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September 27, 1967 - Image 1

Resource type:
The Michigan Daily, 1967-09-27

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See editorial page

C, 4c

4 i
ir1 gaxt

D1a itil

Frost likely,
chance of showers

Seventy-Seven Years of Editorial Freedom






EDITOR'S NOTE: Below is a sum- lege or u
mary of the major sections of Atty. n a subs
Gen. Frank Kelley's ruling on con-
flict of interest, followed by the est as def
opinion itself. Space limitations -An offi
havernecessitated cutting of less erning be
important sections. The opinion was
originally requested by Rep. Jack of higher
Faxon (D-Detroit)~and is addressed eously ser
to Faxon, Michigan State University labor org
President John Hannah and Rep. e nas
William Hampton (R-Birmingham). ed'in a s
terest wh
Colleges and Universities: higher edu
Officers and members of services o
governing boards in conflict of nizations1
interest. where th
An officer or member of gov- ber recei
erning boards of state institutions benefit th
of higher education is a state Op'
officer within the purview of Ar- ;p
ticle IV, Section 10 of the Michi- Represe
gan Constitution of 1963. to me se
An officer or member of a gov- in genera
erning board of a state institu- sible conf
tion of higher education who si- bers of g
multaneously serves as an officer officerso
or director of a private corpora- higher ed
tion doing business with that in- may be c
stitution is involved in a substan- lows:
tial conflict of interest contrary 1. Wou
to law. erning bo
An officer or member : of a gov- institutio.
erning board of a state institution that enjo
of higher education who simultan- under Ar
eously serves as an officer or di- igan Con
rector of a state regulated public violation(
* utility furnishing service to a col- of the C

of Decision

niversity is not involved
tantial conflict of inter-
ined by law.
cer or member of a gov-
dy of a state institution
education who simultan-
rves as an employe of a
'anization is not involv-
ubstantial conflict of in-
'ere the institution, of
Lcation purchases certain
only from business orga-
which are unionized and
e officer or board mem-
ves no direct personal
inioI No. 4587
entative Faxon submitted
veral questions, phrased
l terms, relative to pos-
licts of interest by mem-
overning boards and of-
of state institutions of
ucation. These questions
ondensed to read as fol-
ld a member of a gov-
oard or an officer of an
n of higher education
ys constitutional status
ticle VIII of the Mich-
stitution of 1963 be in
of Article IV, Section 10
Constitution and/or Act


317, PA 1966 if such person were
to serve simultaneously as an of-
ficer or director of a bank, or any
other enterprise for profit, that
does business with the education-
al institution that he is serving?
2. If any violation does exist,
what legal consequences could en-

Anti-War Organizer
.Resigns From Post

T he Purpose and Meaning of
Conflict of Interest
Article IV, Section 10 of the
Michigan Constitution of 1963 pro-
"No member of the Legislature
nor any state officer shall be in-
terested directly or indirectly in
any contract with the state or
any political subdivision thereof
which shall cause a substantial
conflict of interest. The Legisla-
ture shall fUrther implement this^
provision by appropriate legisla- PROMINENT FIGURES in the conflict ruling by State's.
tion." versity President Harlan Hatcher (center) and M SU Presi
As a statement of the basis and signed bank posts.
public policy upon which thisI
statement prohibiting conflicts of1
interest now embedded in our Con-
stitution rests, it would be diffi- -A tI 1. 1y 73
cult to im prove upon the lan-.gu ge f.Jstcee yan inean
guage of Justices Manniing and
Christiancy in The People, ex
rel Albert Plugger, et al v. The
Township Board of Overyssel, 11o
Mich. 222 (1863). Speaking for the
court, Justice Manning said:
All public officers are By MARK LEVIN director, president, genera
agents, and their official powers Daily News Analysis ager or other directive of
are fiduciary. They are trustedDa prvterfirectiye"ofg
with public functions for the good Michigan Attorney General s a private firm may "eng
of the public; to protect, advance Frank Kelley's comprehensive business activity which
and promote its interests, and opinion setting down conflict of him to disclose confident
not their own. And, a greater interest guidelines for officers and foi' cire t n the
necessity exists in private life for members of the governing boards hs o astaterdue
removing from them every in- of the state universities comes af- measure was introduced b
ducement to abuse the trust re- ter four years of uncertainty over Jack Faxon (D-Detroit).
posed in them, as the tempta- provisions in the 1963 Michigan After a barrage of inquiri
tions to which they are some- State Constitution. state officials, including
times exposed are stronger, and The 1963 constitution says: "No about the interpretation
the risk of detection and exposure member of the Legislature or any legislation, Kelley decided
is less ..." (p. 225) mtmer state ilaurerny mulate a comprehensive
To which Justice Christiancy! other state official shall be in-,
added in his concurring opinion: terested directly or indirectly with to clarify the law.
"The public were entitled to any business which has a contract Requests
their best judgment, unbiased by with the state or any political sub- While Kelley was in the
their private interests, and by division where it might constitute of preparing the landmarkc
accepting the office they became a substantial conflict of interest." specific questions from M:
bound to exercise such judgment, What the authors of the con- State University Presiden
and to use their best exertions for stitution meant by the phrase
the public good, regardless of their "substantial conflict of interest" Hannah and State Rep.N
own. They had no right, while was left for further interpretation Hampton (R-Birmingham
they continued in office, to place by the Legislature, the Attorney received regarding the con
themselves in a position where General, and if necessary, by the interest legislation. Respo
he i i nwnint rests would be hos- rtu

