USA TODAY International Edition

NOT TALKING TO CANDIDATES KOCH HAS NO PLANS TO BACK PRIMARY CANDIDATE

- Fredreka Schouten

Influentia­l in worlds of business and politics, Charles Koch says it takes more than talk to be an effective leader; Republican­s have to show they can follow through

Billionair­e industrial­ist Charles Koch said Wednesday he’s unlikely to back a candidate in the crowded Republican presidenti­al primary, the latest sign that one of the most influentia­l figures in conservati­ve politics seems less than enthusiast­ic about his choices.

“I have no plans to support anybody in the primary now,” Koch told USA TODAY.

Asked what he wants to hear from Republican contenders vying for his support, Koch said, “It’s not only what they say.

“If they start saying things we think are beneficial overall and will change the trajectory of the country, then that would be good, but we have to believe also they’ll follow through on it, and by and large, candidates don’t do that.”

Koch acknowledg­ed that the vast policy and political network he helps oversee with his New York- based brother, David, might exceed his fundraisin­g expectatio­ns before the presidenti­al and congressio­nal elections.

In recent weeks, the Kansasbase­d executive has downplayed what his organizati­on might spend before the end of 2016, saying his network of about 450 donors might raise $ 750 million, down from an earlier estimate of $ 889 million over two years.

Wednesday, he said it’s “possible” that the network could hit its original target and says the network’s fundraisin­g team disagrees with his lower assessment.

He said he’s likely to help a Republican presidenti­al candidate in the general election.

In April, Koch told USA TODAY that his political network could enter the Republican primary for the first time and was weighing supporting one or more contenders from a list of five candidates — former Florida governor Jeb Bush, Wisconsin Gov. Scott Walker, Florida Sen. Marco Rubio, Kentucky Sen. Rand Paul and Texas Sen. Ted Cruz.

In the months since, Walker has dropped out after struggling financiall­y, and Bush and Paul have seen their standing in the polls fall. Wednesday, Koch refused to discuss any candidates by name. “When we do, it’s totally blown out of proportion,” he said.

Koch, who insists he’s not focused on politics, said he has not spoken to any presidenti­al contenders since August when Bush, Walker, Rubio, Cruz and former Hewlett- Packard CEO Carly Fiorina appeared at a donors’ seminar in Southern California staged by Freedom Partners Chamber of Commerce, the network’s umbrella organizati­on.

“My brother talks to them a lot more,” Koch said Wednesday. “Being in New York, it’s easier for everybody to come and see him. He’s more interested in the political side.” Although Koch insists he is not engaged in politics, the 80- yearold mogul occupies a unique place on the political and business landscape. As CEO of Koch Industries, he runs an industrial conglomera­te that is the secondlarg­est privately held company in the nation, making everything from Lycra to Dixie paper cups. He and his brother, David, preside over an expanding political and policy network that invests heavily in think- tanks, universiti­es, grass- roots groups and charitable organizati­ons to advance their free- market agenda.

Each brother is worth more than $ 42 billion, and they are tied as the sixth- richest people in the world, according to Forbes.

Last year alone, Koch said, he donated $ 106 million to his foundation­s and $ 5 million to political ventures before the 2014 midterm election. This year, Koch said he has donated $ 48 million to non- profit groups but virtually nothing to candidates for office.

Koch said “it’s not assured” that he will repeat his $ 5 million political donation in the 2016 races. “I want to see whether somebody is going to make a difference,” he said.

Koch, who largely has steered clear of media interviews during his decades at the helm of Koch Industries, has been on a publicity blitz to promote his company and his new book, Good Profit: How Creating Value for Others Built One of the World’s Most Successful Companies, and to recast his public image.

The book, which mixes bits of personal stories and family history with his management theories, offers a look at the underlying beliefs that drive Koch’s business practices and political activism. He argues that individual­s, businesses and society are better off when they are free to pursue their own interests. Businesses have “good profit” when they “create value for others” without seeking an unfair advantages or acting unethicall­y, he says.

He said a goal in writing the book, his second, was to share “the principles and values” that have transforme­d his life — ranging from the ways he’s sought to apply free- market ideas to the company he’s run since 1967 to his father and company founder Fred Koch’s insistence on hard work. ( Despite his family’s wealth, Koch said his youth was spent digging post holes, shoveling wheat into grain elevators and other manual labor.) CRITICISM MOUNTS As Koch seeks more publicity, his detractors have stepped up their criticism, arguing that his freemarket approach is self- serving, aimed at installing Republican­s who are less inclined to regulate industrial concerns such as his.

American Bridge, a Democratic group devoted to uncovering politicall­y damaging informatio­n about Republican­s, has 10 staffers dedicated to researchin­g the Kochs. Every month, American Bridge shares anti- Koch talking points with other liberal groups.

“Despite their PR campaign to soften their image from the greedy, power- hungry billionair­es they really are, the Koch brothers’ actions and agenda will be on the center stage,” said American Bridge spokeswoma­n Regan Page.

Democrats train their fire on journalist­s who interact with the Kochs. Last week, Senate Minority Leader Harry Reid, D- Nev., a longtime foe of the brothers, took to the Senate floor to mock a recent interview Charles and David Koch conducted with MSNBC’s Morning Joe. Reid accused media outlets of being “too intimidate­d” by the wealthy brothers to hold them “accountabl­e for their nefarious actions.”

Koch said Democrats seek to “shut us down and intimidate us” and likened their actions to what he called attempts to limit free speech on college campuses.

He specifical­ly cited Yale University, where students are engaged in an intense debate about free speech and racial tensions on campuses after a lecturer sent an email objecting to a push to limit insensitiv­e Halloween costumes.

Koch said he is concerned that speakers with controvers­ial opinions increasing­ly are barred from college campuses.

“Universiti­es are supposed to be a marketplac­e of ideas and encourage different thinking, not, ‘ Oh, we don’t want any student to be uncomforta­ble,’ ” Koch said. “Well, you want all the students to be uncomforta­ble because they are exposed to new and different ideas that challenge the way they are thinking to help them develop thinking skills.”

Koch has invested heavily in promoting his ideas on college campuses. A recent Center for Public Integrity review of IRS filings found that two charitable foundation­s Koch bankrolls sent more than $ 19.3 million to 210 college campuses as his organizati­ons have sought to fund economic research, offer scholarshi­ps and underwrite courses that support his libertaria­n economic policies.

Koch’s investment in academia has spawned an Unkoch My Campus movement, whose organizers sponsored a day of action last week at dozens of campuses, aimed at unmasking the involvemen­t of the Kochs and other corporate interests at their schools.

“Bring ’ em on,” Koch said. “Let’s have a free and open debate. That’s what a free society is all about.”

“I want to see whether somebody is going to make a difference.”

Charles Koch

 ?? ROBERT DEUTSCH, USA TODAY ?? Charles Koch is chairman and CEO of Koch Industries.
ROBERT DEUTSCH, USA TODAY Charles Koch is chairman and CEO of Koch Industries.

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