Rostenkowski Battles New Allegations About Financial Dealings

WASHINGTON —  Rep. Dan Rostenkowski (D-Ill.), chairman of the House Ways and Means Committee, spent part of Monday defending himself against new allegations that raised more questions about his use of campaign money and congressional funds for postage stamps and office space.

The Chicago lawmaker, who has invoked the Fifth Amendment privilege against self-incrimination in refusing to testify before a federal grand jury investigating the House Post Office scandal, again said he has done no wrong.

But in an interview with a Chicago television station, Rostenkowski acknowledged that the publicity might hurt his effectiveness as a legislator.

“I think it even gets to be a larger problem than it really is because you’re very conscious of the fact that maybe some of your force is lessened and maybe some of your determination is moderated,” he said.

Rostenkowski invited television cameras into an office next to his Chicago home to counter a story in the Chicago Sun-Times suggesting that he had spent $73,000 in campaign funds for vacant space in a home owned by a sister.

“This is not a phantom office,” he said. “This is a pretty well-organized office and it’s used.”

Another story termed it “curious” that Rostenkowski had spent $55,000 since 1986 to buy stamps for his office and his campaign from the House post office here. Federal investigators are checking allegations that stamps have been improperly exchanged for cash at the postal facility.

Even before the latest round of headlines, however, Rostenkowski’s power as Ways and Means chairman appeared to be waning. Changes approved last week by the House Democratic Caucus--aimed in large part at Rostenkowski’s strong grip over his committee’s actions--will give Speaker Thomas S. Foley (D-Wash.) and his aides added power over the panel.

In the past, the party’s leadership has complained that Rostenkowski dragged his feet on a jobless benefits bill and a middle-income tax cut, despite pressure from fellow Democrats who favored faster action.

In one obvious sign of dissatisfaction with his management, 53 members of the House cast secret ballots against Rostenkowski’s reelection as chairman of the panel.

Only one other chairman--Rep. G. V. (Sonny) Montgomery (D-Miss.) of the House Veterans Affairs Committee--got a higher negative vote. After he was actively challenged by Rep. Lane Evans (D-Ill.), Montgomery survived by a vote of 127 to 123.

In a report issued Monday, the Democratic Study Group underscored the importance of the caucus rules changes in providing new powers to deal with recalcitrant House committees.

“The changes were also designed to address concerns that some individuals to whom special legislative authority is delegated have not always acted as responsible agents of the caucus which provided them with that authority, and have not been held fully accountable for their work product,” the study group report said.

Rostenkowski, a 34-year veteran in the House who is regarded as one of the “Old Bulls” representing an era when a chairman’s authority was rarely challenged, could be called on the carpet if he does not respond to future caucus concerns.

Researcher Tracy Shryer in Chicago contributed to this story.