Guinn-Russo clash apparent in styles, less so in issues

The late 1960s and early 1970s were turbulent times that engulfed Republican gubernatorial candidates Kenny Guinn and Aaron Russo in very different ways.

Guinn was superintendent of the Clark County School District when he had to confront mandatory busing to integrate the schools, one of the touchiest social issues of the day.

Caught in cross-fire between federal court-ordered integration and an anti-busing group that obtained an injunction from a local judge, Guinn closed elementary schools for nine days as the legal wrangling continued. The Nevada Supreme Court eventually tossed out the injunction, paving the way for school integration and Guinn's plan to bus some white students into predominantly black neighborhoods.

Russo, meanwhile, peddled the rock music of that era as manager of New York City's psychedelic Electric Circus nightclub and Chicago's similar Electric Theatre, where police often hassled his customers. It was a time when drugs were readily available at concerts and performers were famous for igniting anti-establishment revelry. And Russo promoted some of the most controversial bands of that era, including The Who, the Grateful Dead and Led Zeppelin.

Guinn, 62, developed a reputation as an able, straight-laced administrator, albeit one without a passion for issues. The 55-year-old Russo, who became a movie producer, sported a healthy ego and an anti-establishment attitude that attracted controversy.

Is it any wonder there is such a clash between the two men as they enter Tuesday's GOP primary?

Until this month, most pundits believed Guinn's connections made him the prohibitive favorite to succeed Democratic Gov. Bob Miller. After leaving the school district in 1978, Guinn entered the private sector, eventually serving as chairman of Southwest Gas Corp. and its subsidiary, PriMerit Bank. After retiring in the early 1990s, he ran UNLV as interim president for one year, taking only $1 as salary.

Guinn also served on numerous blue-ribbon panels, making recommendations to government leaders on everything from dealing with the Nevada Legislature to fire safety.

Upon announcing his candidacy in 1996, Guinn snagged the state's top political advisers, men such as advertising executive Sig Rogich, who had been a consultant to Ronald Reagan and George Bush during their presidencies. Guinn also enlisted heavy-hitting fund-raisers such as Las Vegas gaming attorney Frank Schreck and Dr. Elias Ghanem, both of whom normally worked for Democrats.

The result was a steady flow of Las Vegas Strip cash that scared off prospective opponents such as Nevada Attorney General Frankie Sue Del Papa. It became difficult to find a business or service-organization luncheon that didn't have Guinn as a guest speaker. He even courted organized labor, an unusual move for a Republican. And he gained the endorsement of Nevada GOP leaders even though he has supported Democrats such as Miller and U.S. Sen. Richard Bryan.

Russo, viewed as a carpetbagger by critics, didn't move to Nevada until 1996. But his activism dated at least as far back as 1977, when he promoted a gay-rights benefit show in Los Angeles. Earlier this decade he founded the Constitution Party, vowing to fight federal intrusion into private lives while supporting fiscal conservatism. In May 1995 he was invited to speak at a "Taking Our Country Back" rally in Palm Springs, Calif., that also featured a Michigan militiaman, according to the Palm Springs Desert Sun. But Russo said he never attended that event.

Russo was rumored in trade publications to have had problems with the Internal Revenue Service in the 1980s, a charge he denied. But when he formed his party, disdain for the IRS was at the top of his list. He also produced a "Mad As Hell" video that showed him stomping around in shoulder-length hair, ranting against the system.

Having brought his angst to Nevada, he has amassed a $1.1 million war chest that came mostly from personal finances. He bombarded television airwaves to elevate his name identification among voters. He also received consultation from former White House Press Secretary Pierre Salinger, who served in President John F. Kennedy's administration, and the endorsement of actor Jack Nicholson.

Initially, Russo's ads addressed specific issues. He promised to go to the U.S. Supreme Court to stop high-level nuclear waste from coming to Nevada, vowed to eliminate taxes on tips and proposed limiting vehicle registration fees to $35.

In contrast, Guinn has said little about his positions, leading many to opine that he was running a vacuous campaign. His media packet contained more information about his endorsements and campaign staff than his plan for Nevada's future. Guinn was perceived in many quarters as having been "anointed" by the gaming industry, which has contributed about one-third of his $3.9 million largess.

