Business Groups Greet Selection With Hostility

But Edwards Still May Attract Individual Executives' Support

Business associations in Washington were uniformly hostile yesterday to John Kerry's choice of Sen. John Edwards (D-N.C.) as his running mate, promising that a trial lawyer on the ticket will energize them and their members to defeat the Democrats in November.

But beyond the Beltway, business reaction to the Edwards pick appeared to be determined by whether an executive was more concerned about domestic litigation costs or foreign competition. Edwards's tough talk on China during the Democratic primaries and his oft-expressed concern for businesses squeezed by low-cost competitors abroad made an impression on some.

"Personally, I like John Edwards," said James J. Zawacki, chief executive of G.R. Spring & Stamping Inc., in Grand Rapids, Mich., and a self-described political conservative. "He's been saying the right thing about manufacturing. He has real appeal to people. I don't like trial lawyers, I've got to say that. But I go with what he was saying about manufacturing."

On the other hand, if jackpot jury settlements were foremost in an executive's mind, Edwards did not sit well.

"One of the largest issues that we're fighting right now is the cost of doing business," said Kendig Kneen, owner and chief executive of Al-jon Inc., a scrap metal processing equipment maker in Ottumwa, Iowa. "And unquestionably a lot of those costs come from litigation of one kind or another."

For organizations like the U.S. Chamber of Commerce, the National Federation of Independent Business and the National Association of Manufacturers, the case against Edwards was open and shut.

"A lot of people just don't understand that Enemy No. 1 for large and small business is not China, it's not terrorism," said Jerry Jasinowski, NAM president. "It's the extreme trial lawyers."

Thomas J. Donohue, president of the U.S. Chamber of Commerce, vowed that his group would abandon its neutrality and work to defeat the Democrats.

"Senator Edwards has a fancy campaign slogan about 'two Americas,' " said Republican former House majority leader Dick Armey, now chairman of the business-backed Citizens for a Sound Economy. "He's right. There is the productive America, filled with decent, honest folks who work hard and pay their taxes. And then there's the America that John Edwards represents: the well-connected swarm of trial lawyers who twist our legal system to pillage the productive sector for personal gain."

Kerry's advisers showed little concern about such statements. Associations in Washington may profess to speak for the nation's businesses, they say, but with business interests now so diffuse and economic issues so complex, lobbying groups have less influence with their members. In the past, such groups exercised their power by helping direct campaign contributions to a preferred candidate. But with Kerry and Bush financially competitive this year, that influence may be waning.