"I Have Paid My Dues"

By Amy Wilentz

For four days, the old sheepherding camp that Senator Paul Laxalt's Basque immigrant father had staked out at Marlette Lake in the High Sierra resembled an army bivouac. Some 50 close supporters, including many of his seven children and ten grandchildren, trooped in and out, camping in tents as they advised the Nevada Republican on one of the toughest decisions of his public career. In the end, neither family members nor G.O.P. leaders could persuade Laxalt, 63, to make a third run for the Senate. "I have paid my dues," declared Laxalt as he announced his decision in Carson City last week. "My independent Basque soul cries out for more freedom."

That declaration of independence was a particular disappointment to fellow Westerner Ronald Reagan, whom Laxalt notified in a telephone call to the President's ranch in California. "He was not jumping up and down with joy," the Senator said of Reagan. "But he understood, which is what friends are all about."

Friendship was not the only reason Reagan and Republican Party Chairman Frank Fahrenkopf wanted Laxalt to stay put on Capitol Hill. The G.O.P. is concerned that defeats in the 1986 elections could erase the party's current 53-47 Senate majority. While the Republicans must defend 22 seats on the ballot next year, the Democrats have only twelve seats at risk. In Florida, South Dakota, Idaho and Washington, Democrats hope to win seats now held by the G.O.P. They feel that the large blocs of registered Democrats in New York and Pennsylvania will help them unseat Republican incumbents in those states. In addition, the G.O.P. may lose Senate races in North Carolina, where John East is ailing, and in Maryland, where Charles Mathias, 63, may decide to retire. Laxalt's seat was considered secure by Nevada pollsters. With Laxalt out of the race, said Democratic National Committee Chairman Paul Kirk, "we have moved to at least a fifty-fifty chance to add Nevada to our victory list." Laxalt acknowledged that he had been "forcibly reminded of the obligations owed to the President and party."

As the President's best friend on Capitol Hill, Laxalt should not have a hard time finding new work. "He'll have legions of offers," said Nevada's Democratic Governor, Richard Bryan. Laxalt has promised to remain in Washington through Reagan's second term to serve as a troubleshooter at the President's "beck and call." Said he: "I do (Reagan's) missionary work in the Senate. I hope to continue that function."

Laxalt has not ruled out a run for President himself in 1988, although he is not well known nationally. There has been talk of a Supreme Court or ambassadorial appointment, but many believe the Nevadan is looking for consulting or legal work and wants to take advantage of his clout with the Administration. "He needs a base to make money," said a Nevada political leader. "That base will be gone when his best friend goes out."

Other speculation on Laxalt's withdrawal focuses on his $250 million libel suit against the Sacramento Bee and two sister newspapers. A 1983 Bee article alleged that nearly $2 million was skimmed from the Ormsby House, a casino- hotel Laxalt established in Carson City after his gubernatorial term ended in 1971. Laxalt denies that the suit has any bearing on his announcement, but the case is moving toward trial, and the newspaper, in support of its case, has amassed boxes of potentially embarrassing notes and documents.

Is Laxalt's decision final? There was no indication to the contrary, but Nevada remembers how Democratic Senator Alan Bible, another of the state's political institutions, announced he was quitting in the mid-1950s, only to reverse himself after arm-twisting by then Senate Majority Leader Lyndon Johnson. Laxalt may genuinely intend to retire, says a Las Vegas insider, but "what if Nevada holds the Senate balance and the call comes next spring: 'I need you'?"

With reporting by Richard Woodbury/Los Angeles