Guinn deflected criticism about his stand on issues. He said he knew the issues important to Nevadans but wanted to spend the early part of his campaign listening to what the public had to say. He also said it was pointless to discuss specifics several months before an election because issues can change and opponents can always "one-up you" if you release detailed positions too soon.

"I've been on TV ads about issues, but on television you only get 26 seconds," Guinn said. "I've released a plan to make schools more accountable, but it's not controversial. What it says is we want to get state government out of education as much as possible."

Guinn said his plan would give local schools more control over the state money they receive for day-to-day operations. Children who are caught at school with a weapon or under the influence of drugs or alcohol would be sent to a boot camp for 180 days for rigid discipline and education if Guinn were elected.

He said he would institute zero-based budgeting that would require all state agencies to justify budget increases. He would eliminate state functions that duplicate local government services, citing fire protection as an example.

Guinn said he would give couples 62 years of age and older a property tax rebate of between 50 and 90 percent annually for those whose incomes are between $8,000 and $21,000. And, like Russo, Guinn opposes the import of high-level nuclear waste to Nevada. But Guinn said that is about the only similarity he shares with Russo, adding that his opponent lacks the knowledge to handle state financing.

"I'm different than Mr. Russo because he has more federal issues," Guinn said. "He talks about the IRS and phone-tapping. I believe there should be regard for personal privacy, but I can't control federal issues as governor."

Asked to state his differences with Guinn, Russo called it an impossible question to answer.

"He doesn't stand for any issues," Russo said. "He's been talking around the bush. I'm talking about plenty of issues important to the state. Nuclear waste is a state issue. Getting rid of the (motor vehicle) privilege tax is a state issue. Bringing alternative medicine to Nevada is a state issue. Stopping violent criminals from getting paroled is a state issue."

But the Nevada media has concentrated more on Russo's many foibles, such as his erratic behavior at county and state GOP conventions, back taxes that were reportedly owed in California and New York, and his failure to obtain a Nevada driver's license within 30 days of residency as required by law.

Russo brushed aside each of these attacks as either irrelevant, inaccurate or blown out of proportion. In any event, few political observers gave him much chance of beating Guinn.

Earlier this month, however, a poll in the Las Vegas Review-Journal showed Russo only 7 percent behind Guinn. Suddenly, the airwaves turned ugly, with Russo attacking Guinn's background. Guinn, on the defensive, fired back.

Guinn ads said Russo hadn't voted in 25 years, didn't own a home in Nevada or have a car registered here. "Aaron Russo. Embarrassing to Nevada. Dangerous as Governor," said the ads, which include a clipping of Russo's "Mad As Hell" video.

Russo conceded that he has been a registered Republican for only the past two years, attracted to the party's mantra of small government and low taxes. He said the last time he voted was for President Reagan in 1984, adding that he hasn't voted since because he didn't like any candidate. He said he didn't buy a home when he moved to Nevada in 1996 because he travels frequently and expected to occupy the governor's mansion.

As for the "Mad As Hell" clip, Russo said Guinn has taken it out of context.

"It's part of their campaign to scare people because they won't discuss issues," Russo said. "For them to smear me without coming out and debating me and then to be anointed into the governor's mansion, that shows how the (political) machine works. If they win this thing, this state will be looted."

Russo said he made the video in 1996 as a pilot for a possible television talk show of the same name. In the clip, Russo said he was merely imitating the character portrayed by the late Peter Finch in the Oscar-winning film "Network." The most famous line from that movie has Finch yelling, "I'm mad as hell, and I'm not going to take it anymore."

Russo, in fact, credits the video with his move to Nevada. He said he sold about 20,000 copies nationwide and drew about 1,000 people when invited to speak at the Showboat hotel-casino in Las Vegas in 1996. At the encouragement of friends he met at that show and a previous engagement at a Reno casino, Russo said he decided to move to Nevada.

One could argue the wisdom of Guinn acknowledging the underdog with the attack ads. But even his own staff conceded that Guinn's negative ratings were being driven up by the attacks, forcing the candidate to defend his honor. At the same time, it forced Guinn to spend money that might have been put to better use during the general election against the probable Democratic nominee, Las Vegas Mayor Jan Laverty Jones.

