Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, August 9, 1993                   TAG: 9308090048
SECTION: VIRGINIA                    PAGE: C3   EDITION: METRO 
SOURCE: DAVID M. POOLE STAFF WRITER
DATELINE:                                 LENGTH: Medium

CRANWELL WON'T PULL OUT OF VENTURE

"My assessment is that I have not violated the law in any way, shape or form," Cranwell, a Democrat from Vinton, said Sunday. "I don't see any reason to get out of a venture because someone says it's inappropriate."

The formation of International Guaranty Insurance Corp. has raised questions because its chairman, Richmond lobbyist George Murphy, has recruited five of the General Assembly's most influential Democrats for the company's board of directors.

Though the deal does not violate the state's conflict of interest law, Democratic gubernatorial candidate Mary Sue Terry has said it was inappropriate for the five legislators to sit on the company's board.

Public-interest groups have called the International Guaranty deal a blatant example of legislators trading on their influence. Virginia Common Cause director Julie Lapham has suggested that banks - which would buy private mortgage insurance - will be tempted to steer their business to International Guaranty in order to cozy up to legislators.

Senate Finance Chairman Hunter Andrews, D-Hampton, has withdrawn his $25,000 investment in the company apparently because of adverse publicity about the deal, the Richmond Times-Dispatch reported Saturday.

A Botetourt County Republican who is running against Cranwell this November called on Cranwell to do the same.

"I urge Cranwell to join Andrews, and they can both dance as partners to Terry's tune," Bud Brumitt said.

Cranwell declined the offer. "I have no inclination to get off the board or surrender my stock," he said.