SEN. DALE BUMPERS (D-AR)

Throughout 1993, Tyson Foods (the nation's largest poultry producer; based in Sprindale, AR) was very concerned about new USDA proposals to tighten poultry inspections. The new proposals followed in the wake of food poisoning deaths at Jack-In-The-Box.

On May 16, 1993, Agriculture Secretary Mike Espy delivered a speech to the Arkansas Poultry Federation, and stayed the night for entertainment and discussions with Tyson executives at the Tyson Management Center. The following day, Secretary Espy flew back to Washington aboard a Tyson corporate jet. This behavior is currently being investigated by special counsel Donald Smaltz for ethics violations.

On May 18, 1993, The Dallas Morning News announced that the USDA will hold the first of six regional public hearings on plans to modernize the federal meat and poultry inspection program. The first public hearing was to take place in Dallas on Friday, May 21, 1993. Secretary Espy was to attend these hearings along with other USDA inspection officials.

On the same day, May 18, 1993, Brent Bumpers (Assistant U.S. Attorney in Little Rock, AR and son of Sen. Bumpers) arranged the purchase of between 1,000 and 15,000 dollars worth of stock in Tyson Foods for Betty Bumpers (Sen. Bumpers' wife). The stock was later sold on October 28, 1993 for a reported capital gains between $201 and $1,000.

On June 23, 1993, H.R. 2493: AGRICULTURE, RURAL DEVELOPMENT, FDA AND RELATED AGENCIES APPROPRIATIONS ACT was introduced in the House. H.R. 2493 was referred to Sen. Bumpers Senate Appropriations Committee on July 1, 1993. On July 26, 1993, the Senate adopted Bumpers' Modified Amendment No. 635 that, among other things, reduced funding for the Department of Agriculture Inspector General.

On September 9, 1993, the Columbus Dispatch reported that the Clinton Administration proposed to move all food safety responsibilities, including meat and poultry inspection, to the Food and Drug Administration.

On March 28, 1994, the U.S. Newswire reported a brewing conflict between Secretary Espy and Sen. Bumpers over poultry labeling. The exact quote from the article is as follows: "As a result of the legal controversy, Secretary Espy announced on February 10, that he would begin a review of the poultry labeling policy to determine if existing policy 'meets today's consumer expectations' for truth-in-labeling. But at a public hearing on March 4, Arkansas Sen. Dale Bumpers, who chairs the subcommittee in charge of the USDA's annual budget, warned Secretary Espy that a review of the poultry rule would lead to 'an all-out fight'."

TYSON-RELATED NOTES:

1. According to an October 18, 1993 article in Arkansas Business, Tyson Foods' Director of Government Relations (Archie Schaffer III) was formerly an Administrative Assistant and Campaign Manager for Sen. Bumpers.

2. Tyson Foods' General Counsel (James Blair) gave Sen. Bumpers at least $2,000 in campaign contributions in 1991 (financial records indicate that a David N. Blair--an attorney in Batesville, AR-- also gave $1,000 in 1991). James Blair is the same individual who helped Hillary Clinton secure fantastic profits in cattle futures.

3. Since 1991, Sen. Bumpers has accepted at least $23,000 in campaign contributions with direct ties to Tyson Foods. This includes $8,000 from Tyson executives, $6,000 in Tyson PAC money, $2,000 Donald Allen of the Arkansas Poultry Federation, $5,000 from the National Broilers Council PAC, and $2,000 for a December 30, 1993 speech to the National Broilers Council.

4. Sen. Bumpers is Chairman of the Senate Appropriations Subcommittee on Agriculture, Rural Development and Related Agencies.

• On March 11, 1993, Brent Bumpers arranged the purchase of between 1,000 and 15,000 dollars worth of warrants in Network Imaging for Sen. Bumpers' wife. On October 28, 1993, "she purchased" between 1,000 and 15,000 dollars worth of common stock in Network Imaging.

Network Imaging manufactures high-performance document imaging systems and optical disk storage systems for commercial and governmental markets. During this time period, Network Imaging was aggressively pursuing government contracts. According to an article in Institutional Investor (May 10, 1993), the president and CEO of Network Imaging (Robert Bernardi) said his company will bid on five different government contracts, each worth a minimum of $20 million. In addition, Bernardi noted that, "...he likes the company's chances of landing 10-15% of a $ 1.2 billion government contract."

NETWORK IMAGING-RELATED NOTES: Sen. Bumpers is # 8 on the Senate Appropriations Subcommittee on Defense.

• On July 2, 1993, Brent Bumpers arranged the purchase and immediate sale of between 1,000 and 15,000 worth of an INITIAL PUBLIC OFFERING in Back Yard Burgers for Sen. Bumpers' wife. Interestingly, Brent Bumpers owns a Back Yard Burgers franchise.

BACK YARD BURGERS-RELATED NOTES: Sen. Bumpers is Chairman of the Senate Small Business Committee.

