INSIDE
Sky high
Rain stopped the Lawrence Air Show on Sunday but didn't dampen the spirits of the many onlookers. Focus, page 6
Is it Coke?
The 'new' formula of Coca-Cola has some people around Lawrence thirsting for the 'real thing.'
Story, page 8
OUTSIDE The forecast
Today. .Sunny, high in the low 70s
Tonight. .Clear, low in the lower 50s
Tomorrow. .Sunny, high in the upper 70s
Friday. .Chance of showers, low 55, high in the 80s
Weekend. .Showers possible, low 54, highs in the 80s
The University Daily
Details, page 3
WEDNESDAY
June 12. 1985
KANSAN
Vol. 95, No. 148 (USPS 650-640)
Published since 1889 by students of the University of Kansas
Judge upholds Culture Farms ruling
By Jill Ovens
Staff Reporter
A Shawne County district judge yesterday uphold a cease and desist order from the state securities commissioner against a Lawrence culture-growing company and a related company in Nevada.
Judge James Buchei denied a request by Culture Farms Inc., 13th and Massachusetts streets, and Activator Supply Co. Inc., Pahrupn. on the order, although he set a date for a further hearing on the issue.
Buchle has ordered both sides to file documents supporting their positions by June 20. He set a time for arguments to be heard at 2 p.m. June
John Wurth, state securities commissioner, on Monday ordered the companies to stop selling activator
kits and to stop buying cultures grown with those kits if the cultures were to be used only to make more kits.
The ban is the first permanent cease and desist order in the United States against companies involved in growing the milk-based bacterial cultures, which are used in the pro-Clopatra's Secret cosmetics.
Wurth said Monday at a news conference that violation of the order was a federal offense.
House of Cleopatra's Secret, Palm Springs, Calif., and other companies and individuals named in the original temporary cease-and-desist order issued March 6 were not named in Monday's order. A decision about the others named in the original order is expected later this week. Wurth said.
"Seventeen states have taken formal action of some sort, but Kansas is the first state to have a permanent order," said Larry Christ, general counsel for the securities commission.
Wurth said that the companies were selling unregistered securities and that they were involved in a Ponzi scheme. This type of pyramid scheme is named for Charles A Ponzi, who detrauded hundreds of investors in the 1920s.
A Ponzi scheme pays off old investors with money coming in from new investors. Ponzi schemes typically collapse because there is no significant source of income other than from new investors.
Wurth said the culture-growing scheme had potential sales of at least $63 million.
He said investors had been deceived into believing that a legitimate market existed for their cultures. But based on evidence of hearings conducted in May before a state-appointed hearing examiner, Wurth's staff estimated that only 6 percent of the cultures had been used in the manufacture of Cleopatra's Secret skin-care products.
The rest had been reprocessed into new activator kits, which the state contented were really devices to sell investment contracts
John Frieden, a Topek attorney
John creation Culture Farms and
Activator Supply, tiled the appeal with
Buchele on Monday afternoon and
argued that unless a stay of the order was granted the companies would go business.
He said yesterday that he was pleased with Butele's ruling, which
he said interpreted the cease-and-order in a different light than Warthor
"The companies can manufacture the activator kits, they can purchase the cultures, and they can sell the culture kitten said. "They are still in business."
Culture Farms officials could not be reached for comment. But in a news release criticizing the order, Culture Farms and Activator Supply collaborated to state examiner's findings, indicated these were involved in a Poison scheme
Wurth's order does not prevent Culture Farms from buying and selling the cultures if they are to be used for the production of cosmetics.
Some information for this story was provided by United Press International.
First-day figures increase
By Gina Kelloqg
Staff Reporter
Summer enrollment on the Lawrence campus increased over last year's enrollment, but declined somewhat on the University of Kansas Medical Center campus in Kansas City, Kan., according to first day figures released yesterday by the department of educational services.
