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January 22, 1969 - Image 3

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The Michigan Daily, 1969-01-22

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Wednesday, .Jcanui ary 22, 1969

THE MICHIGAN DAILY

Page Three

Wednesday, January 22, 1969 THE MICHIGAN DAILY Page Three

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INVESTIGATIONS UNDERWAY:
New York's HRA charged
with fraud, mismanagement

the
n eAws today
by The Associatled Press and College Press Service

(Continued from Page 2)
tet Concert, broadcast live from Rack-
ham, Lecture Hall. Mozart, Webern,
Beethoven.
Thursday 1:00 p.m. Assembly for Hu-
man Rights: Three official Assembly
observers and a maJor delegate discuss
the main trends of thought to come
out of the meetings in Montreal, 1968.
Thursday 4:45 p.m. Conservation Re-
port with Prof. Karl Lagler. 5:15 p.m.
U-M Feature Story with Jack Hamilton.
7:30 p.m. University Symphony Band,
another In a new series of programs
conducted by Dr. William D. Revelli.
Doctoral
Eixaiimnat ns
Doctoral Examination for: Stephen
Mark Sales, Social Psychology, Disser-
tation: "Differences Among Individ-
uals in Affective, Behavioral, Bio-
chemical, and Physiological Responses
to Variations in Work Load," on Wed-
nesday, January 22 at 2:15 p.m. in 4110
L.S.R., Chairman:' J. R. P. French.,
Jr.
Placement
PLACEMENT
3200 S.A.B.
Current Position Openings received by
General Division by mail and phone,
not interviews oni campus, please call
2"64-7460 for complete application pro-
cedures.
City of Detroit, Mich.: listing of
positions in areas of professional ad-
ministratIon, Engrg., Med. and dental,
hospital service, community social
serv., curators, recreation, security and
law enforcement, forestry.
Commonwealth of Virginia Intern
Programs: 1 year training internship
with salary in all areas of professional
managerial competance, followed by
mid-level appointments in many areas
throughout the state.
City of Flint, Mich.: Relocation spec-
ialist. in soc. wk., soc. or related
fields.
State of Utah, Director, Division of
Welfare, 3 years exper. in administra-
tion of public welfare programs.
Twin Cities Area Day Care Agency,
Inc., Benton Harbor, Mich.: Director,
BA in business, education or social
work with exper as director of a
similar agency.
City of Minneapolis, Minn.: Sani-
tarian, BA with 21 hours in public
health or some sciences related to
sanitary field.
Utah State Personnel: Information
Officer for industrial promotion divi-
sion of dept. of dev. services, degree in
adv., journ., public rel. and some ex-
per. in the fld.

City of Detroit Civil Service Commis-
sion, Mich.: Senior Community Serv-
ices Assistant, ed/exper to perform pro-
fessional investigation, research, coun-
seling, guidance, educ., and rehabili-
tational activities.
City of New York: Professional Col-
lege Trainee series for positions in
housing, planning and redev., mgmt.,
anal., personnel examining, public
health. Public Health Educator, MA in
PH., and exper in education in this
area.
State of Utah, Law enforcement
planning research director, PhD in{
public admin., law., soc., poli. sci.,
econ., state or other related areas, or a
masters and 5 years exper.' Electrical
Engineer ESE EE and 2 years exper.
Fiscal Officer, 4 year degree and 4
years exper. Public Health Educator,
beginning and advanced positions,
min. BA in nat'l. set., health ed., soc.
sci., home econ., "educ., nutrition,
journ. Crisis Intervention Specialist,
MSW and 2 years. Law Enforcement
Field Representative, BA in soc. s.
areas plus 3 years exper or MA and
less exper.
State of Washington, Fisheries Phy-
siologist, transportation permit exam-
iner, Forestry Aide, Sanitary engineer.
Thistletown Hospital, Rexdale, On-
tario: Seek Ed., Soc., or Clinical Psy-
chologists for Director of Clinical Ser-
vices and Chief Psychologist positions,
PhD's and 0-4 years exper.
State of Michigan\ Commerce Execu-
tive, 4 year degree, some bus. exper.,
up to 3 years.
Boss Manufacturing Company, Ke-
wanee, Ill.: Michigan based sales re-
presentative, actually territory man-
aged in marketing, 3-10 years business
exper. "
Greene-Clinton County Board of
Mental Health and Retardation, Xenia,
Ohio: Director for proposed M en t a 1
Health program, may be psychiatrist,
psychologist, social worker, or regis-
tered nurse with min. of 2 years post-
graduate exper., or mental health ad-
ministrator with MPH, MA hosp ad-
min., or MPA.
Calhoun Area Vocational Center, Bat-
tle Creek, Mich.: Director of Guid-
ance Services, degree and 2 years
teaching, guidance, administrative ex-
per. in bus. or industry, interest in
vocational education.
ENGINEERING
PLACEMENT SERVICE
128 H, West Engrg. Bldg.
Make interview appointment at Room
128 H, West Engrg. Bldg. unless other-
wise specified.
JANUARY 29, 1969
Butler Manufacturing Co.
General DynamicsI
General Motors Corp. - Summer
Employment
Kelsey-Hayes Co.
The Mead Corporation

