Discounter PACs are armed for Congressional races

Discount Store News, May 14, 1984

WASHINGTON--By holding back on early campaign contributions to proindustry candidates, discount store industry Political Action Committee are entering the home stretch of the 1984 Congressional races armed with a war chest of more than $100,000.

Based on the latest (December 1983) figures filed with the Federal Election Commission, Federal candidates received less than 10% of the over $110,000 raised by discount store industry political fund-raisers since the last elections.

PACs are of critical importance to discount chains and other businesses attempting to sensitize politicians industry concerns because Federal law prohibits corporations from donating directly to Congressional races.

However, the law does allow corporations to form separate fund-raising PACs which can collect individual donations for Federal candidates.

IF PAC size is any indication of the political "sophistication" of a business, then discount chains tracked by Discount Store News are becoming more sophisticated.

Even though election day is still months away and most Congressional fund-raising campaigns have not taken off yet, PAC Administrators at K mart, Federated, Wal-Mart and other industry organizations have already raised more than $110,000 (compared to $200,000 for the entire '82 election).

Figures Analyzed

Although the PACs made a total of 411 contributions during the last election, they still saved over $30,000 for the '84 races.

Based on the latest F.E.C. figures, discount store industry political fund raisers doled out less than $10,000 to Senate and House candidates since the last elections.

Specifically, those discount store industry PACs made 29 contributions to 22 Federal candidates, with Democrats receiving 52% of the funds.

The amount of these contributions varied greatly, ranging from "token" payments of $100 to several thousand dollars. Most of the contributions weighed in between $200 and $500, however, with Democrats receiving an average of $392 vs. $297 for the average Republican supported by discount store industry PACs.

In contrast, during the 1982 campaign discount store industry political fundraisers channeled the majority (64%) of their contributions to G.O.P. candidates.

Although discount store industry political fund-raisers often pitch their solicitation attempts at the need to elect new, pro-business members to Congress, incumbents received all the industry PAC contributions made to Federal candidates since the '82 elections.

Despite the discount store industry's apparent inclination to "play it safe" by donating its PAC contributions to incumbents, DSN's review of F.E.C. filings found distinct differences in spending patterns from chain to chain.

K mart's PAC--the industry's largest--raised more than $50,000 since the 1982 elections, but only donated a total of $400 to two Federal candidates.

On the other hand, during the last election, K mart's PAC made 118 contributions totaling nearly $40,000 to candidates running for Congress.

Another Consideration

Based on the lates F.E.C. figures, Dayton Hudson had the most active discount store industry political fund-raising organization in 1983.

Specifically, that fund-raising committee earmarked $3,250 to 15 Federal candidates as well as $750 to the Michigan Republican Party last year.

As of the last F.E.C. report deadline, some industry PACs were still holding back on making campaign contributions to Federal or State candidates.

For example, separate PACs operated by Carter-Hawley, the National Mass Retailing Institute, May Department Stores and WalMart only contributed to five, four, two and one candidates, respectively, in 1983.