This section of Orange County’s political history (of 1960-2000) lists the major players who, by virtue of their campaign donations and influence, have had a significant effect on the county and the citizens who reside within its boundaries. To what extent this influence has been beneficial or deleterious is left to the reader.

As the OC grew, the problems faced by major developers often went beyond county and city jurisdictions. State and/or federal legislation was sometimes required to facilitate completion of particular projects, and developers donated to the campaigns of individuals running for elective offices OTHER THAN County Supervisor and city councils.

(In other sections of this book, two prime examples of trying to leverage influence with state-level candidates are described in detail: Dave Sills‘ effort to unseat fellow Republican Assemblyman Nolan Frizzelle in the chapter “Campaign Trails,” and Richard Katz‘s kamikaze-run against Richard Riordan for LA Mayor in the chapter “For Whom the Road Tolls.”)

Some large donors have been motivated by philosophical principles rather than financial self-interest, but the most aggressive “governmental relations” programs were attributable to the profit-oriented Mission Viejo Company (a.k.a. Philip Morris) and the Irvine Company.

George Argyros and his Arnel Development Company along with Disney come close to being included with those top two, but the flexing of their political muscle was mostly exerted, respectively, in the cities of Costa Mesa and Anaheim (before later expanding beyond city boundaries. Argyros in particular became heavily involved in the El Toro Airport controversy, a county issue.)

In describing the major players in this particular section of OC’s political history, resource material was gathered from the following sources: documents on file at the Heritage Room located in the Mission Viejo Public Library; newspaper clippings on file in the history section of the Anaheim Public Library, and newspaper stories on CD at the Irvine Public Library. In the discussion of the Irvine Company, a valuable reference source, Martin Brower’s “The Irvine Ranch: A Time For People,” was used extensively.

There are also voluminous records available from the offices of the county registrar of voters and the secretary of state in Sacramento. These documents, in the form of Campaign Finance Disclosure Forms, which were excerpted for this history, are available for public scrutiny.

The corporate histories of the Mission Viejo Company and of the Irvine Company are covered in more detail and are longer than one might think necessary. However, a certain amount of background information is important in order to understand how the potential for huge profits has affected the corporate philosophy of the two companies as it related to dealing with all the jurisdictions under which they were to operate.

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There are two separate and distinct phases in the history of 20th-Century OC politics:

During the first phase, political campaigns were financed with the help of individuals motivated by philosophical considerations and/or their admiration for an individual candidate. In more than a few instances, a generous donor was motivated solely by the political affiliations of a candidate. During this first phase of campaign finance in the county, $1000 was considered a large contribution. The occasions for such donations were usually fund-raising events with admission costing $100 per person; major donors in those days would commit to purchasing one or two “tables” at $1000 each. These donors were considered to be “Heavy Hitters” of the day, and they almost never expected anything in return, other than a good seat at the event.

Any listing of major contributors in OC must include these Party stalwarts, both Republican and Democrat, and in order to depict these individuals fairly they cannot be compared to the major donors who came along later with different motivations and goals for their “Governmental Relations” expenditures.

The second phase began (it is difficult to mark the exact date) when political giving graduated from being a relatively modest donation based on individual preference, to being a sizable campaign contribution designed to enhance one’s business prospects.

For purposes of being inclusive as well as fair, and since the computer era has fueled the new politics, I am calling these two phases of OC political giving “BC” or Before Computers, and “AC” or After Computers.

The AC period began with the introduction of new techniques into the political process – when the computer met the political consultant. Not everyone embraced the new technology at the same time, although as it developed it became impossible to ignore. The shift to AC from BC politics was first recognized in the Caspers vs. Allen supervisorial campaign of 1970. It gained momentum during certain state assembly races, most notably in another 1970 campaign in which Ken Cory, the Democratic candidate and beneficiary, bested Bruce Nestande in the 69th Assembly District.

