Tuesday, August 28, 2007

Edwards Goes After the 'Corporate Democrats' -- Is This a Turning Point for His Campaign?

By Joshua Holland - AlterNet - August 26, 2007
In a dramatic speech, John Edwards fired a major broadside against corporate America and, more significantly, "corporate Democrats," -- the likes of which hasn't been heard from a viable candidate with national appeal in decades.

Last week, John Edwards fired a broadside against corporate America and, more significantly, "corporate Democrats," the likes of which hasn't been heard from a viable candidate with national appeal in decades.

Edwards is en fuego right now, and if he keeps up the heat, his candidacy will either be widely embraced by the emerging progressive movement or utterly annihilated by an entrenched establishment that fears few things more than a telegenic populist with enough money to mount a credible campaign.

"It's time to end the game," Edwards told a crowd in Hanover, New Hampshire. "It's time to tell the big corporations and the lobbyists who have been running things for too long that their time is over." He exhorted Washington law-makers to "look the lobbyists in the eye and just say no."


Real change starts with being honest -- the system in Washington is rigged and our government is broken. It's rigged by greedy corporate powers to protect corporate profits. It's rigged by the very wealthy to ensure they become even wealthier. At the end of the day, it's rigged by all those who benefit from the established order of things. For them, more of the same means more money and more power. They'll do anything they can to keep things just the way they are -- not for the country, but for themselves.

[The system is] controlled by big corporations, the lobbyists they hire to protect their bottom line and the politicians who curry their favor and carry their water. And it's perpetuated by a media that too often fawns over the establishment, but fails to seriously cover the challenges we face or the solutions being proposed. This is the game of American politics and in this game, the interests of regular Americans don't stand a chance.


It's a structural argument, and Edwards didn't pull punches in calling out his fellow Democrats, saying: "We cannot replace a group of corporate Republicans with a group of corporate Democrats, just swapping the Washington insiders of one party for the Washington insiders of the other." The rhetoric was a clear signal that Edwards is going to beat the drums of reform as a contrast to Barack Obama and Hillary Clinton in the primaries.

About a third of the speech focused on the trade deals that Bill Clinton championed, and his argument that those "wedded to the past" can't provide the answers was a barely-veiled rebuke of the Clintonian arm of the party, and the media's chosen "front-runner" for the nomination.

If Democrats are engaged in an existential struggle between the party's establishment and its grassroots, Edwards is obviously betting that the grassroots' passion and energy will trump the Machine Democrats message' apparatus -- this was a speech that was not written by the usual coterie of Beltway consultants.

The most striking aspect of Edwards' speech was his implicit argument that class still exists. For years, both parties have obscured the divisions that are so prominent in modern American society, painting a picture of a country in which we're all part of an entrepreneurial class with more or less similar interests -- a key ingredient in the false "center" to which politicians and Beltway pundits kow-tow. "Let me tell you one thing I have learned from my experience," Edwards said last week. "You cannot deal with them on their terms. You cannot play by their rules, sit at their table, or give them a seat at yours. They will not give up their power -- you have to take it from them."

It was an explicit rebuke of Obama's "new politics" -- Obama recently told the Washington Post that "the insurance and drug companies can have a seat at the table in our health-care debate; they just can't buy all the chairs." Obama's approach to "cleaning up Washington" is not bad, but ultimately tinkers around the edges of a corrupted legislative system.

Edwards is not so conciliatory on the subject. "For more than 20 years, Democrats have talked about universal health care," he said. "And for more than 20 years, we've gotten nowhere, because lobbyists for the big insurance companies, drug companies and HMOs spent millions to block real reform."

Contrast that naked confrontation of corporate power with the tepid appeals to working Americans that were a trademark of John Kerry's 2004 campaign. In announcing his candidacy, Kerry offered a bit of demagoguery about CEOs -- he segued from bashing Cheney and Halliburton --and boldly promised to end tax breaks "that help companies move American jobs overseas." Also in his plan for corporate accountability: "No more contracts for companies, no matter how well-connected they are, until they decide to do what's right."

Hillary Clinton's economic proposals track with the thinking popular among the ostensible "progressives" at the DLC and the Third Way -- policies that give Americans the "opportunity" to save for retirement, a decidedly centrist approach to spiraling college costs and other familiar policies from the 1990s. She's not a fair trader nor a free trader, she says -- she's for "smart trade," "pro-American" trade.

Edward's speech about the economy isn't the only time that he's strayed from the bounds of "respectable" discourse in Washington. In May, he said that the "war on terror" was a political "bumper sticker" that the administration used to "justify everything [Bush] does: the ongoing war in Iraq, Guantanamo, Abu Ghraib, spying on Americans, torture."

Edwards isn't the only candidate in the race making such bold statements, of course. Rep. Dennis Kucinich (D-OH) has long spoken of economic issues in the kinds of terms Edwards used last week. But John Edwards was the vice presidential nominee on a presidential ticket that won 59 million votes and he's raised $23 million in the current cycle (20 times what Kucinich has raised), and that means that corporate media is forced to cover him. So far, they've mocked him, written stories about his haircuts, pushed shadowy innuendo about his personal business dealings and suggested his focus on poverty is disingenuous or hypocritical, but they simply can't write him off as a member of the fringe. Unlike Kucinich, they can't ignore him.

John Edwards is becoming a very different kind of candidate, and his growing message of empowerment and attack on the corporate class may prove to be the most interesting story of campaign 2008.

Monday, August 27, 2007

TX Gov. Rick Perry Attends Bilderberg in Istanbul, 2007

Watch video
Perry's security detail paid by taxpayers.

Perry's point man helping Craddick too

By CLAY ROBISON - Houston Chronicle - Aug. 26, 2007
AUSTIN — Gov. Rick Perry thinks Speaker Tom Craddick is a fine fellow and a great Texan. But he really doesn't care whether Craddick survives the current challenge to his leadership, provided the House majority stays within the Republican family.

That's the official word from the governor's office, but there are doubters, and their doubts are being reinforced by the fact that Perry's chief political consultant is now advising Craddick's political action committee.

Dave Carney, the New Hampshire-based political specialist who helped Perry get re-elected with 39 percent of the vote last year, has been enlisted by Stars Over Texas, a committee founded by Craddick and administered by his daughter to help Republicans win election to the Texas House.

Historically, the PAC has raised funds for Republican incumbents and candidates in selected races against Democrats. But now that several Republican House members are challenging Craddick's leadership, some of the speaker's opponents may be wondering if the committee's resources will be directed against them in next year's GOP primaries.

Officially, the answer is no. The PAC will continue to help elect Republicans, not unseat the party's incumbents.

"Carney, to the best of my knowledge, is not going to be involved in primary fights. He's there to build on a Republican (legislative) majority," said Perry spokesman Robert Black.

Carney didn't return phone calls, but talk persists that he already has been indirectly involved in recruiting primary opponents for some of Craddick's detractors and may become openly involved in Republican primary races for House seats being voluntarily vacated by incumbents.

Since the political game is rife with paranoia, the talkers, both for and against Craddick, don't want to be named.

Perry may not run again and may have been annoyed at Craddick for losing control of the House during the end-of-session rebellion last spring. Moreover, it was hard to tell which of the two — Craddick or Perry — had a rougher session, as many of the governor's priorities took a beating from Republican lawmakers.

But some believe that Perry views Craddick, perhaps because of his fundraising ability, as the best Republican to remain speaker while Democrats try to wage a comeback in House races.

Perry will be governor for at least one more legislative session, and Black insists he intends to be a player — except in House politics.

"The governor is going to work for Republican candidates and campaign for Republicans next year. That's what he's going to do to grow the Republican majority," Black said.

"The governor has always had a good and a strong relationship with Craddick. (But) it does not matter who the speaker is."


Security isn't cheap
My colleague, Peggy Fikac, recently reported that taxpayers paid more than $250,000 in security expenses for 10 foreign trips made by Gov. Perry and his wife since 2004.

Those included business recruitment and other official trips, a Grand Cayman vacation last year and a controversial 2004 trip to the Bahamas, where the governor reportedly discussed education issues with, among others, campaign donors.

Even closer to home, the governor's security — provided through the Texas Department of Public Safety — isn't cheap.

According to new information from the agency, the protective detail racked up $24,630 in expenses July 18-29 to protect Perry and his family on a vacation to San Diego. Perry wasn't there the entire 12 days, but spokesman Black noted that security officers go in a "couple of days early."

The security detail submitted another $5,614 in expenses for a five-day trip to Pittsburgh, where the governor spoke to a Boy Scouts group in April.

Perry's own official travel expenses normally are paid by his political fund or by a privately financed economic development program controlled by his office.
Read more

Area's foreclosures are mostly mid- and low-priced homes - 90% of posted sales are on homes with loans of $250,000 or less

By STEVE BROWN - The Dallas Morning News - Friday, August 24, 2007
The bulk of North Texas home foreclosures continue to be moderate and low-price homes, according to a new study.

Addison-based Foreclosure Listing Service – which tracks foreclosure postings in more than a dozen Texas counties – reports that 90 percent of the loan defaults so far this year were on houses valued at $250,000 or less.

"It's pretty much been that way for the last three or four years," said Foreclosure Listing Service chief executive George Roddy, who's surprised the volumes aren't even higher at the lower end of the market.

Foreclosure postings for the first nine months of 2007 show that almost 31,000 homes valued at more than $4.5 billion have been scheduled for forced sale by lenders.

That's a jump of 12 percent in number and 19 percent in value from the same period of 2006.

On average, the loans being foreclosed on this year were made in 2003.

More than half of the Dallas-Fort Worth home loans in foreclosure this year are held by the country's biggest mortgage firms, Fannie Mae and Freddie Mac, Foreclosure Listing Service found.

And fewer than 2,000 of the foreclosures – about 6 percent of the total – were from homeowners defaulting on home equity loans.

