Forbes dropping out, $66 million lighter

Wednesday, February 9th 2000, 12:00 am

By: News On 6

COLUMBIA, S.C. (AP) -- After spending more than $66 million of his own money in a relentless six-year bid for political viability, Republican publisher Steve Forbes abandoned his second presidential campaign Wednesday with little to show for his investment. The shy, bookish conservative called it quits after third-place finishes in the New Hampshire and Delaware primaries, according to advisers who said Forbes would announce the decision Thursday in Washington.

His departure triggered a scramble among the remaining contenders for his anti-abortion, anti-tax supporters on the conservative right. It also set the stage for a two-way race between national front-runner George W. Bush and Sen. John McCain of Arizona, the surging underdog. "I'm going to be working hard to appeal to his voters," Bush said, as he prepared for a clash with McCain in this state's Feb.19 primary.

Fresh off a landslide victory in New Hampshire, McCain made his own bid for Forbes' supporters. "Most Republicans think my tax cut... is far more conservative than Governor Bush's tax plan. I think they'll be headed in my direction," he said between campaign stops.

The appeals underscored that Forbes, more than the previous six GOP candidates who dropped out of the race, left his mark on the political scene he failed to conquer. His flat income tax plan became a national issue in his failed 1996 presidential race, and this year he helped popularize GOP economic themes such as healthcare savings accounts. He also is one of the GOP's top fund-raising attractions.

Exit polls in the first three contests showed that Forbes fared best among voters whose top priority was taxes. He also did well with people looking for a candidate who stands up for what he believes. In the end, Forbes failed to convince Republicans that he could win in November. "His candidacy failed to connect with Republicans outside of social conservatives in Iowa. All the money in the world isn't going to change that," said GOP strategist Scott Reed, who managed Bob Dole's 1996 campaign which was damaged by an onslaught of critical Forbes ads.

Republican analysts said Bush stood to gain most because Forbes had siphoned conservative voters from him. McCain may pick up Forbes backers who are tired of the party establishment, but the impact is probably marginal, analysts said. "Presumably the advantage goes to Bush, but the truth is (Forbes) doesn't have enough support in the upcoming primaries to really make a difference," said Republican consultant Tony Fabrizio.

Forbes, in Michigan for a series of campaign events, canceled Wednesday's schedule and flew to New Jersey after finalizing his decision and informing staff, according to two senior advisers who spoke on condition of anonymity. He had no immediate plans to endorse Bush or McCain, and supporters said he still resented efforts by the Texas governor's campaign to undermine his presidential bid. Bush's campaign hoped to mend fences through intermediaries.

Keyes, a former ambassador considered to have virtually no chance of winning the nomination, will be the only other Republican onstage with McCain and Bush for their South Carolina debate Tuesday. Forbes is the seventh Republican to quit the race, all victims to some extent of Bush's fund-raising prowess.

One adviser said Forbes made a tentative decision to quit the race over the weekend, but hoped for a better showing in Delaware to keep him alive in case a McCain win in South Carolina scrambled the political mix. McCain did not campaign in Delaware, but inished comfortably ahead of Forbes.

Forbes burst on the political scene with a radical flat tax proposal in 1996, but the lack of a grass-roots operation caused his momentum to fizzle after victories in Delaware and Arizona. He began mounting a 2000 bid almost as soon as the 1996 campaign ended, shifting to the right on abortion and other social issues in an attempt to rally social conservatives. He build a political organization, spending hundreds of thousands of dollars on some of the party's best political talent. The conservative base was split by a crowded field of like-minded candidates such as Keyes, Gary Bauer and Sen. Orrin Hatch. Many conservatives stuck with Bush, despite Forbes' attempts to dislodge them.

In the Iowa caucuses last month, Forbes finished a solid second to Bush but it was his high-water mark. He was a distant third in New Hampshire and has not been a factor in the upcoming South Carolina primary. Over the two campaigns, Forbes spent at least $66 million of his estimated $440 million personal fortune, which stems from the publishing empire started by his grandfather. Forbes, a graduate of Princeton University, lives with his wifeSabina and their five daughters in New Jersey.