The Reformer Tunes His Money Machine

Charlie Ergen was grateful, and he knew how to show it. Last March, the satellite-television billionaire was in a nasty turf battle with the TV networks. Ergen, founder of EchoStar Communications, lobbied for a Senate bill that would let companies like his continue intercepting network signals--a practice the networks say is piracy. He found an ally in Sen. John McCain. The chairman of the powerful Commerce Committee championed the bill, and it cleared the panel undamaged. A week later, the Colorado tycoon threw a fund-raiser for McCain's presidential campaign at his Denver home. Estimated take: $47,000.

Hardly an unusual tale in money-driven Washington. But for McCain, it seemed an odd disconnect. No politician has more fiercely denounced the corrupting influence of big money on politics. For years he has fought an uphill battle to curb the millions in "soft money" that flows from corporations and unions into the political parties, and he routinely rails against the unfair advantage of special interests. His crusade irritates fellow Senate Republicans, who last week rejected another campaign-reform bill. With Elizabeth Dole's withdrawal from the presidential race, McCain is gaining strength--and hopes to ride money reforms into the White House. "It's the basis of my campaign," he told NEWSWEEK. Yet some Senate colleagues--and more than a few lobbyists--gripe that there is a not-too-subtle inconsistency between McCain's reform crusade and his own fund-raising.

McCain told NEWSWEEK there is nothing improper about his methods--though he is quick to admit that he has what he calls "an appearance problem." In the last election, he amassed $562,000 in contributions from the communications industry--more than anyone in the Senate. He also took in $341,000 from airlines, railroads and other transportation companies regulated by the Commerce panel. According to the Center for Responsive Politics, eight of the top 10 contributors to his presidential campaign were executives at companies with extensive interests before the Commerce committee--including US West ($48,225), Viacom ($47,750) and BellSouth ($30,763). "He acts like he's entitled to it," says a lobbyist whose firm has contributed. "He sees no connection between twisting our arms for money and then talking about how corrupt the system is."

McCain has been aided by execs with more than a passing interest in the senator's well-being. One top fund-raiser is Sol Trujillo, chairman of US West--which stands to benefit from a McCain-sponsored bill to permit the Baby Bells to offer high-speed Internet access. Another is David Pottruck, president of Charles Schwab. The brokerage house could profit from McCain's bill requiring stock exchanges to make free instant quotes available online.

No one is charging that McCain's fund-raising has broken any laws--or that he has altered his positions in order to win campaign cash. McCain himself concedes his intermingling of lawmaking and fund-raising is problematic. "I have been guilty of the appearance of corruption," he says. But, he insists, he has no choice. If he didn't collect cash from companies with business before his committee, he says, he couldn't compete with his better-funded rivals. At least, he argues, he's trying to minimize the corrupting influence of money. His ally in that fight, Democratic Sen. Russell Feingold, calls McCain "the least corrupt guy in Washington"--though he says "the system taints all of us." Sometimes even its toughest critic.