http://www.salon.com/politics/feature/2001/05/18/arkansas_project/index.html



Why the Senate should reject Ted Olson
His role in the sleazy Arkansas Project is bad enough. The fact that he
hasn't told the truth about it is worse.
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By Gary Kamiya
May 18, 2001 | "Who the hell cares about the Arkansas Project anymore?" asked
Orrin Hatch, chairman of the Senate Judiciary Committee, after the committee
deadlocked 9-9 on party lines on whether to confirm Theodore Olson to be
solicitor general.

The answer is simple: Every American who thought that the impeachment of
former President Clinton mattered cares, or should care, about the Arkansas
Project.

Because the Arkansas Project -- the five-year, $2.4 million dollar effort to
dig up dirt on Clinton, funded by reclusive billionaire Richard Mellon Scaife
and controversially channeled through the tax-exempt, nonprofit American
Spectator magazine -- played a key role in the events that led to that
impeachment.

It makes perfect sense that Sen. Hatch wants us to think that the Arkansas
Project is some 19th century dispute over municipal water rights, rather than
a sleazy, secretive operation that had a major impact on the biggest
political crisis of the last 50 years. The Republican Party and the right
wing would like nothing better than for America to forget that they spent
eight years and tens of millions of taxpayer dollars trying to bring down a
sitting president, often -- as with the Arkansas Project -- using the most
dubious methods. Now that their own candidate has been installed in the White
House, it would be much better if all that sleazy dirt-digging simply never
happened.

For what the Arkansas Project really reveals is the connection between the
creepy-crawliest elements of the American far right and the powerful,
respectable, establishment face of conservatism, in the person of Ted Olson.
It's important for the GOP that that connection be forgotten, immediately and
permanently.

Certainly Olson seems to have forgotten much of it. His memory of his
involvement with an 800-pound gorilla of a project that defined the American
Spectator in those years has proved remarkably vague and changeable for a
lawyer with a mind like a steel trap.

Questioned about his knowledge of the Arkansas Project by the Judiciary
Committee, Olson initially said he first became aware of it in 1998, but only
as a member of the American Spectator's board of directors. Then he said that
it was the summer of 1997. Then he changed his story again, saying that he
first became aware of it "in connection with my service to the Foundation as
a lawyer."

It's understandable that Olson wouldn't want to admit that he was up to his
elbows in this low-class smear campaign. But considering the well-documented
facts, it's almost unbelievable that he tried to deny it. As Salon's
extensive reporting on the matter in 1998 proves, Olson was deeply involved
with the Arkansas Project from the beginning. His denials are simply not
credible. In fact, it's his failure to tell the full truth about the Arkansas
Project that raises the most serious questions about his fitness to serve as
the nation's solicitor general -- far more than his involvement in the
partisan campaign against Clinton. And Republicans, who endlessly proclaimed
that Clinton's real offense wasn't having extramarital sex, but lying under
oath about it, should be the first to agree.

Olson clearly shared the Arkansas Project's anti-Clinton goals. He was
present at its first meeting in 1994, which was held in his office. He was a
trusted friend and advisor to Scaife, its wealthy benefactor. He provided it
with legal advice. He worked closely with, and was a longtime friend of, its
principal players, including Spectator editor R. Emmett Tyrrell and the two
Washington attorneys who ran the Project, Stephen Boynton and Dave Henderson,
who also had long-standing ties to Scaife. He provided legal representation
for the most controversial figure associated with the Project -- disgraced
former Arkansas judge and con-man David Hale, the key Whitewater witness, who
was accused of receiving Arkansas Project money while cooperating with
Kenneth Starr.

Considering these facts, Olson's pious declaration that he knew nothing about
the Arkansas Project is about as believable as Clinton's finger-wagging
declaration that he did not have sex with that woman.

The saddest thing, from Olson's point of view, is that his attempts to
disentangle himself from the Project are completely unnecessary -- that is,
if we are to believe such conservative stalwarts as William Safire and the
editors of the Wall Street Journal. According to them, the Arkansas Project
was a noble journalistic enterprise: If they're right, why should Olson even
try to disavow a connection to it? Why not just embrace it and ask for a
Pulitzer?