• Sen. Bumpers and his wife report receiving $7,607.53 in gas royalties and shut-in fees in 1993 from interests in 9 different companies including Stephens Production, J.M. Huber Corp., Arkoma Production Co., Hanna Oil and Gas, Mountain Valley Petroleum, Sam Production Services, Seagull Mid-South Inc., Seeco Inc., and Sonat Exploration Co. In addition, Sen. Bumpers and his wife report assets in mineral rights that total between 80,000 and 200,000 dollars.

ENERGY AND NATURAL RESOURCES-RELATED NOTES: Sen. Bumpers is # 2 on the Senate Energy and Natural Resources Committee; he is # 3 on the Senate Energy and Natural Resources Subcommittee on Energy Research and Development; he is # 3 on the Senate Energy and Natural Resources Subcommittee on Mineral Resources Development and Production; he is Chairman of the Senate Energy and Natural Resources Subcommittee on Public Lands.

SPECIAL NOTES: Sen. Bumper's son, Brent Bumpers, apparently set his mother up with a Merrill Lynch margin account in May 1993. The margin account was closed in November 1993. In 1992, Sen. Bumpers received $750 in campaign money from Charles B. Whiteside III (an employee of Merrill Lynch in Little Rock, AR).

FINAL NOTES: Sen. Bumpers is a former Governor of Arkansas and a close personal friend of President Clinton.

• During 1992, Sen. Bumpers made three stock purchases that appear to be IPOs.

1. On March 11, 1992, Sen. Bumpers purchased between 1,000 and 15,000 dollars worth of stock in Foodmaker, Inc. Interestingly, Foodmaker is the parent company of Jack-In-The-Box (remember the food poisoning incident?). According to the PR Newswire, March 11, 1992 was the closing date of the Foodmaker INITIAL PUBLIC OFFERING at $15 per share.

2. On March 12, 1992, Sen. Bumpers purchased between 1,000 and 15,000 dollars worth of stock in Dames and Moore, Inc. According to the PR Newswire, on March 5, 1992, Dames and Moore announced an INITIAL PUBLIC OFFERING of 5,750,000 shares at a price of $20 per share.

3. On May 11, 1992, Sen. Bumpers purchased between 1,000 and 15,000 dollars worth of stock and warrants in Network Imaging. According to a May 18, 1992 article in the Investment Dealers' Digest, Thomas James and Associates announced a May 11, 1992 foreign-issuer INITIAL PUBLIC OFFERING of 1,500,000 units (common share plus warrant) in Network Imaging at $4 per unit.

• On March 12, 1992, Sen. Bumpers purchased between 1,000 and 15,000 dollars worth of stock in the Federal National Mortgage Association.

According to a March 23, 1992 article in the Mortgage Commentary, March 12, 1992 [Sen. Bumpers' purchase date] was the day Democratic and Republican staffs of the Senate Banking Committee agreed on draft legislation to regulate the Federal National Mortgage Association. The March 12 Senate version of H.R. 2900: HOUSING ENTERPRISES FINANCIAL SAFETY AND SOUNDNESS ACT was favorably received by officials at FNMA. Here is a direct quote from a March 30, 1992 article in National Mortgage News: "A Fannie Mae spokesman said his company also likes the bill 'except for some provisions that give the regulator the right to intrude on our day-to-day business even when we are well capitalized.' He added that the Senate draft has 'come a long way and we think it's on the right track'."

Sen. Bumpers sold his stock in Federal National Mortgage Association on August 5, 1992.

• On March 17, 1992 Sen. Bumpers purchased between 1,000 and 15,000 dollars worth of stock in Borden Chemicals and Plastics. Borden C & P is based in Geismar, LA and manufactures plastics materials, synthetic resins, and nonvulcanizable elastomers. Their plant in Illiopolis, IL manufactures general and special purpose PVC (polyvinyl chloride) resins. PVC resins are used to package mineral water, cooking oils, shampoos, cosmetics and personal care products. PVC resins are also used to construct shrinksleeves for aluminum beverage cans.

Sen. Bumpers' stock purchase directly coincides with two pieces of recycling legislation that would interest Borden Chemicals and Plastics. The first piece of legislation was introduced on March 17, 1992 (the same day as his stock purchase). The bill was S. 2363: NATIONAL RECYCLING MARKETS ACT...To develop, assist and stabilize recycling markets (Referred to the Senate Environment Committee; Not Enacted).

The second bill was introduced on March 11, 1992 (6 days before his stock purchase). This bill was S. 2335: NATIONAL BEVERAGE CONTAINER REUSE AND RECYCLING ACT...To amend the Solid Waste Disposal Act to require a refund value for certain beverage containers, and to provide resources for State pollution and recycling programs (Referred to the Senate Commerce Committee; Not Enacted).

• On October 7, 1992, Sen. Bumpers purchased between 1,000 and 15,000 dollars worth of stock in Southwest Airlines.

Two days earlier (on October 5, 1992), a bill was introduced that might affect Southwest Airlines. The bill was H.R. 6168: To amend the Airport and Airway Improvement Act of 1982 to authorize appropriations for the portion of fiscal year 1993 ending before May 1, 1993, and to amend title XIII of the Federal Aviation Act of 1958 relation to aviation insurance. H.R. 6168 passed the Senate by voice-vote on October 8, 1992 and was signed by the President on October 31, 1992 as P.L. 102-581.