VOL. 100, NO. 37 (USPS 650-640)
THE UNIVERSITY DAILY KANSAN
T THE STUDENT NEWSPAPER OF T THE UNIVERSITY OF KANASAS
ADVERTISING: 864-4358
TUESDAY OCT. 17,1989
Markets rebound after Friday's slump
NEWS:864-4810
Investors buy bargain stocks; Dow has fourth-largest gain
The Associated Press
NEW YORK — Blue chip stocks bounded ahead yesterday in one of the busiest trading sessions ever, but share prices of many other companies trailed behind.
The Dow Jones average of 30 industrials, knocked down by a powerful selling wave in the opening minutes of trading, rallied as buyers flocked to the market to snap up bargains and helped Wall Street avoid a repeat of the Black Monday crash two years ago.
Market analysts said the 190.58-point plunge in the widely watched market measure on Friday pushed many stocks to attractively low prices.
before trading began two hours later.
Declining issues outnumbered advancing ones in nationwide trading of New York Stock Exchange-listed shares by about 4 to 3, with 975 stocks down in price, 749 up and 279 unchanged.
The barometer, composed of some of the country's best-known companies, surged 88.12 to 2,657.38. It was the fourth largest point-gain in the history of the Dow Jones industrial average.
"All of the systems throughout the exchange have functioned extremely well throughout the day," said NYSE snokerman Richard Richertronzano.
Market regulators expressed satisfaction with the way exchanges coped with the crush of business.
After the Black Monday crash, the nation's stock and futures markets installed safety measures intended to prevent a recurrence of the panicky selling that triggered the 508-point plunge in the Dow Jones industrial average on Oct. 19, 1987. Several of the safeguards were activated yesterday.
The NYSE had anticipated a flood of sell orders and opened its computers at 6:30 a.m., an hour earlier than usual, so it could sort out business
Volume on the floor of the Big Board came to 416.29 million shares, the fourth highest total ever and the highest since Oct. 21, 1987 when 449.35 million shares changed hands. Volume on Friday was 251.17 million.
From plunge to anxious rebound The Dow industrial average recovered 88.12 points of the 190.58 it lost in Friday trading.
Governments around the globe were monitoring market activity and reportedly keeping in touch in case of a terrorist action was needed to avert a crisis.
The Federal Reserve Board took the precautionary step of pumping $2 billion into the nation's financial system as a show of good faith that it would try to ease any credit squeeze caused by heavy stock sales.
Airline stocks ran into more turbulence.
Investor Donald Trump announced he was withdrawing his $7 billion bid for AMR, parent of American Airlines, after the company's stock slid more than $13 a share. However, he said he would consider lowering his offer. AMR was halted briefly for the news and then tumbled 22½ to 75½ after trading resumed.
UAL, parent of United Airlines,
tumbled 56* to 229*. Word that an
employee-management group seeking
to buy UAL for $.75 billion had
failed to secure financing was cited
as a reason for the drop on Friday. The news cast doubles
on all future debt-financed corporate takeovers.
The Dow Jones average of 20 transportation stocks plummeted 102.06 to 1,304.23 due to the impact of the airline selloff.
Many components of the Dow Jones industrial average sported significant gains.
Fed supplies banks with $2 billion
The Associated Press
WASHINGTON — President Bush provided reassuring words yesterday in an effort to calm gyrating financial markets and the Federal Reserve backed up the words with $2 billion in cash poured into the U.S. banking system.
The Fed's supply of cash was viewed as a sizable effort on the part of the central bank to contain the Friday the 13th stock market plunge that brought many disastrous ripple effects through the rest of the economy.
Private economists gave Fed officials high marks for their handling of the matter, praising the speed with which they delivered in helping to calm the market jitters.
The Dow Jones average of 30 industrialists, after suffering a 190-point plunge Friday, posted a gain of
Analysis
more than 80 points yesterday.
