Wednesday, March 19, 1969
THE MICHIGAN DAILY
Page Three
MEETING OF
TENANTS UNION
REPRESENTATIVES
8:00 P.M., Union Assembly Hal
WEDNESDAY, MARCH 19
763-3102
1532 S.A.B.
OEO p
WASHINGTON (P)-- The Of-
fice of Economic Opportunity
said this week it is investigat-
ing the takeover of a Louisiana
antipoverty program by white
politicians in view of a report
alleging three of the men in-
volved have Ku Klux Klan con-
nections.
An OEO spokesman said that
the black director of the pro-
gram, whom the new governing
board stripped of authority, has
had his powers-and his job-
reinstated. The situation is "un-
der intense investigation," he
said.
The spokesman said the in-
quiry began some weeks ago
when local antipoverty officials
in Monroe, La., complained to
the OEO regional office in Aus-
tin, Tex.
Contents of documents re-
porting on the situation were
revealed last Sunday by the New
York Times.
Antipoverty headquarters in
Washington refused to release
them, however, but confirmed
the takeover by a white group
headed by freshman Louisiana
state Sen. William D. (Billy)
Brown, 37.
The agency spokesman said
the three men who seized con-
trol of the Monroe program with
Brown are being investigated by
the OEO for alleged connections
with the Klan.
The official said at present
there are no plans to cut off the
Monroe program.
"That's not always the smart-
est thing to do," he told a news-
man. "If we can make the pro-
Sgram go toward its objective
...,if we can. make it miore
AGENCY TAKEN OVER
robes antipoverty group
effective . . . we want to keep
the program," he said.
Monroe, a city of 60,000 popu-
lation in northeast Louisiana,
received $250,000 in antipoverty
funds for 1969.
The program's director, P.
Rayfield Brown, tendered his
resignation after reciving a
death threat during the past two
weeks. But the OEO office in
Washington said he is continu-
ing in his $9,600 a year job.
P. Rayfield Brown also was
shot at last Christmas. A man
arrested in the case was identi-
fied as a member of the White
Knights of the Ku Klux Klan.
Charges against him were
withdrawn because of a legal
technicality, officials said.
The report on the Monroe af-
fair, compiled by investigators
of OEO's Office of Research,
Programs, Plans and Evaluation,
revealed that when Sen. Brown
joined the Monroe antipoverty
program governing board last
fall along with 13 others picked
by Brown, these actions fol-
lowed:
-B. J. Van, an outspoken
critic of the Monroe program,
was appointed chairman of the
board.
-Van's son-in-law was named
manager of the program's cred-
it union.
-P. Rayfield Brown had most
of his executive power strip-
ped away.
-Mrs. Marjorie Guillot, the
white associate director of the
program, was fired from her
$8,400 a year job and replaced
by Sen. Brown's administrative
assistant.
-Those Negroes who had run
the program since 1966 were ac-
cused publicly of inefficiency,
indolence, corruption and theft.
The OEO in Washington said
federal audits had shown no
evidence of any discrepancies.
Loan difficulties plague plan
to create small businesses
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WASHINGTON (1P) - A high-
ly publicized program designed
to create small businesses at the
rate of 10,000 a year by next
July is bogging down.
The Small Business Adnrin-
istration's "Project Own" will
have to increase its current loan
rate to meet even 50 per cent of
its goal.
It is also troubled by lack of
participation by nationwide in-
dustries, which the SBA h a d
counted on to provide systemna-
tic managerial and technical
help.
"There are 30 industries wait-
ing in the wings," said former
SBA Administrator HowardrJ.
Samuels, architect of the pro-
gram, in an interview. "They'll
4 come in once they see a well
organized program to partici-
pate in."~
Samuels, a Democratic ap-
pointee recently replaced by Re-
publican Hillary J. Sandoval Jr.,
said the need for technical as-
sistance is crucial. "Giving cap-
ital without technical assistance
is a disaster."
