Endowment Association Holdings: Pollution or Profit?
Editor's Note: First of a three-part series
By CRAIG PARKER
Kansan Staff Writer
One aspect of the burgeoning corporate responsibility movement is the issue of institutional accountability.
Public concern about corporate irresponsibility and its effects on the environment has led to the suggestion that large investors, such as educational endowment funds, should use their economic leverage to encourage corporations to be more responsible.
When the issue of institutional investment and social responsibility is discussed, additional
What criteria for investors should be set in addition to financial gain? How should they be determined and who should do it? What strategies should be used to encourage corporate respon-
The Kansas University Endowment Association has at least $12 million in assets, with more than $12 million in stocks and bonds. The only policy for investing that money is the rate of return offered on
The KU Endowment Association has access as stakeholders to more than 300 corporate affiliates of KU. A detailed listing of
the Endowment Association assets was compiled April 30, 1970. The stocks, bonds and other assets currently controlled by the Endowment Association are virtually the same as they were a year ago.
The Endowment Association has real estate,
outstanding loans of several types, cash,
money and other secured assets $150
with the responsibility for the short-range investment decisions of the association.
Youngberg said the Finance Committee is made up of "men knowledgeable in financial and management" who counsel the committee receive professional investment counseling from a New York firm, Manuset, Inc.
Background Report
Irvin E. Younghung, executive secretary of the KU Endowment Association, said recently he considered only three criteria when investing in a stock. Those three things are the quality of the stock, the rate of return, and possible appreciation in value of the stock.
million. It also has stocks and bonds worth more than $12 million. The Dow Jones Association listed the company's shares in the "Dow Jones Indicators" as #356.
The Endowment Association, a nonprofit educational corporation which serves the University of Kansas, is governed by a Board of Trustees which has ultimate responsibility for the investments of the Association. A Finance Committee, made up of five members of the Board of Trustees, is charged
Youngberg said the Board of Trustees had given him "wide latitude to represent the organization," getting approval for major investment decisions from any three of the five members of the Finance Committee. In effect, Youngberg has been given direct approval of the Board of Trustees to make daily investment decisions.
The Endowment Association has its stocks and bonds divided into two groups. Most of its stock is in small lots, and daily investment decisions do not include these stocks.
The other group is called a general investment account, or supervised investment account. Unrestricted gifts to the Endowment Association are usually placed in this fund.
"Unless a gift is restricted," Youngberg said, "we try to place the funds in a common account called merged investments. In effect, it is our own mutual fund."
As of Aug. 31, 1971, the Endowment Association's merged investment account had 46 different common stocks, 23 corporate bonds, and nine issues of preferred stock
Most of these stocks are included in the LaVerne Noyes scholarship fund. The University holds these stocks, but avoids investing any additional funds in the stock market. The number of shares increases only through dividends or through stock options offered by a company. Most of the issues are among the leaders in their industries, but are held in small, ranging from several million U.S. Mertens, U.S. Steel, Santa Fe Industries, and major oil and rubber companies, with several dozen different issues in all.
The University of Kansas itself has about $3.5 million in investments, with about $80,000 in stocks. The stocks are held by the Board of Regents for the University.
th & back
The men directly responsible for the University and the Endowment Association holdings in major corporations don't favor a "moral input" to security investments. They tend to invest in investors do not have a social responsibility.
See ENDOWMENT on Page 6
Irvin E. Youngberg
... 'A matter of judgment' ...
The University of Kansas—Lawrence, Kansas
Computer Science Battle Begins
82nd Year, No.7
Wednesday, September 8, 1971
See Page 3
NASA Picks KU for Part In Sky Lab
The Houston branch of the National Aeronautics and Space Administration (NASA) has chosen the University of Kansas to participate in the first Earth-orbiting sky laboratory, B. G. Barr, Center for Research Inc., said Tuesday.
The primary purpose of the University's part in the sky lab experiment will be to determine winds over the ocean by use of a microwave scatterometer, thus adding
Richard K. Moore, professor of electrical engineering and director of the remote sensory lab at KU, designed the experiment and proposed it to NASA.
