A deep-pockets challenge to Cannon

U.S. Rep. Chris Cannon is tasting some of his own medicine — having to defend his seat from a challenge by a deep-pockets millionaire.

Fellow Republican John Jacob, a land and real estate developer, is going after Cannon, R-Utah. Jacob, who says he is worth around $19 million net, says he may put more than $1 million of his own money in the race.

Meanwhile, Cannon's own wealth is not where it was back in 1996, when he spent $1.5 million of his own to oust then-incumbent Rep. Bill Orton, D-Utah, from the 3rd Congressional District.

Since he entered Congress, Cannon's financial reports suggest he has lost up to three-fourths of his net worth on paper, maybe as much as $20 million. That happened as the value of his venture capital business plummeted in his absence, and as Cannon wrote off as uncollectible millions of dollars in loans he had made to it.

So could Cannon still afford to provide large sums to counter Jacob's planned big spending?

"Yes, I could, and probably would," Cannon says. But he figures that will not be needed because "we're raising more money than we ever have before." However, so far Cannon has only raised, for example, about one-seventh as much as fellow Rep. Jim Matheson, D-Utah.

Jacob, who made much of his wealth developing water rights and land, says much of his $19 million net worth is in land and/or businesses, so "I am not very liquid." He said he plans to sell some assets to help provide cash for his campaign.

His reported 2004 income was between $1.1 million and $6 million (Congress requires reporting only within broad category ranges.) His reported 2005 income through Oct. 6 was between $2.1 million and 11 million.

"I'm in this to win. I will do whatever is necessary" financially, Jacob said.

He adds he does not want to give the impression he is trying to buy the seat, but figures he must spend heavily to educate voters about who he is and what he'll do for the district, which runs from Salt Lake County's west side south to Beaver County.

An analysis of both men's personal financial statements filed with the U.S. House shows Jacob appears to be much wealthier than Cannon.

The congressman's reports this year listed his net worth between $2.7 million and $12.1 million (Cannon declined to narrow it further than that) — and his 2004 income was between $462,000 and $2.3 million.

But about half of Cannon's current net worth could be on paper only, and may not have much easy-to-liquidate value.