The total headcount for both campuses was up by 23 students from last summer's enrollment. Headcount at the Lawrence campus increased by 45 students — from 7,058 in 1984 to 7,103 in 1985 and — decreased by 22 students — from 1,526 in 1984 to 1,504 in 1985 — at the Med Center campus.
"Summer enrollment on the Lawrence campus is somewhat higher than we expected," Chancellor Gene A Budig said in a prepared statement. "It is still another significant vote of confidence in the quality of our academic program.
Enrollment of freshman, sophomore and doctoral students showed a decline, and the first-day tallies of juniors, seniors and master's degree level students increased.
"We are encouraged that our offerings will assist, so many able students. The summer session requests an appointment of the University's total program.
Enrollment figures for 1985 and 1984 in each class are:
Freshman, 1985, 312; 1984, 459.
Sophomores, 516, 67
Juniors, 829; 591.
Seniors, 1.585; 1.563.
Fifth-year, 101: 98.
Special students, 393, 572.
Special students, 583, 592
■First year professionals. 201
188
Master's level, 1,873, 1,542.
Doctoral level, 1,292, 1,391.
Official figures for the summer session will not be available until the end of the session. July 26.
Late enrollment will continue until June 17 for eight-week classes.
Feverishly they work to complete the new units before another crop of students arrive for the fall semester.
Staff Reporter
Building booming in town
Trend is toward small complexes with more units
Bv Jill Ovens
It's summertime in Lawrence and
residents awake to the rapping of
 carpenters hammer as new apartmen-
s spring up where an old house
exists.
Facelift
It's an annual ritual seemingly without end At some stage, however, it would seem that Lawrence would reach a saturation point
Last year, permits were issued for 193 units in multi-family dwellings greater than four units. Of these, 115 were issued to Mastercraft Corp. for Tanglewood, an apartment complex at 961 Arkansas St. As of March 185 permits had been issued for 143 units, and the number larger than four units. Gene Shaughnessy, the city's chief building inspector, said yesterday that a few years ago, people in the building industry thought Lawrence was being saturated with apartments, but apartments still continue to be built.
Drew Hammond, Lawrence junior, applies a coat of white paint to Miller Hall, a KU scholarship hall.
He said a trend moved away from large apartment complexes toward a smaller number of units in each building.
"The trend is away from building one big building and seeing how many units you can get in it," he said.
People in the rental business say that a saturation point has not been reached
"We're not over-saturated yet," said a spokesman for Kaw Valley Management Inc., 901 Kentuck St.
"The new developments are smaller. You're not going see complexes like Meadowbrook in the future but you're going big complex even by city standards."
See BUILDING, p. 5, col. 1
Meadowbrook Apartments, a complex on West 15th Street, has about
Library charges can be stiffer than mere fine
By Gina Kellogg Staff Reporter
As she left the library, a device in the book, which she had not checked
Staff Reporter
The student emitted her backpack onto a table at Watson Library and began to work on a term paper for a political science course. As she became more deeply involved in her research, her books and papers were spread around her in disarray.
She didn't notice a library book among her belongings
After several hours, the student looked at her watch and realized she was late for an appointment. She quickly gathered all of her materials and stuffed them into her backpack. She didn't notice a library book
Despite the student's explanations,
the library called the KU police. The
student was read her rights, questioned
extensively and given a ticket
out, set off the detection system at the library's main exit
The student walked to the circulation desk, and, at the request of a library employee, the student emptied her backpack. The employee discovered the library book. The student was asked to show her KU identification card; she didn't have it. She took the computer code label, which is used in checking books out, had been removed from the book.
to appear in court -- for petty larceny
That scenario may seem unbelievable, but according to Susse Fall, El Dorado, Ark, senor, it all happened to her in late April.
"I was totally innocent," Fall said
Friday. "I don't agree with the
system, but I got out of it the best
I could. It was a no-win situation."
Fall appeared in court Friday on the petty charge charge She pleaded no contest, and the charge was moved to temporary deprivation of property.
Fall was fined $100 and sentenced to 10 days in jail. The jail term was
She was found guilty
suspended because it was Fall's first offense
Mike Glover, city prosecutor, said that Fall's case was an example of what might happen to any student in the same situation.
