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Obama donors balk at paying Clinton's debt

BY NIA-MALIKA HENDERSON | nia.henderson@newsday.com; Staff writer Glenn Thrush

July 10, 2008

A few days after he stood next to Hillary Rodham Clinton, the duo basking in mutual support on a stage in Unity, N.H., Barack Obama had a conference call with his top donors, giving them a simple charge - ask some friends to write $2,300 checks to Clinton's debt-ridden campaign.

Most donors on the call agreed that efforts to relieve the debt of the Illinois senator's bitter rival-turned-major supporter amounted to an appropriate "goodwill gesture."

Still, others balked. "Let the Clintons pay off their own damn debt; I'm certainly not going to help," said one member of Obama's National Finance Committee, which now includes many of Clinton's top donors. "They can do it themselves."

Last night Obama again urged his donors to invest in unity.

At a closed-door meeting with 50 fundraisers from both campaigns, Obama sought to soothe frayed feelings and urged his backers to chip in to pay off Clinton's estimated $21-million debt.

The meeting at the Grand Hyatt in Midtown was cordial and Obama greeted Clinton's top donors with handshakes, and jokes, spending five to 10 minutes with each of them. In attendance were top Obama fundraiser, Orin Kramer, Obama's national finance director, Julianna Smoot, and Caroline Kennedy.

Clinton heavyweights included Maureen White and husband Steve Rattner, and Alan Patricof.

At a less exclusive gathering soon after attended by several hundred people, Obama spoke to the crowd and was departing, to a backdrop of recorded music, when he hustled back to the podium, and the music ceased.

"Hold on a second," he said. "One more thing. ... Senator Clinton has some debt and I would have had some debt if I hadn't won. So I know the drill.

"There are many supporters of mine here who have not yet given something to help her retire her debt. I would be very grateful if you look under your chair; I think there should be an envelope or a price sheet," he said, urging those present to "take the time to not only pick it up but put something in it."

Later, at a joint Manhattan appearance, Clinton introduced Obama, receiving a standing ovation from the hometown crowd attending the $33,100-a-plate fundraiser at Loews Regency Hotel on Park Avenue.

It's still not clear how effective Obama's prodding will be. Roughly half of Clinton's debt is personal debt, which she expects to handle herself. The other half is owed to vendors and advisers, primarily Mark Penn, who is not widely liked in Democratic circles.

Obama announced last month that he and his wife, Michelle, would give the maximum $2,300 to help Clinton pay down debt.

"I know people who made no effort, others have collected five or six checks; it runs the full gamut," Jon Cooper, Suffolk County legislator and a member of Obama's finance committee, said of fellow supporters. "We won so we can be magnanimous. It's completely appropriate, but it's completely voluntary."

This morning the pair is due to make another joint appearance in Manhattan at a finance breakfast organized by the New York Women for Obama. Caroline Kennedy, who co-chairs Obama's search for a number two, is also expected to appear.

Staff writer Glenn Thrush contributed to this story.