ThinkFast: October 13, 2010 

A News Corporation shareholder has written a letter to the company’s board objecting to the company’s political donations, like the recent $1 million contribution to the Republican Governor’s Association, and demanding full disclosure of all the company’s political spending by Friday. The shareholder warned in the letter against the use of “corporate treasury funds to further the personal political agendas of corporate management.”

Oil companies and environmentalists alike continued to lambast the Obama administration following its lifting of its offshore drilling moratorium. “Our companies remain doubtful that this announcement is anything more than symbolic until permits are actually issued for new drilling,” said a statement by the National Ocean Industries Association. Public Citizen called the move “reckless and misguided.”

Investors in some of California’s largest energy companies are beginning to pressure those companies about money being spent to pass Proposition 23, which would effectively stop the state from taking action on global warming. Institutional investor groups will announce three shareholder resolutions today challenging Valero Energy Corp., Tesoro Corp. and Occidental Petroleum Corp., which have spent over $8 million to pass Prop. 23.

An alliance of Republican groups is planning to spend $50 million this week on attack ads “in a final push to help the GOP win a majority in the House.” The Alliance, which includes American Crossroads and Crossroads GPS — groups founded by Karl Rove, will spend more this week than the House GOP election committee is expected to spend for the entire election cycle.

Yesterday, Senate Majority Whip Dick Durbin (D-IL) urged the IRS “to quickly investigate the tax status of Crossroads GPS and other organizations” that are spending millions on campaign ads without disclosing donors. While these groups can keep donors secret as 501(c)(4) organizations, their purpose and primary activities cannot be political and thus, Durbin states, “appear to be in violation of the law.”

Afghan civilian deaths and injuries resulting from NATO-led airstrikes have “dropped dramatically” in recent years, despite and increase in fighting. Airstrikes causes 88 civilian casualties this year, down from 169 in 2008. Officials said “more careful vetting of targets and restrained use of airstrikes have led to the reductions in civilian casualties.”

“A surprise inspection has turned up serious safety violations that could have caused an explosion at another Massey Energy Co. coal mine in West Virginia, the federal Mine Safety and Health Administration” announced this past week. Violations include skipping mandatory tests for explosive gases and digging too deep into a coal seam at Seng Creek Powellton Mine.

And finally: Newt Gingrich is offering an unbeatable deal. For a small $5,000 contribution, Gingrich is willing to deliver you a “prestigious” award. Call now, operators are standing by to take your order!

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Neither the Times nor the Post appear to have pressed the Chamber to answer two critical questions:

1) How many foreign sources of funding does the Chamber have? The Washington Post’s Greg Sargent received this statement from a Chamber spokeswoman: “[Of] the Chamber’s 300,000 members, a relative handful are non-U.S. based companies.” How many is a “relatively handful,” and how much do they contribute?

2) Are the foreign funds being directed into the same general account that is used to pay for partisan attack ads? Again, the Post’s Greg Sargent pressed on this point. The Chamber, which is running more than $10 million in political advertising just this week (the largest expenditure in one week by an outside group), said, “We are not obligated to discuss our internal accounting procedures.”

As David Donnelly, national campaigns director for Public Campaign Action Fund, told Politico: “They basically say, ‘trust us’ when there’s mounting evidence they’re outsourcing the funding of their political attacks ads? Yeah, right.” Apparently, the New York Times and the Washington Post were just fine with trusting the Chamber.

The brazenness of the Chamber of Commerce never ceases to amaze me, nor the complacency of major U.S. media outlets … .

The largest attack campaign against Democrats this fall is being waged by the U.S. Chamber of Commerce, a trade association organized as a 501(c)(6) that can raise and spend unlimited funds without ever disclosing any of its donors. The Chamber has promised to spend an unprecedented $75 million to defeat candidates like Jack Conway, Sen. Barbara Boxer (D-CA), Jerry Brown, Rep. Joe Sestak (D-PA), and Rep. Tom Perriello (D-VA). As of Sept. 15th, the Chamber had aired more than 8,000 ads on behalf of GOP Senate candidates alone, according to a study from the Wesleyan Media Project. The Chamber’s spending has dwarfed every other issue group and most political party candidate committee spending. A ThinkProgress investigation has found that the Chamber funds its political attack campaign out of its general account, which solicits foreign funding. And while the Chamber will likely assert it has internal controls, foreign money is fungible, permitting the Chamber to run its unprecedented attack campaign. According to legal experts consulted by ThinkProgress, the Chamber is likely skirting longstanding campaign finance law that bans the involvement of foreign corporations in American elections.

In recent years, the Chamber has become very aggressive with its fundraising, opening offices abroad and helping to found foreign chapters (known as Business Councils or “AmChams”). While many of these foreign operations include American businesses with interests overseas, the Chamber has also spearheaded an effort to raise money from foreign corporations, including ones controlled by foreign governments. These foreign members of the Chamber send money either directly to the U.S. Chamber of Commerce, or the foreign members fund their local Chamber, which in turn, transfers dues payments back to the Chamber’s H Street office in Washington DC. These funds are commingled to the Chamber’s 501(c)(6) account which is the vehicle for the attack ads:

