University Daily Kansan
University Investments
Thursday, September 9, 1971
3
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From Page 1
"I'd like you to meet my cousin Fred from down back of the nuclear power plant."
dowment Association's responsibilities as a major investor and pollution caused by Dupont's plant in Tecscumb, near Toekee.
"Should we not hold Dupont because of the plant out there?" He said. Steel is guilty of polluting somewhere in country, but离不开 detention shouldn't be bought?" The Endowment Association has
Chancellor E. L. Laurence Chalmers, Jr., agreed with Youngbun that "the primary Association is to the benefit its association."
"THERE ARE ENORMOUS value judgments involved." Chalmer said He said that if a donor significantly modify the donor's intent, the university community shouldn't be afraid to ask questions about the issue of investment and moral criteria.
"I tend to agree that this question has to be subordinate to the wishes of donors." Chalmers said. The Endowment Association could be influenced by the University, but not legally bound by any other group.
ALTHOUGH THE Endowment Association holdings are extremely diversified and generally in small lots, there is one industry—utilities—where the association is a major investor.
The Endowment Association has common stock in 20 major electric utilities and six gas utilities. The Endowment Association has money invested in 20 other gas and electric utilities that combine bonds, convertible preferred stock and preferred stock.
"The Endowment Association is wholly and totally independent of the University of Kansas." Challengers said.
"Our approach tends to be on the conservative side—an awful lot of electric utilities," Youngbren said.
In his speech to the Senate on "The University and the Corporation," Sen. Metcalf highlighted high-quality field because, "that is where the action is, or should be. Energy companies employ all four methods described at the outset of my remarks to frustrate attempts to their practices and policies."
METCALF SAID that 53 universities surveyed by him held 24,256,904 shares of common energy with 35,768,908 in 161 energy companies.
The Metcalf report to the Senate included information about utilities, some of which are owned by the Endowment Association.
Metcalf compiled tables to demonstrate his case.
"Substantive questions need to be asked at stockholder commissions, commissions regarding a number of electric utilities," the report said "They range from the New York holding company which is attempting throughout its vast territory to take over the power systems-to-Virginia Electric and Power, whose discrimination against blacks' treatment to take action against it, a type of action which needs to be broadened in view of the finding portfoliing Commission that the electric utilities discriminate more in employment than does any other
"IT IS NOTEWORTHY," the statement of the vestsimals in our universities gravitates toward those electric and chemical environmental or monopoly practices are not in what many of us, off or camp, believe to be true.
Metcalf listed 18 such universities, one of which was the University of Kansas, meaning the Kansas University Enrollment.
The report also listed 27 utilities which it said "especially attract those universities in the country, some attention from independent scholars." The Endowment Association has money invested in 19 colleges and 27 university shares of common stock worth $179,283 and seven more through corporate bonds, convertible bonds, and structured stock worth more than $144,000.
It is no wonder that universities invest in utilities. John Esposito reports on utilities in the Raphael neighborhood and on air pollution "Vanishing Air."
"They are, after all, regulated monopolies selling an in-vestment loan to investors said. "They have no competition to meet . . . No matter what their expenses, the electric companies are guaranteed a 6 per cent rate."
"THE ELECTRIC power industry is the fastest growing . . . The nation's demand for electric cars doubled every decade since 1900.
Sen. Metcalf and Vie Reinember report in their book "Overseas companies now have a rate of return exceeding 7 per cent. Of the 188 largest companies, 455 are in this category or more in 1963. For a majority of
the companies—111 it was 7 per cent or more. The rate of charge was 8 per cent or more for 55 companies."
FROM 1956 TO 1963, according to Metcalf and Reinemer, Commonwealth Edison of Chicago overcharged its Iowa and Virginia Electric and Power overcharged by $118,416,000 and Ohio Edison overcharged by $103,187,000. The Endowment Association has shares in Commonwealth Edison and Ohio Edison.
Esposito reported the average profit margin for utility stockholders to be 15 per cent, sometimes going as high as 20 per cent.
In submitting a resolution to the Senate concerning the investigation of concentration of economic and financial control. Metallic documented ad- dresses that contained about gas and electric utilities.
"MORE THAN HALF of the nation's utilities are now in or considering entry into the industry according to "Electrical World," Metcalf said. "Through control of proxies and the state public service commissions, utilities are amending their charters to allow Philadelphia Electric (in which KU has preferred stock), for example 'manufacturing, production dealing in personal property of every class and description' including 'acquiring, owning, manufacturing property of every nature whatsoever.' Utilities appear to have gone into housing because they house more than they can selling utility services. They make more in housing than housing co-working."
reported that a lack of regulation by the Federal Power Company exacerbated the utilities to make a financial killing when building a new plant.