Attorney Frank Kelly (left) were Uni-
dent Hannah (right), both of whom re-
P raIEnds
al man- their requests are included in yes-
ficer of terday's ruling.
ge in a Hannah requested a clarification
requires of the existence of a conflict of
tial in- interest because he served on the
course board of directors of Manufac-
s." The turers National Bank of Detroit.
by Rep. the American Bank and Trust
Company of Lansing, and Michi-
ies from gan Bell Telephone Company. As a
Faxon, result of the ruling, Hannahre-
of the signed his bank posts yesterday.
to for- Second Ruling
opinion Kelley's opinion on officials and
members of governing boards of
state universities is the second of
three expected rulings on conflict
process of interest. The first opinion was
opinion, issued last June and concerned
ichigan members of local school boards.
t John A third opinion is expected shortly
William for members of the State Board of

The head of the Ann Arbor
Friends of Vietnam Summer Mon-
day resigned expressing disagree-
ment with the orientation and di-
rection of the peace group's activ-
The dispute arose over AAFVNS's
Oct. 4 teach-in plans which David
Gordon, grad, the former chair-
man of the organization, termed
too "multi-dimensional" for his
Gordon, who became chairman
of AAFVNS at the beginning of
the semester, said that his original
involvement in the organization
was solely over the Vietnam war
and that he opposes plans to in-
i i
To Kick Off
'67 Lectures
Mark Lane, author of "Rush To
Judgment," will bring his attack
of the Warren Commission investi-
gation of the assassination of
President Kennedy to Hill Audi-
torium at 8:00 p.m. tonight.
His speech is the first in a ser-
ies called Controversy '67, spon-
sored by the University Activities
Center. The program was designed
" to bring to campus well-known
speakers to discuss a variety of
contemporary topics.
In subsequent weeks Barry Gold-,
water, 1964 Republican presiden-
tial candidate; Bishop James Pike,
and defense attorney F. Lee Bailey
will deliver separate addresses.
Lane's speech will center around
the New Orleans investigation by
prosecuting attorney James Gar-
rison of' Kennedy's death. Lane is
currently working with Garrison
on the, probe of suspected con-
After the speech at Hill, UAC1
will hold a private reception for
Lane. The Regents, University
President and vice presidents, col-

lude such issues as black power
for the teach-in.
Harriet Friedmann '69, chairman
of AAFVNS's teach-in committee
said that "such topics as urban
racial unrest and U.S. interference
in 'third world' movements, as
well as the ongoing escalation of
the Vietnamese War, will be ex-
amined to explore their intercon-
nections as various aspects of the
crisis in American society."
Gordon, meanwhile, feels that
the concern of AAFVS is entirely
single issue oriented. He explained
that to widen the group's scope of
action and interest would be to
dilute its effect concerning the
The October 4 teach-in will in-
clude a number of speakers spe-
cifically concerned with issues
other than the war. Included
among those scheduled to take
part are sociologist Gunnar Myr-
dal of Sweden, black militant Rev.
Albert Cleage of Detroit, and
Staughton Lynd, the former Yale
faculty member who went to North
Vietnam two years ago in violation
Iof a State Department ban on


