THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Friday, January 17, 1997 TAG: 9701180437
SECTION: LOCAL PAGE: B2 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: 46 lines
Gov. George F. Allen and Attorney General James S. Gilmore III own thousands of dollars in Philip Morris Inc. stock at a time when the state is siding with the tobacco industry's fight against federal regulation.
At prevailing market prices, Allen owns about $11,300 worth of Philip Morris stock, or 100 shares. Gilmore owns about $42,000 worth, or 375 shares.
The holdings were listed in the annual economic interest statements filed Wednesday with the secretary of the commonwealth. State officials must report job-related gifts and travel worth more than $200 and stock or business involvement worth more than $10,000.
Lt. Gov. Donald S. Beyer Jr. listed no Philip Morris stock in his statement. Some of his money, however, is invested in mutual funds that might have tobacco holdings, a Beyer spokeswoman said.
In October, Gilmore filed a friend-of-the-court brief on the state's behalf seeking to block new Food and Drug Administration restrictions on tobacco sales and marketing.
Gilmore also has said he won't sue tobacco interests to recover tax money spent on Medicaid treatment for smoking-related illnesses, as officials in other states have done.
Tobacco, Virginia's largest cash crop, is a $5 billion industry here.
Spokesmen for Allen and Gilmore said their stocks did not influence state policy.
``This stock has certainly not had any impact on any standing or position we may have had,'' said Ken Stroupe, Allen's spokesman.
Allen bought the shares in 1991, two years before he was elected governor. ``During that time, we've certainly pursued legislation which has cracked down on cigarette smoking by minors,'' Stroupe said.
Gilmore has acted in the best interest of Virginia farmers, not his bank account, said Mark Miner, Gilmore's spokesman.
Gilmore's stock, bought in 1989, ``no way has any effect on anything he does in office,'' Miner said. ``This is just a savings plan. It's not like he comes from a wealthy background.''
Julie Lapham, executive director of the citizen watchdog group Common Cause, said the Philip Morris holdings raise ethics questions.
``The question is perception, and how an outside citizen or the public is going to view that particular piece of information,'' she said.