Nine students were charged with theft last semester for attempting to leave the library with books they hadn't checked out according to Kendal Simmons, head of circulation at the right of the students were prosecuted
Simmons said library employees had stopped at least two persons each day for setting off the detection system at the main exit at Watson.
"We give them the benefit of the
doubt," she said. "A lot of things set it off, Umbrellas, used books students have bought, books that weren't densest right at another library. And baby carriages — they set it off a lot."
Usually when these problems occur the items are desensitized and the person is free to go. Simmons said. But if any sign of tampering or damage to the book is apparent, the library follows a strict policy of calling the KU police.
Fall said that she understood that the library must stand behind its policies, but she was disappointed
See LIBRARY, p. 5, col. 4
Workers criticize handling of asbestos problem
By Jill Ovens
Staff Reporter
A fact finding report from the Kansas Department of Human Resources dealing with the removal of an asbestos laden boiler in the KU power plant was released two weeks ago, but dissatisfaction still smolders, several facilities operations workers said last week.
Richard Smith, an AFL-CIO union steward and a welder who worked on the demolition of the boiler, said he had not seen the report and was not fully satisfied with action taken by facilities operations to deal with possible asbestos contamination of employees who had worked the site.
Chronology of asbestos controversy
Dec. 29, 1984 — The Lawrence Journal-World published a story airing workers complaints about the removal of asbestos material in the boiler
Jan. 8, 1985 — Chancellor Gene A. Budig requested a fact-finding investigation by the Kansas Department of Human Resources.
Oct. 1982 to Dec.
1984 – Removal of boiler laden with asbestos from the power plant
"It seems some changes have been made, but I'm not sure anything has been gained," he said.
Rodger Oroke, director of support services, said Monday that he planned to meet with workers about the findings but that a date for the meeting had not been set.
Feb. 7, 1985 — The fact-finding panel from the department was set up and opened during the following few days with 79 employees of facilities on board.
April 10-11, 1985
Tom Anderson, director of
the school, and three others from the department attended a workshop with the National Asistentes Training
May 28, 1985 — The Department of Human Resources report was released, saying that the department will meet recommendations of the department.
Hulsey said yesterday. "No doubt.
Smith said that several of the workers were considering filing a class action lawsuit against the University of Kansas for damages. Smith said between 15 and 30 employees with supervised cooperation meet with Paul Hulsey, a Topka attorney, tomorrow in Lawrence to discuss any possible action.
there has been a breach of duty, but whether we can sue the University is another matter
Smith said Richard Fowler, a facilities operations worker, filed a personnel grievance last Friday against a supervisor at the power plant about the handling of asbestos. He declined to discuss the grievance.
Smith also said he was disappointed over the firing of Steve Braswell, one of the workers who
aired complaints last December. Braswell is appealing his dismissal before the Kansas Civil Services Board.
"My husband blew the whistle.
Ooke said he had not heard about any grievances.
The report verified workers con
and he doesn't have a job anymore. Simmons said.
Kendall Simmons, Braswell's wife and head of circulation at Watson Library, said that neither she nor her husband wanted to discuss details of the case, but she said she thought his dismissal was related to the controversy over the asbestos contamination.
The dismantling of the boiler began in September 1982 and was concluded in December 1984. The state investigation was requested by Chancellor Gene A Budig on Jan 8 after workers complained about improper procedures in the removal of asbestos from the boiler.
cerns about a lack of supervision and training, a lack of appropriate protective equipment and clothing, and poor work area preparation
Smith said that improvements had been made in training the men who worked with the potentially hazardous material.
'They do seem to be more concerned about training.' Smith said, referring to the facilities operations management 'They had a training class, and now they have an asbestos team.
Tom Anderson, director of facilities operations, said last week that everything recommended in the
"I've talked to the guys who work with it. They have monitors to monitor the amount of exposure to be taking the proper precautions.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
See ASBESTOS, p. 5, col. 1