June 4 (Bloomberg) -- U.S. Treasury Secretary John Snow will be the main draw next week at a $10,000-a-table fundraiser for Republicans, stepping into a political role that brought criticism to predecessors including Robert Rubin.

Snow, fresh from helping President George W. Bush win a $330 billion tax cut, will speak at a Virginia Republican dinner June 13 in Richmond. Tickets to hear the former chairman of hometown- based railroad CSX Corp. range from $75 for a ``Passenger'' ticket to $10,000 for a ``Conductor's Circle'' table of 10.

The Treasury is taking steps to insulate Snow from the criticism that befell Rubin, who as secretary under President Bill Clinton was featured at a 1996 White House coffee gathering organized by the Democratic National Committee. Such situations can create landmines, analysts said.

``It's not savory, but it's not unethical,'' said Larry Sabato, who teaches political science at the University of Virginia. ``You don't really want key Cabinet officers speaking at a gathering where the price tag is so high.''

To avoid potential conflicts of interest, Snow plans to follow guidelines that limit his ability to solicit donations or use his title, Treasury spokesman Rob Nichols said. Snow will confine his remarks to the economy and the Virginia Republicans will pay any government costs, he said.

Treasury secretaries ``are specifically allowed to speak at political events,'' including fundraisers, Nichols said. ``The taxpayer doesn't pay.''

Restrictions

Snow's first fundraiser since joining the Cabinet in February comes two weeks after Bush signed a $350 billion stimulus plan including the tax cuts and $20 billion in aid to states. The Republican president, who is trying to get the economy to accelerate before the 2004 elections, will visit six U.S. cities from Miami to San Francisco this month as he tries to surpass the record $100 million raised for his campaign in 2000.

Executive-branch employees have restrictions on the fundraising they can do, according to the U.S. Office of Special Counsel, the independent agency that oversees the rules.

Snow and other high-ranking officials are prohibited from personally soliciting, accepting or receiving political contributions. They can't use their official title at political events and can't try to sway individuals who may have business pending before the Treasury Department, said Ana Galindo-Marrone, chief of the Hatch Act unit of special counsel's office.

Treasury secretaries oversee regulations on banks, trade and capital markets.

`Favorite Son'

``Cabinet secretaries and agency heads are guiding their own institutions and seen as independent, but I think that's kind of a false impression,'' said Sheila Krumholz, research director for the Center for Responsive Politics, a Washington group that tracks campaign finance data. ``These guys are political appointments themselves, and so they serve a political purpose for the president.''

The Virginia Republicans' announcement refers to ``The Honorable'' John Snow, ``Richmond's favorite son,'' without mentioning his title of Treasury secretary.

Shawn Smith, a spokesman for the Republican party in Virginia, declined to comment about how much money the event would raise. The event's co-host is Virginia Attorney General Jerry Kilgore, a possible Republican candidate to unseat Democratic Governor Mark Warner.

Snow is no stranger to the state's Republican fund-raising. Prior to being nominated by Bush in December, Snow gave $18,000 to candidates in last year's congressional races, according to campaign finance tracker PoliticalMoneyLine. The top recipient was Virginia Republican Senator George Allen at $10,000.

Power of Incumbency

On a trip to Mississippi in early May, Snow met with privately with supporters of Haley Barbour, a candidate for governor of that state and former chairman of the Republican National Committee, at a roundtable with local business leaders.

Using Cabinet secretaries to aid political campaigns is part of what gives incumbents an edge, analysts said.

``It gives the party in power a chance to draw on big money and the donors get face time with an influential member of an administration,'' said Bill Allison, managing editor of the Center for Public Integrity, a Washington-based government watchdog group.

Former Clinton-era Treasury secretaries Rubin and Lawrence Summers both attended political fundraisers. Rubin's attendance at the May 1996 breakfast meeting led some members of Congress to press for changes in campaign finance rules. Treasury was advocating banking reforms at the time, and several bankers who attended the meeting later donated to Clinton and Democrats.

While Snow's immediate predecessor, Paul O'Neill, didn't attend fundraisers, he used trips around the country to promote the administration's policies to meet and speak with Republicans running for election. ``You should send people to Washington who agree with our ideas,'' O'Neill twice told New England business leaders last September.

While Snow won't be breaking any rules, his presence at a GOP fundraiser opens him up to criticism.

``It seems rather bourgeois to hold an event like this,'' said Laura Bland, a spokeswoman for the Democratic Party of Virginia. ``Why is the Treasury secretary attending a fund-raiser? Doesn't he have anything better to do?''

Last Updated: June 4, 2003 10:36 EDT