"It has not impacted the market as much as I thought they would," Mr. Roddy said.

The number of higher-priced homes in foreclosure has increased by large percentages this year, but they still represent a negligible portion of the market.

Only about 1 percent of the foreclosure postings for the first nine months of 2007 were for houses valued at more than $500,000.

Mr. Roddy said those numbers could increase now that lenders are charging higher interest rates for so-called jumbo loans, over $417,000.

"There's a big issue now with these jumbo loans and all the speculative homebuilding out there," he said.

"That's got to be of concern to these builders."


Read more in the Dallas Morning News

PUC bares weak teeth on TXU deal - In notes, regulators worry about how to protect public

By ELIZABETH SOUDER - The Dallas Morning News - Sunday, August 26, 2007

On the Friday in February when news leaked of a record-breaking offer to buy TXU Corp., the company's top government liaison met with the state's top utility regulator to alert him of the deal.

Then Paul Hudson, chairman of the Public Utility Commission, spent the weekend worrying. The commissioner's job is to protect the public. But a loophole in the state law that deregulated the electric industry makes the commission virtually powerless to block a merger that might harm consumers.

"It is fair to say that the more I think about our discussions yesterday, my concern grows," Mr. Hudson wrote in an e-mail to Curt Seidlits, TXU's senior vice president for government advocacy, that Saturday.

On Monday, Feb. 26, TXU officially announced the $45 billion offer from Kohlberg Kravis Roberts & Co. and TPG. In a conference call with analysts, TXU made it clear that the buyout wouldn't require PUC approval.

The announcement rattled consumer groups and some lawmakers. Some proposed a bill that would expand the PUC's authority over transactions. But TXU lobbyists persuaded legislators to apply the new rules only to future utility deals, leaving the door open for the TXU sale.

Commissioners can only try to persuade the buyers to be good to consumers, or else face a web of bureaucratic rules and procedures.

Trouble is, commissioners know that putting an investor through a bureaucratic gauntlet would backfire. If investors pull out of Texas, there will be no one to finance the new power plants and electricity wires the state needs to support a growing population. Commissioners call it the "death spiral."

The three commissioners and their staff met with buyout officials more than a dozen times during March to suggest ways the investors could protect the public from unfair rates, unreliable service or dwindling competition in the industry.

Within weeks of the announcement, the investors gave commissioners and staff an initial list of commitments meant to show that the out-of-state investors cared about Texas.

Mostly, the buyers pledged to do things that appeared to be part of their business strategy anyway: Rename each business unit, cut prices, build only three of the 11 proposed coal-fired power plants and avoid saddling TXU's electric delivery unit, Oncor, with excess debt.

According to e-mails and meeting notes reviewed by The Dallas Morning News, the commissioners weren't satisfied. They worried that debt costs might rise due to the buyout and that the reliability of Oncor's portion of the power grid might suffer.

Mr. Hudson asked the investors to put "more flesh on commitments," according to meeting notes taken by a PUC staff member March 26.

And he worried about a much larger issue: whether the buyout of the state's biggest power company might shake the stability of the entire industry. He told the investors that the retail and wholesale portions of the deal were not "off the table," according to the notes.

Mr. Hudson has sounded more aggressive than the other commissioners when he talks about how far a new utility investor should have to go. During meetings, he's brought up the idea of a "net benefits" test – that is, requiring an investor to show that it would bring a benefit to the public.

The other two commissioners have said it's probably OK if the investor simply shows it won't harm the public.

Wires and poles
Since deregulation, PUC's main thread of power over the utility industry is in the wires and poles part of the business, such as Oncor.

It has little power over the vast electricity generation part of TXU's business, called Luminant, or its retail company, called TXU Energy. Those parts of the business are free to compete in an unregulated marketplace.

But delivery companies are still monopolies, and PUC sets the rates they charge.

So as TXU was selling itself to private equity companies, the corporation had to notify PUC that Oncor was being sold. The commission will hold a hearing on the filing in October.

If the commissioners find the sale, due to close by year-end, isn't in the public interest, they still can't block it outright. They can only refuse to allow the new Oncor owners to pass along certain costs to ratepayers. The commission still sets Oncor's rates, which represent a sliver of consumers' bills.

Commissioner Barry Smitherman, a former investment banker from Houston, calls the rate tool a "meat ax," hardly an effective way to protect the public. Squeezing profit leaves a company with less money to invest in more power lines, harming the reliability of the entire system.

Mr. Smitherman spoke to the TXU investors about ways to protect Oncor in case TXU's other businesses go bust, and about employment and reliability, according to notes from a March 21 meeting. He didn't talk to them about making promises for the retail or wholesale businesses. In fact, the notes show the meeting concluded with a discussion of how to limit the scope of the proceeding.

The third commissioner, Julie Caruthers Parsley, doesn't appear to have done much persuading at all. The propriety of talking to the investors about the filing makes her uncomfortable.

The News requested all correspondence and calendar entries for commission and staff about the TXU buyout. The request yielded only one calendar entry showing a meeting between Ms. Parsley and KKR representatives, and no correspondence between Ms. Parsley and the buyout group.

"It's totally appropriate, but I'm a little more cautious on those sorts of things than other commissioners have been," Ms. Parsley said in an interview.

"In a legal world, if I know I'm going to file a lawsuit, I can't go up to a judge I hope I'm going to be assigned to and say, 'Hey, I'm going to have a case and I'm going to file it in your court next week, and how do you think you're going to respond?' "

Negotiating ends
The negotiating time ended April 25 when the buyers filed official notice with PUC of a change in Oncor's ownership. Commissioners aren't allowed to talk about pending cases.

Oncor's filing included a few promises that addressed commissioners' concerns, such as limiting the debt costs that Oncor would pass along to ratepayers and continuing to invest in power lines. Also, Oncor is to negotiate commitments with other stakeholders, such as labor groups or consumer advocates, about employment, customer service and reliability.

But the buyers went no further with their commitments concerning the retail and wholesale businesses at TXU.

The next time someone wants to buy a regulated power line company in Texas, things will be different.

The Legislature passed a law last spring to require utilities to gain prior approval by the PUC of the sale of a wires and poles business. The law doesn't apply to pending acquisitions, including the TXU buyout.

Passing the law took all session. As the commissioners worked out their buyout issues with the investment group, they also helped lawmakers draft bills.

On the day TXU announced the deal, Sen. Troy Fraser, R-Horseshoe Bay, filed Senate Bill 896, originally designed to give the commission the authority to investigate instances of market manipulation. It picked up an amendment giving the PUC authority to block a merger or acquisition.

Unhappy senator
Mr. Fraser was already unhappy with TXU over accusations the company had manipulated the wholesale market (TXU denies doing so). He made a scene at a hearing last summer when he accused TXU chief executive John Wilder of unfairly hiking electricity rates.

The buyout group tried to cool Mr. Fraser's frustration by letting him know about the deal before the news hit. A few days before the announcement, investment group officials tracked Mr. Fraser down in Ruidoso, N.M., and interrupted his ski vacation to talk about their plans.

Still, Mr. Fraser worried publicly that the buyout might harm consumers.

"He has everyone spun up on the transaction and is pushing for a pre-merger approval amendment on one of the bills," a TXU official wrote in an e-mail to a PUC staff member.

Then Washington took note of the deal, and things got more complicated. In early March, U.S. Rep. Joe Barton, R-Ennis, sent a letter to Mr. Hudson threatening to end Texas' autonomy over its electric grid if the commission didn't scrutinize the deal closely. Texas is the only state that has its own grid, separate from the rest of the country.

"I will not ... stand idly by while investors from New York or anywhere else benefit on the backs of the Texas electricity grid or the Texas ratepayers," Mr. Barton said in the letter.

Big guns arrive
It was time to bring out the big guns. The buyers sent Wall Street rock stars Henry Kravis and David Bonderman, the leaders of the private investment companies that want to buy TXU, to Austin to shake some hands.

"Dear Mr. Kravis: Thanks for coming by today – it was a real treat to visit with you and David," Mr. Smitherman wrote in an e-mail to Mr. Kravis the evening after their meeting. Mr. Smitherman's own banking career ended when he was fired for publicly criticizing the Houston mayor.

Mr. Kravis responded: "At any time you want to reach out to me, please feel free to contact me. I will get back to you if I am tied up when you call."

By the end of the Legislative session in May, the buyout crew had persuaded a number of decision-makers to leave the deal alone.

Mr. Fraser's bill giving the PUC authority to block the deal died in the House. The amendment to expand PUC powers over transactions got tacked on to another bill and passed.

But here's the out for TXU: The law specifically says it doesn't apply to any deal filed with the commission before May 1, 2007.

The commission could still make things uncomfortable for TXU's new owners. Commissioners have lined up several pending cases that indirectly affect TXU and could be used to slap the new owners on the hand if they get out of line.

"Like any competitive environment, basketball game, football game, there are a set of rules that market participants have to follow, and if they cheat, they should be punished," Mr. Smitherman said, describing his view of the PUC's job.

The commissioners meet every couple of weeks to a packed house on the seventh floor of a state office building down the street from the Capitol.

TXU often sends a dozen people – executives, lawyers and designated liaisons. They sit on the second row to the commissioners' left.

(A PUC meeting is a bit like church. Regular attendees have their regular seats, and only visitors would disrupt the seating arrangements.)

Sending a message
Earlier this year, the commission worried that Oncor was earning too much and decided to review the company's rates for delivering electricity over power lines. The review has nothing to do with the buyout, since the commission would only consider last year's finances. But the PUC could use the review to send a message to the new owners.

"We probably don't get to a hearing until this spring. It may be even a better opportunity to take into account the effects of the [buyout] filing since we're going to conclude that one in the fall," Mr. Hudson said during a meeting in August.

