SEN. JOHN WARNER (R-VA)

• On August 26, 1993, Sen. Warner purchased 10,000 shares of what appears to have been an Initial Public Offering in Saul Centers Inc. valued between 100,000 and 250,000 dollars. Saul Centers is a real estate investment trust company.

At the time of his purchase, a bill was before the Senate that might interest Saul Centers. The bill was S. 342: REAL ESTATE STABILITY AND RECOVERY AMENDMENTS OF 1993...To amend the Internal Revenue Code of 1986 to encourage investment in real estate (Introduced February 4, 1993; Referred to Senate Finance; Not Enacted during the 103rd Congress). This bill contains provisions for tax treatment of pension fund investments in real estate investment trusts. Sen. Warner signed onto S. 342 as a cosponsor on July 21, 1993 (one month before his stock purchase).

• On October 15, 1993, Sen. Warner purchased 1000 shares of stock in Bell Atlantic valued between 50,000 and 100,000 dollars.

On the same day, October 15, the national media ran a number of stories about Congress' growing concerns over the proposed Bell Atlantic/TCI merger. The Washington Post quoted Sen. Metzenbaum as saying he was considering legislation that would block the Bell Atlantic/TCI deal. Metzenbaum said, "They're going to be in a position to drive out other companies in the market and that's bad for consumers."

Sen. Warner sat on four different committees with Sen. Metzenbaum.

LOBBYIST NOTES: At the time of Sen. Warner's Saul Centers purchase, he was playing golf in Sun Valley, ID at the Danny Thomas Memorial Golf Tournament (a major lobbying event).

• On January 24, 1992, Sen. Warner purchased between 395,000 and 900,000 dollars worth of stock in nine different brokerage firms. He later sold his shares on May 22, 1992 and June 4, 1992. The firms, shares, and dollar amounts are as follows:

Alex Brown: (3000 shrs.) $50,000 - 100,000

Bear Stearns: (3150 shrs.) $50,000 - 100,000

A.G. Edwards: (2500 shrs.) $50,000 - 100,000

Merrill Lynch: (1000 shrs.) $50,000 - 100,000

Morgan Keegan: (1500 shrs.) $15,000 - 50,000

Morgan Stanley: (1500 shrs.) $50,000 - 100,000

Piper Jaffray: (1000 shrs.) $15,000 -50,000

Raymond James Financial: (1500 shrs.) $15,000 - 50,000

Charles Schwab: (3000 shrs.) $100,000 - 250,000

In addition to his brokerage firm purchases, Sen. Warner purchased between 300,000 and 650,000 dollars worth of stock in five different growth funds, also on January 24, 1992. He later sold his shares on June 4, 1992. The growth funds, shares and dollar amounts are as follows:

Fidelity OTC Portfolio (3762.2270 shrs.) $100,000 - 250,000

Franklin Dyna Tech (2464 shrs.) $50,000 - 100,000

Lifetime Emerging Growth (3363 shrs.) $50,000 - 100,000

Putnam OTC Emerging Growth (4767 shrs.) $50,000 - 100,000

Lord Abbett Developing Growth (4394 shrs.) $50,000 - 100,000

Four days after his purchases (January 28, 1992), President Bush gave his State of The Union Address in which he outlined his economic plan to get the country out of recession. The cornerstone of this plan was a cut in the capital gains tax to 15.4 percent from 28.0 percent.

Of course, brokerage firms would be thrilled with a cut in the capital gains tax, because this would mean a lot of new business (i.e., transaction revenue)!!! And his growth funds would pay-off significantly with a capital gains cut!!!

Approximately one week before Sen Warner's purchases, the White House leaked that the capital gains tax cut would be 19.6 percent from 28.0 percent. Conservative Republicans howled in protest and claimed that President Bush had abandoned their conservative agenda. White House Chief of Staff Skinner was sent to the Hill for damage control. No one in teh general public knew that the revised capital gains cut would eventually come in at 15.4 percent.

Further checking in the 1992 Financial Disclosure Statements reveals that Sen. Warner was the ONLY member of Congress to initiate this stock-purchase strategy.

NOTES: Sen. Warner is # 2 on the Senate Armed Services Committee; # 4 on the Senate Environment and Public Works Committee; # 4 on the Senate Rules Committee; and # 1 on the Senate Select Intelligence Committee.