Congress Checkmate for the Speaker?

By DAVID ELLIS

When Joseph Early faced his colleagues in the House of Representatives last week, he was feeling anything but contrite. Although the Massachusetts Democrat had been named as one of the biggest abusers of the now defunct House bank, having issued 140 bad checks, he wasn't interested in apologizing. Early chose to blame the boss instead. Tom Foley's handling of the issue, he claimed, was nothing short of a "disgrace." Growled Early: "Mr. Speaker, face the issue!"

No other lawmakers were willing to echo Early's intemperate remarks -- at least not publicly. But there is little doubt that many Democratic Congressmen blame Foley for the continuing political mess that may have cost several incumbents their jobs in primaries last week. One of the defeated lawmakers, five-term Chicago Congressman Charles Hayes, wrote 716 bad checks. Many more may be sent packing in November: a Washington Post/ABC News poll published last week indicated that 79% of Americans are unlikely to vote for Representatives who repeatedly wrote bad checks.

Many members felt they were unfairly blamed for the sins of the worst offenders. Of the 355 House members who were found to have written bad checks at one time or another, probably a majority did so inadvertently. This group was particularly bitter over the bank's sloppy management and the Speaker's awkward handling of the affair.

The Justice Department announced an independent review of check-kiting practices on the Hill. Adding to the embarrassment, at least three Democrats -- Charles Wilson of Texas, former Congressmen Jim Bates of California and Doug Walgren of Pennsylvania -- used House bank checks to lend money to their election campaigns.

For months, Republicans, led by minority whip Newt Gingrich, gleefully bashed Democrats over the issue. But "Rubbergate" has bounced back at the G.O.P., as Gingrich and three members of the Bush Administration, including Defense Secretary Dick Cheney, have admitted that they incurred overdrafts while serving in Congress. Almost overnight, the White House had to soften its stance on the scandal -- especially since George Bush himself could not say for sure whether he had abused the privilege when he served in the House from 1967 through 1970.

Many of Foley's colleagues are jabbing their fingers in the Speaker's direction, insisting that he had ample opportunity to reform House operations. Foley was told by investigators from the General Accounting Office in January 1990 that the banking operation needed cleaning up. The Speaker might have nipped the problem in the bud by firing sergeant at arms Jack Russ, who ran the bank, but critics say the wily administrator used his inside knowledge of Hill affairs to protect his position. Foley let Russ off with a warning, and asked an outside group of bankers to look at the system. Even though their April 1990 report clearly stated that some members were making "excessive use" of the overdraft provision, the Speaker let matters drift until the current scandal broke, which led to the bank's closing last December and Russ's resignation earlier this month.

Adding to the disarray last week were new allegations of wrongdoing at the House post office. After law-enforcement agents discovered that some members also improperly cashed personal and campaign checks at the post office, House postmaster Robert Rota quit his position. A federal grand jury is examining accusations that some members in effect laundered campaign money at the post office. According to law-enforcement officials, unidentified lawmakers whom they did not identify wrote checks for thousands of dollars' worth of stamps at the mail station, then redeemed them for cash.

The post office was already reeling from a previous scandal. At least one employee is suspected of dealing cocaine from the facility, and three other workers have admitted stealing more than $33,000 from its coffers. The Speaker was further embarrassed by reports that his office had known of the earlier post office irregularities but did nothing to remedy them. Heather Foley, the Speaker's wife and unpaid chief of staff, discussed the post office situation in a meeting with Rota before the matter became public. According to the Washington Times, she ordered Rota to keep quiet about the problems at the post office. Foley condemned reports implicating his wife in a cover-up, calling them "categorically untrue."

Questions about Foley's handling of these scandals have compounded the disappointment of many House Democrats over his conciliatory legislative style. Time and again the Speaker has preferred to negotiate with the Administration on certain key issues. Democrats fear that Foley will once again be outmaneuvered in the battle over the tax bill that Bush vetoed last week. "Since he has assumed the leadership, Foley has been unwilling to put forward a coherent economic alternative to George Bush," says Michael Waldman of Public Citizen's Congress Watch.

To solve the management problem, the House may soon pass a measure creating the position of independent administrator to run its varied operations and conduct audits. And in an effort to curtail the privileges that have drawn increasing public ire, Foley last week ended free medical prescriptions for members and raised fees at the House gym. But the reform moves could prove too little and too late to calm Foley's critics. If dozens of incumbents either choose not to run or lose at the polls in November, those who replace them will not have any ties to Foley. The Democrats among them could demand that he step aside for a more aggressive leader.

With reporting by Nancy Traver/Washington