The commission can't tell TXU Energy, the retail electricity provider, how much to charge. Instead, the PUC is considering changing its rules for certifying retail providers that have more than 1 million customers, which includes TXU Energy. The commission could review the finances of a large retail provider, establish additional requirements and delay certification.

And the commission has an important pending case against Luminant, TXU's competitive wholesale business.

PUC staff accused TXU of manipulating the wholesale market, and the commissioners must decide whether to punish the company. If the commission finds that TXU manipulated the market, it could fine the company a record $210 million.

The commissioners did offer the investors some clarity on one pending issue, which may indicate they are feeling comfortable with the deal.

After the PUC accused TXU of manipulating wholesale markets, the company wanted to reach an agreement on trading power in a way that the commission would find acceptable. The commission agreed.

If TXU sticks to the agreement, the commission cannot accuse TXU of market manipulation.

Former PUC Chairman Pat Wood called the wholesale agreement a "seminal event" for the deal. Shareholders will vote whether to accept the buyout Sept. 7.

"That does 10 times more than this merger-of-the-wires-business hearing that they're going to have later this fall, as far as investor comfort," he said in an interview.

Barry Smitherman: 'Liberated' by his employer after an opinion piece on Houston, he says he's pursuing his real interests.
When Banc One Capital Markets fired Barry Smitherman in 2002 because he wrote an opinion piece for the newspaper complaining about Houston's financial condition, Mr. Smitherman finally had time to finish his book, If Jesus Were an Investment Banker.

The book describes Christ's leadership qualities and includes the idea that often it's OK to fire people because it allows them move on to work that better suits them. Mr. Smitherman calls it "liberating" employees.

Mr. Smitherman had worked his way up the investment banking ladder to become managing director of the municipal bond department in the Chicago office.

He didn't think his hometown of Houston was getting a good deal on its bonds, so he helped write the opinion piece for the Houston Chronicle with some City Council friends. Later, Mr. Smitherman considered running for mayor himself, but he hasn't pursued that idea yet.

The opinion piece upset folks at City Hall, which upset some of Mr. Smitherman's colleagues, which upset his employers, who quickly liberated Mr. Smitherman from his position.

Mr. Smitherman moved his family back to Houston, found a job as assistant district attorney and began scouting for political appointments.

Originally, Mr. Smitherman applied to the governor for a regent posting at his alma mater, Texas A&M University, among other jobs. He filled out the four-page application by hand in his quick, deliberate print.

The governor eventually appointed Mr. Smitherman to the PUC instead.

The liberation from banking "turned out to be a blessing for me," Mr. Smitherman said. "I would have never become a prosecutor, which was, when I went to law school, really what I wanted to be. I ended up going for the money instead of the prosecutorial role right out of school."

Still, Mr. Smitherman refers to that opinion piece as the "one that cost me a couple million dollars."

ABOUT SMITHERMAN

Age: 49

Hometown: Houston

College: Texas A&M University, Class of 1980

Graduate work: University of Texas School of Law, Harvard University School of Government

Friends in high places: Sen. Kyle Janek helped him get the PUC appointment; former Houston City Council members Mark Ellis and Michael Berry helped write the opinion piece.

Membership: Former member of the C Club of Houston, a group of 100 local businessmen who support conservative candidates; director of Ballet Austin

Political contributions: $11,500 to Gov. Rick Perry since 2002, $3,725 to the C Club since 2000

Appointed to PUC: 2004

Term ends: August 2007, but he remains on the commission until the governor appoints someone else.

Julie Parsley: Texas' former solicitor general basks in the glory of standing before the Supreme Court. Julie Caruthers Parsley keeps a large framed drawing in her office of a shining moment in her career: the day she argued a case before the Supreme Court. And lost.

Ms. Parsley argued in 2002 that when there's a lawsuit against a state, the state should be allowed to shift the case to federal court without waiving the state's immunity from being sued in federal court. Confusing? The Supreme Court didn't follow the logic, either.

Still, the day stands out in Ms. Parsley's career as Texas' solicitor general, and she beams when she describes it.

"I got lots of questions. I got a sentence out, then Scalia and Rehnquist were talking to each other about how bad our position was. 'They're talking out of both sides of the mouth!' ... And I said, 'Your honors, I respectfully disagree,' " she said. "It was great."

It wasn't the only time the nation's top court turned Ms. Parsley down. She also appealed a 2001 decision that required Texas to retry a death row inmate whose lawyer fell asleep during the trial.

Ms. Parsley argued that the inmate had to prove that his lawyer's behavior affected the outcome of the case, similar to the way a court would handle a drunk or mentally ill lawyer. The Supreme Court declined her appeal.

Ms. Parsley said her whole family accompanied her to Washington for her big day, even her parents and in-laws.

Just last year, her husband, Lee Parsley, nearly became a justice himself. Mr. Parsley, a lobbyist, ran for a seat on the Third Court of Appeals and lost.

When a utility company, such as TXU, disagrees with a decision by the Public Utility Commission, the company may appeal to the Third Court of Appeals.

Ms. Parsley said her husband would have recused himself from any cases that involved her. She said she didn't help much with his campaigning or fundraising.

Still, Mr. Parsley attracted a $1,000 donation former TXU chief executive Erle Nye, who says he contributes to lots of judicial candidates because he thinks the races are important.

ABOUT PARSLEY

Age: 45

Hometown: Baytown

College: Texas A&M University, Class of 1984

Graduate work: Texas Tech School of Law

Friends in high places: U.S. Sen. John Cornyn, Railroad Commissioner Victor Carrillo

Prior job: Solicitor general

Appointed to PUC: 2002, reappointed 2005

Term ends: September 2011

Paul Hudson:
Don't make him the center of attention – or even snap his photo – but chat him up about policy. Frederick Hudson, who goes by his middle name, Paul, hates having his picture taken.

So in the PUC meeting room, among the photos of commissioners, past and present, there's a gap where Mr. Hudson's photo should be.

Julie Parsley once filled the space with a doctored photo of Mr. Hudson with Elvis-style hair. That picture quickly vanished.

Since then, the PUC chairman filled the gap with a child's drawing of a wind farm given to him after a public appearance.

You see, Mr. Hudson has no political ambitions. He's a policy guy. He spent most of his career behind the scenes, advising the governor and former utility commissioners.

He won't talk about his hobbies or how he spends his free time. That's private. He doesn't have a résumé handy to give to a reporter. And he hardly ever consents to interviews.

After four years as a commissioner, feeling the pressure from legislators and the governor's office, industry groups and the media, Mr. Hudson thinks wistfully about the careers he almost pursued, long ago, in other lives.

At 19, he trained to be a firefighter in Austin. He left shortly after the training was over to finish his education.

Then he studied to become a teacher. But after completing student teaching in a low-income area where some high school kids were reading at second-grade level, Mr. Hudson walked away from that career as well.

He's considering returning to the classroom after his PUC stint is over. Next time, he'll probably be on a college campus.

Mr. Hudson wonders if he should have stuck with firefighting. He could have retired this year, with 20 years on the job. The photo hanging in his office of his firefighting training class is probably the only picture of him in the building.

ABOUT HUDSON

Age: 39

Hometown: Austin

College: University of Texas at Austin, Class of 1991

Graduate work: Arizona State University

Prior jobs: Director of policy for Gov. Rick Perry

Appointed to PUC: 2003

Term ends: 2009
Read more in the Dallas Morning News

Sunday, August 26, 2007

Does Perry really have the power? - He says yes, but orders clash with laws that make governor weak

By CHRISTY HOPPE / The Dallas Morning News - Thursday, February 22, 2007

AUSTIN – A lot of lawyers and legislators and some judges don't think Gov. Rick Perry is as powerful as he thinks he is. And basically, they have the absence of law on their side.

In three well-publicized executive orders, Mr. Perry has directed 65 percent of school districts' spending into the classroom, faster consideration of coal plant permits, and vaccinations against the cancer-causing and sexually spread human papillomavirus.

But barring a bona fide emergency, there is no language in state law that gives the governor authority to tell a state agency what to do, legal experts said. And Texas' constitution makes the governor one of the weakest in the nation.

As a result, a state district judge this week rescinded the coal plant order, a lawsuit to nullify the HPV vaccination order was filed Thursday, and lawmakers said they might craft legislation that will better define what the governor can do with executive orders. And it won't be much.

"The bottom line is that an executive order is a statement by the governor of Texas about what he thinks is in the best interest of the state. But he can't issue an order and tell that agency or hearing examiner that, 'You have to do this,' " said University of Texas law school professor Steve Bickerstaff, who has served as director of constitutional research for the Texas Legislative Council and is one of the foremost authorities on the Texas Constitution.

"Essentially, most or all executive orders are nothing more than the expression of the view of one citizen of the state," Mr. Bickerstaff said.

The governor disagrees; he argues that the Texas Constitution gives him the power by virtue of proclaiming him "the Chief Executive Officer of the State."

"People get really twisted up over process, and I understand that," said the governor's press secretary, Robert Black. "But state agencies have an awful lot of power. And it's the governor's job to provide leadership and direction for the executive branch of government.

"To ask the governor to stop directing agencies would be tantamount to asking him to stop leading."

Mr. Perry has only asked agencies to exercise their already-established powers to implement certain policies – such as adding or subtracting to the state list of required school immunizations, Mr. Black said.

"We can do that by executive order, by letter, or by a phone call to his appointees. But the governor's ability to lead this branch of government is inherent in the office," he said.

State District Judge Stephen Yelenosky disagreed. In his order signed Tuesday, the judge said it appears that the governor can't order state administrative judges to hasten hearings on coal plants.

The judge wrote in a letter to attorneys that the case presents "a pure question of law: whether the governor may constitutionally direct a hearing officer to hold a hearing and reach a decision by a particular deadline. I have concluded that ... the governor lacks that authority."

The governor's office dismissed the ruling as the musings of "a single liberal Austin judge."

