'M' EDGES

WESTERN

KENTUCKY,

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Seventy-Five Years of Editorial Freedom
VOL. LXXVI, No. 136 ANN ARBOR, MICHIGAN, SATURDAY, MARCH 12, 1966 SEVEN CENTS

EIGHT PAGES

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An Editorial


.............

EUGENE B. POWER announced yesterday he is submitting a
letter of resignation to the Board 'of Regents. This has caused
as much dismay to The Daily as it has to the rest of the Univer-
sity community. Though we originally disclosed the business trans-
actions which raised questions about his -relations with the Uni-
versity, we have never felt that the best way to improve those re-
lations was to sever them and we emphasize today that his resig-
nation has simply been offered, not accepted.
We felt, and still feel, that The Daily had an obligation as a
newspaper to print the facts about the business transactions be-
tween Mr. Power's concern and the University. At the time they
were reported, as now, they suggested the possibility of a techni-.
cal conflict' of interest. The questions about such business rela-
tionships were substantive and serious, and they had to be answered.
The attorney general answered these questions yesterday, de-
claring that "for Mr. Power to maintain his position as a Regent
while his company has its present relationship with the University
is inconsistent with the Michigan constitution relating to substan-
tial conflict of interest'."
THUS THE QUESTIONS about Regent Power's past relation-
ship with the University have been answered. But urgent ques-
tions about the future of that relationship have not.;
As the attorney general's report declares, "There is no ques-
tion of Mr. Power's motives, his integrity, or his devotion to the
interest of the University . . . it is clear that, serving without
compensation, Mr. Power has made invaluable contributions to the
welfare of the University and the cause of education and schol-
arship in this state and, indeed, the nation ..."
In 1956 and 1958 Power inquired as to the propriety of his
relations with the University, and was assured by the attorney
general's office on those occasions that no question of conflict-of-
interest was involved. Yesterday's report reflects the difficult de-
termination which had to be made on those constantly-evolving
relations under the state's new 1963 state constitution conflict-
of-interest clause-which has little legislative history or legal
precedent behind it and which is open to ambiguity and di-
verse interpretations. And, referring to this lack of precedent and
clarity of the constitution, the attorney general's report also
urges legislative action in the near future to clarify that clause.
Regent Power, demonstrating his conviction that a public
man's affairs and his business relationships must be beyond all
legal reproach, submitted his letter of resignation yesterday. But
the future of the University suggests, that decision-which Presi-
dent Hatcher characterized correctly as a "harsh" one-ought
not to remain standing.
Power has served the University in a distinguished manner
for 10 years, during which he has displayed an unusually en-
lightened leadership among the, Regents. His devotion to academic
freedom is unquestioned. His support of the proposed University
Residential College is strong. His contribution to higher educa-
tion throughout the nation and the world through his microfilm-
ing services is remarkable.
Moreover, the University will shortly make major decisions
affecting its future: the Residential College and the selection of
its next president. Regent Power's value to the community is
such that his loss in these critical times would be a severe blow to
the University and its future progress.
HAVING SOUGHT IN THE PAST to ensure that his activi-

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Community
Shocked by'
Resignation
Haber Commends
Regent's Dedication,
Asks Reinstatement
By CLARENCE FANTO
Acting Managing EditorI
Shock and surprise spread
through the University community
yesterday at the news of Regent
Eugene B. Power's resignation on
the heels of an opinion by At-
torney General Frank Kelley that
he is in a "substantial conflicthof
interest" situation.
Dean William Haber of the lit-
erary college said "the resignation
of Regent Power comes as a most
unfortunate anddevastating blow
to the University. We've lost a
wonderful Regent and some way,
should be found to retain him."
"As the Attorney General him-
self says,. there is no question
whatsoever of his public service,
devotion and commitment to thie
University and to higher education
as a Regent. There is no question
about his integrity. As the At-
torney General states, legislation
should be sought to prevent what
is both a personal and public
tragedy," Haber said.
He expressed hope that some
way could be found to persuade
both the Regents and the Attorney
General that the constitutional
requirements can be met in a way
which could preserve the services
of Regent Power to the University
and the state.
Change of Mind?
University officials disagreed on
the possibility that Power might
change his mind about resigning
or that the Board of Regents
might delay action on his letter
of resignation, which was sub-
mitted to it yesterday.
It is Gov. George Romney's task
to appoint a successor to Power,
but it was not clear last night
when he might act.
It was learned that several high
University officials are attempting
to evolve a formula under which
the Regents might decline to ac-
cept Power's resignation at their
meeting next week. Under such
a plan, which is still in the process
of beingformulated, the Regents
might seek from the Attorney
General conditions under which
the public interest could be fully
protected and Regent Power could
continue to serve in his present
position.
It was also unclear last night
what effect Power's resignation
would have on his position on the
Regent's Presidential Selection
Committee.;