– The U.S. Chamber of Commerce has created a large presence in the small, oil-rich country of Bahrain. In 2006, the Chamber created a local affiliate called the “U.S.-Bahrain Business Council” (USBBC), an organization to help businesses in Bahrain take advantage of the Chamber’s “network of government and business relationships in the US and worldwide.” As the USBBC’s bylaws state, it is not an actual separate entity, rather it is simply an office of the U.S. Chamber of Commerce’s 501(c)(6) trade association. Many of the USBBC’s board members are Bahrainian, including Aluminum Bahrain, Gulf Air, Midal Cables, the Nass Group, Bahrain Maritime & Mercantile International, the Bahrain Petroleum Company (state-owned), Gulf Petrochemical Industries Company, and First Leasing Bank. With each of these foreign board members to the USBBC contributing at least $10,000 annually, the U.S. Chamber of Commerce raises well over $100,000 a year in money from foreign businesses through its operation in Bahrain. Notably, the membership form provided by the USBBC directs applicants to send or wire their money directly to the U.S. Chamber of Commerce. The membership form also explicitly states that the foreign-owned firms are welcomed.

– Like the Chamber’s involvement in Bahrain, the U.S. Chamber of Commerce operates in India through a group called “U.S.-India Business Council” (USIBC), which has offices around the world but is headquartered in the U.S. Chamber of Commerce. Dozens of Indian businesses, including some of India’s largest corporations like the State Bank of India (state-run) and ICICI Bank, are members of the U.S. Chamber of Commerce through the USIBC. Annual membership dues range from $7,500 to $15,000 or more, and the money is given directly into the Chamber’s 501(c)(6) bank account. Like the USBBC, the USIBC generates well over $200,000 a year in dues for the U.S. Chamber of Commerce from foreign businesses. On the USIBC website, many of the groups lobbying goals advocate changing American policy to help businesses in India. Under the manufacturing policy goal, USIBC boasts that it “can play a helpful role in guiding U.S. companies to India, while supporting various policy initiatives that will enhance India’s reputation as a major manufacturing and investment hub.”

– Many foreign “AmChams” or Business Councils operate outside the direct sphere of the U.S. Chamber of Commerce but nonetheless send dues money back to the U.S. Chamber of Commerce. For instance, the American Chamber of Commerce in Egypt is a separate entity based in Cairo that raises hundreds of thousands of dollars from both Egyptian firms and American businesses. However, the American Chamber of Commerce in Egypt calls itself “the most active affiliates of the U.S. Chamber of Commerce in the” Middle East. Another foreign chamber, like the Abu Dhabi AmCham, which includes American firms and Esnaad, a subsidiary of the state-run Abu Dhabi National Oil Company, claims that it is a a “dues paying member of the U.S. Chamber of Commerce and part of the global network of American Chambers of Commerce.” In Russia, the relationship between the American Chamber of Commerce there and the U.S. Chamber of Commerce here is opaque. This might be because many of the dues-paying members of the American Chamber of Commerce in Russia are Russian state-run companies, like VTB Bank, and controlled by the Russian government. Asked by ThinkProgress if the Russian Chambers pay dues back to the U.S. Chamber of Commerce, Ksenia Forsheneva, the membership development manager at the American Chamber of Commerce in Russia, replied, “Unfortunately the information that you require is closed for the public.”
[….]

As ThinkProgress has noted, there are currently two competing visions of governance in the United States. One, the conservative vision, believes in the on-your-own society, and informs a policy agenda that primarily serves the well off and privileged sectors of the country. The other vision, the progressive one, believes in an American Dream that works for all people, regardless of their racial, religious, or economic background.

The conservative vision was on full display last week in Obion County, Tennessee. In this rural section of Tennessee, Gene Cranick’s home caught on fire. As the Cranicks fled their home, their neighbors alerted the county’s firefighters, who soon arrived at the scene. Yet when the firefighters arrived, they refused to put out the fire, saying that the family failed to pay the annual subscription fee to the fire department. Because the county’s fire services for rural residences is based on household subscription fees, the firefighters, fully equipped to help the Cranicks, stood by and watched as the home burned to the ground:

Imagine your home catches fire but the local fire department won’t respond, then watches it burn. That’s exactly what happened to a local family tonight. A local neighborhood is furious after firefighters watched as an Obion County, Tennessee, home burned to the ground.

The homeowner, Gene Cranick, said he offered to pay whatever it would take for firefighters to put out the flames, but was told it was too late. They wouldn’t do anything to stop his house from burning. Each year, Obion County residents must pay $75 if they want fire protection from the city of South Fulton. But the Cranicks did not pay. The mayor said if homeowners don’t pay, they’re out of luck. […]

We asked the mayor of South Fulton if the chief could have made an exception. “Anybody that’s not in the city of South Fulton, it’s a service we offer, either they accept it or they don’t,” Mayor David Crocker said.

The fire reportedly continued for hours “because garden hoses just wouldn’t put it out. It wasn’t until that fire spread to a neighbor’s property, that anyone would respond” — only because the neighbor had paid the fee.

A local newspaper further pressed Mayor Crocker about the city’s policy, which has been in place since 1990. Crocker, a Republican who was elected in 2008 and serves with a county commission where every seat is also filled by a Republican, likened the policy to buying auto insurance. The paper said he told them that, after all, “if an auto owner allowed their vehicle insurance to lapse, they would not expect an insurance company to pay for an unprotected vehicle after it was wrecked.”

Ironically, in the county commission’s latest report on its fire services, which outlines which parts of the municipal area will receive fire services only through subscriptions, the commissioners and fire service officials brag that the county is “very progressive.”