Bush said, "I'm not worried," when asked by reporters about the market turmoil during a morning photo session at the White House.
The president stressed that Treasury Secretary Nicholas Brady and officials at the Securities and Exchange Commission and the Federal Reserve were keeping close tabs on developments.
Federal Reserve Chairman Alan Greenspan echoed that sentiment in a speech before the American Bankers Association. Greenspan said the Fed had also been in "productive contact" with foreign governments.
Greenspan did not elaborate on what actions the United States and other governments were taking, but one hour after his address, the Federal Reserve Bank of New York
announced that it had injected $2 billion into the banking system.
This sizable infusion of cash served to back up comments made by a senior Fed official during the weekend that the central bank stood ready to flood the banking system with money, if necessary, to contain the damage from Friday's plunge.
While an infusion of cash cannot by itself push stock prices higher, it does serve to reassure nervous bankers that they need not cut off credit to securities firms that may have suffered heavy losses in a market dive.
The brokerage houses, assured of a reliable line of credit, are thus not forced to dump more stock to replenish their dwindling supplies of cash. Such forced stock sales can drive prices down even further.
The Fed accomplished the $2 billion infusion of cash by buying that amount of government securities from banks.
World Series delays alcohol awareness week
By Holly Lawton Kansan staff writer
But not at the University of Kansas.
At universities across the country, the National Collegiate Alcohol Awareness Week is beginning.
Sue Sadecki, coordinator of KU's Alcohol Awareness Week, said that the two primary sponsors, BACCHUS and Watkins Memorial Health Center's health education department, decided to postpone activities until Nov. 1 because of this week's World Series games.
BACCHUS stands for Boost Alcohol
Consciousness and Improves the Health
of Students.
"We wanted to get a week for Alcohol Awareness when there was nothing else happen," she said. "We really want maximum student involvement in these activities, and when there's another activity like the World Series going on, it's harder to keep students interested."
"It's got nothing to do with students sitting around this week at bars watching the World Series and drinking."
Sadecki said that the postponement also gave the coordinators more time to organize a good alcohol awareness student to drink more responsibly.
The theme of this year's Alcohol Awareness Week\<at KU is "No thanks, I'm driving," said Lisa Garney, committee head of campus affairs for the Pannellene Council. She said that the sponsors hoped to implement a designated-driver program at Lawrence bars.
"The percentages of students who drink and drive at KU are very high." Garne said. She said that a survey done by BACCHUS and the Student Assistance Center in March 1899 revealed that more than 50 percent of KU students had driven after drinking, and that about 66 percent had ridden with a driver who had been drinking.
Landon on location
On location in Baldwin City, Michael Landon talks about the filming of "Where Pigeons Go to Die." The plot of the movie will be filmed
This is the first year that Watkins' health education department has sponsored Alcohol Awareness Week, Sadecki said. In past years, the Student Assistance Center sponsored the activities. Also involved in this year's activities are the KU police, the Association of University Residence Halls and the Pannhelenic Council.
at Baldwin City in the home of Dan and Rhonda Hubbel, 1419
Eighth St. See story, Page 10.
Prof fights revocation of tenure Two witnesses give testimony at first hearing
By Doug Fishback Kansan staff writer
Abusive conduct toward colleagues, failure to participate in student advising and refusal to review graduate students were among the examples of conduct cited by KU administrators in an attempt
to revoke the tenure of Dorothy Wullner, pro-
totype of anthropology.
Open dismissal hearings for Willner, the first University of Kansas tenured professor to undergo the procedure, began yesterday afternoon at the English Room in the Kansas Union
Donald Koster, Willner's academic adviser and representative, outlined what he said were charges made against her by Chancellor Gene A. Budig and called for the Faculty Senate Committee on Tenure and Related Problems to dismiss most of them.
Koster, reading from a letter sent to Willner, cited charges of “your refusal to attend faculty meetings or to participate in the faculty governance of your department.” “Your refusal to participate in graduate students” and “your refusal to participate on departmental or University committees.”
