University Daily Kansan, June 26, 1985
Page 9
New GI Bill helps veterans to finance college expenses
By Carol Stephenson
Staff Reporter
Individuals entering the military from Monday through June 30,1988, will automatically be enrolled in a new educational benefits program started by the Veterans Administration, military officials said yesterday.
Henry Orton, staff sergeant and Army recruiting station commander in Lawrence, said that, under the new program, recruits would come in a month from their paychecks for the first 12 months of service.
In return, for a two-year enlistment, the government will pay $250 a month in educational assistance for up to 36 months after the recruit has completed military service. he said
The government will pay $300 a month for up to 36 months for a three-year enlistment, Orton said.
The money is put into a fund for use after the enlistee has served. Enlistees who do not use the money for college within 10 years after their enlistment is completed lose the money, said Bud Ridge, gumery
sergeant of the Marine Corps recruiting station in Topeka.
Recruits entering military service would be enrolled in the new program unless they decided not to participate, he said. However, if they want to enroll in the program later, they cannot, he said.
Servicemen who have had no break in active duty since Dec. 31, 1976, and who continue to serve on active duty for three years after Sunday may participate in the new program with no reduction in their basic pay, said Veteran Service representative the Kansas Veterans Commission.
Hibler said the government would put $300 each month into a college fund for the active servicemen, although they would not have to put $100 from their monthly paychecks into the fund.
Gary Thompson, KU director of student records and registration, said veterans now can use the Veterans Education Assistance Program to voluntarily participate in a plan for financing his education.
Orton said that the new program
would offer recruits more money toward their education. Under the VEAP program, servicemen made contributions from their paychecks each month for the length of their enlistment. For every $1, they received $2 from the government for educational assistance.
Under the new program, he said, the individual's basic pay is reduced by $100 for the first 12 months of service. Other benefits than in the VEAP program,
Thompson said that, from a practical standpoint, WEAP was not acceptable because it was not a pro-choice tool which all recruits participated.
"Usually in the service people of the same rank run around together," Thompson said. "They're making the same amount of money so they run out of money at the same time."
The two companies asked Shawne County District Judge James Buchele for a hearing on the order. Although Buchele heard arguments from both the state and the companies yesterday, he said his decision not be available before Friday.
By Jill Ovens Staff Reporter
In his order, Wurth said the two companies, and other associated individuals and companies, were
John Wurth, state securities commissioner, issued the order June 12 against Culture Farms Inc., 13th and Massachusetts streets, and Activator Supply Co. Inc., Pahrump, Nev.
TOPEKA — About 200 supporters of a Lawrence culture-growing operation yesterday crowded a courtroom in Topeka where arguments were heard about whether a cease-and-desist order was warranted. But a decision is still pending.
At yesterday's hearing, attorneys for Culture Farms and Activator Supply argued that the state had never proved that the sale of activator kits constituted the sale of investment contracts or securities.
Judge delays culture firm ruling
He said that a three-tier pyramid clearly existed and that the companies had no name-brand product to sell. The prices for the cultures Culture Farms, not by the growers and no other market exists, he said.
Stephen Scholl, the Kansas City, Mo., attorney for Culture Farms, said the state had not shown that activator kits were sold for more than they were worth, which he said was one of three requirements under
Craig Stancliffe, attorney for the state securities commission, said people invested money in Culture Farms, which he said had increased the capital investment of $15,000 to a million-dollar asset in a few weeks.
The cultures grown with the activator kits were ultimately to be used in the manufacture of cosmetics. But Wurb said only a small proportion of the cultures cultivated by growers was used in the manufacture of cosmetics. Most of the cultures were reprocessed into more activator kits to be sold to other investors.
operating a Poni-pyramid scheme. Wurth's order also charged that they were engaged in the sale of inactive activator kits sold to growers.
Some information for this story was provided by United Press International.
He also said that people who purchased the kits were not promised any return and that people who read the literature and contracts given to new growers would know they might be faced with a loss.
Kansas law to show that investment contracts had been sold.
Both conditions also satisfy Kansas law, he said.
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