Dole was giddy, Gingrich relieved. The Dole deal seemed heaven-sent: no need to borrow from a bank or solicit donations from interest groups or mortgage the new house in Atlanta. Just a friendly loan from one of the capital’s most admired elder statesmen, proud owner of the Medal of Freedom. But for the speaker the loan has its spiritual costs. For the former hellion of the House–once the eager scourge of the Washington establishment–is being bailed out by the ultimate insider, the man he once derided as “the tax collector for the welfare state.” And it’s not clear that even this arrangement will save Newt–let alone restore his clout. Too many members of his rank and file privately think he’s too unpopular, and too wishy-washy on conservative principles. “He lives to fight another day,” says Weekly Standard editor William Kristol. “But there will soon be another day.”
Gingrich and his circle had agonized for months over how to pay the fine. Advisers warned him that he needed to use his own money; anything else would be seen as a corrupt cop-out. The Newtonians considered, and rejected, everything from using leftover campaign cash to establishing a “legal-defense fund” to soliciting donations from the three former GOP presidents. His wife, Marianne, had vehemently opposed using personal assets, most of which are now in her name, including Newt’s own $471,000 in book royalties. “Every time we’d say to him, “You’ve got to use your own money’,” recalled one adviser, “he’d say, “But I don’t have any money’.”
Enter the Bobster. Dole approached slowly, broaching the subject with Scott Reed, his former campaign manager. Reed, who is close to the Gingrich crowd, was encouraging. “I’d been fretting over how Newt’s problems were distracting the party from its agenda,” Dole said. Channel-surfing at the Watergate, Dole saw Newt’s main chance: the speaker’s upbeat reviews for his China trip, his first good press in months. “He was on a roll and had to get this behind him,” Dole said. He told Reed to pass the word that he’d be willing to help in some way. Last Tuesday morning Dole offered the loan–and by dusk he and Newt were on the Capitol balcony outside the speaker’s suite, signing a pact.
But the loan’s fine print, which must be approved by the House ethics committee, raises some questions. Though the interest rate is 10 percent (1i points above the prime rate), Gingrich isn’t required to make any payments until the loan comes due, in 2005. At that time Gingrich can pay back the loan with speaking fees or other money from the contributors he now brags that he’s avoiding. It was unclear whether Newt would have to post any collateral, and if so, how much. And there’s nothing to prevent Dole from forgiving the loan after Gingrich leaves Congress, as Newt has vowed to do, in 2003. “The Dole deal is a dodge,” huffed The New York Times. “It doesn’t pass the smell test,” said Democrat George Miller of California.
Dole’s even taking some flak–or at least his new firm, Verner Liipfert, is. It represents 90 of the Fortune 500, including tobacco companies. But it’s known for its deep ties to Democrats. Its roster includes such eminences as George Mitchell, Ann Richards and Lloyd Bentsen. So critics contend that any of the firm’s lobbying successes among GOP House leaders will now be viewed as a payback for the Gingrich rescue. Dole dismisses the complaints. “I’m not going to lobby,” he says. “This is something I did on my own. It has nothing to do with the firm.”
Dole’s motives don’t appear to have been financial. Mostly he’s glad to be back on the field. This was a tough winter: a case of shingles, a nerve inflammation that frequently strikes older people, kept him off the speaking circuit. “The headaches were awful,” he said. Still, he made a few TV appearances and was paid $500,000 to film one Super Bowl commercial for Visa–a windfall that made it easier to pony up for Newt.
Capital wise guys assume Dole had a special reason for helping Gingrich: to impress the GOP grass roots on behalf of his wife, Elizabeth Hanford Dole, who may run for the presidential nomination in 2000. If that was Dole’s plan, it’s not one he shared with her in advance. When did he tell her he’d agreed to shell out $300,000? “When I got home,” he said. For Dole, the real reward was relevance. He hadn’t spoken to Newt in months. They talked several times last week. “He called me after his speech to say thanks,” said Dole. “I appreciated that.” For a proud pol, the attention was worth the money.
WHEELING AND DEALING Bob Dole is loaning Newt Gingrich $300,000 to pay the speaker’s fine.
Amount: $300,000
Interest: 10 percent annually
No payment due until 2005, meaning he could owe as much as $643,000
The Doles’ assets: approx. $5.5 million. The senator will earn $600,000 a year with a D.C. law firm, which represents Fortune 500 and Bit Tobacco companies. Mrs. Dole makes $200,000 a year at the Red Cross. Speeches may earn them $1 million annually.
The Gingriches’ assets: approx. $615,000. The speaker makes $171,500, and book royalties have earned $471,000 more. Bank and money-market accounts total $100,000-$250,000.
