Yesterday, The New York Sun ran an editorial headline “Where is Spitzer” asking why New York’s Attorney General Eliot Spitzer was not investigating the alleged financial missteps of Mario Gabelli. Mr. Gabelli has been accused in a civil suit of a series of corporate abuses. Readers were reminded of an editorial that ran in June, “Meanwhile, Spitzer’s Fund-Raising” that listed Mr. Gabelli as one of the contributors to Mr. Spitzer’s gubernatorial campaign from the financial industry. He donated $24,000. The editorials recommended that if Mr. Spitzer wishes New Yorkers to view him without cynicism, he would do well to either stop accepting contributions from an industry he has taken it upon himself to regulate, or to step down as regulator until his campaign has finished.

Mr. Spitzer’s office did not return our calls on Sunday, but a spokesman, Darren Dopp, told the Sun yesterday that Mr. Gabelli’s campaign contribution had been returned because of a separate Securities and Exchange Commission investigation into Mr. Gabelli. Mr. Dopp reiterated that it is the policy of Mr. Spitzer to return any contributions from a person who is under investigation. As to why Mr. Spitzer was not investigating Mr. Gabelli, Mr. Dopp said the case is a shareholder suit, while Mr. Spitzer only investigates when investors are threatened.

Mr. Spitzer’s returning the campaign contribution is commendable. New Yorkers will remain cynical, however, because he continues to accept contributions from an industry he regularly goes on fishing expeditions against. His returning the Gabelli contribution indicates the attorney general is aware of how this apparent clash of interest must appear to voters. If Mr. Spitzer wishes to remove any lingering doubts in the minds of New Yorkers as to his propriety, we reiterate our recommendation for him to either stop accepting contributions from the financial industry, or to step down as regulator until his campaign has finished.