way through school, went to law school, and like you, I didn't get clients when I started working, but eventually you have to build yourself up. Fortunately, Senator Biden got to be a Senator at twenty-nine; that's unusual. But ordinarily the guy who's successful in politics, in business, in any profession, it takes a long time. But if you look at the records of almost anybody in Congress or in business today, somebody that really amounted to something, they started out with nothing, and that's the way that the American dream is.
Bourdeaux:
In other words, to be a chief you've first got to be an Indian.
Webster:
That's right. And maybe they don't want to put in the ten years, but most of us have had to put in ten or twenty.
Bourdeaux:
Now, Mr. Webster, this bill says to you and me that we can't make a contribution of more than $1,000 in any one year. Suppose I went down to the bank and borrowed $1,500 and wanted to help out a friend of mine get elected; I'd be a crook, wouldn't I?
Webster:
That's right, under that bill, if it passed.
Bourdeaux:
Are there any Constitutional questions involved in that?
Webster:
Yes, I think that Senator Biden is a very fine man, but he obviously hasn't been reading the cases in the last couple of years he has been in the Senate. There's a case now pending in the United States Supreme Court in which the Court of Appeals in Washington, D.C., the United States Court of Appeals, held that there are many First Amendment violations in the Federal Election Campaign Act of 1971, passed by Mr. Anderson and his colleagues, and that the bill is essentially unconstitutional. That's the American Civil Liberties Union and the New York Times both argue that the bill is unconstitutional in its main aspects. If you read the cases through the years, you will find—and who knows what the Supreme Court will eventually decide—you will find a lot in those cases which indicates that any restraint on freedom of speech in this country is going to be stopped. And I'm frankly shocked—and particularly here in Faneuil Hall—that somebody would suggest that we're going to start down that terrible road of having a restraint on freedom of speech.
Semerjian:
Well, it sounds formidable. Let's go to Mr. Lowenstein. I think he wants to ask you some questions.
Lowenstein:
Mr. Webster, I don't want to get on a sidetrack, but was I dreaming that Mr. Cox was fired by President Nixon for whom you raised funds? Was this not, in fact, occurring in your mind? He should have prosecuted before he was fired, is that your point?
Webster:
I've restricted my comments to the fact that there were a number of people that Mr. Cox apparently found who had made corporate contributions and apparently they started cutting a deal with all those guys, so that only the corporation would be penalized. And I think that somebody ought to go to jail.
Lowenstein:
But don't you think that's part of the reason why he was fired, because he was moving into that? In any case . . .
Webster:
That's not the way I read the newspaper.
Lowenstein:
I wonder why you think Mr. Vesco contributed his suitcases of hundred dollar bills. Was he afflicted with a Santa Claus streak? Was he so generous with his private means that he wanted to give Nixon money even though he wanted no influence?
Webster:
I think people outside of Washington have a strange concept of what goes on there. As I said, I just don't . . .
Lowenstein:
Strange things go on there.
Webster:
I think what Mr. Vesco thought he was buying was influence. What he was really buying was a one way ticket to jail.
Lowenstein:
I see. What about Mrs. Farkas, when she gave her $300,00 after the campaign ended up in Luxembourg. She wasn't purchasing anything with that $300,000?
Webster:
All I know is if you pay $300,000 to be an ambassador...
Lowenstein:
You should have . . .
Webster:
. . . There's something called the United States Senate, and if you have to disclose that contribution, and they're willing to still give you the job, that means the Senate must decide that you're qualified.
Lowenstein:
In other words, when the milk prices go up and the milk lobby pledges money, and the President and the Secretary of Agriculture sit there and agree to raise price supports, we're supposed to say, "Well, that's none of our business. The Senate can handle it." Why can't we have a law that says that there's no temptation? Why put a cat in charge of guarding milk? Why don't you simply say there's not going to be a time when people can purchase influence? Why put that temptation there? Just say no, you can't do that, your limited contribution is this. How does that infringe on First Amendment rights?
Webster:
In the first place there has been no showing that I've seen, or finding, that that contribution solved that problem of the milk prices. One way to solve that is to do away with price supports, and you wouldn't have the problem; that's one way to go at it.