But on Thursday, Dallas lawyer Kenneth Chaiken pursued much the same argument in a lawsuit filed in Austin that will attempt to nullify the governor's order to vaccinate sixth-grade girls against HPV.

The three Dallas-area families he represents object to the order and feel it subjects their daughters to a relatively untested vaccine. Mr. Perry has noted that his order allows parents to opt out of the vaccination, although many parents and lawmakers say he still went too far.

"He constitutionally and statutorily cannot do this," Mr. Chaiken said. "The notion that the governor, on a whim, can order that every teenage girl in our state has to get a vaccine is astounding."

In addition, the House's committee on public health has moved a bill that would rescind the governor's executive order, and it has 91 of the 150 House members as sponsors.

Rep. Brian McCall, R-Plano, signed on, not because a vaccine that prevents cervical cancer is a bad idea – it might be a very good one that every family should weigh, he said.

But Mr. McCall, who wrote his doctoral dissertation on gubernatorial power in Texas, said he has never seen another governor in the state's modern history try to exercise the kind of authority that Mr. Perry has.

"I'm not criticizing the governor one way or the other. But I and about 90-odd people have co-sponsored a piece of legislation saying that you didn't have the authority to do this," Mr. McCall said.

The Texas Constitution is designed to make the governor weak – drafters of the 1876 document recoiled at a strong military governor imposed by federal officials during Reconstruction. So state lawmakers can shape the governor's authority.

House Government Reform Committee Chairman Bill Callegari, R-Katy, said a bill better defining what the governor can accomplish with executive orders "needs to be discussed."

The majority of executive orders have been signed by governors to establish task forces or advisory committees to examine certain subjects.

Mr. Callegari said lawmakers have been waiting to hear from Attorney General Greg Abbott, who has been asked to address the legal parameters of executive orders.

"It's something we need to think more actively about," Mr. Callegari said.

James Blackburn Jr., the attorney who represented environmental groups and won the court order against the governor's coal plant order, said the governor is empowered to veto legislation and run his own office. Barring an emergency, there's not much else he or she can do, Mr. Blackburn said.

He said he's not surprised that other lawyers might be mounting court challenges against other executive orders by Mr. Perry.

"There are judges willing to take a hard look at these issues and do what they're supposed to do, and that is determine if one branch of government is asserting too much unilateral power," Mr. Blackburn said.

WHAT THE STATE CONSTITUTION SAYS
The governor is empowered to:
• Act as chief executive officer of the state
• Sign or veto bills approved by the Legislature, or allow them to become law without his signature. On budget bills, he can veto spending for specific items.
• Call the Legislature into special session to consider specific issues
• Appoint the secretary of state and members of state boards and commissions
• Fill vacancies in state and district courts and executive offices
• Commute criminal sentences and offer pardons, if the Texas Board of Pardons and Paroles recommends that the governor do so
• Act as commander in chief of state military forces
• Demand financial accounting information from managers of state institutions
• Conduct business with other states and the U.S. government
• Call elections to fill open legislative seats
Note: Does not include powers assigned in laws approved by the Legislature
SOURCE: Texas Constitution
NOTE: James Blackburn is representing the City of Frisco on the toll rates on SH121 and has recently been retained by the Highland Village Parents group in their opposition to the route for phase 4 of FM 2499.

Saturday, August 25, 2007

Gas deals' fine print can be costly

By Mike Lee - Star-Telegram staff writer - Sat. Aug. 25, 2007
FORT WORTH -- More than a year ago, homeowners in Oakhurst, a middle-class neighborhood northeast of downtown, became some of the first in the city to sign up for natural gas drilling.

The landmen called it "mailbox money." By signing the leases, the property owners would get a royalty check for the life of the gas well.

Now, those homeowners are learning about the fine print in natural gas leases. Before they can cash their royalty checks, they have to get legal releases called subordination agreements from their mortgage companies. And the mortgage companies are asking for fees that amount to several years' worth of royalty payments.

Gas-company officials said the problem may affect every homeowner who has signed a gas lease after reaching a mortgage agreement. That could include thousands of people in Fort Worth.

Joe Walker, who has lived in Oakhurst two years, found out about the paperwork requirement in mid-July when he got a letter from Chesapeake Operating Co. He had about two weeks to get the paperwork processed or have his royalty payments "suspended" by the gas company.

Walker sent the paperwork to his mortgage company, Countrywide Home Loans, and got a letter back asking for a $500 fee. And, the letter said, even that $500 didn't guarantee that the company would agree to sign the paperwork.

He eventually negotiated the fee down to $75, but the bank said in a letter that there's no guarantee that it will approve the agreement. And the third-party investor who has bought Walker's mortgage might impose other requirements, according to the letter.

Walker wondered why residents weren't told about the need for subordination agreements when they signed the leases in 2006.

"Somebody should have been able to figure this out," he said in an interview last week. "That would have given people a year and a half to get this taken care of."

Oakhurst resident Jann Miles got a letter from her mortgage company, Washington Mutual, asking for $700 in fees, along with a new survey of her property.

At least one bank, Colonial National, has refused to sign the subordination agreements that Chesapeake sent out, although bank officials say they're willing to work with Chesapeake and the homeowners.

Enough residents were concerned that they held a neighborhood meeting with an oil and gas lawyer and Chesapeake representatives.

Dale Resources, one of the pioneers in inner-city gas leasing in Fort Worth, handled the original leases in Oakhurst. Company President Larry Dale led VIP tours of the drill site, near the Mercado Juarez restaurant on the west side of Interstate 35W, to show how drilling could be done with minimal impact on the neighborhood, which is east of the highway.

Dale later sold the whole operation to Chesapeake. A spokesman for Dale referred questions to Chesapeake.

Julie Wilson, Chesapeake's vice president for corporate development, said her company wasn't involved in the leasing process.

"It's hard for us to know what they were told or what they weren't," she said. "I don't think there's any misrepresentation on the part of any energy company or anybody signing a minerals lease."

Tim Malone, an oil and gas lawyer who spoke to residents at their meeting last week, said part of the problem is that urban gas drilling is so new.

When a gas company leases mineral rights in a rural area, it might need subordination agreements for only two or three landowners. Chesapeake has about 600 leases with homeowners in Oakhurst.

"The logistics are just much more cumbersome," Malone said.

Wilson, the Chesapeake executive, said dealing with property owners who have mortgages is a relatively new experience for the company. Until recently, most gas exploration was done in rural areas, where land is more likely to be owned outright.

"We do realize now that there needs to be a better job of telling people upfront," she said. "We're changing our language in the leases and telling people that they have a responsibility to make sure they get the subordination."

Alan Hegi, a real estate lawyer who is president of the real estate section for the Tarrant County Bar Association, said it's important for homeowners to know what they're doing when they sign a lease.

"Do your homework," he said. "Oil and gas companies are trying to sign up people for leases but they're not going to hold everybody's hands through the process. [Homeowners] have got to have some ownership responsibility."

Banks typically are cooperative, Hegi said.

"That additional income to the homeowner does mean that the homeowner will have an enhanced ability to pay," he said. "I'd be surprised if lenders were refusing to give permission. I'm not surprised if they're charging a fee; that's what lenders do."

The residents give Chesapeake credit for trying to resolve the situation. Chesapeake agreed to pay residents for up to 90 days, even if they had not processed the paperwork. And the gas company also offered a simplified version of the paperwork, known as consent of lien holder.

"I'm not mad at Chesapeake, I think that the mortgage companies are trying to make another dollar," Miles said.

Miles' bank, Washington Mutual, did not respond to three requests for comment this week. Nor did officials at Walker's bank, Countrywide.

Officials at Colonial, the bank that has not signed any subordination agreements, said they're looking out for their interests and customers' interests.

But the company uses a different type of subordination agreement, one that gives it the ability to take over the gas lease if a homeowner defaults on a mortgage. Gas companies typically don't want to get into the middle of a foreclosure.

READ LETTER FROM GAS COMPANY and LETTER FROM MORTGAGE COMPANY

AT&T Paid Lobbyist $240,000 in 2007

By Associated Press - Aug. 24, 2007
WASHINGTON -
AT&T Inc. paid Akin Gump Strauss Hauer & Feld LLP $240,000 in the first half of 2007 to lobby the federal government, according to a disclosure form.

The firm lobbied on policy issues related to the telecommunications industry, according to the form posted online Aug. 13 by the Senate's public records office.

Beside Congress, the firm lobbied the Commerce and Treasury departments.

Under a federal law enacted in 1995, lobbyists are required to disclose activities that could influence members of the executive and legislative branches. They must register with Congress within 45 days of being hired or engaging in lobbying.

AT&T is based in San Antonio.


Copyright 2007 Associated Press.

Wednesday, August 22, 2007

All Biofuels Aren't Created Equal

SIERRA CLUB - Aug. 20, 2007Biofuels can be made from nearly any organic material, but corn, which is the source of 95 percent of U.S. ethanol, would reduce global warming emissions only about 15 percent on average compared to gasoline. Cellulosic ethanol, made from switchgrass, slash, and agricultural byproducts, could cut emissions by more than 90 percent. But it's not commercially available. And then there's sugarcane ethanol, which is booming in Brazil, soybean biodiesel, and cooking grease biodiesel, even biodiesel made from algae -- all with their various pros and cons.

Want help separating the wheat from the chaff? Check out "Bio-hope, Bio-hype" in the most recent issue of Sierra, complete with a useful chart comparing six different biofuels.

Bush adviser Hughes promotes foreign languages, travel at Dallas summit - Dallas: At summit, Hughes pushes for youths to study abroad

By JAMES HOHMANN - The Dallas Morning News - Tuesday, August 21, 2007
Karen Hughes, longtime confidant of President Bush and undersecretary of state for public diplomacy, encouraged about three dozen local teenagers to learn foreign languages and study abroad during a youth summit Monday in Dallas.

