REP. WILLIAM CLAY (D-MO)
Rep. Clay purchased between 1,000 and 15,000 worth of stock in Southwestern Bell on each of the following occasions: May 1993; August 1993; November 1993 (he provided no exact dates). During this time period, Southwestern Bell was negotiating a $1.4 billion deal with the Missouri Public Service Commission that would provide Southwestern Bell with substantial regulatory relief in return for 1) multi-year, multi-million dollar investments in fiber-optic upgrades in Missouri, 2) elimination of party-line service, 3) customer refunds resulting from extra profits, and 4) a rate moratorium through December 31, 1998. This deal was completed in September of 1994.
Throughout the negotiation period, companies like ATT, MCI and TCI expressed their outrage over what they believed was "regulatory rigging." These companies complained that the deal was anti-competitive, and gave Southwestern Bell an unfair advantage in the race to "own" the info.-super-highway.
Here's how Rep. Clay fits in. His political power in St. Louis and the rest of Missouri is legendary. He is a 13-term Congressman with fantastic political clout.
Since 1991, Rep. Clay has accepted $4,000 in PAC money from Southwestern Bell, including a $1,000 contribution on May 24, 1993 (the same month he made his first stock purchase).
Rep. Clay also accepted (since 1992) $450 in individual contributions from Mr. Harold Crumpton of St. Louis, MO (a $200 contribution was made on September 13, 1993). According to an October 18, 1993 article in Electric Utility Week, Mr. Crumpton was a former employee of Southwestern Bell who is now the newest member of the MISSOURI PUBLIC SERVICE COMMISSION!!! The article goes on the say that Mr. Crumpton was forced to resign from the Public Service Commission briefly during the month of September 1993, after it was discovered that he still owned shares of stock in Southwestern Bell. After divesting himself of this stock, Mr. Crumpton was promptly reinstated on the Public Service Commission.
- On April 1, 1991, Rep. Clay purchased between 1,000 and 15,000 dollars worth of stock in Pet Inc. (they manufacture canned foods, including canned dairy products).
April 1, 1991 was the first day of public trading for Pet--it was a spin-off from Whitman Corp.
Pet Inc. is based in St. Louis, MO (Rep. Clay's district). Interestingly, Molly Shi Boren (wife of Sen. David Boren; D-OK) sits on Pet's Board of Directors.
Nine days after Rep. Clay's purchase (on April 10, 1991), a bill was introduced in the House (and referred to Rep. Clay's Education and Labor Committee) that would be of interest to Pet. The bill was H.R. 1714: National School Lunch Act Amendment...To extend benefits under the Child Care Food Program to children aged 13 to 15. In other words, this bill would enlarge the market for companies participating in the School Lunch Program by adding three years to the eligible age.
Pet Inc. does market products through the National School Lunch Program. In fact, they were the object of public outrage later in 1991--Pet was found to have rigged milk bids in the School Lunch Program!!
NOTES: Rep. Clay is # 2 on the House Education and Labor Committee.