"Conservation News" in a recent article "Power Companies und the Real Estate Bonanza"
"Before an electric utility can build a hydroelectric dam, it must obtain a construction gohead from the Federal Power Bureau," said J. Cohen. "When the light turns green the utility acquires the soon-to-be flooded land through the power of condemnation; and the public, through power rates, pick up the investment in acquisition and maintenance."
THE RESERVOIR formed by the dam soon becomes a recreation focal point. And a coniferous reservoir (which the utility picks up in the condensation process) in turn becomes highly售real tree
"In order to cash in on a fast-paced game of monopoly, the utility looks once again to the new technology that the newly born "lake front sites" to a real estate developer who is the subsidiary of the utility itself.
"Poring through the New York Stock Exchange listings for common stocks combining high yields, interest rates, Forbes statisticians uncovered a surprising fact: The major majority of such bargains are listed in the magazine said. It then listed 55 utility stocks with a current yield of 6 per cent or more, and earned at 12 times earnings or less.
The July 15, 1971 issue of "Forbes" took note of the exceptionally good investment that utilizes appear to
OF THE 53 UTILITIES, the shares of communal stock in 11 of them, and of those 11, five were reported as the Metcalf report as a shareholder.
The per cent annual yield on investment of KU's stocks listed by Forbes ranged from a high of 7.2 per cent for Detroit Edison and 7.1 per cent for Consolidated Energy in Kansas City Power and Light.
In addition to overcharging and other poor business practices which eventually cost the company, utilities are notorious pollutants.
According to the study, study,
more than 85 per cent of our
electricity is generated by coal or
oil burning plants. In 1966, those
plants were responsible for 50 per
cent of the national sulfur
oxides emissions.
IN ADDITION, about 25 per cent of particulate emissions in 1966 were from fossil fuel power plants, as well as three million tons of nitrogen oxides, or about 25 per cent of the entire country's
movement to get corporations to put social responsibility ahead of making money is a 'fun- mentally subversive dovetail'
Individual cases of utility pollution are numerous.
Other examples include Detroit Edison and Consolidated Edison of New York, the largest single polluter in that city.
"Few trends could so thoroughly undermine the foundations of our free society," the economist said. The role of the manager as Friedman sees it, according to the Council, is to "help managers think that if business management limits profits, attempting to 'social good' will in taxing stockholders unjustly."
"The citizens of Chicago," the Nader report says, "are bombarded by deadly oxides of sulfur annually, from this one source (Compass)."
IN VIEW OF THE Endowment Association's broad holdings in the utilities industry, and in view of the industry's overall record in environmental, employment, and consumer policies, should the Association encourage utilities to be more responsible?
Many leaders of industry, and many outside of industry, think movement will be damaging to American society and the economy. They are opposed to an emphasis on social responsibility.
IN A RECENT speech, James M. Roche, chairman of the board of General Motors, outlined one of the most important public pressure on corporations. That argument is that the company should himself, without outside interference.
"The equating of profit with immorality is spreading a cloud of suspicion and distrust over our institutions to achieve." Roche said. "Those crities whose aim is destructive are following a basic tactic of assetbacking in order to sadden siderable success. They are endeavoring to turn various segments of our society—from universities—against business.
Milton Friedman, according to the National Council of Churches, thinks that the national
THOSE WHO FAVOR social responsibility in investment think that such things as environmental policies, consumer activities, minority group employment policies, foreign investment criteria and other criteria should be included in the investment decision.
"It is not easy for stockholder groups, such as universities, to obtain consideration of proposed proposals and to get the answers to questions which the corporation would rather not answer and to get onto the boards of directors persons in its management. But it is possible."
"This delusion—that the consumer cannot trust his own free choice—strikes at the very heart of the system, which is founded on the conviction that in the long run the consumer is the best judge of his own life. It is important to be convinced that he really does not know what is good for him—and this is what the critics try to do—then freedom leaves free choice."
Tomorrow: The Lore of Endowment Funds.
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Friday & Saturday
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From page 1
Aside from the 55 students elected from the College-within-the College, the other 110 non-graduate students elected by the departments. Each department will elect at least one undergraduate and one graduate student representative to the College. The remaining 35 departments of the College.