"Your generation is going to be the first truly global generation," she said.

"Today's world calls for us to have open doors, open hearts and open minds. It's up to us to break down barriers."

The daylong "diversity dialogue" at Southern Methodist University was promoted as an opportunity for area students to meet government dignitaries and talk about foreign cultures. It was sponsored by Rep. Eddie Bernice Johnson, D-Dallas.

Mr. Bush charged Ms. Hughes with promoting America's image overseas in July 2005. She has kept a low profile domestically since getting off to a rocky start, which included an icy reception during a "listening tour" around the Middle East.

"One of the things people say to me about my job is that it is mission impossible," she said.

In fact, she said in an interview after the morning session, the day after Mr. Bush announced she would take the job, "The vice president looked at me and said, 'Karen, my condolences.' ... I've always liked a challenge."

Ms. Johnson, chairwoman of the Texas Democratic congressional delegation, lauded Ms. Hughes for her efforts and said that peace will take bipartisan cooperation.

During Monday's program, Ms. Hughes fired off a laundry list of initiatives she has spearheaded at the State Department. She said her office laid the groundwork for improving global attitudes about the U.S. by taking better advantage of new forms of media such as the Internet and reaching out to younger children who have not made up their minds about America.

The majority of the population in many countries is under 25 years old, she said, so youth outreach is as important as ever.

"I believe it is possible to imagine a better future," she said.

To apply for the summit, participants sent in an application form and wrote an essay.

Information was sent to all the public middle and high schools in Dallas and to youth organizations such as the YMCA.

The group was divided between 13- to 15-year-olds and 16- to 18-year-olds, each of whom was given a white T-shirt with a drawing of a dove on the front. They went to classrooms for discussions and watched a student theater production after the morning speeches.

Ms. Hughes described the U.S. as a "melting pot." But a second speaker, Mahmoud Eboo, a Shiite Muslim leader based in Atlanta, said that "mosaic" and "tapestry" were better characterizations.

"That creates fusion of color," he said.

Read more in the Dallas Morning News

Attorney claims Rove had role in her firing - Former state worker dismissed for talking to media files lawsuit

By WAYNE SLATER - The Dallas Morning News - Tuesday, August 21, 2007
AUSTIN – An attorney fired from the Texas secretary of state's office for talking publicly about presidential adviser Karl Rove has filed a lawsuit, saying she is the victim of political pressure.

Elizabeth Reyes was dismissed in September 2005 after Mr. Rove called Secretary of State Roger Williams about her quotes in a newspaper story.

In the suit filed in state district court, Ms. Reyes says she was fired "because of the political embarrassment and pressure" after she answered a reporter's questions about Mr. Rove's voting eligibility in Texas.

Mr. Williams, who resigned in June to head the state Republican Party's 2008 campaign effort, said Monday that he had not seen the lawsuit.

"I don't know what it says. So I can't say anything about it," he said.

Mr. Williams has previously said that Ms. Reyes was terminated because she violated agency policy. He said she was not authorized to discuss controversial issues with the media.

In Texas, state employees can be fired at will. Her attorney claims the firing violated her constitutional right of free speech.

A Fort Worth car dealer, Mr. Williams is a major GOP fundraiser and a longtime ally of Mr. Rove and President Bush. He is thought to have political ambitions of his own, perhaps as a Republican candidate for governor in 2010.

The lawsuit seeks lost wages and unspecified punitive damages. In addition, Ms. Reyes asks that references to her termination be eliminated from her state employment file.

At issue are quotes in The Washington Post in which Ms. Reyes questioned whether two small cottages Mr. Rove owns near Kerrville qualified as a residence for purposes of registering to vote. She added that state law is fairly flexible on the issue.

Mr. Rove, who orchestrated Mr. Bush's campaigns for governor and president, sold his home in Austin after moving to Washington and claims the two cottages in Kerr County as his home for voter registration. He also owns homes in Washington and Florida.

Voter eligibility rests largely on whether a displaced Texan intends to return to the claimed residency in the future.

Ms. Reyes said that she was answering a hypothetical question, that she didn't know she was talking with a reporter, and that Mr. Rove's name never specifically came up.

Mr. Rove is known for aggressively taking on opponents and critics. And Mr. Williams has confirmed that Mr. Rove called him after the article appeared, though he has said the White House adviser did not ask that Ms. Reyes be fired.

Read more in the Dallas Morning News

Friday, August 17, 2007

Independent Texans launches IMPEACHPERRY.COM

By Linda Curtis - Independent Texans - Aug. 17, 2007
Citizens across the state, and from across the political spectrum, have been calling their local civic and political organizations ever since the legislature went home last May, asking what they can do to remove Rick Perry from the Governor's office. The answer they get is this. Texans do not have the right to recall state office holders. But the legislature has the right to impeach state officials.

Independent Texans, the state's only association for the growing plurality of Texas voters who self-identify as independent, has launched an effort calling for the impeachment Rick Perry. The following statement was released by Independent Texans' founder, Linda Curtis about the effort:

"The only Texas Governor to be impeached was James "Pa" Ferguson back in 1917. It all started when he vetoed an appropriation for the University of Texas. Then a charge emerged that Ferguson was giving highway contracts to his friends in return for kickbacks. Perry's insistence on ramming his freeway toll and Trans-Texas Corridor scams down our throats, and the continued shell game with billions of transportation dollars, had already brought the call for Perry's removal to a near boiling point. When Rick Perry vetoed a very necessary appropriation for our community colleges, that's when the call for his impeachment began being taken seriously. We intend to take this campaign out across the state, to all political camps, and to neuter this administration. Whether or not that leads to Perry's impeachment will be up to the legislature. Let's see if history does indeed repeat itself."

Ten favorite reasons for Perry's impeachment (to which citizens can add), the impeachment process, targeting Perry's allies, and Impeach Perry bumper stickers can all be found at ImpeachPerry.com. We encourage you to order stickers in bulk to spread the word and to help our mutual cause.

The Pearl Street Scam—Or How To Displace American Workers Without Quite Breaking The Law

By Rob Sanchez - Vdare.com - Aug. 14, 2007
Several people in places like Detroit, Michigan got suspicious when employment ads in local newspapers requested that their resumes should be sent to a location in Dallas, Texas —on Pearl Street. Without exception the people who sent resumes to Pearl Street never got replies. It’s as if their resumes were being sucked into a black hole.

For several months, there were discussions on Dice.com and Indeed.com about the mystery of Pearl Street. Eventually several very clever people on those message threads pieced the puzzle together and figured out what was happening to their resumes. More importantly they cracked THE CODE. (Carrie’s Nation blog has a very good summary of the entire story.
Read entire article

Thursday, August 16, 2007

Stop the North American Union

By Daneen G. Peterson

The Speaker in Winter - True to his Golden Gloves past, Jim Wright answers the bell for another round

By PHOTOS AND STORY BY JEFF PRINCE - The Fort Worth Weekly - July 3, 2007
See Fort Worth Weekly for photos
Mornings begin with a trip to his spacious office and compiling a list of things to do. Days are spent knocking things off the list — from teaching chores to working on books and articles, to taking phone calls from former constituents asking for help, even though Jim Wright hasn’t been an elected official in almost 20 years. Other calls come from current politicians, such as Fort Worth Mayor Mike Moncrief, tapping into the connections and expertise Wright gleaned over 34 years in Congress.

Then there are the lunches and other gatherings, such as the periodic pow-wows with former Fort Worth Mayor Bob Bolen and a group they call “The Speaker’s Table,” where they discuss the world’s problems, even if they don’t always come up with answers. Other hours go to writing a column for the Fort Worth Star-Telegram or just spending time with his wife, Betty, and children and grandchildren.

Not to say time hasn’t taken a toll on this go-getter. ..“My glasses need glasses,” he said.

An ailment called ischemia makes him dizzy at times. The body is no longer straight and strapping like in those days when the tough, red-headed Texan with an Irish temper was a Golden Gloves boxer and a B-24 bombardier with a Distinguished Flying Cross. The orator’s voice that rang with authority over meetings attended by world leaders is now ravaged by surgeries and radiation treatments for mouth cancer.

His mind, however, remains sharp. The lion might be in winter, but he’s not ready for sleep — he’s not even yawning. He remains passionate about affordable healthcare and the environment, and he attends grip-and-grins when political candidates such as Hillary Clinton or John Edwards come to Texas. This fall, he’ll teach at Texas Christian University for the 17th year in a row, reach the ripe old age of 85, and continue showering his dwindling time and energy on his favorite city.

“I don’t want to be idle,” he said. “I want to get up every morning and look forward to having something to do.”

An editorial cartoon hanging among memorabilia at the TCU library pays homage to one of Fort Worth’s most celebrated residents. Wright was a caricaturist’s dream.

“They always draw me with bushy eyebrows,” he said, laughing. “I don’t know why they do that.”

Despite fading from orange to white over the past 84 years, those trademark eyebrows are no less flamboyant. And they still serve a good purpose. “They shade my eyes,” Wright joked.

The most telling part of the cartoon isn’t the eyebrows, though. It’s the punch line, which refers to the good fortune Fort Worth enjoyed because of Wright’s influence on Capitol Hill. A tough, ambitious — some say power-hungry — congressman for 34 years, he reached the pinnacle of that governmental body in 1987, presiding over the historic 100th Congress as speaker of the U.S. House of Representatives. The cartoon, drawn that same year, shows two men talking while a bulldozer breaks ground for the new currency plant. One fellow says to the next, “Jim Wright brings so much money to Fort Worth, the currency printing plant thought it would be easier to just open a branch here.”