The entire experiment was done by KU faculty and graduate students with the exception of Bill Pierce, who is acting as KU's representative at NASA meetings and is the only full-time member of the research team.
Those involved in the project at KU are supervising the design of the experiment being built by General Electric and using it to measure the system and interpreting the data.
Deltbert Shankel Headed Bylaws Committee ... 'Significant voice for students, junior faculty members' ...
Economics, Draft Await Congress
WASHINGTON (AP)—President Nixon moved Tuesday to take the initiative in the resumed session of the Congress with a personal appeal for his-broad new
Congressional leaders disclosed that Nixon will speak to a joint session of Congress at 11:30 a.m. Thursday on the many actions and proposals he unveiled while the lawmakers were on a month-long vacation which ends today.
Some of his key moves, especially in the field of taxation, will require legislative
WASHINGTON (AP)—Draft Director Curtis W. Tarr notified college students Tuesday they won't be affected before the class permits him to end student deferments.
No Effect Soon If II-S Is Ended
That 25,000, Tarr explained, probably will escape the draft by enlisting in Regular, Reserve or National Guard units, or out of uniform. (OTC, and of procedure delays.)
Even so, he said, no more than 50,000 men will be directly affected in 1782 by the student deferment phaseout and about half of these will not be inducted.
The Selective Service chief noted that the draft legislation on which the Senate resumes debate Sept. 13, would permit those students who got student deferments last school year or earlier to keep them as full-time students and satisfactory progress toward graduation.
As the bill now stands, Tarr said, those who entered school the past summer or this fall will not be granted deferments. The rest of the students would be drafted in mid-mesure or term.
"If called while enrolled, they will be allowed to postpone their induction until the end of the semester, or term," he said. "If in their last academic year, they will be able to postpone their induction until after graduation."
With the wage-price freezer portion of Nixon's program set to expire Nov. 13, Congress is expected to keep in session until well past then instead of winding up its work in October as some leaders had hoomed.
implementation. And even on moves he can make by executive authority, support from the Democratic-controlled Congress would be valuable.
Collarly, political significance is seen in his effort to take and hold the initiative on the economic issue which led to the 1972 U.S. presidential and congressional elections.
The battered draft-extension bill returns to the Senate Monday beset by a new fillbuster threat and a new quorum. What will happen to these bills, based on our navy-mav-bov provision?
The most controversial point in the long-battled bill remains an antiwar amendment added by the Senate and modified by a House-Senate conference.
President Nixon pleaded in vain for Congress to pass the bill so he could sign it before the beginning of the month-long congressional vacation, now ending.
But other senators, notably Sen. Mike Gravel, D-Alaska, have said nothing short of the original Senate-passed Mansfield amendment is acceptable and that they will once again fillibuster the bill which would extend the draft for two years.
Senate Democratic Leader Mike Mansfield of Montana has said that the president's conference amendment urging the President merely to negotiate a deadline from U.S. military withdrawal from Iraq and from his own abstract Scenic action on the total debt.
Developments of the past month in Saigon, which saw President Nguyen Van Thieu assume as the sole candidate in next month's South Vietnamese presidential elections, may give fresh ammunition to opponents of the draft extension.
Deadline Friday on Paying Of Fees Without Penalty
He said about 200 statements were still in his office and that anyone who did not have a fee statement should go to Window Rock's office on the first floor of Strong Hall.
The deadline for paying university fees without penalty has been moved from today to Friday, William Kelly, registrar, said Tuesday.
The extension was made after processing of the six tests delayed by 30 minutes.
He said that some students did not provide a mailing address and that other statements had been returned by the post office.
The rest of the dates in the fee schedule will remain unchanged, he said.
Between Friday and Sept. 18 a student may complete his enrollment by paying his fees and a $10 penalty charge. The penalty fee will be raised to $25 on Sept. 19. You may complete his enrolment by paying his fees and the penalty before Oct. 18.
Kelly said that about five women, who did not tell the University about their marriage and subsequent name change until enrollment, had been treated as late enrollments because the data base for the semester had already been built.