The AC era was full-speed-ahead in the campaign for supervisor when Ralph Clark defeated Gordon Bishop. From that time on, there was very little question as to who would win; it was always the candidate with the funds and the money that came from those interests who had something to gain financially from the person they supported.

The first of the AC’s Heavy Hitters was Dr. Lou Cella [see the chapter “Political Convictions”] whose ability to finance political campaigns was breathtaking. At first his beneficiaries were Democrats, but soon Republicans were included in his largesse. Later as land development became a hot ticket, Republicans came to the forefront in an effort to maintain clout with county elected officials.

A most significant aspect of the dollar ascendancy in OC politics was that the core principles of both major parties became blurred at first, and later invisible or non-existent.

Democrats abandoned their role in the field of social issues, and the new nominal Republicans became staunch advocates of regressive taxation, big government (at the county level), and welfare, as long as those receiving the welfare benefits were worthy and wealthy contributors. A small consolation, but these party “leaders” only became involved in state and federal elections when it served their own interests. The key to big bucks was in the county and city jurisdictions, but occasionally when enabling legislation was required, they found it handy to have a friendly lawmaker in Sacramento or Washington.

In any review of the influence of major donors on OC election campaigns, the dedication and work of Shirley Grindle over the year merits special attention. Ms. Grindle was among the first to discover the often one-sided decisions on the part of the supervisors favored those who had given them generous campaign donations. She was a tireless volunteer activist for campaign finance reform in the county. Her own account of this massive effort comprises Appendix C of this book. Ms. Grindle single-handedly brought an abrupt halt to the excesses typified by Cella, Diedrich, et al.

TIN CUP was adopted as a county ordinance and from the time it was enacted has played a major role in restraining certain campaign finance abuses. The stakes are so immense in the political process in OC that developers have been able to work around the most stringent regulations.

In the course of major land-development projects, there are numerous tiers of participation by various subcontractors, vendors, and consultants. It is impossible to directly attribute contributions from these interests to the major landowners, but the fact remains that every candidate or issue receiving the blessing of the Heavy Hitters invariably receives comparable donations from those individuals and companies who do business with the prime movers. Attorneys, accountants, bankers, landlords, subcontractors and the like, show up as lockstep participants in the money chain. Can it be proven that they were solicited for their donations by some entity higher up the development ladder? Of course not. The big donors engage the best professionals to keep them just within any restraining ordinances or laws. Add to this, their ability to make donations through or to influence organizations such as the BIA, Association of General Contractors (AGC), or the Lincoln Club, and the conclusion becomes inevitable that a very small cluster of individuals and corporations at the top control Orange County politics.

The other component to major campaign fundraising is the role that incumbents have played in donating large amounts to selected candidates. In the BC period, it was the Democrats who were pre-eminent, with Dick Hanna being in the forefront.

A Democratic-controlled state assembly under various Speakers also played a major role in helping candidates such as Ken Cory, Richard Robinson, Tom Umberg, and others, by contributing funds and campaign staff.

Later, county Republican incumbent legislators played a major role in several contests by either direct or indirect financing of selected candidates’ campaigns in Republican partisan primaries. They were able to get favorites large donations from certain Political Action Committees in the state without appearing to play a direct role in the process.

Several of the Political Action Committees (PAC’s) are listed below, but in many cases it is difficult to obtain sufficient information on these PACs, which is precisely the reason many of them are created. [Ed. note – this was written a decade before the Citizens United decision, which gave PAC’s even MORE power over our elections!]

Heavy Hitters B.C. (Before Computers.)

In the sixties, the Republican Party was fortunate in having a number of well-off donors who were also keenly interested in politics. They gave willingly to attend party events, usually fund-raising dinners featuring speakers of importance. Their generous contributions caught the interest of candidates from out of county, and it was not long before Orange County was looked upon as the motherlode for hopeful candidates, including presidential aspirants.