It’s no wonder Wright was portrayed as such a Cowtown cheerleader. Through the years, as congressman, majority leader, and speaker, his efforts provided jobs at General Dynamics and other local defense companies and federal support for projects like Dallas-Fort Worth International Airport, the Trinity Railway Express, renovation of Main Street and the Stockyards, flood control and creek beautification, and on and on. Forty years ago, Wright’s political finesse ensured a 14-story federal building pegged for construction in Dallas was instead built in Fort Worth. His early appointment to the Public Works Committee, which doled out money for public buildings, dams, and highways, helped him swing numerous projects for Cowtown over the years. His name is attached to Northwest Loop 820, which he helped complete by writing language into the federal Highway Act. His name also lives on in the contentious Wright Amendment, a federal law still being debated 30 years later.

The lifelong Democrat’s impact on his hometown has been so immense that local Republicans have trouble knocking him, unless by complaining that he did too much.

“He certainly was adept at bringing home the congressional pork, if you will,” said Tarrant County Republican Party Chairwoman Stephanie Klick. “If it’s a program or project that people want, and it’s good for the local economy and community, that can be good, but it can also be bad. We can agree or disagree as to some of the projects he brought to Fort Worth and whether they were good or excessive spending.”

If politicians are measured by their ability to shower attention on their home districts, few can surpass Wright’s legacy. Naturally, he has a stock answer for critics who argue that he was delivering surplus bacon. “One man’s pork is another man’s bread and butter,” Wright said.

That can-do reputation put a target on his back. Partisan accusations of ethical misconduct prompted Wright’s resignation, not in disgrace but certainly in disdain. He bowed out on May 31, 1989, saying, “I am not a bitter man. I am not going to be.”

These days, the man who stood third in line to the presidency likes to stay involved, although now his schedule is busy by design more than necessity. To that end, he and Bolen meet periodically. They make a list of issues, pick a date and place, and invite four additional guests. “We learned that if you get more than six people at a table, they tend to break up into two different conversations,” Bolen said.

The get-togethers are private, off-the-record exchanges, which may or may not lead anywhere. “It’s kind of social more than anything,” Bolen said. “We just talk and try to educate ourselves.”

Social interaction inspires Wright. His most recent book, The Flying Circus, published in 2005, was prompted by a grandson’s questions about his World War II experiences.

When Bolen stopped in at Wright’s office recently, it was obvious the two old politicians enjoy spending time together. Their next topic is a new process for saving gasoline and reducing emissions. A Dallas group is attempting to adapt hydrogen generators for use in automobiles, and Wright is interested. “It looks like it saves a little over 10 percent on gasoline, and there’s a 38 percent elimination of carbon dioxide and those things that produce global warming and pollution,” he said.

America’s sluggishness in switching to cleaner-running, more fuel-efficient vehicles irritates Wright. If there is a better way, he wants to know. He’ll pass along the information to whomever is in a position to do something. Retiring from politics doesn’t mean he quit caring.

On healthcare, for instance, he said, “It is long past time we should have developed some system to guarantee every American access to affordable healthcare. That’s been stalled longer than it should be.”

As for war in Iraq: “We’ve seen an increase in terrorism as a result of our occupying an Islamic and Arab nation. This has created more hostility toward us and more terrorists than all those we have slain and has miscast the United States in an unfamiliar role — the role of an aggressor. As a consequence we’ve lost friends in much of the Islamic and Arab world, and it’s difficult to see what we gained.”

Those thick eyebrows furl when Wright gets down to serious matters. Before long, however, he’ll spot an opportunity for a funny remark and ease the tension. And that can lead to any number of anecdotes from a lifetime in politics. Bolen has heard many of the stories, but doesn’t mind hearing them again. One of his favorites goes back to Wright’s days as Weatherford mayor in the early 1950s.

Wright was a mere 24 years old when he won his first election to the Texas House of Representatives, serving from 1947 to 1949. Afterward, he moved to Weatherford, worked with his father in a marketing business, and was elected mayor. He’d spend half of the day at his marketing job, the latter half on mayoral duties. But answering phone calls from constituents was a full-time job. The boozers tended to get ideas late at night after a few rounds and go fumbling for a phone, while older folks called early in the morning.

One morning, a woman complained about boys with BB guns shooting songbirds in her yard. Another woman called to complain about the grackles roosting in her trees. Wright went to the first woman’s house, picked up the boys with their guns, and drove them to the other woman’s house. Solving two separate problems with one simple act was a model of political efficiency and might stand as the zenith of his career, Wright joked.

Bolen rolled with laughter. Having been a mayor himself, he understands how hard it is to please everyone. “Of course, if you did something like that these days you’d have about four different groups after you,” he said.

The story reveals much about Wright’s country-boy roots and problem-solving ways. Another tale, revealing his temper, involves a clash with Amon Carter, the Fort Worth Star-Telegram publisher and about as close to a king as Cowtown’s ever had. After four years as Weatherford mayor, the 31-year-old Wright was ready to make a run at Congress. In 1954 he announced he would run against Carter’s chosen candidate, Wingate Lucas. Just before the election, the newspaper endorsed Lucas and denounced Wright in a front-page editorial. An angry Wright fired off a rebuttal, dug into his personal savings account, and paid $974.40 for an ad that took up most of a page. “An Open Letter to Mr. Amon G. Carter and Fort Worth Star-Telegram” blared the headline. (Later, Wright was told how a copy editor went to Carter and asked whether the paper should print the ad. Carter, according to Wright’s eyewitness, asked if Wright’s check was good. When told it was, Carter responded, “Run it!”)

Wright’s letter, written in the heat of passion, blasted Carter and the newspaper for ignoring his campaign while steering voters toward Lucas: “You have at last met a man, Mr. Carter, who is not afraid of you ... who will not bow his knee to you ... and come running like a simpering pup at your beck and call.”

His skill with words isn’t confined to oratory; the former journalist knows a thing or two about penning columns, books, and angry letters to newspapers.

“Is this how you have controlled Fort Worth so long?” Wright wrote back then. “By printing only that which you wanted people to read?”

Playing David to the powerful Carter’s Goliath allowed Wright to sling a decisive stone. The letter was the talk of the town, and Wright won the election with 60 percent of the vote.

But that was more than 50 years ago. Carter is long since dead. The stories live on, however, at the TCU library, which maintains Wright’s archives of more than a million documents.

For many folks, Wright remains Fort Worth’s go-to guy. Ancient constituents still call asking for help expediting a passport, bringing soldiers home from the military to tend to a family crisis, or dealing with any number of grackles-in-trees-type situations. “They are friends and people I used to serve, and I feel an obligation to try to get them some help,” he said. “I do these things for the community because I enjoy it.”

That same community has been debating the Wright Amendment ever since it was passed in 1979 to restrict flights out of Love Field after Fort Worth and Dallas combined efforts to build an international airport. Last year, efforts to repeal the amendment — a solution agreed upon by local leaders — stalled in a Washington committee led by Vermont Sen. Patrick Leahy, who was concerned about antitrust issues. Moncrief recalled that Leahy and Wright once served in Congress together, and he sought Wright’s intervention. Wright was happy to help — even though it meant repealing a namesake law.

“I called Pat and told him what I could, and everything worked out fine,” he said.

Marshall L. Lynam dropped a journalism career — he worked at the Fort Worth Star-Telegram and Fort Worth Press in the 1950s — to follow Wright into Washington, D.C.’s political trenches. For 27 years, Lynam worked side by side with the congressman and grew to love him like family. He wrote of those years in the insightful and funny Stories I Never Told the Speaker: The Chaotic Adventures of a Capitol Hill Aide, characterizing Wright as a hard-working and clever politician devoted to his constituents back home.

Blessed with a golden tongue and easy sense of humor, Wright became one of Washington’s most sought-after campaign stumpers. Former President Lyndon Baines Johnson once suggested that Wright address a Democratic candidate’s rally, describing him as “an eloquent, forceful speaker.” Wright was eager to oblige. If he helped other candidates raise money and get elected, he could depend on them for political support on down the line. Lynam, who now lives in Fort Worth, recalled how Wright once agreed to attend a 1964 fund-raiser for a Mineral Wells politician. Back then, Wright was a three-pack-a-day smoker, but he’d run out of Winstons on this trip. By evening, he was having a nicotine fit.

Coincidentally, a new company had recently opened in the little city and was offering an alternative to tobacco — lettuce cigarettes. Company representatives handed out cartons of the new product at the rally, and a grateful Wright, seated on a dais in front of 500 people, eagerly fished one out. With the crowd watching intently, his first drag sent him into a long coughing spell, hardly an advertisement for the innovative local product.

He was still getting over that painful attack when his turn at the podium arrived. Lynam recalled how Wright sheepishly admitted that it might take folks a while to get used to lettuce cigarettes. “But I’ll tell you one thing,” he said. “I’d rather smoke a lettuce cigarette than eat a tobacco salad.”

Lynam and Wright still get together every other Wednesday for lunch. “You could describe Jim as the type of man you’d like to have as a brother,” he said.

Some Republicans more likely viewed him as an agitating brother-in-law with a big mouth and bigger ambition. Before he found himself mired in a 1988 ethics investigation, his ambition was already leading to his undoing. Critics say he rubbed people the wrong way by flouting House rules, stepping on his colleagues’ toes, and trying to control foreign policy, something typically handled by the executive branch. “The blunt instrument of raw power was his tool, and he wielded it with such abandon that for the House to stand, Jim Wright had to fall,” Wick Allison wrote in the conservative National Review in 1989.

For two years, Republicans, led by U.S. Rep. Newt Gingrich of Georgia, accused Wright of various infractions, including using bulk book sales to skirt House rules limiting the amount of speaking fees he could collect. Wright denied the accusations but said little publicly. Republicans smelled blood, and Democrats backed away from the froth.

Ethics complaints cut to the core of Wright, a child of the Depression hailing from a family with a strong work ethic and a firm sense of right and wrong. Members of Congress are showered with offers big and small, from a free drink at the corner bar to gratis use of yachts, planes, and condos. Few if any of them completely resist perks of the office. Wright was in that heady zone for many years, but he said his conscience is clean. His main purpose, he said, was to be a successful legislator and vote in a manner that was best for his district, the country, or the world.