-Daily-Andy Sacks
ATTORNEY GENERAL FRANK KELLEY (seated) isshown with Rep. Jack Faxon after signing report.
Re-lease Kely sRpoto
PowerColict oInte-es
fl f

EDITOR'S NOTE: The following
is a text of Atty. Gen. Frank Kel-
ley's opinion on Regent Eugene B.
Power's relationship with the Uni-
versity. Where portions of the text
have been edited out, a summary of
the missing part has been inserted.
These summaries are set off from
the main body of the text by as-
terisksand are enclosed in paren-
'theses.
(The opinion notes its sources
of information and traces the re-
lationship between the University
and University Microfilms since
Power formed his business in
1938.)
In the Spring of 1955, Mr. Pow-
er was elected Regent of the Uni-
versity of Michigan for a term to
commence January 1, 1956. There-
-after library and other University
of Michigan officials expressed
concern about Eugene B. Power's
status and the future legality of
prevailing University of Michigan
and University Microfilms rela-
tionships. After Mr. Power took
office, all prevailing contracts be-
tween the University of Michigan
and University Microfilms were
cancelled on advice of counsel for
the University of Michigan as of
January 1, 1956.-

It appears that in the interim,
before assuming office, Eugene B.
Power sold a camera to the Uni-
versity of Michigan library and
the University continued to use
films provided by him to photo-
graph materials at his request, de-
livered the undeveloped film to
University Microfilms for print-
ing of positive film at a rate of ic
per exposure on short-run orders
and 3/4c on long-run orders for
the filming done by the staff of
the University of Michigan 11-
brary.
During the aforesaid time Uni-
versity Microfilms was a Michigan
profit corporation controlled by
Eugene B. Power and his wife.
' , ' * ,
(Kelley states that Power wrote
to then Deputy Atty. Gen. Horace
Gilmore in March 1956, asking le-
gal clarification on three -specific
aspects of the University Micro-
films-University relationship. Gil-
more ruled that Power s business
could legally borrow 'and micro-
film books from the University li-
brary, store the- resulting nega-
tive, and subsequently make cop-
ies for other libraries. He fur-
ther approved open, standard-rate
purchase of microfilms from the
University library, but he ruled
that University Microfilms could
not legally sell services to the Uni-

Acts After
State Cites
Role Conflict
Attorney Generals
Statement Result of
UMI Investigation
By ROGER RAPOPORT
Eugene Power resigned from the
Board of Regents after ten years
of service to the University yes-
terday shortly after Michigan At-
torney General Frank Kelley said
there was a "subtantial conflict
of interest" in his business deal-
ings with the University.
University President Harlan
Hatcher, commenting on .the rul-
ing and the resignation, said, "it
is indeed a harsh choice that de-
prives the state of Mr. Power's
direct service to the University
and to higher education."
In his statement of resignation
Power, the president of Univer-
sity Microfilms, Inc., noted that
"Under the present situation it
becomes impossible to serve both
as regent of the University and
as an officer of University Micro-
films Inc., especially in view of
the plans for increased participa-
tion in the field of education by
both University Microfilms and
Xerox Corp., of which I am a
directo'"
Three Questions
Kelley concluded in his opinion
that three basic questions exist in
Power's business relationship with
the University.
"-Microfilm cameras owned by
the company have been placed in
the University library without
rental;
-The undergraduate shelf list
was sold without royalty payments
to the University;
-Copies of doctoral disserta-
tions were sold by University Mi-
crofilms and microfilms of doc-
toral dissertations' were stored in
the company's vaults rather than
in the vaults of the University
library."
All three maters were originally
raised in The Daily story last O-
tober 23 that touched off the in-
vestigation.
Affirms Integrity
Kelley said that, "There is no
question of Mr. Power's motives,
his integrity or his devotion to
the interest of the University ...
it is clear that serving Without
comnensation, Mr. Power has
made invaluable contributions to
the welfare of the University and
to the cause' of education and
scholarship in this state and in-
deed, the nation . ..
At the same time, Kelley said,
'for Mr. Power to mentain his
position as a Regent while his
company has its present relation-
ship with the University is in-
consistent with the requirements
of the Michigan Constitution re-
lation to 'substantial conflict of
interest'."
Kelley's opinion ended with an
appeal for legislation on conflict
of interest.
Rep. Jack Faxon's (D-Det) sub-
committee has already introduced
new legislation into the House of
Representatives. The legislation
would apply to all state employes
and carefully define the meaning
of substantial conflict of interest.
Attorney General Kelley ac-
knowledged that Regent Power
was entitled to rely on advice he
received from the attorney general
in 1956, and 1958. But he added
that two major developments had
occurred since that time.
First, he said, the number of
photographs exposures taken by

