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Miller Profited From AMR Stock: D/FW Board Member Says She Asked Husband to Sell to Avoid Conflict

Posted on: Saturday, 6 May 2006, 15:00 CDT

By Dave Levinthal, The Dallas Morning News

May 6--Dallas Mayor Laura Miller earned up to $25,000 last year after buying and selling stock in AMR Corp. -- American Airlines' parent company -- while serving as a member of the Dallas/Fort Worth International Airport Board, according to mandatory 2005 financial statements filed this week by Dallas City Council members.

American Airlines flights account for more than 80 percent of commercial air traffic at D/FW Airport, and the airport board frequently makes decisions affecting the airline.

Ms. Miller says she was initially unaware of the purchase, which, according to her financial statement, involved at least 10,000 shares of AMR stock.

"I learned in a dinner conversation with my husband that he had purchased American Airlines stock the week before," Ms. Miller wrote in an e-mail. "I told him that I thought it was a conflict of interest for me to own that stock because of my position on the D/FW Airport board and asked him to sell it. He did the following day."

Ms. Miller's husband, Steve Wolens, is a lawyer and former state representative.

Council members' financial statements provide ranges, not specific numbers, of how much stock an officeholder owns. Likewise, they provide ranges of financial gains or losses from stock sales.

Ms. Miller's report indicates she earned between $10,000 and $24,999 on the stock, which was purchased Sept. 2 and sold on Sept. 12. D/FW Airport officials couldn't immediately determine whether Ms. Miller had voted on airport board issues while owning AMR stock, and if she had, whether the votes involved American Airlines.

AMR stock opened and closed at $11.95 per share on Sept. 2, ranging between $11.55 and $12.01 during the day's trading session.

On Sept. 12, the stock opened at $12.05 per share and closed at $13.16, ranging between $12.05 and $13.26.

AMR then closed below $13.16 for the next 35 trading days. On Oct. 31, it closed at $13.51, and it has steadily increased in value since, trading above $28 per share Friday.

The shares have risen despite steady losses by the world's largest carrier, which saw a $92 million loss in the first quarter.

Ms. Miller did not reply when asked whether owning AMR stock represented a conflict specifically because of the ongoing debate over the Wright amendment, a federal law that limits commercial air traffic to and from city-owned Dallas Love Field.

Fort Worth-based American Airlines wants the Wright amendment to remain in place unchanged. Southwest Airlines, which is based at Dallas Love Field, wants the Wright amendment repealed.

Both carriers operate at Love Field, although Southwest does not fly to or from D/FW Airport -- American Airlines' home airport.

D/FW Airport was planning a pro-Wright Amendment radio and print advertisement campaign in early September and unveiled it later that month.

Since March, Ms. Miller has led negotiations with Fort Worth in hopes of the two governments offering Congress, which will ultimately determine the fate of the Wright amendment, a local compromise.

Council member Ron Natinsky's filing also indicates he sold AMR stock, earning less than $5,000 from it. He reported holding between 500 and 999 shares.

"I made what I thought was a good return on my investment," Mr. Natinsky said.

Mayor Pro Tem Don Hill's portfolio amounted to fewer than 100 shares in Cisco Systems and Lions Gate stock, and fewer than 100 shares in a mutual fund, his filing indicated. He listed owning interest in one real estate property and a law firm, Burt, Barr and Associates, where he works.

Deputy Mayor Pro Tem Elba Garcia listed a variety of stock and mutual fund investments in her filing, in which she reported earning between $10,000 and $24,999 each from sales of Citibank and Telephone and Data Systems stock.

Other assets include earnings from real estate investments

Council members James Fantroy, Ed Oakley, Steve Salazar and Maxine Thornton-Reese reported owning no stock, bonds or mutual fund assets, although they owned property.

Council member Gary Griffith ranked among the most active equity traders on the council, earning profits off stock sales that included Merck, Service Master, Steak n Shake, Time Warner, Toys "R" Us, Costco, McDonald's, Clear Channel Communications, Gillette, AT&T, Wal-Mart, Coca-Cola, Comcast, Anheuser-Busch and First Data, according to his filing.

Ms. Miller, for her part, provided a two-page list of meals, trips and other honoraria she accepted last year -- much more detailed than any of her colleagues.

"If I accept a meal or private transportation from someone in the course of my work, I believe it should be reported on the form under honoraria because, but for my elected position, I would not have been offered those things," Ms. Miller wrote. "It's just a matter of transparency. My husband always did it as a state legislator, and since he wrote the state's ethics laws, including changes to that disclosure form, I follow his lead."

It is up to individual council members to determine whether their disclosure of honoraria -- or lack thereof -- adheres to state ethics laws, City Secretary Deborah Watkins said.

At council member Mitchell Rasansky's request, Ms. Watkins granted the three-term District 13 representative a 30-day filing extension.

Mr. Rasansky, whose 2004 financial report indicated he was probably the wealthiest among his council colleagues, is recovering from surgery to correct a subdural hematoma -- pooling of blood on his brain.

E-mail dlevinthal@dallasnews.com

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Source: The Dallas Morning News

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