Some of these early financial supporters of the GOP decided that they would have more effect if they acted in unison, and the Lincoln Club was formed.

Founding members were Dr. Arnold Beckman, J. S. “Si” Fluor, Robert Beaver, P. A. “Pappy” Palmer, Coalson Morris, R. S. “Sam” Barnes, Walter Schmid, John McCleod, Bill Adams, Walter Knott, G. W. “Dick” Richards, Bob Guggenheim, John Lusk, and Victor Andrews. Dennis Carpenter, David James, and T. C. Rogers were members during their tenures as GOP county chairman. The dues were $500 per year and the members met for breakfast once a month.

With Dennis Carpenter as county chairman, active and effective as a party fund-raiser, the Lincoln Club roster grew to well over 100 individuals, and Carpenter was able to gain support from this group’s members, as well as from the combined resources of the club itself.

There were a few financial supporters of the GOP who did not wish to be in the club, and a handful of wealthy individuals who had been denied entry when they applied for membership. These Republicans were willing and able to make $1000 donations to candidates of their own choice, rather than by group consensus. (Author’s note: As I remember, the Lincoln Club in its formative “BC” years would not admit to membership anyone suspected of using that connection for personal business or political purposes. This protocol was discarded in the “AC” era of the club.)

Generous Republican financial supporters who did not, for one reason or another, belong to the Lincoln Club included John Prescott, Brad Miller, Herb Stroschein, and Willis Clemmons.

It should be noted that there was no requirement that a person must be a registered Republican to join the club. And although there was no formal policy as to where donations would be directed, it was assumed that they would go to Republican candidates. However, the outspoken John McCleod once confided to a fellow members in his Scottish burr: “and, Laddie, we may give to a Democrat once in a while just to keep it honest.”

During that period, R. J. O’Neill was the chief contributor to Democratic causes and candidates. There were other generous contributors, including Wylie Aitken, Howard Adler, and various unions. Remember that in the “BC” era a contribution of $1000 was considered to be very generous.

One donor to Democratic candidates and causes was Dr. Lou Cella, an M.D. who ran a clinic in Orange County and also had a flourishing private practice. Dr. Cella was at one time the most influential campaign donor in the County, but he fell afoul of the law in a non-political legal matter, and was sentenced to prison, after which he disappeared from the local political scene. [See the chapter “Political Convictions.”]

There was another major player in the sixties who had apparently unlimited funds to disburse to candidates of both parties. Robert Maheu was considered to be the CEO of Howard Hughes‘ vast enterprises, and he gave relatively large sums for individuals running for office. It did seem at the time that return favors were expected. Hughes’ “empire” operated under the corporate name Summa Corporation and its donations to OC candidates seemed to be directed toward influencing programs having to do with procurement for the Defense Department.

Hughes and Maheu had a messy public parting of ways when the eccentric recluse accused Maheu of theft on national television during an interview featuring a panel of Hughes “experts” talking over speaker phone. After Maheu filed suit against Hughes, the Corporation ceased to be a major factor in local politics.

The Lincoln Club subtly changed, in sync with the dynamics of political fund-raising nationwide, and played a far different role after the potential for computer campaigning was realized by donors who looked on campaign contributions as an INVESTMENT.

To be sure, some of the original members are still in the club today, but the opportunists saw an organization that could be used to great advantage, given the right opportunity and leadership.

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The Series so far:

1. Introduction, Readers’ Guide, Bio of Tom.

2. OC Becomes a Conservative Powerhouse, 1920-80

3. Partisan Political Volunteers in the OC, 1960-2000

4. NON-Partisan Volunteers in the OC, 1960-2000

(I skipped doing chapters 5-6 for now – Vern)

7. The Heavy Hitters!

8. Heavy Hitters b) The Mission Viejo Company.

9. Heavy Hitters c) The Irvine Company.

10. Heavy Hitters d) George Argyros & the Minor-League.

MUCH MORE TO COME!