University microfilms had increas-
ed sevenfold over the past decade.
Kelley noted also that "the na-
ture and complexity of the rela-
innshin h hoe hn shrnpv latered."

ties met with full sanction of the laws, and having yesterday
resigned as Regent when an admittedly unclear clause appeared
to preclude his joint role as Regent and businessman, Eugene
Power is indeed above moral reproach.
And his letter, we stress again, has merely been sent-and not
yet accepted. Already, in fact, efforts are being undertaken by
faculty, students and administrators to provide time for a review
of the relationship between Mr. Power and the University to adopt
appropriate legislation to clarify the constitutional conflict of in-
terest clause and to alleviate the technical conflict of interest
itself.
With this in mind, we offer the following for the serious
consideration of each member of the University community:
0 The University cannot afford at this crucial juncture in its
history to be without the services of a man of the stature and abil-
ity of Regent Power. We, therefore, urge that the Regents defer
consideration of his letter of resignation at next Friday's meeting
until next month's meeting when the questions about Regent
Power's position are more clearly resolved.
f The attorney general's report indicates that the present
relationship between Mr. Power and the University implies a tech-
nical conflict of interest which precludes him from being both a
Regent and a businessman. In the interim provided by the tabling
of Regent Power's letter, however, decisions could be made con-
cerning a re-evaluation or restructuring of Mr. Power's business
associations, or any other steps that might be made, which could
end the conflict and ensure his continuing service as chairman of
the Board of Regents.

:.
>.

Regent Eugene B. Power

TROOPS IN JAKARTA:


Army Leader Dismisses Sukarno

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SINGAPORE (P)-Indonesian
President Sukarno has handed
over political power in Jakarta
to the anti-Communist army
chief, Lt. Gen. Suharto, and
apparently has been retained as
figurehead president, highly re-
liable sources said here early to-
day.
The sources, who are in con-
stant touch with developments
in Indonesia, said the pro-Pe-
king first deputy prime minister,
Subandrio, appears to have been
removed from power.
Subandrio's fate was not yet
known, the sources added.

Nasution-is expected to impose'
martial law throughout the In-
donesian archipelago.
They said Sukarno apparently
handed over control of the coun-
try to Suharto some time yester-
day.
U.S. Ambassador M a r s h a 11
Greene, reached by telephone in
Jakarta by the American Broad-
casting Co., said Indonesia's poli-
tical troubles were being handled
in a "peaceful and favorable man-
ner." The ambassador said he ex-
pected the new military authori-
ties to move against the leftists
and added that anti-Communistf
students and the army planned a,
parade in Jakarta as a "show of?
unity."

issued Sukarno an ultimatum to
get rid of Subandrio by Saturday.
They said that Sukarno appar-
ently gave in to the ultimatum.
Sukarno ousted Nasution Feb. 21
from his position as defense min-
ister in an apparent move to re-
gain the power the president lost
after the abortive Communist-
backed coup attempt last Octo-
ber.
Sukarno has been under increas-
ing and violent pressure to get rid
of Communist elements believed
responsible for last October's abor-
tive coup.
In the months since then, the
country's economy has gone from
bad to worse. The ills included#
galloning inflation.

In the past few days, students,
with tacit support from the army,
have sacked the Red Chinese con-
sulate general, the Chinese com-
mercial attache's home and the
Jakarta bureau of Peking's New
China News Agency.
The Indonesian debacle follows
severe rebuffs to. Red China in.
Ghana, where Chinese diplomats,
newsmen and advisers were expell-
ed following the ouster Feb. 24 of
President Kwame Nkrumah, and
in other African countries includ-
ing Kenya.
Sukarno joined with Dr. Mo-
hammed Hatta in proclaiming in-.
dependence from the Dutch on.
Aug. 17, 1945. The Dutch finally
crimar itin 1OAO

versity.)
Regent Power, on August 15,
1956, directed a further letter of
inquiry to Deputy Attorney Gen-
eral Gilmore informing him that
'University Microfilms e m p 10o ys
negative film supplied by the Uni-
versity of Michigan to University
Microfilms for printing and subse-
quent sale at a profit, and asked
'whether this fact altered the opin-
ion as to the second question an-
swered in Gilmore's letter of April
10, 1956. Deputy Attorney General
Gilmore replied under date of
August 22, 1956 by indicating that
the subsequent sale at a profit by
University Microfilms did not in
any way alter the opinion of April
10, 1956.
Following this advice, all con-
tracts between University Micro-
films and the University were
cancelled, and all charges to the
Tniversit wersto mennnd. Bnt .by



-THE ACTING SENIOR EDITORS


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