Hannah Gives Up
His Directorship S
University President Harlan Hatcher resigned his posi-
tion as a director of the Ann Arbor Bank yesterday as a re-
sult of a ruling by State Attorney General Frank Kelley that
an officer or member of a governing board of a state institu-
tion of higher education may not serve as an officer or
director of a private corporation doing business with the
Michigan State University President John A. Hannah also
announced yesterday his resignation as a member of the
board of directors for the Manufacturers National Bank of
Detroit and the American Bank and Trust Co. of Lansing.
Hannah described his resignation as an "immediate response"
to Kelley's ruling.
"I do not want to be in a position of knowingly violating
any law regardless of its merits or objectives," Hannah had
said earlier.
In the only official University statement on the ruling,
Vice-President for University Relations Michael Racddock said
yesterday, "When news of the attorney general's decision
reached the University we,

called President Hatcher in
Detroit. Dr. Hatcher indicated.
that he has resigned from the
directorship of the Ann Arbor>
Hatcher had been a director of
the bank since 1952. He retains
positions on boards of directors at
Tecumseh Products and Detroit
Kelley ruled that a college or
university officer or board mem-
ber who served as an officer or
director of a private corporation
doing business with the institu-
tion would be "in.substantial con-
flict of interest contrary to the
The ruling came in response to
queries from Hannah, Rep. Wil-
liam P. Hampton (R-Bloomfield
Hills) and Rep. Jack Faxon (D-
A Lansing source indicated last
night that another opinion will be
forthcoming on the application of
the conflict of interest legislation
to members of the State Board of
Kelley further ruled that a col-
lege or university officer or board
member serving as an officer or
director of a state-regulated pub-
lic utility furnishing service to a
college or university is not in-
volved in a substantial conflict of
Hannah said he would continue
to serve as a director of the Mich-
igan Bell Telephone Co., relying
on Kelley's opinion regarding pub-
lic utilities.
Kelley also ruled that there is
no substantial conflict of interest
involved when an officer or mem-
ber of a college or university gov-
erning board serves as an employe
of a labor organization when (1)
the institution purchases services
only from businesses which are
unionized and (2) the officer or
board member receives no direct
personal benefit.
This provision would evidently
allow Frederick C. Matthaei, Jr.,

Pledge Rate'
Drops Off
In Sororities
This year's sorority rush filled
84 per cent of the spaces avail-
able in the University's 23 chap-
ters, according to a rush ad-
Last year 93 per cent of the
openings were filled, but this
figure did not include the two
Negro sororities whose quotas
were also not filled.
While seven chapters didn't
make quota in the 1966 fall rush,
the number rose this fall to 11.
A house does not "make quota"
if only one space is left vacant.
"Those houses that didn't make
quota this year are the, same
ones that haven't made quota
over the last several years," said
Mrs. Joanie Ringell, advisor to
"Houses that didn't make quota
also did not ask back as many
people as they might have at each
set," Mrs. Ringell added. "As a
result they didn't have a large
selection list."
Out of 1,155 women who rush-
ed, 479 finally pledged. A spokes-
man for Panhellenic Association
termed this figure a "normal"
Registration has already begun
for open rush. There are 93
places left at 12 different soror-
ities. In the past, accordin'g to
Panhel, open rush has succeeded
in filling the remaining openings.
For women who are dropped
or disillusioned by the process,
fall rush is potentially harmful,
Mrs. Ringell asserted. "I'm not
so sure it's good to have this
kind of disappointment early in
the year," she said.

), were
nflict of
nses to!