In August 1987, Willner was relieved of all duties at the University but was kept on the payroll pending resolution of her case.
The letter also cited refusal to discuss business in a collegial manner and hostility toward a student wanting to discuss her enrollment in a class taught by Willner.
Koster said that most of the charges had nothing to do with teaching or research duties, and therefore did not justify the action to dismiss Willner, according to the policy of the American Association of University Professors.
During a recess, Willner said that the dismissal hearings were an attack on her rights.
"I believe that this entire attempt indicates an attempt by the University to intimidate faculty members exercising their rights," she said.
Wilmer said that a December 1982 discrimination lawsuit that she had filed against the University was a factor in the charges brought against
Judith Ramaley, executive vice chancellor, told the committee that administrators had upheld Willner's rights.
Ramaley said that the individual statements that Koster read from the letter were not formal charges. She said they were given as answers to questions about the KU Handbook for Faculty and Other Unclassified Staff.
Ramaley said Willner was accused of two violations of Article V: "Willful failure of a faculty member to
See HEARING p. 6
Bill seeks end to University business competition
By Derek Schmidt Kansan staff writer
A proposal in the Kansas Legislature would curtail University involvement in everything from housing to food services to SUA movies, opponents say.
The legislation, designed to limit or stop public institutions from competing with private businesses, was introduced in the 1980 Legislature but never came up for a vote.
"It is harmful for everybody," said Sen. Wint Winter Jr., R-Lawrence, who added that he would vote against the measure unless its scope was limited.
Supporters disagree.
"It's akin to killing a gnat with a shotgun,"
"The bill might be a little bit broad." he said, adding that amendments would limit the bill's scope.
Sen. Ben Vidricksen, R-Salina, is the bill's sponsor.
Vidricken said the intent of the bill was to prevent non-profit organizations from using their tax-exempt status to unfairly compete with private firms. Almost 30 states and the federal government are considering similar legislation, Vidricken said, because the number of non-profit organizations is growing by about 18 percent a year.
He said the legislation would not affect necessary functions of prisons, of schools for the blind and the deaf or of universities.
Legislators most often have scrutinized the proposal's restriction on the discount sales of computers by university bookstores. But opposing groups would affect many other areas of university life.
Tad Ayres, general counsel for the Board of Regents, testified against the proposal Thursday at a hearing by the Joint Committee on Economic Development.
He rattled off a list of about 20 services the proposal would limit, including housing, food services, movies and plays, copying services and health services.
"If you look at it in the broadest sense, about everything the university does could compete with the private sector," Ayres said.
"The Topeka Skizzlers could say, 'We don't want the University of Kansas to play basketball, because it will reduce our attendance.'"
Ayres said the legislation would establish a Kansas Private Enterprise Review Board to determine the appropriate level of competition between the public and private sectors. He said the result would be a system nearly impossible to control.
"If there are specific problems, I would recommend the Legislature address them without creating an administrative nightmare." he said.
Winter said that the Legislature should protect private businesses from unfair state competition but that few private businesses were complaining. Computer retailers have worked against computer sales at the KU bookstores, Winter said, and printing companies said a few years ago that University Printing Services competed unfairly with
them.
This proposal. Winter said, goes too far.
"I just hope we can find a way to solve that particular issue without something as crazy as this," he said. "I don't think it's for me to make detailed judgments about what the bookstore ought to be doing."
Some items, such as cars, clearly should not be sold by the University, he said. Other items, such as pencils, clearly should be.
"Computers are probably becoming more like pencils than they are cars as an educational tool," he said.
Ayres said the proposal not only would affect many services of the state's universities but would restrict all state agencies from competing with the private sector.
Winter said he had pondered some worst-case scenarios...
"Would we have to let people out of prison, because the private sector could run them more cheaply?" Winter asked.