Oregonians could get taken by traveli...

Feedback.pdxradio.com message board: Archives: Politics & other archives: 2008: Jan, Feb, Mar -- 2008: Oregonians could get taken by traveling circus.
Author: Littlesongs
Sunday, March 30, 2008 - 12:58 pm
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An article published today by Politico offers a troubling picture of the Clinton financial state and their approach to paying bills to small businesses, caterers, venues and production companies. I am sure many Oregon businesses were hoping to get a few bucks out of the primary season, and in this stagnant economy, every dollar helps. This article is sobering news to any local folks who are planning to do business with the campaign:

Hillary Rodham Clinton's cash-strapped presidential campaign has been putting off paying hundreds of bills for months — freeing up cash for critical media buys but also earning the campaign a reputation as something of a deadbeat in some small-business circles.

A pair of Ohio companies owed more than $25,000 by Clinton for staging events for her campaign are warning others in the tight-knit event production community — and anyone else who will listen — to get their cash upfront when doing business with her. Her campaign, say representatives of the two companies, has stopped returning phone calls and e-mails seeking payment of outstanding invoices. One even got no response from a certified letter.

Their cautionary tales, combined with published reports about similar difficulties faced by a New Hampshire landlord, an Iowa office cleaner and a New York caterer, highlight a less-obvious impact of Clinton’s inability to keep up with the staggering fundraising pace set by her opponent for the Democratic presidential nomination, Illinois Sen. Barack Obama.

Clinton's campaign did not respond to recent, specific questions about its transactions with vendors. But Clinton spokesman Jay Carson pointed on Saturday to an earlier statement the campaign issued to Politico, asserting: "The campaign pays its bills regularly and in the normal course of business, and pays all of its bills."

If she had paid off the $8.7 million in unpaid bills she reported as debt and had not loaned her campaign $5 million, the cash she would have had available at the end of last month to spend on television ads and other upfront expenses would have been less than $2 million.

By contrast, if you subtract Obama's $625,000 in debts and his general-election-only money from his total cash on hand at the end of last month, he'd still be left with $31 million.

It's not just the size of Clinton's debts that's noteworthy. It's also that her unpaid bills extend beyond the realm of high-priced consultants who typically let bills slide as part of the cost of doing business with powerful clientèle whose success is linked to their own.

Some of Clinton's biggest debts are to pollster and chief strategist Mark Penn, who's owed $2.5 million; direct mail company MSHC Partners, which is owed $807,000; phone-banking firm Spoken Hub, which is waiting for $771,000; and ad maker Mandy Grunwald, who's owed $467,000.

Clinton also reported debts more than one month old to a slew of apolitical businesses and organizations, large and small, in the states through which this historically expensive Democratic primary campaign has raged.

She owed Iowa’s Sioux City Art Center Board of Trustees $3,500 for catering and venue costs, New Hampshire’s Winnacunnet Cooperative School District $4,400 in event costs, Qwest $24,000 for phone service, various branches of the Iowa-based supermarket chain Hy-Vee $15,000 for food, beverages and catering, and $7,700 to Ohio and Massachusetts branches of the theatrical stage employees' union, for equipment costs.

In fact, about a third of the nearly 700 individual debts Clinton reported at the end of February were for various types of "event expenses," including $319,000 for catering and venue costs, $420,000 for equipment, $11,000 for photography and $9,000 for security.

Event production is important to big-time presidential campaigns. It shapes how candidates look and sound, not just to the thousands of people who turn out to campaign speeches and rallies but also to the millions who catch snippets of them on television.

And word is getting around that Clinton’s campaign does not promptly pay those who labor to make her events look good, said an employee of the event production company Forty Two of Youngstown, Ohio.

"I feel insulted by the way that the campaign treated this company and treated us personally," said the employee, who did not want to be named talking about a client.

The Clinton campaign paid the company $16,500 to set up a stage, press riser, sound system and backdrops at a Youngstown high school last month for a raucous union rally, where an aggressive Clinton stump speech drew thunderous applause. But the Clinton campaign has yet to pay Forty Two for two other February events, and the employee said the campaign has stopped returning phone calls, e-mails and didn't respond to a certified letter.

"We worked very hard to put together these events on a moment's notice and do absolutely everything to a 't' to make it look perfect on television for her and for her campaign," said the employee. "Sen. Clinton talks about helping working families, people in unions and small businesses. But when it comes down to actually doing something that shows that she can back up her words with action, she fails."

Forty Two also has done events for Obama's campaign, which has paid its bills promptly, according to the employee. FEC records show Obama's campaign paid the company $18,500.

Show Tyme Exhibits, another Youngstown event production company, has produced political events for years and had never had problems getting paid before Clinton, according to owner Jim Phillips.

He said he's still waiting for a payment for setting up the sound system and stage for Clinton's February tour of a General Motors plant in Lordstown, Ohio.

"It was only $607, but I'm a small guy; I could use that," said Phillips, adding, "Everyone I can tell, I do tell about it. You tell somebody something bad about somebody, they tell 10 other people."

Both Phillips and the Forty Two employee said they voted for Clinton in Ohio's March 4 primary, which she won handily, but regret their votes and are reluctant to work for her campaign again.

Tony Galarza, director of the Missoula, Montana, branch of a national event production company, remained committed to staging an April 6 Clinton fundraising brunch at a local hotel even after a colleague in his company e-mailed a list of Clinton’s campaign debts.

Galarza said he's confident Clinton will pay his company but admitted he was surprised to see so many event production companies among the campaign's creditors.

"Once I looked at those numbers, I realized how important to our economy nationally these elections are," he said. "Just the sheer numbers listed there were immense."

Author: Deane_johnson
Sunday, March 30, 2008 - 1:18 pm
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People get so excited and greedy to do some business that they throw caution to the wind. I would never do business with a political campaign that wasn't cash in advance.

Author: Missing_kskd
Sunday, March 30, 2008 - 1:26 pm
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This is also why defense attorneys require cash or bond in advance too.

Author: Wobboh
Monday, March 31, 2008 - 10:41 am
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Anyone who doesn't do business with political campaigns on a cash up front basis deserve what they get--nothing. Suckers.

Back in the day when I worked for Ma Bell (pre- divestiture), all political campaigns were required to make advance payments for temporary hookups such as campaign stops. No free rides.

I'm pretty sure most media buys are cash upfront these days. Is that true, radio/tv folks?

Author: Nwokie
Monday, March 31, 2008 - 10:58 am
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Most campaigns are set up as limited liability corporations , and when the campaign is over, and the corporation is out of cash, therefore there is no one legally responsible for the debts.

Either get your money up front, or it may end up as a unwilling donation to the campaign.

Author: Radioblogman
Monday, March 31, 2008 - 11:04 am
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Though I won't vote for her, it seems Hillary is now qualified to replace Shrub, as she now knows how to increase the nation's debt as much as he does.

Author: Motozak2
Monday, March 31, 2008 - 12:52 pm
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Oh, I see....this is more political dreck. Damn.

By the title given, I thought the thread was about Cirque Du Soleil...........


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