A MODEST PROPOSAL LET LBJ LOSE IN '68 See editorial page C, 4c 4 i ir1 gaxt D1a itil CLOUDY, COOLER High-5 Low-40 Frost likely, chance of showers Seventy-Seven Years of Editorial Freedom VOL. LXXVIII, No. 24 ANN ARBOR, MICHIGAN, WEDNESDAY, SEPTEMBER 27, 1967 SEVEN CENTS t EIGHT PAGES S co C S Excerpts 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 erefrom. 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 l 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 sue' T he Purpose and Meaning of Conflict of Interest Article IV, Section 10 of the Michigan Constitution of 1963 pro- vides: "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 rertainty 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 Education. By DANIEL OKRENT 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- ities. 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 tastes. 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 MarkLaner To Kick Off '67 Lectures By JAMES JENSEN 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- spirators. 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 war. 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 Y 3 } f iI e G, ': i f f t s' ' f Hannah Gives Up His Directorship S By PAT O'DONOHUE and STEVE NISSEN 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 institution. 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> Bank." Hatcher had been a director of the bank since 1952. He retains positions on boards of directors at Tecumseh Products and Detroit Edison. 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 law." The ruling came in response to queries from Hannah, Rep. Wil- liam P. Hampton (R-Bloomfield Hills) and Rep. Jack Faxon (D- Detroit). 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 Education. 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 interest. 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 By ANNE BUESSER 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- visor. 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 sororities. "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" percentage. 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 courts. 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- ing 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 9000 PERSONS ELIGIBLE: - SGC Drives To Register Student Voters By ELEANOR BRAUN 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 DAVID MANN 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 I Koeneke doubted that students, even if registered according to: SGC's plans, can affect the next Ann Arbor election in the spring