But he said he is unconcern-
ned about the loan rate, which
reached a plateau of 428 a
month last October, three times
the 132 minority loans issued
through SBA during October of
1967.
"We are where I expected to
be," said Samuels. "It's v e r y
difficult to keep a new pro-
gram going when you're chang-
ing leadership."
The SBA estimates that at the
current rate 4,384 Project Own
loans will be made by the end
The total, while almost 6,000
below the goal, would still more
than double the 1,700 loans ex-
tended or guaranteed by SBA
during the previous fiscal year.
Samuels, an industrialist from
upstate New York, launched
Project Own last August short-
ly after President Lyndon B.
Johnson appointed him admin-
istrator of the SBA.
The agency had a minority
loan program aimed at financ-
ing manufacturing facilities;
Samuels extended it to include
retail enterprises.
"You place your emphasis
where you have the best chance
of initial success," said Samuels.
"The greatest gain is going to
be made in the retail and serv-
ice and construction businesses."
AIRPORT
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for information call
971-3700
Tickets are available
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32 Trips/Day
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- -~ Three months after Project
Own started, the SBA had more
than tripled its monthly rate
of minority loans, and held out
hope that the rate would reach
20.000 a year by 1970.
By the end of November, Pro-
Iject Own had accounted for 1,-
382 loans, 40 per cent of which
were bank loans carrying 90 per
cent SBA guarantees.
Samuels barnstormed t h e
* country to enlist the support of
smai' bankers for what he called
"00 "compensatory capitalism," ur-
ging them to pay more heed to
"character than collateral," and
offering the 90 per cent guar-
~Iantee as a sweetener.
the
news today
by The Associated Press and College Press Service
PRESIDENT NIXON said yesterday he hoped the
U.S. and the Soviet Union could hold talks soon on limit-
ing antiballistic missile systems.
In the message sent to the 17-nation disarmament con-
ference at Geneva Nixon also urged top priority be given
to a treaty to bar nuclear and other weapons of mass destruc-
tion from the ocean floor.
The Soviets had presented a draft treaty banning the use
of the sea beds for military purposes.
Soviet Premiere Alexi Kosygin also sent a message to the
conference. Kosygin declared a solution must be found to
problems such as "stopping the manufacture of nuclear
weapons, the reduction and destruction of their stockpiles"
and a limitation and reduction of means of their delivery.
PRESIDENT NIXON named Joseph Blatchford to
head the Peace Corps yesterday.
Blatchford, who has' been active in Latin American
slum improvement projects, will replace Jack Vaughn.
Blatchford is currently executive director of ACCION Inter-
national, a private nonprofit organization whose purpose is
to improve urban slum communities in Latin America.
* . "
SEN. STEPHEN YOUNG (D-Ohio) said yesterday
that secret peace talks are underway which could re-
sult in a cease-fire in Vietnam.
The cease-fire would begin, Young indicated, if the
United States immediately recalls 100,000 troops. Young said
these negotiations had been proceeding for some months.
! . .
THE ANTIPOVERTY PROGRAM should be overhauled,
the General Accounting Office (GAO) urged yesterday.
In a 228 page report on the Office of Economic Opportu-
ity (OEO) GAO called for a new "Office of Human Resources"
to take charge of the war on poverty. Presently OEO directs
the antipoverty campaign.
The report also recommended that OEO function as an
independent operating agency with its prime responsibility
the administration of community action programs.
ATTORNEY GENERAL JOHN MITCHELL promised
a new attack on organized crime,
Speaking before the Senate judiciary subcommittee on
criminal laws and procedure yesterday, Mitchell urged a co-
ordinated federal and state effort to combat crime.
Mitchell also indicated that the authority Congress grant-
ed the Justice Department to use wiretaps in fighting crime
has been used in fewer than a dozen cases.
Mitchell later said these were cases of "major and or-
ganized crime-primarily organized crime."
BRITISH PARATROOPERS have formed a potential
invading force against a former British possession in the
Caribbean.