North American Rockwell Corp.-
Atomics International Div.
Autonetics Div.
Columbus Div.
Space, Rocketdyne & Los Angeles
Divs.
The Procter & Gamble Co.
Pure Oil Div. - Union Oil Co. of
California
The Sherwin-Willians Co.
Shure Brothers, Inc.
U.S. Gov't.
Naval Command Systems Support
Activity - Make appt. at
Placement Serv.ices, 3200 SAB
ORGANIZATION
NOTICES
A new outlook on things may be
found at the Christian Science Organ-
izationmeeting every Thursday eve-
ning at 7:30 p.m. in room 3545 of
the SAN
University Lutheran Chapel, Jan.
22nd, 10:00 p.m., 1511 Washtenaw. Folk
Communion Serivce.
* * * *
Bach Club Meeting:HThursday, Jan.
23rd, 8:00 p.m. Guild House, 802 Mon-
roe St. Speaker: Wayne Linder, "Fusion
of Styles in Bach's Cantatas." Jelly
donuts and fun afterwards. Everyone
welcome. Forfurther information call
769-2922 or 769-0995.
* * * * .
Michigan Rugby Football Club - An-
nual general meeting - film, election
of officers and discussion - Weds., Jan.
22nd, 7:00 p.m. Room 131 Bus Ad.
UM Scottish Country Dance Society:
Dance meeting, Weds., 8:00 p.m. to
10:30 p.m., W.A.B. lounge, instruction
given - beginners welcome.
UM Chess Club: Jan. 22nd, 7:30 p.m.
Room 3B of the Union, weekly meet-
ing.
Northwestern Michigan College's 6th
Annual Ski Festival is coming up Feb-
ruary 7, 8, & 9, 1969. Fifty-three jun-
ior, community, and state colleges have
been invited from all over Michigan to
spend a three day weekend of skiing,
swimming, and dancing in Traverse
City. The committee for the '69 Ski
Festival is planning on up to 700 col-
lege students to participate this year.
Accommodations have been made at
the Park Place Motor Inn for two
nights lodging and meals and at Tra-
verse City Holiday for three days of
skiing. The weekend will be h i g h-
lighted by a concert Friday night with
"The Happenings." Saturday night
there is a dance with the "American
Breed."
Student government, and ski club
have information as to making reser-
vations and registration fees. The
charge for the weekend including en-
tertainment Friday and Saturday
nights is $37.00/person. Reservations
must be in by January 22, 1969,