Lowenstein:
You should tell that to the President you campaigned for. I'm just simply saying that when the President raises price supports on milk products and gets contributions, and the ordinary citizen pays 3 cents more a bottle of milk, I think he's paying more that way than he'd be paying if we financed out of public funds the campaign of all candidates equally. Instead of having government intervene on one side in the campaign, namely to keep itself in office, what's wrong with having government intervene impartially for all candidates who meet certain minimal standards? Why doesn't that meet the First Amendment requirements?
Webster:
Well, as I've said, there are a number of cases which hold that it's a violation, if I want to go spend $10,000 on an election, or you do—and you probably spent $10,000 on an election—and if there's any restraint on that, it's a violation of our freedom of speech, and I think that's a very bad road to start down; even to restrict it to $2,000 or $2,500, we're starting down that road and you'll end up in socialization, or still worse. In Russia you can't give a campaign contribution, and that's between here and there.
Lowenstein:
Nixon could. He gave them a quarter of our grain supply at half the price we have to pay for it. All I know about it is that at this point there's a very real desire on the part of the American people to stop influence peddling and purchasing in government. You raised First Amendment objections which I'm trying to understand. You say there's a case—there is a case, but the case hangs on vagueness. What that means is that you make the law less vague. It doesn't mean you abandon the principle of trying to stop corporations and wealthy individuals from using their extra resources to purchase, or try to purchase, influence at the cost to the ordinary citizen. What's wrong with that on First Amendment . . . Isn't the First Amendment strengthened . . . ?
Webster:
I'm not going to argue with you, but there are many cases. There are many cases that hold it's a violation of the First Amendment. But let me go back to what I originally said, and I think . . .
Lowenstein:
Let me ask you this is it a violation…
Webster:
... as a Washington lawyer, I've watched for twenty-two years many things be done in Washington, and they way you get something done is the way most good lawyers and most good Congressmen, most good Senators do it: they listen to the arguments—most good judges, there are a lot of crooked judges—but most good guys will sit down and listen to those arguments, and if you want something done in Washington today, the big corporations, by and large, hire good people to go do it, and they do it on the merits.
Lowenstein:
So why should they be opposed to preventing them from trying other procedures? The President of American Airlines said he was intimidated into giving that money to Nixon. Why is it wrong to prevent the President from intimidating . . . ?
Webster:
Well, that was the excuse for doing a criminal act for which he probably should have been sent to jail.
Lowenstein:
Do you want to keep the law that says corporations can't contribute and labor unions can't contribute funds?
Webster:
Corporations can't contribute funds, but labor unions can, of course, through their members.
Lowenstein:
Do you want to keep the law that prohibits labor unions and corporations from contributing campaign funds, or do you want to repeal that law too?
Webster:
No, corporations are not individuals and are not entitled to ... in the First Amendment, as you well know.
Lowenstein:
If corporations shouldn't be allowed to contribute, why shouldn't there be a similar limit so that officers of corporations can't contribute and then get bonuses to get the money back that they gave to avoid that law? Why can't we close that loophole?
Webster:
If that's what they do, then they've committed an illegal act because that's a corporate contribution, and people have been sent off to jail for that one, because that itself is an illegal act, if you can prove that that's the reason they got the bonus.
Lowenstein:
But if you're prepared to accept the fact that there can be a limit on contributions, why can't you see that if there's merit to limiting it further, the First Amendment doesn't get violated to do that?
Semerjian:
Make this very brief.
Webster:
As you well know, the First Amendment doesn't apply to corporations. That's very easy. It does apply to individuals, and as I say . . .
Semerjian:
All right, let's go back to Mr. Bourdeaux.
Bourdeaux:
Mr. Webster, the truth of the matter is that if these large contributions that Mr. Lowenstein has been talking about were immediately announced, and the public knew about them, they wouldn't be given in the first place, would they?
Webster:
I think that's probably true of most of those contributions, if not all.
Bourdeaux:
Yes, sir.
Semerjian:
All right, let's go back to Mr. Lowenstein.
Lowenstein:
I'm just curious. If we could stop influence purchasing and peddling, since you say that good corporations don't want to do it that way anyway, why is it against the interests of free speech or corporate influences to stop them from doing what good ones wouldn't do to begin with?
Webster:
Because if Mr. Anderson can have a bill which says I can give $1,000 this year, you can have an amendment next year which knocks it down to $50. Eventually it's at zero, and the whole government machinery then becomes in charge of it, and I can assure you if Mr. Anderson's bill passes, that I, as a lawyer, can go in there and tie up anybody's government money because of violations—we can get injunctions. I've been down that very carefully, and we could tie up anybody's money so that he would have been elected or defeated two years before the court finally decides whether or not he's entitled to the money. That's one main problem with that bill.