About150 paratroopers boarded warships'yesterdayfor
a possible war with Anguilla, which declared its independence
from Britain in 1967. However, British Foreign Secretary
Michael Stewart insisted the military build-up was precau-
tionary.
The Anguilla problem arose when the Anguillans expelled
a British envoy, who later charged he was run out virtually at
gunpoint.
* 0
JOHN LINDSAY formally announced he would run
for re-election as Mayor of New York City yesterday.
Lindsay set his first goal as winning the June Republican
primary against opposition he claimed was organized by "re-
actionary elements."
The state's leading Republicans, Gov. Nelson Rocke-
feller and Sens. Jacob Javits and Charles Goodell were on
hand when Lindsay made his announcement.
PRESIDENT NIXON reportedly favors cutting off
federal aid to college students convicted of participation
in campus disorders.
Nixon's views were relayed yesterday by Dr. S. I. Haya-
kawa, acting president of San Francisco State College. The
two presidents conferred Monday.
Nixon, who earlier promised a detailed statement on
campus disorders, has now given the assignment to HEW
Secretary Robert Finch. Finch will issue the statement later
this week.
Rep. Raymond Smit
Jof Ann Arbor)
"HOW THE LEGISLATURE
AFFECTS THE
ENGINEERING PROFESSION"
Wednesday, March 19
7:30 P.M. Aud. E, P.A. Bldg.
9
I GOOD TO MARCH 15
Call 769-34
Electrical Engineers
power mad.
Satisfy your ambitions at Southern California Edison.
"PERSPECTIVES ON WORLD RELIGIONS"
(Wednesday Noon Book Review Luncheons at Union)
Varied views on world religions will be presented in a series of
four book review luncheons at the Union beginning March 19.
The programs will start at noon and last not later than 1 :30 P.M.
All sessions will be held in Cafeteria Room No. 1 at the South
end of the Union basement. Go through the cafeteria line or
bring your lunch. All interested persons invited.
THIS NOON
MARCH 19-"Christianity in World Perspective"
(Kenneth Cragg)
Reviewer:'REV. PAUL DOTSON, Ecumenical
Association for International Understanding
COMING
MARCH 26-"Conversation: Christian and Buddhist"
(Don Graham)
Reviewer: SISTER CONSTANCE,
St. Mary's Chapel
APRIL 2-"The Meaning and End of Religion"
(Wilfred Cantwell Smith)
Reviewer: PROF. JOHN BAILEY,
Near Eastern Lang. and Lit.
APRIL 9-"Christianity Among the Religions of the
World" (Toynbee)
"Christianity and the Encounter of the
World Religions" (Tillich)
Reviewer: LLOYD W. PUTNAM,
Office of Religious Affairs
Sponsored by: THE OFFICE OF RELIGIOUS AFFAIRS
2282 SAB 764-7442
We specialize in power..
What we need are people to help us
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Come live and work with us in
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Interested? Check with your
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Or write: Personnel Recruitment
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Edison Company, P.O. Box 351,
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Or phone collect: (213) 624-7111.
Samuels created "outreach"'
teams to seek out potential mi-
nority businessmen, had his re-
gional officials review the files
of minority applicants turned
down in the past, and lowered
SBA loan criteria for minorities.
The equity requirement of 50
per cent was dropped to 15 per
cent, and even waived in some
cases.
Lack of management counsel-
ing could lead to a failure rate.
above the 8 to 10 per cent Sa-
muels anticipated. The average
failure rate on SBA loans is 2.9
per cent.
The Michigan Daily, edited and man-
aged by students of the University of
Michigan. News phone: 764-0552. Second
Class postage paid at Ann Arbor, Michi-
gan, 420 Maynard St., Ann Arbor,
Michigan 48104. Published daily Tues-
day through Sunday morning Univer-
sity year. Subscription rates: $9 by
carrier, $10 by mail.
605 E. Wlliam 769-1593
ONLY ANGELS
HAVE WINGS
Howard Hawks, dir.
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1969
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