On January 20, a writer in the Juneau Empire explained the initiative and the relationship between Randolph and Rich:
For example, two initiatives before us are the Clean Elections Initiative and the Anti-Corruption Act. On the surface, both initiatives appear to be like-minded efforts, but in reality they are diametrically opposed. Clean Elections proposes greater public funding/participation in future elections while the anti-corruption effort clearly prohibits this objective. Even more disconcerting are allegations that the anti-corruption folks are claiming their effort is a substitute for the Clean Elections Initiative. If so, it is clearly not. But the bigger issue lies in the existing disclosure rules. The sponsors of the Clean Elections Initiative have voluntarily disclosed their funding sources, while the anti-corruption campaign folks will not - their right under existing law until the initiative is certified.
What is known is that the anti-corruption campaign has at least indirect ties to Howard Rich, a New York real estate developer. This tie stems from former state Rep. Dick Randolph, who has lent his name to the anti-corruption effort. Both men are friends and devoted libertarians. Unfortunately, Rich is infamous for funding stealth citizen initiatives in other Western states. Nearly all have failed, but more importantly, some have been thrown out by the courts due to "persuasive patterns of wrong doing and fraud."
While there is no proof of wrong doing in Alaska, we cannot afford to be blindsided again. Full disclosure of the funding behind initiatives from the get-go would go a long way in letting citizens decide whether proposed initiatives can pass the common "smell" test.
And, back in the original Anchorage Daily News article, Randolph confirmed part of that information.
Randolph said he knew Rich as a prominent member of the national Libertarian Party. Today, Rich is better known for his controversial role in quietly paying for initiative efforts in Western states, according to a series of news reports over the past two years.
"Clean elections, anti-corruption initiatives aren't the same critter - 1 seeks, 1 bans public campaign money"
Anchorage Daily News (AK) - January 9, 2008
An author named Melinda Pillsbury-Foster knows more about their relationship. In the late 1970s, she writes,
in Alaska, a state with a population of only one million and an unusual set of circumstances due to the Alaska Pipe Line things had been developing. They continued to develop, but in very different directions. Several people had been elected to the state legislature as Libertarians. No matter what the size of the legislative body this was a major accomplishment.
It began with a guy named Dick Randolph, who had served two terms as a Republican state legislator in 1974 and 1974. After that he dropped out and did some thinking. Then he ran again, but this time as a Libertarian, in 1980 and then in 1982. This caused an explosion of popularity for Libertarianism in the Far North. Dick was the kind of guy who was well liked and thought of in his community. Dick encouraged another Libertarian, Ken Fanning, to run in his district in 1982 and Fanning squeaked in, too. Then Randolph decided to run for governor as a Libertarian in 1984. He lost, naturally. But Alaskans were happy that Randolph had managed to rescind the state income tax. It looked like anything was possible.
Another writer named Murray Rothbard was editor of the Libertarian Forum, the monthly newsletter of the Libertarian Party in the 1980s. Rothbard explained the relationship between Howie Rich and Dick Randolph in February 1983, when he listed several Libertarian Party activists who had created their own organization within the party. Rothbard called this organization the "Crane Machine," named for its leader, Ed Crane.
Rothbard wrote that Howie Rich "ran the disastrous Guida campaign for national chair in 1981, the equally disastrous Randolph campaign in 1982, and the likewise disastrous Northrup for Governor campaign in New York in 1982."
Of Randolph, Rothbard wrote, "A special category for the straw boss of the Alaska LP. Formerly State Rep, ran disastrous campaign for Governor in 1982. Turned his entire campaign over to the Crane Machine. One has the feeling, however, that Dick could someday leave the Machine. Is rumored to be suffering from revolt within Alaska LP."
Rothbard's notes say that a man named Kent Guida, a former businessman from Maryland, "ran the calamitous Randolph campaign under Rich's supervision." Another Libertarian, Eric O'Keefe, had been the national director of the Libertarian Party, but "when ousted, went to Alaska to help Guida run the Randolph fiasco."
Rothbard ties all of these men together under the leadership of Ed Crane, and he describes Crane this way:
The Big Boss: capo di tutti capi. Main power base: Head of the Cato Institute, which moved from San Franciso to Washington, D.C. early in the Reagan Administration to be close to the Corridors of Power. Also, Boss of: Libertarian Review Foundation, and its publications Inquiry and Update; National Taxpayers Legal Fund; and the Crane Machine in the Libertarian Party. Formerly, boss of Students for a Libertarian Society, and formerly, National Chairman of the LP. Managed the LP presidential campaigns in 1976 and 1980.
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