University Daily Kansan, October 20, 1981
Page 7
Apartheid sparks debate over University's investments
Officials defend South Africa investments
KEITH FLANERY/Kansan Staff
By LISA BOLTON Staff Reporter
Facing their own financial problems most public universities can't afford to sell their stock in American corporations operating in racially segregated cities. In fact, the managers at several Medwestern universities said recently.
Despite minority white rule of predominately black South Africa, the Kansas University Endowment Association is legally bound to invest its contributions wisely, said Todd Seymour. Endowment Association Security and profit are the criteria for investments, not politics, he said.
"We can't be fighting multiple battles," said Arthur Loub, executive vice president of foundations. "We have a fiduciary responsibility to benefit the university. That is our objective. We're very single-minded."
"There are federal investment laws which say you may not invest or divest to promote political change," he said. State universities are at Kansas State University.
At the University of Tennessee, the board of trustees considered divestment after one of their meetings was "stormed by a small, radical student who affected two years ago, said Stanley McAnally, former board president.
Laird Okie spoke last night to the University of Kansas Committee on South Africa about his recent trip to Hunter College in New York. While there Okie attended a two-day conference where students gathered to coordinate their efforts against anwarthet.
McAnally, who is now assistant vice chancellor for development at the
University of Missouri-Columbia, said, "Public institutions can't gamble with speculative investments, like private institutions can."
THE KU COMMITTEE on South Africa, a student group that is four years old, started urging the Endowment Association to divest about three years ago, Edward P. Dutton, the group's adviser, said.
"We took the position that there should be no involvement at all in a country based on blatant racism," he said.
Dutton said that if American companies withdrew from South Africa, an act that would have a great impact on the South African economy, "we would put them in an untenable position where they would have to make changes."
"It seems very easy to say, 'Just pull out of South Africa,' but it's not," he said. "We've been studying this issue for six or seven years, before the Committee on South Africa ever approached us."
Caught between contributors, corporations and increasing demands for funds, Seymour said, the Endowment does not must make social reform its top priority.
BESIDES HAVING MORE pressing responsibilities than initiating political change and social reform, Seymour and others said they doubted whether divestment would effect the political change.
"I don't think it would help at all," she said, "withdrawing all our company would."
economy, and nationalization of the South African mineral resources would make their situation worse."
Burglarstole four guns valued at $135 from a house two miles south of 31st Street this weekend, sheriff's deputies said.
On the record
school, Miami University in Oxford, Ohio, reversed a decision to divest, however, after the corporations whose stocks would have been threatened to withdraw their philanthropic support, Ellis said.
As a stockholder in American companies operating in South Africa, Sesame, KU may have a small positive influence, which would be lost by divesting.
Entering through an unlocked door, the thieves took three rifles and one BB gun, deputies said.
There are no suspects in the case
Lawrence police said. The cactus was valued at $100.
There are no suspects in the case, police said.
Though officials at universities other than KU all said they were concerned about the situation in South Africa, they said the financial demands at their own institutions overrode the need for change in South Africa.
THIEVES STOLE a seven foot cactus in a brown planter from 161st Stratford Rd. Friday night or Saturday morning,
BURGLARS STOLE $1,100 of farm equipment from a farm one-half mile west of Highway 56 Saturday night or Sunday morning, deputies said.
After opening a gate, the thieves stove two hog waterers, one dog feeder, a tool box containing various tools and 75 gallons of gas, depleted said.
There are no suspects in the case
"The Committee on South Africa may want something done, but it doesn't have any responsibilities," Seymour said. "What happens when another relatively small group of very, very concerned people comes in here wanting us to take our investments out of some other place?"
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At Ohio University, two years ago, the board of trustees of the university foundation told the foundation to gradually divest. This move came after pressure from a student group and a local organization began to Jack Ellis, director of development.
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Divestment of money invested in corporations in South Africa is the main tactic but the main goal of ant-apartheid groups, a member of the KU Committee on South Africa said yesterday.
Groups develop South African strategy
"We believe in the moral issue—that the University is tainted with blood money—so divestment is the main tactic, the major concern and major threat of the weakening of the apartheid regime in South Africa." Larkio KUSA, KUSA member, said.
By CATHERINE BEHAN Staff Reporter
Okie told KUSA members at a meeting last night in the Kansas Union about his trip to Hunter College in New York, where more than 150 students from 50 universities met for a two-day event in April that offered efforts in the anti-aspergib movement.
The American Committee on Africa in New York paid for part of the cost of getting the students to Hunter College and paying the remainder, about $100,160, pay the remuneration, about $100,160, himself.
DIVESTMENT IS A secondary concern of KUSA, because pulling University funds out of corporations in South Africa probably would not greatly affect the country's apartheid regime. Okie said.
Okie did not come back "bearing the secret of divestment," but he did get some useful information on future strategies, he said.
But divestment would keep the University from being personally involved with the apartheid regime, he said.
KU would no longer be involved in the
"social system in South Africa in which one-fifth of the population, the white population, tyrannizes over the majority black population."
Okie said, "There is legalized, institutionalized racism there. They can't vote. They are aliens in their own country."
Michigan State University in East Lansing, Mich., he said, completely divested funds invested in corporations in South Africa last year.
But divestment might not be a major issue for Berea students because that school diverted the funds invested in South Africa last spring, he said.
"Some schools talked about whether or not diventement was even worth it."
Students at the conference from Bera College in Berea, KY, said that the dwivement issue was not as im- pliance as an anti-parapathic activities, Okiie said.
OTHER UNIVERSITIES divested funds invested in South Africa after members of groups similar to KUSA were appointed administrators of their schools. Oka did.
"It's a church-related school, and with the moral thing, they were able to make a big movement with these people." Okie said.
"The strong anti-apartheid group met with trustees on a regular basis and were allowed to talk at the meetings." Okiie said.
However, Michigan State, he said, had an advantage over KU because the trustees of the University met every month and the group could discuss the issues.
"KU's trustees are scattered all over the country and meet only once or twice a year," he said.
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