Treasurer Used High Pressure, Opponent Says : Politics: Hayes is accused by state GOP primary foe Buchanan of strong-arming brokers at a fund-raiser. Hayes forces acknowledge a mistake.

State Treasurer Thomas Hayes’ opponent in the Republican primary accused him Tuesday of strong-arming contributors by scheduling a fund-raiser tonight in New York City for Wall Street brokers who may be interested in California’s investments.

Challenger Angela (Bay) Buchanan of Irvine also charged that Hayes tried to pressure the brokers into attending the $1,000-per-plate dinner by implying in the invitation that he had widespread support on Wall Street.

Hayes campaign officials acknowledged that the invitation included a list of 150 Wall Street brokers that could be misinterpreted as a list of sponsors. Actually, the individuals listed on the invitation had not given permission to the campaign for the use of their names.

After receiving some complaints, the Hayes campaign sent “an apology” to the invitees, saying that the list was intended to show who had been invited to the event, not who had endorsed the campaign.

“There was a mistake made, and Tom Hayes has apologized,” said Brian Lungren, Hayes’ campaign manager. “It is not and never will be his style to exert any pressure on any individual to contribute to his campaign.”

But at a Los Angeles press conference Tuesday, Buchanan charged that pressure was put on the brokers.

“What they’re saying to these people is that they’ve got a business decision to make: Come to this dinner if you want to do business with me,” Buchanan said. “It’s a real statement of arrogance.”

Buchanan, who was U.S. treasurer under President Reagan, stressed that she thought it inappropriate to take any money from the investment banking community because of the appearance of a conflict of interest. She has pledged not to use any such money in her campaign.

“In the world of finance, you have to have independence and objectivity when dealing with other people’s money,” Buchanan said. “My integrity means too much to me to have it questioned.”

Lungren responded: “Until someone changes the rules and regulations about how to run a campaign in California, that’s how it’s done.” He added, “For (bankers) to be denied the ability to promote their candidate or their beliefs is not fair.”

Lungren said both he and Hayes were unaware that the list of brokers was included in the invitation. He also said Hayes has made the treasurer’s office more competitive for companies seeking to handle the state’s investment business.

Buchanan, the sister of conservative Washington commentator and former presidential adviser Pat Buchanan, is running an uphill campaign against Hayes, who was appointed to the treasurer’s seat last year by Gov. George Deukmejian.

Hayes has had access to the governor’s fund-raising apparatus, and Deukmejian has made support for Hayes a test of Republican loyalty. For those reasons, Buchanan acknowledged Tuesday that she will probably not raise as much money as her opponent.

“It’s clear that my opponent has a fund-raising advantage on me,” Buchanan said. She said of her own fund raising: “It’s very tough out there, but if you work at it every single day, little by little, it comes in.”

The winner of the Republican primary is expected to face Democrat Kathleen Brown, former Los Angeles public works commissioner whose father and brother, Edmund G. Brown Sr. and Jr., are former governors.