STATE TEASURER HOPEFULS DISAGREE ABOUT DONATION

The two leading contenders for the Democratic nomination for state treasurer are wrapping up their campaign with a confrontation over the size of a contribution one received.

Former State Rep. Bob Holden of St. Louis said he was outraged to learn that his primary opponent, Cole County Auditor Jim LePage, had accepted $314,000 - representing 92 percent of his campaign receipts - from one source.

The company, Schell and Kampeter, Inc., owns a feed company in mid-Missouri and has recently started a small bank.

"I don't know in the history of this state of anybody putting that high of an amount in a race at this level," said Holden. "I haven't seen people in the governor's race finding associates like this. Very simply, they are trying to buy the state treasurer's office."

But LePage countered that the two owners of the company "recognize the need for change in the way Missouri does business, and because they share my vision of what the treasurer's office should be, they decided to help me win this campaign."

LePage added, "I don't set up the rules of the game, I play by them. If Bob Holden had been able to convince anyone that his ideas were worthy of this kind of investment and risk, you can bet he'd take the money and run."

He charged that Holden was only upset because he was no longer the candidate with the most money in the race.

But Holden said the issue boils down to integrity. "He's owned lock, stock and barrel by this company. Integrity is the one issue people don't want compromised in the state treasurer's office. He did it in such a fashion I have difficulty responding and telling the people what is going on."

Holden said he has raised about $300,000 for his campaign, with his largest contribution from one individual being $3,500. Of his 1,237 contributors, Holden said 70 percent gave $100 or less.

In his campaign, LePage has focused on his experience creating new jobs and claims to have helped start 300 small businesses with his consulting company. He believes that, and his professional experience, will enable him to play a leading role in restructuring the state's economy.

He is also stressing that his training as a certified public accountant and professional money manager will enable him to handle the state's money more effectively. He refers to Holden as "a career politician" who "has never had a job outside of government."

But Holden contends: "He runs on the fact that he is a C.P.A. and businessman, not a politician, yet, this sort of contribution raises a question of ethics in any business. No respected C.P.A. or business person would condone such blatant disregard for the public's trust."

Initially, LePage received a $50,000 contribution and a $106,000 loan from Schell and Kampeter. But last week he received another loan for $158,000.

Holden charged that on his campaign report last week, LePage attempted to disguise the second loan, because he left blank on the report summary sheet the amount of loans received during the campaign. He listed only the amount received during this period.

"I thought $156,000 was blatant, but this is outrageous," said Holden. "An `associate' just doesn't give someone $300,000 because they know each other. Something is going on here."

LePage argued that Holden is simply going from "bank to bank" collecting donations, which he said is also a conflict because many of them do business with the state. "Mine is coming from two individuals, who happen to own a bank," said LePage. "I've got two individuals who want nothing."

He criticized Holden for taken large contributions from Central Missouri Trust Bank, based in Jefferson City, which handles state funds and is a well known contributor to political campaigns in the state. The bank has most of the state operating accounts.

LePage said that Holden, from his unsuccessful race in 1988 for treasurer, had locked up all the banks for contributions and many Democratic Party contributors. For about two years, Holden worked in the St. Louis office of U.S. Rep. Richard Gephardt, and LePage contends that Gephardt had also helped raise money for Holden.

Even though his contributors own one bank, LePage said it is far too small to handle state deposits. LePage said the Meta Bank they own ranks about 460th in size in the state among over 500 banks.

LePage added that he has a "memo of understanding" with the contributors that their bank will not get any state funds as long as he is treasurer.

In his 1988 campaign for treasurer, Holden said he received $19,000 from Central Trust Bank, and then another $30,000 after the election to pay off about half of his remaining debt from the race he lost to Republican Wendell Bailey.

In the 1992 campaign, Central Trust has contributed about $15,250 to his effort, Holden said. He noted that Central Trust received its state accounts through a bid process.

LePage has also been criticized in the race for working two fulltime jobs, paid by tax dollars. He is paid about $35,000 a year as the auditor of Cole County, and according to the Missouri State Manual, receives $36,000 a year as an associate professor.

"If you are energetic and professional and organized, you should be able to handle 2-3 jobs," said LePage. "I love teaching and want to stay in teaching, but on the salary I am paid at Lincoln University, there is no way I could stay in teaching. Salaries are so low in Missouri for teachers, that every teacher in the state trying to support a family has to have two jobs.

"It's just that my second job is more visible than others."

LePage said he has been honored in both of his professions. At Lincoln he recently was appointed a full professor, and the last two years Cole County has received the "Excellence in Financial Reporting Award" from a national organization, one of only five counties in the state to receive it.