NEW YORK (R) - The Hu-
man Resources Administration
- HRA - in New York City
was created 27 months ago to
pull together the city's sprawl-
ing anti-poverty effort and,
hopefully, to get better results
from the $122 million a year the
agency spends to help the poor.
But, largely as a result of sto-
ries printed in the New York
Times last week, t h e agency
finds itself involved in charges
of fraud and mismanagement
that allegedly cheated the city's
underprivileged of millions of
dollars.
The articles also disclosed a
number of local and federal in-
vestigations into the supera-
gency are underway, and spur-
red new ones. Several agency
employes are under arrest on
charges of grand larceny.
The Times reported the Labor
Department has threatened to
put the HRA under a federal
trustee unless the problems are
cleared up within six months.
It said Friday that the feder-
al Office of Economic Oppor-
tunity directed HRA officials to
report before Jan. 31 on-what
steps have been taken to cor-
rect irregularities.
In the latest development,
Willie J. Smith, $18,000-a-year
director of the Neighborhood
Youth Corps, was granted a one-
week delay of his appearance
before a grand jury investigat-
ing reports of mismanagement
of funds in that $29-million op-
eration.
"When people see the finan-
cial report of my financial sit-
uation, I think they'll probably
take up a collection for me,"
Smith s a i d outside the jury
room.
Also City Council has named a
special committee to hold open
hearings on the HRA. The com-
mittee chairman. J. Raymond
Jones, says, "We anticipate
plenty of hell."
A special congressional sub-
committee will begin an inves-
tigation this week.
Federal agencies already prob-
ing the HRA, in addition to the

Labor Department and the Of-
fice of Economic Opportunity,
which fund most of the pro-
gram - include the Department
of Health, Education and Wel-
fare and the General Account-
ing Office.
The Human Resources ad-
ministration was created Aug.
15, 1966, one of the 10 supera-
gencies set up by Mayor John
V. Lindsey to try to streamline
city government. It combined
the Welfare Department, t h e
Neighborhood Youth Corps and
the Manpower and Career De-
velopment Agency.*
Lindsay defended the agency
last week, saying that the HRA
and all its departments have
"checks and balances and au-
diting and self-policing systems
that are pretty good - pretty
careful."
The administration is headed
by Mitchell I. Ginsberg, former
head-of, the Columbia Univer-
sity School of Social Work.
Ginsberg says the accusations
are distorted and that his office
has not been given credit for its
own cleanup efforts.
Basically, he argues that the
losses, which he claims are no
higher than $1.5 million, are
confined to the youth corps pro-
gram.
He also said the losses are
largely recoverable from bond-
ing companies, although he says
bonders h a v e balked on the
grounds that HRA knew there
was fraud when it applied for
bonding.
Mitchell admits there h a v e
been thefts of checks, including
$1 million worth that.found their
way to a Swiss bank. But he
says payment was stopped on
the checks before a loss occur-
red.
-Stanley H. Ruttenberg, assist-
ant secretary of labor, was
quoted by The Times as saying
that as early as last May the
Labor Department a n d OEO
discussed placing the New York
City program under a t'ustee.
Only because of the protests
of city officials, Ruttenberg
said, the federal government de-

cided to give HRA a "six-month
last chance" until the end of
June.
Among the probes was an au-
dit by the Washington account-
ing firm of W. M. O'Reilly &
Co., the Times said. The com-
pany reported that the HRA
"is not fiscally responsible, and
should not be the custodian of
federal funds," the Times said.
Most of the imputations have
centered around the Neighbor-
hood Youth Corps, designed pri-
marily as a summer program.
The Times said a confidential
Labor Department report last
month found the program's su-
pervisors "not qualified by edu-
cation or experience to super-
vise an operation which expends
an average of $29 million an-
nually.",
The Times series has detailed
a number of schemes which it
said were designed to bilk mil-
lions from the agency. Among
them:
* A plot to transfer f o u r
checks totaling more than $1
million from HRA accounts to a
secret bank accountin Switier-
land, One man has been arrest-
ed in the Netherlands in con-
nection with the plot. Payment
was stopped on the checks be-
fore they were cashed.
* The theft of at least $1.75
million in nine months by a
group of HRA employes origi-
nally from Durham, N.C., known
as the "Durham Mob." The
group allegedly rigged city com-
puters to produce fradulent pay-
checks. Four men have been ar-
rested and charged with grand
larceny. Also arrested was Coy
D. Smith, a former Durham
resident who is a former chief
fiscal officer of the youth corps.
" The embezzlement of funds
by two former officials of the
agency. Last August, the city
told the federal government a
plan had been developed to
safeguard against thievery in
the youth corps. Within a
month, Helynn Lewis, the agen-
cy's chief fiscal officer and one
of the persons credited with de-
veloping the plan, was arrested
on charges of embezzling $22,-
000.
Although the charges center
around the Neighborhood Youth
Corps, the city's Welfare De-
partment also is involved.
City officials revealed earlier
this week that large numbers of
welfare checks were being sto-
len each month and that 30
merchants were suspected of
serving as brokers in the thefts.