Elections . . .
The balance of the representatives in each of the undergraduate and graduate classifications will be elected from the larger departments on the basis of their student enrollment, students in the department. No department will have more than six non-faculty representatives.
The 165 elect student representatives will serve one overseeing the elect by the Assembly to sit on one of the four committees of the degrateguate representatives to the committees will serve two.
The undergraduate members of the Assembly will elect the undergraduate committee representatives. The representative may be a member of the Assembly No student may be elected a member of the Assembly at large for more than four successive
Thursday, Sept. 9
KANU Schedule Stereo 91.5 FM
**BARNARD HARRIS**
1. Bernard Harris, the Musician of
1960 - Musicians and Musicians of Canada
2. Bernard Harris, the Reviewer of movies in Lawrence
3. Bernard Harris, the Reviewer of movies in Lawrence
4. All three mentioned from Nathan
5. All three mentioned from Nathan
**Event**
*C演唱*
*Music by Kim Sung*
*KAWI* Special - University Com-
munity
*Boston Symphony Orchestra Concert*
*10.30 Southern Susan Gardensbaa*
*11.25 Southern Susan Gardensbaa*
WASHINGTON (AP) — Sen. John Kerry on the Department of Agriculture to infuse more federal money into the national school lunch program.
years as an undergraduate representative.
The Assembly will work primarily through four committees each consisting of nine members, two elected graduate students, three elected undergraduate students and the dean of the College or his office a coffee non-voting member.
The committees will deal with all aspects of the procedures, budgetary matters and planning, faculty promotions and tenure, and evaluation and compensation.
The powers of the College Assembly will be to set freshman requirements for students in the College of Liberal Arts and courses for credit in the College; to determine scholastic standards and to establish procedures for academic standards; and to consider all matters placed on the college's agenda by 25 members of the Assembly.
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A Letter to the Lawrence Journal-World
To the Editor of the Journal-World
I have read with interest and enjoyment your 1971 University of Kansas Edition.
August 18, 1971
No doubt a story about Audio Reader is included in your KU edition because it is in the planning stage, and will not become a reality until the date of publication. But our University will be the first in the nation to attempt such a plan; it seems likely that many students will want to get their hands on it.
I remember a most unusual attack several months ago by the World About a new KU project which is not mentioned. I have been working on this project, Wright J. KAU DIRECTOR and with AIX Mr. Spatter, when he has chosen to head the project, KU is calling me to review the work.
According to Ms. Semenier, Auditor-Basler will be a program for litigants who cannot make effective affective treatment of the printed page because of their disability. The program will include a brief presentation by an expert in legal compensation and a demonstration of how the program can help compensate the damages. Auditor-Basler will be broadcast on a radio station in several cities, which certainly means that he has the experience of dealing with serious cases of damage to a printed page.
The university is obtaining and distributing these receivers with the help of the State Services for the Blind. The program will be available over a large listening area, as KANU is a very strong station
And anyone who loves KU will be thrilled to know that our University will be leading the nation in this new and exciting project.
Anyone who has a friend or relative with inadequate eyesight or with, perhaps, multiple sclerosis, will realize that a tremendous boon such a program will be to its listeners.
Let us hope that Audio Reader will be copied by other universities, and that someday handicapped persons in every state in the Union will benefit from KU's leadership.
Anne Cerd
1000 Sunset Drive
Lawrence, Kansas
This letter is being reproduced here because, in the writer's opinion, Audio-Reader is a very great program.
Congratulations to the University of Kansas.
HAIR TODAY GONE TOMORROW?
Maybe, maybe not. But the hair we wear today is a symbol of what's happened to the way we live. Maybe we live. Tomorrow will be a day of individuality, whatever length the locks. And we pledge to do things that sort to fulfill that promise. Just as we do today.
ALL LEAGUER $695
University Shop 1420 Crescent Dr. Across from Dlindley Hall
- Multi-cleat all sports shoe
- Soccer
- Long wearing vinyl upper
- Touch football
- One piece non-marking out sole
Boys and mens sizes to 12
813 Mass. St VI 3-2091
Yes. The Stables is saving you a walk by running buses to the game Saturday. We will open at 10 a.m., come out and eat (ham and roast beef sandwiches) and get tuned up for the game. Our buses will leave at 1:00 (game at 1:30) and will take you to the office after the offer. The buses will return to the Stables—so you can celebrate the KU victory over Washington State.
THE STABLES