Semerjian:
Mr. Webster, let me ask you a question. Do you think it's a good thing or a bad thing that a wealthy person can give $5,000,000 to a candidate of his choice, while most people can't even approach that?
Webster:
Well, I think again you're back to the matter of free speech, but to address that directly, I see nothing wrong with that because it depends on the point. Somebody who is the President of Alcoa, for example, is a wealthy man today, and he started out with nothing. If you had talked to him twenty-five years ago, he'd give you nothing. Today he can give you a lot of money.
Lowenstein:
Should there then be a limit on very wealthy . . .
Semerjian:
Wait a minute, Mr. Lowenstein. I'm sorry, we don't have any more time. Mr. Webster, thank you very much for being with us tonight.
Webster:
Thank you.
Semerjian:
Mr. Bourdeaux.
Bourdeaux:
I call as my next witness David Wilson.
Semerjian:
Mr. Wilson, welcome to The Advocates.
Wilson:
Thank you.
Bourdeaux:
Mr. Wilson is a columnist with the Boston Globe. Tell me, Mr. Wilson, why do you think that so many distinguished people, authorities in both parties, have taken a stand in favor of public financing of elections with our tax money?
Wilson:
Well, I think when you have a question like that, you have to approach it from the old cui bono point of view. Who will benefit from this thing? The fact of the matter is that Mr. Lowenstein suggests that there's something inherently pure about public money and something inherently corrupt and dirty about private money. I submit that that's not necessarily the case. Rich people disagree diametrically about the purpose in which they wish to place their financial contributions. Now, public interest groups, like Common Cause and the Center for the Funding of Political Financing—or whatever that outfit is in Washington— they benefit. Contributors benefit. Private contributors benefit from public funding because they don't have to make the contributions. Rich candidates, they benefit. They don't have to make disclosure of their rich friends which sometimes damage them in their political contest. Rich, a whole lot of candidates don't wish to face the disclosure problem. There's no disclosure problem with public funding. Finally, of course, politicians, political managers, television cosmeticians, political consultants, all the people involved in the business of electing candidates to office benefit from public funding. Udall-Anderson would be a little of it. Eventually there are other approaches which would make it entirely a public function.
Bourdeaux:
Well, don't you think, though, Mr. Wilson, it would be a good idea to try to equalize things a little bit so that the fellow without any money could run for office?
Wilson:
Well, I see no objection to the fellow without any money running for office. I do see an objection to taking my taxes and requiring me somehow to pay money to support the candidacy of a man with whom I may not only disagree, but whom I may personally detest and abominate his principles, which, of course, public funding would do.
Bourdeaux:
Well, but what these people say is that the Anderson bill would bring the people a little closer to the political process. What do you say to that?
Wilson:
I suspect that it's a kind of a foot-in-the-door matter. Once the money starts flowing from Washington, people wouldn't be anywhere near as close to the political process as they are now, when a man seeking to stand for office has to go to the people and get support from his friends, associates, and the community in general.
Bourdeaux:
I've always thought that one of the responsibilities of an elected official was to have to go to the people and talk to them and find out where they stood and where they were willing to put their support. Do you agree with that?
Wilson:
I certainly do.
Bourdeaux:
And would this bill deter that sort of a relationship?
Wilson:
I think that ultimately the Udall-Anderson bill is a bill which is very carefully and intelligently drawn to meet the kinds of objections that I've made to it here. But it also was drawn to meet those objections in order to get the very important principle, and revolutionary principle, of public funding established in law. Once you get Udall-Anderson, you're going to get Kennedy-Scott and some of the more generous public funding bills.
Bourdeaux:
Kennedy-Scott is another public financing bill.
Wilson:
That's the one that didn't quite make it over Christmas.
Bourdeaux:
That's the one. Now, Mr. Wilson, are there any problems in our political system?
Wilson:
Certainly there are problems in the political system, and the problems do, to some degree, flow from the availability of money. Now, adding to private money additional public money isn't going to change the problems of the charismatic candidate who fails to deal with the issues, the theatrical nature of the game as it has become, the problem of the candidate who uses pollsters to find out where the crowd is so then he can get out in front of them later on, the sort of thing Joe McGinness wrote about in The Selling of the President.