On Thursday the Journal's lead editorial and Safire's column both argued that
Sen. Patrick Leahy, D-Vt., the ranking Democrat on the Judiciary Committee,
had no right to demand documents from the Spectator because the Arkansas
Project was a journalistic endeavor and thus protected by the First
Amendment. Leahy wants the records to help determine the truth about Olson's
involvement with the Arkansas Project.

Their arguments might carry a bit more authority, however, if either of them
had acknowledged that the question of whether or not the Arkansas Project was
a legitimate journalistic endeavor, as opposed to a political operation, was
hotly debated within the American Spectator itself -- and ultimately led to a
cataclysmic rift within the magazine's ranks. Indeed, the dispute, which had
significant legal and tax implications for the magazine's tax-exempt,
nonprofit status, had a direct bearing on how Olson came to be a member of
the magazine's board of directors.

In 1997, the stench arising from the Arkansas Project became too much even
for the Spectator's original publisher and cofounder, Ronald Burr. Burr, who
was also secretary and treasurer of the magazine's board, was concerned that
the Scaife money that was flowing through the Spectator to anti-Clinton
operatives Stephen Boynton and Dave Henderson was not being properly
accounted for. He and other staffers were also troubled that little actual
journalism was resulting from Scaife's largesse.

Burr recommended that the Spectator hire an accounting firm to audit the
Arkansas Project. This idea did not sit well with Spectator editor Tyrrell,
who had Burr -- his friend of 30 years, with whom he founded the magazine --
summarily ousted. The man who replaced Burr on the board was Theodore Olson.

The crucial point, which both the Journal and Safire prudently ignored, is
that the American Spectator's nonprofit owner, the American Spectator
Educational Foundation, is prohibited under IRS regulations for 501(c)3 class
organizations from engaging in explicitly political activities -- like
"opposition research," which much of the Project's journalism strongly
resembled. Nonprofit political magazines face questions about whether they're
complying with those regulations all too frequently -- during the Reagan
administration, the IRS investigated left-wing, non-profit Mother Jones,
thanks to its political muck-raking, though it was eventually exonerated.

So was the Arkansas Project a legitimate journalistic venture, or a political
operation? It's a murky area, but if it was a journalistic venture, it was a
highly singular one. The money flow, for example, did not bear much
resemblance to the disbursement practice at, say, the New Yorker. $1.8
million of Scaife's $2.4 million, according to Spectator records, was paid to
Boynton and Henderson, who then in turn passed some of the money to various
anti-Clinton operatives including Parker Dozhier, the shadowy Arkansas
bait-shop operator accused of paying off David Hale.

Whatever else you can say about this arrangement, it is certainly an unusual
way for a nonprofit journalistic organization to disburse its monies. In his
column, Safire called the American Spectator a "feisty little magazine." I
don't know what kind of magazines Mr. Safire has worked for, but if some
shadowy far-left billionaire came to Salon and offered us millions of dollars
to start a "Texas Project" to dig up dirt on George W. Bush, and if we then
mysteriously channeled the money, with vague accounting, to a couple of
lawyers who in turn handed some of it out to a rogue's gallery of lowlife
operatives, one of whom was sheltering and giving money to the central figure
in a case that could result in Bush being removed from office, I think it
safe to say that you could call us "feisty," but whether we would merit the
title of "magazine" is less clear. (And we're not even a nonprofit.) Finally,
just imagine if we succeeded, and President Gore then appointed one of the
Texas Project lawyers to be his solicitor general ...

As for Safire and the Wall Street Journal's reaction to such a "Texas
Project," one shudders even to imagine it. The Journal editors, famed far and
wide for their near-psychotic hatred of Clinton, revealed more troubling
signs of delusional thinking in Thursday's editorial, asserting that Sen.
Leahy is "acting at the prompting of Clinton acolytes at Internet-based Salon
magazine" and saying that he is "marching to the higher authority of Salon
magazine." We regret to inform the Journal that Sen. Leahy has remained
impervious to our attempts to direct him by remote control, despite promises
to fill his campaign coffers with our dot-com millions.

Olson's lack of candor about his role in the Arkansas Project disqualifies
him for the role of solicitor general. When a vote gets to the full Senate,
one would hope that some Republicans would join Democrats in rejecting his
appointment. If not, the Democrats are within their rights to take all
necessary steps, including a filibuster, to stop it.

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