CAMPUS AND AREA
University Daily Kansan, April 3, 1985
Divest
Page 10
continued from p. 1
The University owns no stock of its own and has no separate investments of its own. Fees, tuition and other expenses are paid to the university are forwarded to the state treasurer.
Seymour said that over the past 10 years the Endowment Association had given the University more than $135 million. The Endowment Association also has provided 900 of the 990 acres of the Lawrence campus.
When a gift is donated to the University, the Endowment Association either spends the money or invests it into one of two pools, the merged investment account or the cash management account.
The merged investment account is similar to a mutual fund. The Endowment Association combines smaller donations to purchase stock.
The cash management account can be compared to a money market account where cash on hand is invested for a short period and can be spent as needed. In 1984, the Endowment Association earned $14.6 million in income from the two investment pools.
Seymour said the Endowment Association did not invest in foreign corporations, but did invest in U.S. corporations doing business abroad.
"What it amounts to is that most of the American multi-national corporations do a small portion of their business in South Africa," he said.
Seymour said the Endowment Association could not invest in smaller companies because it would not ensure that the investments would be safe.
About 75 percent of the strongest U.S. companies have some kind of operation in South Africa, Seymour said.
According to a report by the American Committee on Africa, those companies include CBS, Exxon Corp., General Electric Co. General Motors, Aerovail, Midstream Motor Inc. Corporal Corp., Mobile Corp., PepsiCo Inc, and Xerox Corp.
Seymour said that if the law were changed to require total divestment from companies doing business in areas where government Association would pull out.
"If the law tells us to divest from all companies, we would sell immediately," he said.
But the Endowment Association has resisted divesting recent calls for divestment by campus groups.
Students want divestment
Last week, the Student Senate Social Responsibility Committee approved a resolution proposing that the Endowment Association direct
And last November during Student Senate elections, students approved a bill prohibiting student organizations from spending Student Senate money to buy products from companies doing business in South Africa.
Last week, the University Senate sponsored a forum that allowed faculty members and students to discuss their concerns about divestment.
The University Council, the executive body of the University Senate will decide next week whether to ask the Endowment Association to divest from companies with ties in South Africa. The Council's decision will be a recommendation and is not binding upon the Endowment Association.
The forum was conducted at the recommendation of the University Senate Human Relations Committee.
The committee released a report last month recommending that the Endowment Association divest if the grouping four assumptions could be proven
*The sale of Endowment Association stock would persuade U.S. companies to leave South Africa.
But Seymour said the report's conclusion was not logical.
- Divestment was a more effective way to encourage companies to leave South Africa than voting in favor of resolutions promoting dividend.
Looking for alternative
"This is where the emotionalism comes in," he said. "They've got to realize the restriction we work under. A lot of people aren't really rational about the whole thing. It's a topic where a lot of people are emotional, and that's understandable."
Seymour said critics could always find a company not operating the way it should and demand that the Endowment Association divest from that company.
- Withdrawal by U.S. companies would contribute more to the eradication of apartheid than the current efforts by the companies to improve the employment opportunities, working and living conditions of non-white workers in South Africa.
- "We could all go out and destroy our American-made cars to protest auto manufacturers being there, but that seems to have too many costs relative to the contributions that would be made in the struggle against apartheid," Jerry said.
- Withdrawal of U.S. companies from South Africa would materially help in overcoming apartheid.
"It's easy to say an investment is bad," he said. "That's an extremely simplistic view. If we took the advice of all who said we should divest there would be nothing to invest in."
Robert Jerry, chairman of the Human Relations Committee, who drafted the report, said the report should be given a clear way to help dismantle apartheid.
The report said that the likelihood that all four propositions could be established was virtually nonexistent.
He said the costs of divestment might be large for the Endowment Association. Although the report said all four points mentioned might not be reached, it proposed that the Endowment Association divest from any company that did most of its business in South Africa.
Bunker like the Endowment Association could meet its fiduciary responsibilities and still divest from businesses doing business in South Africa.
But Seymour said divestment would cost the Endowment Association money and would in turn lower the amount the Endowment Association contributed to the University.
Chris Bunker, a Prairie Village first-year law student who marched in a rally last week calling for the
Endowment Association to divest, said the Endowment Association clung to policies and laws that were simply excuses.
"I don't think the argument that they are making is completely without merit," Bunker said. "I think it an excuse rather than reason."
"It would affect everything we do," he said. "Our primary responsibility is to support the University, faculty, staff and students. And that means any way we can maximize profit."
TONIGHT
7:30 $2
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TODAY
ANMESTY INTERNATIONAL WILL conduct a letter-writing session from 11 a.m. to 12:30 p.m. in Alove C of the Kansas Union Deli.
THE DR. WHO Fan Club will meet from 7 to 9 p.m. in the Regionalist Room of the Union.
THE DUNGEONS AND Dragons Club will conduct its weekly meeting at 7 p.m. in the Trail Room of the Union.
THE CENTER OF Latin American Studies will sponsor a brown bag
lunch, " Merienda," from noon to 1:30 p.m. in 109 Lippincott Hall.
KU DEMOCRATS WILL meet at 9 p.m. in the Jahayawk Room of the Union. State Rep. Gary Blumenthal, D-Overland Park, and State Rep. William Nisha, with the guest speakers. The public is invited to attend.
SUA WILL SHOW a slide presentation, "High Adventure in the Chinese Alps," at 7:30 p.m. in Alderson Auditorium of the Union.
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HDFL EXAM#3 1. What's so funny?
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E) Someone suggested that they go to some place other than Gammons tonight.
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