What some politicians see as right and just, others blast as wrong-headed. Wright favored the Franklin D. Roosevelt philosophy of government having final responsibility for the welfare of its citizens. Wealthy businessman and former Texas Rangers baseball team owner Eddie Chiles once dubbed Wright a socialist, midway between capitalist and communist. Chiles disliked governmental interference and said so often on conservative radio spots (his tagline was “I’m Eddie Chiles, and I’m mad!”). Determined to oust Wright from Congress, Chiles vowed to spend buckets of money on Republican candidate Jim Bradshaw’s 1980 campaign. Bradshaw was willing to take on the incumbent despite Wright’s popularity.

“I felt we needed a more conservative voice representing this area, and I felt I could perhaps represent the people better than he could,” Bradshaw recalled recently. “Of course [Wright] didn’t agree, and he ultimately won. Jim represented the district well for many years — not that I agree with everything he did.”

Bradshaw is a political consultant and, until recently, was a Republican precinct chairman. He’s also Wright’s neighbor now, and though their political ideologies don’t always match, Bradshaw considers him a friend. “We live a few houses from each other and we take walks together and visit,” Bradshaw said. “He’s a very interesting person who is very much alive and active, and his mind is sharp as a tack. He’s a good man.”

Novelist and playwright Larry L. King (The Best Little Whorehouse in Texas) worked as a congressional aide before becoming a fulltime writer, including a two-year stint with Wright. Both King and Wright could be mercurial, and their working relationship was strained at times. King wasn’t used to having such a hands-on boss.

“One time we got in an argument about something, and Jim said, ‘I don’t remember the people of Tarrant County electing you to a damn thing.’” King recalled. “Jim threw himself into his job so much that he didn’t leave himself time for anything else. I know he came to rue that later, thinking he should have spent more time with his colleagues and his family, but he was really into the job and really ambitious. Nothing much existed for Jim at that time other than his job and his duties, and he did a hell of a lot for Fort Worth.”

Gingrich’s attack on his ethics hurt Wright more than anyone knew, King said. But the usually astute Wright decided against justifying the accusations with a response. King, who had left Wright’s camp by that time, called his former boss and urged Wright to go on the defensive, to no avail.

“It was an amazing bit of PR work, the dark side of PR,” King said of Gingrich’s attack. “Newt took this one little story [about book sales] and peddled it to newsmen all over the country, and it got to be a lot bigger deal than it ever was. Then the grand irony was — I don’t remember how much money Jim got from that book, but it wasn’t much — Gingrich was caught for the same thing, but it was [much more].”

Looking back, Wright acknowledged that King was right. If he had nipped Gingrich’s complaints in the bud, they might never have blossomed into full-scale media frenzy. Wright was never officially accused of breaking any laws, but was nonetheless portrayed as a scandalous sneak by top Republicans, including then-Congressman Dick Cheney, whose closet is crammed with Halliburton-sized ethical problems.

“I saw there wasn’t any way I was going to pacify those people,” Wright said. “It was dividing the House in such a way it was making it hard for us to accomplish anything.”

Wright urged both political parties to end “this mindless cannibalism,” encouraging a spirit of decorum, where legislators could disagree without being disagreeable regardless. Again, he had misread the writing on the wall. Democrats and Republicans have been at odds since the parties were established, but Gingrich’s attacks ushered in a new era of much more bitter partisanship in Congress that continues in the post-Tom DeLay era.

In summer of 1989, Wright resigned, saying his effectiveness as House leader was crippled. His attackers relied on a special counsel paid for by taxpayers. Wright footed his own legal bills, and when the tab hit $700,000 with no end in sight, he decided it was time to quit.

Carlos Moore, a political consultant for Wright, described the ambush as a severe loss, both nationally and locally. “It was a terrible thing to happen to Tarrant County,” he said. “He has not been replaced. They’ve got people trying to fill his shoes, but all they’ve done is built themselves some townhouses downtown and got their sons on government payroll and those kinds of things. I look forward to the day when somebody, if there is such a person of his caliber, comes along and fills Jim’s place.”

Critics who described Wright as power- hungry and single-minded “don’t know Jim Wright, and they don’t know much about history,” Moore said. “If you don’t have somebody who is a good strong leader who knows what he’s doing, you can see what happens. The country right now is leaderless.”

Gingrich would later resign his own position as House speaker in similar circumstances. But that was long ago, and Wright doesn’t dwell on the bad times. He prefers the one-liners and funny stories. His wit, recall, and experiences under eight presidential administrations make him a sought-after speaker, even today after surgeries have caused him to sound like a man who’s had a stroke.

His long, storied political career finally done, Wright moved back home to Fort Worth and became a professor emeritus at TCU. And then the cancers came in the 1990s, taking up much of his time as he battled to survive, although he still found time to write columns and books and to teach his classes. Turns out, leaving Washington probably saved him. The small lump he found at the base of his tongue in 1991 would have surely gone ignored during his busy House days, he said. Back home, he immediately visited a doctor who diagnosed the problem.

Adam Klick was a TCU senior in 2005 when he called his mother, local Republican Party leader Stephanie Klick, to ask whether he should take Wright’s political science class, “Congress and the Presidents.” Klick’s mother encouraged him, and he’s happy he signed up. Wright’s speech was often difficult to understand, but Klick and his classmates focused on every word, he recalled.

“It was a semester inside the mind of a political insider,” Klick said. “A lot of things came out of his mouth that you’re not going to find anywhere printed in a textbook.”

His material is largely anecdotal, and Wright draws from a deep well of memories, such as being one of the last people to have a conversation with John F. Kennedy before the president was assassinated in Dallas in 1963. Kennedy had spoken in Fort Worth earlier in the day, even referring to Cowtown as “Jim Wright City.” On the short airplane flight from Fort Worth to Dallas, Wright was explaining to a curious Kennedy how the two Texas cities could be so close in proximity and yet so divergent in personalities. The plane landed, and Kennedy said, “We’ll finish this conversation on the way to Austin.”

Wright was riding several cars behind Kennedy when gunshots rang out, and he wondered if a car had backfired or maybe somebody had fired celebratory shots into the air. But as the motorcade continued and Kennedy’s car sped off down Elm Street, it quickly became clear what had happened.

“As we passed the crowd, I saw these looks of horror on people’s faces, and I knew they had seen something terrible,” he said.

Wright isn’t big on conspiracy theories of multiple shooters. “I could tell all three shots came from the same rifle,” he said.

A battered first-edition copy of Kennedy’s 1958 Profiles in Courage sits on a bookshelf next to Wright’s work desk (the book’s original price — $3.50 — is still marked on the jacket’s inside flap). He pulled it off the shelf the other day and handed it to a visitor. The first page contains a personalized inscription from Kennedy: “To Congressman Jim Wright, a public servant of courage with a great future before him.”

Wright worked with every president from Dwight D. Eisenhower to the first George Bush and shares what he learned in those days, both pertinent and off-the-wall, with his students. Critics might have painted him as power-mad, but Wright never angled to be president. Moore said he tried many times to convince Wright to seek the top spot. “Some people would rather be over in Congress; they think you’re closer to the people over there,” Moore said. “He knew what the people wanted and knew how to communicate with them, but that’s why he should have been president.”

Actually, Wright admits to harboring presidential aspirations in his youth, before he went to Congress. Once there, he realized the House was where he belonged, and the speaker’s office was his ultimate goal. Getting burned in that role made him realize how hot the presidential seat would have been. “I’m not sure I have the temperament it would have required, the ability to endure a lot of criticism and misrepresentation of something I said or wanted to do, or having my motives misconstrued,” he said.

Watching Washington with a critical eye since then, Wright said he’s seen plenty of good things happen for the United States — the long, unbroken period of economic growth in the 1990s, the dozen years of peace between the first Gulf War and the Iraq invasion, and the reduction of the national debt in the late 1990s. Overall, however, the past 20 years haven’t been kind to the country, he said. Jobs are moving overseas, the national debt is again soaring, and the separation between rich and poor is growing wider.

“CEOs have retired with golden parachutes in the multimillions while the laboring families in America have continued to decline in wages,” he said. “I see a vast decline in their well-being and standard of living.”

Sometimes, Wright’s classroom lectures veer from political perils to personal passions, and he encourages them to avoid tobacco, using himself as an example. In 1978, Wright noticed he was having trouble with his vocal cords, making it difficult to speak at the many functions he attended. His doctor told him he would have to either quit smoking or quit talking so much. Wright mulled over the diagnosis while driving home.

“I reached in my pocket and pulled out my cigarettes and threw them out the car window,” he said

He quit cold turkey, but 13 years later he was diagnosed with cancer, which re-appeared in 1998. Radiation treatments left one side of his face unable to grow whiskers, to this day. Naturally, Wright seizes the chance for a joke. “Maybe if I live long enough, I can save enough money on razors to pay for my surgery,” he said.

His face was slightly contorted after doctors grafted part of a femur to his jawbone. Some men might have hidden from public view. Not Wright. He threw himself into teaching.

“It makes it a little difficult for me to enunciate some sounds,” he said. “But it doesn’t make me feel crippled, and I’m not going to let it handicap me and stop me from being a social and communicative person.”

Each year he figures is his last to teach, but then a new school year rolls around and he answers the bell. For 16 years, that has helped keep him going.

“The campus starts bustling with young life,” he said, “and I think, ‘I’ll do it one more year.’”

The Colonel Gets Fried - Jim Schutze and the Trinity Toll Road Election

By Jim Schutze - The Dallas Observer - Published: August 2, 2007
It's a different city now. Fundamentally. Here's why.

Last weekend the [Dallas] city secretary ruled that a citizens group had met the legal test for calling a referendum on building a major high-speed, limited-access toll road through the proposed river park downtown. But don't get all lost in that. You'll hear plenty about the toll road in the months ahead.

