Locke’s Stock Has Governor Over A Barrel Potential For Conflict Might Push $123,000 Portfolio Into Blind Trust

Gov. Gary Locke says none of his stock investments influences his decisions, including one to sign a tax measure that benefited Microsoft, a company in which he owns $50,000 in stock.

Nonetheless, Locke understands there may be an appearance of a conflict of interest, and is considering setting up a blind trust or selling his holdings in Northwest companies that might benefit from his actions, he told the Seattle Post-Intelligencer in a copyright story published today.

Locke’s investment portfolio is relatively modest, and was built up before he was elected in November, records on file at the state Public Disclosure Commission show.

It was worth at least $123,000 at the end of 1996, and presumably has risen along with the stock market since then. Also, public officials are required to report only the minimum size of their investments. Locke declined to say what his portfolio is worth today.

His wealth includes stock in Redmond-based Microsoft Corp., worth more than $50,000 at the end of 1996. The price has risen greatly since. He also owns stock in other regional companies such as The Boeing Co., Eagle Hardware and Garden Inc., Nike Inc., Nordstrom Inc., Quality Food Centers Inc. and Starbucks Corp.

“None of my holdings in any of these stocks have ever influenced my decisions as governor, nor do I ever intend to let them,” Locke said.

Locke’s wealth pales in comparison to former Democratic Gov. Booth Gardner, an heir to a Weyerhaeuser fortune. But Gardner avoided accusations of a conflict by putting his holdings in a blind trust.

Other recent governors, Democrat Mike Lowry and Republican John Spellman, did not own stock.

Locke said he believes disclosure laws already minimize conflicts between elected officials’ business connections and their public actions by allowing citizens to know of the connections and make their own judgments about officials’ behavior.

Microsoft this year was among Washington companies that pushed hard to exempt intangible property such as goodwill, trademarks and intellectual-property rights from taxation.

Locke signed the measure over strong objections from Democrats in both chambers, who said it would shift more of the tax burden to homeowners. Locke sided with business and Republicans, who said the fear of such taxation could damage the state’s growing reputation as a good place to do business.

“I made this decision to support the businesses of the future, especially our state’s high technology and growth industries,” Locke said when he signed the measure in April.

Locke said his action on intangibles was not influenced by his stock holding, and he pointed out that on occasion he acted against the interests of companies in which he holds stock.

For example, Locke found himself in a fight with Nike when he proposed taxing certain sportswear to help pay for a new football stadium in Seattle. That tax proposal was defeated in part because of an intensive lobbying effort by Nike.