Semerjian:
All right, let's go to Mr. Lowenstein.
Lowenstein:
First I want to thank you for coming, and I think it's important that this position be discussed, but I'm curious; I heard Archibald Cox blamed because Nixon fired him, but now you're opposing the Anderson-Udall bill on the grounds that you don't like the Kennedy-Scott bill. It seems to me that we're getting off the subject. Are you opposed to the idea that people should go out and raise small contributions from the community and then have that matched?
Wilson:
I'm opposed to having the government of a free country hire people to run for public office, which is what public financing of candidates is.
Lowenstein:
In other words, if this, you call it a revolutionary principle we're adopting—I don't know how it's revolutionary, since Theodore Roosevelt proposed it, unless he was a revolutionary…
Wilson:
Well, it hasn't been done, Congressman.
Lowenstein:
It's revolutionary in the sense that, with what we have now, it would prevent the kinds of things from happening which have had the country in upheaval over its political process.
Wilson:
That's your conclusion.
Lowenstein:
Well, I'm asking you, how is it revolutionary; that's what I'm asking. What is revolutionary?
Wilson:
Well, at the present time persons who wish to raise money for the purposes of getting themselves elected to office have to raise it privately and not from tax funds. I think that's a substantial and revolutionary change.
Lowenstein:
Suppose I said I thought it was revolutionary to have a system in which small numbers of people could purchase elections, and that was not true when we started. But that's become revolutionary.
Wilson:
I think the burden of proof rests with the person who makes that charge.
Lowenstein:
The revolutionary charge.
Wilson:
The charge that people are purchasing elections. I can suggest to you that up in the fifth district of Massachusetts in 1972 the heaviest spending candidate of all the 435 Congressional fights was a fellow named John Kerry, who had nine Democratic primary adversaries, and was beaten by a Republican in a Democratic district. Now, how does this stack up with the position that somehow people are buying elections with dirty money?
Lowenstein:
The fact that one can cite instances where people who spent more money lost doesn't change the general problem, does it? The exception in a situation such as you've cited, does that change the basic fact that for most people to run for office is now impossible because they cannot engender the kind of support Mr. Kerry with a national constituency could, or Senator Biden could.
Wilson:
Well, I assume those nine fellows who ran in the primary against Kerry had a shot too. Some of them were Mayors, members of the state legislature, individuals . . .
Lowenstein:
Well, I don't want to quibble.
Wilson:
How is it exclusionary? How . . .
Lowenstein:
I'd just like to understand what you're saying. In the country in which Abraham Lincoln once could campaign for 759, he could shake hands with every voter in his district, when you now have districts with a half a million people, with technology that means you can't even get on television or mail to your voters anything about yourself unless you have enormous sums of money, why isn't it right to say that we now need to provide the wherewithal so that people can be seen and know their own constituents when they're running, rather than rely on the luck of having wealthy friends or wealthy mothers or whatever else. Why is that not part of the American process?
Wilson:
This is probably kind of a curve on my part, but I think the American process was rather well demonstrated in New Hampshire in 1968, a matter that you're quite familiar with. Senator McCarthy certainly had substantial funding in New Hampshire in 1968, and you were there.
Lowenstein:
You and I understand that there are times when virtue can triumph even without lots of money. What I'm asking about is not . . .
Wilson:
Well, he bought all George Romney's billboards, didn't he?
Lowenstein:
I'm not asking whether it can occur. I'm asking why the framework and structure and legal set-up shouldn't make it fairer. Why is it fairer to depend on those exceptions, rather than to say we want a system in which equal access to funds is available within the limits of what we can do, given the fact that we know that incumbency goes in certain advantages, given the fact that if you have a beautiful wife, you have a certain advantage. There are obviously other factors we can't equalize. But why is it anti-American, antidemocratic, revolutionary, whatever adjective you want, to say that in this country a person's capacity to run and to have his views heard, to meet his constituents, to mail to them, to get on television ought not to be limited to the question of whether he knows a few well-to-do people or has national prominence that will get him funds from around the United States? Why is that not a step towards fairness in your mind? You're a very fair-minded man.
Wilson:
Well, I don't think that's entirely true. I mean- Dan Walker in Illinois, Reuben Askew in Florida, a person with great funds, Ottinger in New York, Metzenbaum in Ohio have failed. I don't see that you establish the case that a poor man of merit cannot find friends, cannot find supporters who will not corrupt him. I've read an awful lot of campaign disclosures in Massachusetts—that's a very stiff and careful depository system—and I know those names, and they aren't people trying to corrupt the process. Most of them are people trying to assist it and strengthen it.