Right now the thing to know about the city is much bigger than the toll road issue. It's about what kind of city this is and what Dallas is going to be like to live in from here on out, compared with being here before last weekend.

Sunday night, at an intimate, very emotional victory celebration for the people who had gathered petitions for the referendum, I heard an excellent and pithy description of the way Dallas has always been. A wise man who cannot be named—one who plays at the top in Dallas but also has lots of experience around the country—was quoted by his wife as saying, "This city is no more corrupt or less corrupt than New York or L.A. or Chicago or any other big American city. It's just that in Dallas far fewer people share in the spoils."

Take the Trinity River project and try to imagine a fictitious scenario in which Dallas worked like other cities. Imagine that the old Dallas river-bottom landholding families could pull their own kind of insider country club strings to get a highway built through their land along the river downtown.

But imagine, too, that a bloc of ward-heeling laborites could use a different kind of under-the-table sleaze-ball pressure to get a big park by the river. And then imagine that the well-organized old inner-city black community could put the squeeze on through the Legislature to force some juicy contracts out of the deal. And imagine that Hispanics were able to leverage some campaign contributions for a shiny new Latino recreational center.

So in the end you would get a kind of corruption standoff in which there would be a road, park, economic development, rec center kind of thing. Under the American system of politics, that would be a real-world version of fair. Everybody gets a shot at a piece. Nobody gets the whole pie. Nobody gets left out.

In terms of pure political theory, it ain't pretty, but it happens to be the best way anybody has ever come up with yet of resolving complex, conflicting ambitions in a diverse, fast-moving molten society.

That's not how it worked here, before last weekend. We don't have ward-heeling laborites. We don't have a well-organized black political presence. We don't have any effectively organized Hispanic presence at all in spite of a growing Latino population.

All we have ever had was Colonel Belo.

Until right now—until this weekend when the TrinityVote petitions were certified by the city secretary, forcing a referendum on the Trinity toll road—Dallas has always operated under the Colonel Belo system of politics. Colonel Belo is up in his office tower looking out over "my little village," surrounded by a half-dozen of his dear old Confederate true-hearts.

He puffs on his cigar, thoughtfully strokes his snowy white goatee and then decides, no, by Jehoshaphat, we're not going to build all those lakes and geegaws the people voted for back in '98. It's just not going to be done. Instead we're going to have us a highway.

"I know we promised the little people some play-purties down there by the river, and I know it's their money, but sometimes we just have to do what we have to do."

Is it a crime against nature that Colonel Belo wants to corrupt the system? Not really. It's nature itself. The crime is that nobody else can corrupt the system back at him.

And then you have the devastating effects of the syndrome I call A.D., or "arrogant dementia." Colonel Belo-types suffering from arrogant dementia begin to identify getting their own way on everything with "clean politics." As long as they can bait and switch an entire bond issue and lie to the voters to get what they want for themselves, they believe that "our system is free from the sordid taint of politics."

But you let some outsider come shuffling up to the door, hat in hand, asking about the lakes and amphitheaters he was promised before the election: Well, that's nothing short of damned Yankee-style corruption.

That's what I call A.D.

Until last weekend when TrinityVote met the legal test for a referendum, there was never any real push-back here for "Colonel Belo," a name I have made up to represent the Dallas Citizens Council and the old elite. This place was run like a one-horse hick town.

It was run, of course, like every other major Southern city in America before the Civil Rights Movement. In all of these cities, small, tight-knit cadres at the top, imbued with cultural and historical disdain for democracy, used social and business pressure to guard local pyramids of power against the encroachments of loathsome voters.

The difference is that in most Southern cities those pyramids got blown up during the decades of the Civil Rights Movement. Not here. We could talk all week about why. But the fact is, it didn't happen here. In that sense Dallas is truly anomalous—the Lost Valley of the Pre-Civil Rights Dinosaurs, a place that anthropologists should have put on their critical lists decades ago.

Too late. It's gone. The old Dallas disappeared last weekend. The push-back finally happened.

Almost 90,000 human beings signed petitions calling for a referendum on that toll road. Allow me to put that number in perspective.

The new mayor, Tom Leppert, was elected by about half that number of votes. All of the sitting city council members who won office in two recent elections—a general and a runoff—failed to garner that many votes in toto. One council member, Steve Salazar, was elected by 717 voters.

The number of people who signed those petitions is staggering. It's three times the number who signed petitions in late 2003 and early 2004 for a chance to vote on the so-called "Blackwood strong mayor" reforms.

The required number of certified signatures to put Blackwood on a ballot was 20,000. The required number for the TrinityVote ballot was 48,000. City Secretary Deborah Watkins found about 52,000 valid signatures on TrinityVote's petitions, meaning the rest of them failed to meet rigid requirements for certification.

But the total number is still 90,000. In 1998 the Trinity River project was authorized on the backs of a total of 39,000 "yes" votes. The number who signed petitions for this referendum is more than twice that.

Even the smaller number certified by the city secretary is one and one-third times the number who voted for the project in '98. By the way, it's 105 percent of the number who voted for the new mayor in the June 16 runoff election.

So what does this kind of push-back mean? Oh, it means everything. I don't even want to talk yet about the debate on the toll road, except as it illuminates this sea change in the politics of the city.

Local media, for example, with the exception of the Dallas Observer and some of the better TV news operations, have always been the Lost Valley mouthpieces of the Beloans. That has to change now, even at Belo Corp., the company that owns the city's only daily newspaper, because even the Beloans are obligated to speak seriously to the 90,000.

Right up to last weekend, The Dallas Morning News consigned principal coverage of the TrinityVote movement to two local columnists, Steve Blow and Jacquielynn Floyd, whose offerings were dismissive and silly, without even an attempt at real reporting.

Last Sunday—the day the city secretary had to announce her findings on certification—the News ran on its front page a well-written, fully reported and balanced story by Bruce Tomaso profiling city council member Angela Hunt, who has led the TrinityVote effort.

I just can't over-emphasize what an important shift that is. It means that Hunt and her group have demanded and received respect from the News after months of goofy derision and slights. How did they demand the respect? With that number we've been talking about—the 90,000.

And that's the other side of this coin. Can you really blame Colonel Belo for running the show single-handed when there was never anybody around who had the bones to force his hand? That's really what this moment comes down to. Someone has shown up to force his hand. In fact, 90,000 someones.

The day after the signatures were certified, Mayor Leppert told the Morning News he had asked the district attorney to investigate possible fake signatures. If Leppert found 42,000 fake signatures, the petitions would still pass certification. He has to know that. It's a simple refusal on his part to show respect for the huge number of voters who did sign properly.

You're going to hear other unbelievably A.D. arguments against the referendum from the people who support putting a massive toll road through the park downtown. One is a kind of technical gotcha on the voters. This argument says that even if the road called for by the state at the time of the election was a quiet little park road, and even if no toll road was even mentioned on the 1998 ballot, lots of people were talking about a toll road in '98 and you should have noticed that and you should have been smarter.

Nah-nah-nah on you.

Now that is really what I call A.D.

How about, "No, nah-nah-nah on you, because I'm going to vote against your stinking toll road in November."

That's what I call a real city.
Read more in the Dallas Observer

Sunday, August 12, 2007

Justice facing criminal and ethics probes in Austin - Hecht accused of accepting discount legal work from a high-profile firm

By CLAY ROBISON - Houston Chronicle - Aug. 9, 2007

AUSTIN — Texas Supreme Court Justice Nathan Hecht, under investigation by Travis County prosecutors after being accused of accepting an illegal contribution from a law firm, also is facing questions from the Texas Ethics Commission.

Hecht has declined to comment on the case, which involves a discount he received for personal legal services from the Jackson Walker law firm.

But he has retained attorney Wayne Meissner of Austin to represent him, and Jackson Walker has hired lawyer Roy Minton.

"Justice Hecht is responding to Travis County District Attorney Ronnie Earle's investigation, and we hope to resolve the matter as soon as possible," Meissner said Thursday.

The district attorney's office acknowledged last month that it was reviewing a complaint filed by Texas Watch, a government watchdog group, against Hecht.

The group also filed complaints with the Ethics Commission and the Texas Commission on Judicial Conduct, but neither agency, citing confidentiality laws, will discuss the case.

An attorney with the Ethics Commission, however, has directed Hecht to respond in writing and under oath to allegations that he failed to report the lowered fees as an in-kind political contribution and that the discount exceeded the $30,000 limit on judicial donations from a single law firm.

The Houston Chronicle got a copy of the Ethics Commission's letter from Texas Watch.

The controversy stems from Jackson Walker's successful defense of Hecht last year in a dispute with the Commission on Judicial Conduct.

The judicial commission admonished Hecht for promoting President Bush's short-lived nomination in 2005 of Harriet Miers, a longtime friend of Hecht's, to the U.S. Supreme Court.

It said Hecht had violated a rule prohibiting Texas judges from publicly endorsing other candidates for office. Hecht appealed and, represented by Jackson Walker, won a dismissal of the admonition from a three-judge panel last October.

Hecht solicited contributions from lawyers to help pay his legal fees, and, according to reports filed with the Ethics Commission, paid Jackson Walker $342,416 from his political fund.

Chip Babcock, a Jackson Walker partner who handled the case, said Hecht's bill was reduced by 25 percent because the case involved a key public issue — freedom of speech.

Babcock said the discount was legal and denied the law firm was trying to curry favor with a Supreme Court justice.

Alex Winslow, Texas Watch's executive director, said it is illegal for state judges to accept gifts, except for campaign contributions, from parties the judges know are likely to appear before them. A violation is a Class A misdemeanor punishable by as much as one year in jail and a $4,000 fine, he said.

The Ethics Commission could assess a civil fine against Hecht if it determines he violated reporting requirements.

Read more

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