"Nobody likes negative attacks," Guinn said. "But if they go unanswered, it will eventually take a toll on you no matter who you are. If you let it go, people will think there's something to it."

Russo has alleged in ads that Guinn:

* As president of PriMerit supported legislation to remove limits on the amount of interest banks can charge the public.

Guinn said he actually supported legislation to remove the limit on the amount of interest banks could pay consumers on their deposits.

* As president of Southwest Gas wanted to raise homeowners' gas rates 14 percent while raising business rates less than 1 percent.

Guinn said the rates were not raised under his tenure unless required by the federal government or state regulators.

* Backed rate increases that funded the purchase of two corporate jets and a Jaguar automobile.

Guinn said Southwest Gas actually sold the only airplane it owned during his tenure and never included luxury automobiles in rate filings.

* Presided over Southwest Gas at a time when dividends fell to half of their previous levels.

Guinn, who remained on the company board until last year, said the utility raised dividends 11 times during his 16 years while cutting them just once.

* Ran PriMerit at a time when assets shrank $700 million in two years.

Guinn said the assets actually tripled during his time with the bank.

Guinn enjoyed several years of financial success at the helm of Southwest Gas and PriMerit Bank. But newspapers reported that both companies also had blemishes under his watch.

In 1988, Southwest Gas attacked a proposal by Nevada's Public Service Commission for a utility consumer bill of rights. But Guinn said parts of the proposal were adopted by his company, such as allowing consumers to telephone requests for gas service and pay their bills at various locations.

It was reported in a local newspaper in 1991 that the commission ordered the company to return $845,000 it illegally charged customers. Southwest had charged consumers a service fee for natural gas purchased from a subsidiary, but the commission ruled over company objections that the fee violated state law, according to the report. Guinn recalled, however, that customers were never charged that fee.

Southwest Gas in 1992 had to pay $500,000, the largest civil penalty ever levied by the Arizona Corporation Commission, because of a 1991 explosion in a Tucson apartment complex that killed one person and injured another. The explosion was attributed to a natural-gas pipe that was improperly installed. Guinn said the pipe had been installed years earlier by a company that was later acquired by Southwest Gas, adding that his own company had an excellent safety record.

PriMerit lost $28.4 million in 1991 and nearly $5 million in the first quarter of 1992. The losses were blamed largely on problem real estate loans, including ventures in Southern California's sinking real estate market. In the first half of 1992, PriMerit was the only one of Nevada's five thrifts that lost money. Guinn said every bank that invested in the Southern California market at that time took a big hit, adding that PriMerit pulled out of all real estate investments shortly thereafter.

There are also a number of high points and blemishes in Russo's film-production career. Perhaps his best-known film was "The Rose," a thinly veiled 1979 biography of the late singer Janis Joplin that garnered four Oscar nominations. One of the nominations went to Bette Midler for best actress.

His eight-year relationship as Midler's manager and lover was stormy by all accounts, including his own. But Russo denied an allegation by a Midler biographer that he beat her. In fact, he said, he turned down a request to be interviewed for the book at her request.

His other films included "Trading Places" in 1983 starring Eddie Murphy, which earned an Oscar nomination for best score, "Teachers" in 1984 starring Nick Nolte, and "Wise Guys" in 1986 with Danny DeVito. By then, he was one of the highest-paid producers in Hollywood, earning $1 million a film. He was even rumored to be considered as head of Columbia Pictures.

But in the late 1980s he moved to New York to build his own movie studio, Aaron Russo Entertainment, raising about $100 million in film-production money. He produced and directed "Rude Awakening" in 1989, starring Cheech Marin and such 1960s icons as Jerry Rubin, Bobby Seale and Timothy Leary.

But the movie bombed at the box office and with critics, including Roger Ebert, who suggested it was one of the worst films of the decade. Russo went on to produce a few more films, but none scored big with critics or fans.

By the early 1990s, he had scrapped his production company and moved for a year to Tahiti. By 1992, he was back in Hollywood dabbling with movie ideas but beginning to concentrate more on politics. When Texas billionaire Ross Perot ran for president in 1992 as an independent candidate, Russo said he realized there were many other Americans such as himself who were dissatisfied with the status quo.

What no one predicted at the time was that Russo would eventually find a political arena, Nevada, where he has ruffled the establishment.

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