Kelley's ruling will have the
force of law unless overruled by a
state court.

tneir own nieieo v~uu ia
tile to those of the public.'.-. .
And, though these contractors
may, as members of the board,
have acted honestly, and solely
with reference to the public in-
terest, yet if they acted other-
wise, they occupy a position which
puts it in their power to conceal
the evidence of the facts, and to
defy detection." (pp. 226, 227)
Private Corporations
Since the constitutional provi-
sion establishes the pattern, the

Power Ruling
In March 1966, following The
Daily's disclosure of the business
relationship between Regent Emer-
itus Eugene Power, chairman of
University Microfilms, Inc., and
the University library, Kelley ruled
that Power was in "substantial
conflict of interest."
At that time, Kelley also request-
ed that the Legislature act to
clarify the Constitution. The
Legislature then passed a new con-
flict of interest law in June, 1966,
as part of a package with a legis-
lative salary increase.
The new law states that no state
officer or employe who acts as a

Decision Commission
Set FothPhilosophy.
By URBAN LEHNER making, is that "students should
ono be involved in decision-making
The President's Commission at the department and college
the Role of Students in Decision- Ilevel as well as at the University
Making yesterday released the level
tentative first section of its finalm sx
report. 'ihe commission is expected to
release at least three other sec-
The theme of the first section, tions of its report in the next two
which details the commission's weeks. They will deal wit the
general philosophy of decision- nature of student government, the
role of students in general decis-
ion-making and the role of stu-
dents in academic decision mak-

travel to that country. answer to the first question as re-
Among University faculty mem- phrased requires only a determi-
bers planning to participate in nation of whether the facts de-
the teach-in are Prof. William scribed, or rather the circum-
Gamson of the sociology depart- stances deducible from the facts
ment and Prof. Anatol Rapoport. See PARTIAL, Page 2

SGC Drives To Register Student Voters

About 9000 Universityestudents
will be eligible to register to vote
in next year's Ann Arbor muni-
cipal elections, according to Mike
Koeneke, '69, member of Student
Government Council.
Koeneke, whoheads SGC's voter
registration drive, said that of
1600 students over 21 years of age,
who filled out information cards
for SGC during registration at
Waterman Gym, "at least 1000,
will definitely be registered as
4, ,, "

volves the state law covering regis- "But." said Koeneke, 'a stu-?
tration of students. Although stu- dent who is married, or who has
dents may meet the basic require- at least a part-time job, has a

ments-age over 21. U.S. citizen- pretty sure chanc
ship, residence in Michigan for 6 istered."
months and in Ann Arbor for 30 Both SGC -and
days-many are barred from reg- sembly are work
istering by a provision that "no ways to loosen t
elector shall be deemed to have for student regist
gained or lost a residence ... while been "working w'
a student at any institution of members to get s
learning." the examination p
Open Criteria is the ultimate
Beyond the requirements set up whether a student
by the statute, Koeneke said, all not,

ce of being reg-
d Graduate As-
king in various

Ashmall said that although the
statute is clear in its basic provi-
sions the leeway left up to the
city clerk's office is so great as to
allow for personal prejudices to
enter into the determination of
eligibility. "The fact that a cit-
izen is a student should have noth-
ing to do with his ability to reg-
ister and vote," Ashmall added.
Affect Election

Students, faculty and adminis- See H
trators have been urged by the,
commission to comment on the YOU
first and succeeding sections. Their
reaction may result in changes in
the drafts by the commission -
Barring changes by the commis- Im
sion, the tentative sections will
be compiled to form a final re-!Byl
port, according to commission
members. Student
The commission in the first should wit]
section said its function was to tional Stu
"stress the principles to ba foi- cording to a
lowed in the development of de- night by ex
cision-making structures." The Young Dem
details of the organization of de- lution also s
cision-making structures, it add- to withdraw
ed, "Must be evolved by the con- .dum on th

rig Democrats Support
ediate NSA Withdrawal

ATCHER, Page 2

he requirements
ration. SGC has
ith city council
some changes in
rocedure," which
determinant of
t may register or

Government Council
hdraw from the Na-
dent Association, ac-
a resolution passed last
xecutive council of the
ocratic Club. The reso-
stated that if SGC fails
from NSA, a referen-
he question should be

draw from the organization im
mediately, rather than waiting a
some SGC members want.
Steve Handler, '68, President o
the Young Dems, added that the
University should take the initi
ative in withdrawing from th
organization, rather than com
promising SGC's ideals by retain
ing membership."
In another resolution passed las


Koeneke doubted that students,
even if registered according to:
SGC's plans, can affect the next
Ann Arbor election in the spring

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