GOV. WALTER J. HICKEL of Alaska probably will
.not be confirmed by the Senate as Secretary of Interior
until this afternoon, if then.
The delay will prevent Hickel from being sworn into of-
fice today with the 11 other Cabinet members.
Any Senate action awaits the report of the Senate Inter-
for Committee. One senator had objected to approving Hickel
without the committee's recommendation.
Senator George McGovern (D-S.D.), a member of the
committee, said there are no plans for a full scale floor fight.
Charles W. Yost was confirmed yesterday as the new am-
bassador to the United Nations.
s . 0
THE SENATE FOREIGN RELATIONS COMMITTEE
will act quickly on the long-stalled nuclear proliferation
treaty when the Nixon Administration asks for action,
chairman J. William Fulbright (D-Ark.) said yesterday.
The committee is ready to reopen hearings as early as
next week if President Nixon gives the go ahead.
During his campaign Nixon expressed support for the
goals of the pact, but opposed immediate ratification because,
of the Soviet-led invasion of Czechoslovakia. He said he
wanted to appraise the treaty in light of present conditions.
IN CZECHOSLOVAKIA students demanding reforms
were discouraged by an indecisive response by govern-
ment leaders.
Major demands of the students are for an end to censor-
ship reimposed after the Soviet-led invasion and banning of
a Moscow-oriented propaganda sheet.
A student spokesman said that they were trying to pre-
vent any further student immolations. One student, Jan Pal-
ach, died after setting himself afire. His suicide note said
others were ready to burn themselves starting yesterday.
It was also reported that medical specialists doubt they
can save the life of Josef Hlavaty Who set himself afire Mon-
day night.
THE VIETNAMESE PEACE TALKS in Paris will re-
sume Saturday with Henry Cabot Lodge heading the U.S.
delegation for the first time.
Topics at the forthcorhing meetings include a cease-fire,
a political settlement and withdrawal of foreign troops.
The failure of the North Vietnamese to make propaganda
capital of the delay caused by the change of administrations
caused speculation that Hanoi is eager for serious talks to
begin.
CUT PRICE YOUTH FARES on airlines will come to
an end if the Civil Aeronautics Board does not receive
any request for a stay of the action within 30 days.
The CAB yesterday heard a recommendation by Arthur
S. Present, a CAB hearing examiner, calling for the end of re-
duced fare plans available to people between the ages of 12
and 21.
Present said the ,youth fares were discriminatory since
all who use the airlines should be offered fares and services
on an equal basis.
THE TRIAL OF CLAY SHAW, charged with conspir-
ing to murder President John F. Kennedy, got underway
yesterday when the first two jurors were selected.
The state won its first legal dispute when.-Judge James A.
Haggerty Jr. ruled that the state did not have to accept a
juror before passing him on to defense examination.

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JAN. 27-28
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DIAL 5-6290
ENDS Thursday
* FRIDAY
GREGORY PECK
in
"THE STALKING
MOON"

Second Class postage paid at Ann
Arbor, Michigan, 420 Maynard St., Ann
Arbor, Michigan 48104.
Published daily Tuesday through
Sunday morning University year. Sub-
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ORPHANS
OF THE
STORM'
Directed by
DAVID WARK GRIFFITH
A classic of the silent screen,
from one of America's
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THE GISH SISTERS

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