Semerjian:
All right, let's go back to Mr. Bourdeaux for a question.
Bourdeaux:
Taking the big view of the whole thing, Mr. Wilson, what do you see is the biggest danger of this bill?
Wilson:
Well, I think once again you start hiring people to run for office. The public's going to want to know what you do with the money you pay them.
Bourdeaux:
Is that going to bring about federal control?
Wilson:
Well, there was once in this country a U.S. Attorney General's subversives list. It's conceivable that in a different political climate the Congress might be moved to change the law so as to exclude persons of extreme views of some kind, persons who had in some way damaged themselves physically. Now, there would be a constitutional challenge, I don't say it's that simple. But I say that where you spend public money the questions of responsibility and accountability do arise, and the government controls that money.
Semerjian:
All right, back to you, Mr. Lowenstein.
Lowenstein:
Is it proper in a society like ours that if you happen to be born wealthy, or happen to have access to a very wealthy person who either agrees with you or sponsors you, that you should be able to get an enormous advantage over other people in your community by having unlimited resources to use in a campaign, while everyone else has to grub around and try to find small amounts of money. Is that democracy?
Wilson:
I guess it is. I don't think, Mr. Lowenstein, that it really is possible to legislate an equality between, let's say, Nelson Rockefeller and myself, nor is it necessarily just that it should be legislated. I think we've got a very substantial ideological difference.
Lowenstein:
Right. You've summarized our difference right there. That's exactly it. I can't say take away his money, but I can say don't let his money purchase elections where other people don't have that opportunity. I think that's democracy.
Semerjian:
All right, Mr. Wilson, I want to thank you very much for being with us tonight. Thank you, gentlemen. That completes the cases, and now it's time for each of you to present your closing arguments. Mr. Bourdeaux, could we have yours, please.
Bourdeaux:
Ladies and gentlemen, we have identified what I see as two problems here. I submit to you that we've shown that Mr. Lowenstein's proposal solves neither of them. First, the problem of large campaign contributions influencing government. I think we've demonstrated that you don't have to burn the barn down to get rid of the rats. Full disclosure of all contributions will effectively deal with that problem if it exists. Secondly, the problem of access to the political arena, both for candidates without money and for the small contributors. Now, our political history is full of examples of good men without much money who have been successful politicians, have been elected to office and served their government well. They have attracted the support they needed because of what they stood for, and they were their own men in office. We see tonight a proposal which can only end in total federal control of our elections, the shackling and discouraging of our participation in this election of our elected federal officials. Stand firm with me on this most basic proposal and vote "no."
Semerjian:
Thank you. Mr. Lowenstein, could we have your argument.
Lowenstein:
I really find myself wondering what country you gentlemen have been in since the last election and since the disclosures since then. I wonder if anyone believes there will be anything left of democracy in the United States if we don't fundamentally overhaul the way in which money affects political process. I can't believe that at this stage we're going to permit people to say that because there may be flaws of one sort or another, quibbles over detail, or argument over some sort of historical route that we're on in the future, that we should not take at least the first step toward democratizing the elections in the United States so far as money is concerned. If we don't do that, I'm very concerned about whether in fact we will have elections in which the ordinary citizen has a fair way to influence his neighbor and to run for office. And I hope that all of you who are listening to this program will see the basic importance to our whole system of writing to support the Anderson-Udall bill and of summarizing these arguments to your neighbors so that they too see that this juncture we're at must be used to overhaul the political process so we're not for sale as a country.
Semerjian:
Thank you. Thank you. And now it's time for you in our audience to get into the act. What do you think about tonight's question? Should the federal government subsidize political campaigns and limit individual contributions? Send us your "yes" or "no" vote on a letter or postcard to The Advocates, Box 1974, Boston 02134. Nothing is more crucial to a democracy than the integrity of its electoral process, and that includes your participation. Send us your vote on whether or not you think election laws ought to be changed in the manner proposed tonight, and we'll tabulate your votes and make them known to Congress and others concerned with this issue. Remember the address: The Advocates, Box 1974, Boston 02134.
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And now, with thanks to our able advocates and their distinguished witnesses, we conclude tonight's debate.