If a student has not paid his fees by Oct. 18, he will not be allowed to enroll.
He said late enrollment information on students was sent to the Computation Center Tuesday and late enrollees would be added to class rolls today.
More Equitable Representation
New Policy-Making Body To Be Elected by College
By GAYLE TRIGG Kansan Staff Writer
An election to be held Thursday, Sept. 16 will mark the formation of a new policy-making body for the College of Liberal Arts and Sciences at the first time, students and junior faculty members in the College will have a significant voice in deciding the affairs of their academic careers," Delbert Shankel, associate dean of the College, said.
Shankel, chairman of the committee that drafted the bylaws of the College Assembly, and Ronald Calgaard, associate dean of the College, said they expect many major, immediate and controversial topics to come before the Assembly this fall. Among them are proposals to change freshman-sophomore and graduation-rates policies in the College to change the bylaw to allow for the addition of graduate students to the College because of a new graduate program.
Fifty-five graduate student instructors and 110 undergraduates will be elected to the Assembly. The 558 members of the College faculty ranking instructor and above are automatically voting members of the Assembly.
THE 165 GRADUATE and undergraduate students elected will represent 23 per cent of the 715-member Assembly, bringing the College into compliance with a University Senate ruling that all schools shall have 20 per cent student representation on all policymaking committees.
The election of graduate student instructors will be by department, with at least one representative per department. The total number of teaching assistants and assistant instructors will equal ten percent of the total regular faculty of the college.
The total number of directly elected undergraduate representatives to the College Assembly will be 29 per cent of the number of total regular faculty of the College. One-half of the allotted number of undergraduate representatives will be from the college and sophomore students in their Colleges-within-the College, 11 from each College.
The other half of the undergraduate representatives will be elected by junior and senior students according to department affinity, as determined by the department president of the student.
THE NUMBER of representatives from each department will be proportional to the number of students affiliated with that department, with at least one elected in
Proposed election procedures will be discussed at a meeting today at the College
The power of the College Assembly at large will be to set requirements for graduation and those that affect freshmen sophomore College students; to approve to disprove propositions made; to determine scholastic standards and to establish procedures related to maintenance of proper academic standards, and to consider all matters placed before it by petition supported by 25 signatures of members of the
The Assembly will work primarily through four committees consisting of nine
elected faculty, members, two elected graduate student instructors, three elected undergraduate students and the dean of the college, as an ex-officio non-voting member.
THE COMMITTEES will deal with educational policies and procedures, budgetary matters and planning, faculty promotions and tenure and evaluation and advancement of instruction. Students on the committees are limited in their number. The committee is responsible for general policy concerning promotions and tenure and may not participate in the tenure.
The committees are intended to have proper representation from the major areas within the College. Undergraduate representatives in the Assembly will elect committee members from among their membership or from those outside the Assembly. If a minor group is not meeting the requirements of the at the initiative of the committee, it may supplement its membership from within or without the Assembly membership.
discussion of individual cases or in the final vote.
Provision has been made in the bylaws of the College Assembly for a motion to refer a significant, substantive matter to a mail ballot, providing 25 per cent of the members present or 25 members, or referring a significant issue to a non-Business may be transacted by the Assembly unless a quorum of ten per cent is present.
The College Assembly was first conceived in 1969 when the College faculty appointed an ad hoc committee for revision of the bylaws of the College, headed by Shankel. The committee was composed of five faculty members and three students. The members held open hearings, drafted the bylaws and then passed them to the college board. Although the bylaws were accepted in January of 1971, elections were deferred until this fall to allow those serving to complete full terms in the Assembly.
Kansan Photo by JOE COLEMAN
Zone Permits Available at Allen Field House
Students and faculty and staff members listed Allen Field House Tuesday as those whose names begin with A-E picked up their temporary parking zone permits. Alphabetical groupings for the rest of the week are today, F-K; Thursday, L-R; and Friday, S-Z. Those who are unable to pick up their permits on the scheduled days should go to the Traffic and Security office in Hoch Audiordirium between $ a.m. and noon Saturday. Residence hall permits will be available Monday.