Power
The old establishment is buried or busted. Here’s who is deciding the fate of Texas now—plus, the runners-up, the comers, the wannabees, and the right man to call in Amarillo.
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Even more damaging to the old guard has been the evolution of the Texas Republican away from the genteel conservatism of John Tower, toward the fierce ideological populism of Ronald Reagan. The antipathy of the state party for government goes far beyond traditional Republican bugbears like regulation and welfare. Last summer Republican legislators cast vote after vote to cut the budgets of public schools and state colleges. Most of the state’s business leadership was for raising taxes instead—higher education is viewed as a form of long-term economic development. But the power structure had no success in soliciting votes from Republican legislators, secure in their single-member suburban districts.
Just as changes in Texas politics have circumscribed the exercise of power, so have changes in Texas business. A decade ago the chairman of Houston Natural Gas, Robert Herring, was a top contender for the Most Powerful list. Herring spent an average of 20 to 30 percent of his week on political, cultural, and civic affairs, recalls George Strong, a Houston political consultant who works with the company. Most of the company’s business was in the Houston area, so the time spent on politics was well invested. Today Herring is dead, the company is known as Enron, and its operations extend from California to Florida. The current chairman, Ken Lay, does some Republican fundraising, but that is the extent of his involvement in politics.
There are many such stories. In the sixties Herb Kelleher was a skilled operative for John Connally’s political organization in San Antonio. In the seventies he took control of Southwest Airlines, moved to Dallas, and reduced his involvement in politics. In the eighties, with Southwest’s routes stretching from Birmingham to San Francisco, he is totally out of power politics. In the sixties and seventies, timber magnate Arthur Temple knew many of the local officials in the Piney Woods personally. Today’s CEO of Temple-Inland, Clifford Grum, “wouldn’t know where to go to make a contribution to a county commissioner,” says an East Texas politician. Wall Street is more important than Highway 59.
The CEO types, once so prominent in Texas politics, are all but gone from the scene. They don’t have the time, the interest, or the need to participate. Bob Crandall of American Airlines in Dallas cares what happens in Washington, not Austin. Bob Cizik of Houston’s Cooper Industries proved that he was an extraordinary fundraiser by leading the drive to build the new Wortham Center, but his presence in politics is undetected. Randall Meyer of Exxon, John Bookout of Shell, the Thompsons of Southland Corporation—where are they?
A better question is, Do we miss them—not just the CEOs, but the old establishment as a group? There are times, such as the legislative stalemate over the budget, when it would be nice to have an enlightened oligarchy around to dictate solutions. But the establishment wasn’t very enlightened; it was wedded to the status quo, whether it was segregation in the forties or no new taxes in the seventies. Today there is no oligarchy, just a group of leaders operating independently, and as a result there is much more acceptance of new ideas in Texas public affairs and much less handwringing over change. The new power structure in Texas may not have solved the state’s problems, but at least it has gotten the message across that Texas cannot cut itself off from the world anymore.
After the top ten, here’s how the rest of the power pie in Texas is divided:
THE SECOND TEAM
As is frequently the case with second-team players, the thing that keeps them from being on the first team is not lack of talent but lack of desire.
• Robert Bass, investor, Fort Worth. Has gotten his toes wet in politics, but hasn’t plunged in all the way. Getting snubbed by Clements over Highway Commission didn’t help. Still, as Bass brother most attracted to politics, has the potential to have an enormous impact on the state.
• Jack Blanton, oilman, Houston. One rule of Texas politics: the chairman of the UT Board of Regents ranks well up on any list of the most powerful people in Texas. Blanton has succeeded Jess Hay in the job. Enough said.
• John Cox, oilman, Midland. One of the state’s biggest producers is also one of the few oilmen who gives money to Democratic candidates.
• Bob Dedman, businessman, Dallas. Thriving private-club empire worth $600 million, according to Forbes list. Now chairman (for second time) of state Highway Commission. That’s a good combination for exercising power.
• Charles Duncan, investor, Houston. Former deputy secretary of defense and secretary of energy under Jimmy Carter, currently chairman of Rice University. Greatly respected, but in a narrow circle; seems on the verge of extending his influence outside of Houston.
• Gerald Fronterhouse and Bob Lane, bankers, Dallas. Fronterhouse is chairman of First Republic, the biggest remaining Texas bank holding company; Lane is one of few high-ranking InterFirst bankers to stick with Republic after merger. Destined to be the leading spokesmen for banking community if they can ever get their own bank out of the woods.
• Bill Hobby, politician and television station executive, Houston. A year ago the lieutenant governor would have been on the first team. But he was damaged politically by the budget fight and now is getting out of politics.
• Jack Trotter, investor, Houston. Behind-the-scenes player in setting the course of Houston business community, he has an enormous network (among the people made rich by his deals: Charles Duncan, racer A.J. Foyt, funeral home entrepreneur Bob Waltrip). Republican gubernatorial aspirant Jack Rains says, “I’ve never seen Trotter on the wrong side of an issue.”
• Cy Wagner and Jack Brown, oilmen, Midland. Hugely wealthy (Forbes’s joint estimate $750 million), Wagner and Brown have bankrolled some of Boone Pickens’ biggest plays. Word in Midland is they’re getting interested in politics.
COMERS
When we compile the list of the most powerful Texans in the nineties, these names are oddson to rank near the top.
• Sam Barshop, hotelier, San Antonio. Important Republican fundraiser; likely UT regents chairman when Clements appointees become a majority of the board in 1989.
• George Bayoud, real estate, Dallas. Clements’ executive assistant knows everything there is to know about GOP power structure.
• Milton Carroll, oil-field manufacturer, Houston. Chairman of Texas Southern University board; has superseded A&M regent John Coleman as most influential black businessman in Texas.
• Ed Cox, Jr., oilman and investor, Athens. Father made 1976 power list; son would have ranked higher except for problem loans that forced him to sell off part of empire. Chairman of Parks and Wildlife Commission; strong environmentalist who is frequent host and hunting companion of legislators.
• Robert Dechard, publisher, Dallas. Chairman of A.H. Belo, which owns Dallas Morning News and Houston’s KHOU-TV; occupies traditional Dallas power slot.
• Jack Martin, financial services consultant, Austin. Senator Lloyd Bentsen’s campaign director and his former executive assistant; excels at both fundraising and strategy—and has a statewide network.
• Mike Perrin, attorney, Houston. Leader of younger generation of politically active plaintiff’s attorneys. Also could go on “Couples” list with wife, Melinda, daughter of former attorney general and Chief Justice John Hill.
• Tony Sanchez, Jr., oilman and banker, Laredo. Has potential to be the most powerful and influential figure in South Texas; member of Parks and Wildlife Commission who learned politics working for then Lieutenant Governor Ben Barnes in early seventies.
• Dick Trabulsi, businessman, Houston. Leading Democratic fundraiser among younger set; more interested in national politics than state politics.
• Marty Wender, developer, San Antonio. Mercurial rise from Wannabee to Comer; sold land to Sea World and provided site for pope’s San Antonio visit.
• Tom White, beer distributor, Dallas. Major Democratic money man and organizer in Republican bastion whose influence extends beyond Dallas to statewide politics.
WOMEN
“Texas women have been raised by their mothers to be civilizers,” says state treasurer Ann Richards, the first woman since Ma Ferguson to hold statewide office. “They give their money and their time to the ballet, the library, and the museum instead of politics. But that’s changing.” The other thing that stands between women and power is the ol’-boy network. That’s changing too.
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