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Seventy-Six Years of Editorial Freedom
VOL. LXXVII, No. 26 ANN ARBOR, MICHIGAN, SATURDAY, OCTOBER 1 1966 SEVEN CENTS
EIGHT PAGES
Investment Firm
o id Small Business in State
By DAVID KNOKE
A group of Michigan business-
.men, politicians and scientists
M have formed a company designed
to ease the burdens of small busi-
ness corporations, especially those
with a scientific outlook.
Prof. Paul McCracken of the
school of business administration,
a member of the board of this new,
organization, Michigan Capital
and Service Inc., says "the basic
objective of the company is to try.
to spot good ideas for research]
which are still in the embryonic
stages and provide these small!
businessmen with sufficient capi-
tal to get them to the take-off'
point."
The company is trying to pro-
"s tPof small htZCinPCC frnm hPinu lnet..
Thic now rmmnancr hoe fnrmc&A i
LcVL sman oui U eUsoL m ein oms wu 1 i snewco payU nas Uim
amid the tremendous growth of with a $300,000 loan from the
the research and development pro- Small Business Association in
grams. As a source of many inno- Washington to operate as a small-
vations in technology and produc- business investment company. The
tion, research and development loan and license were granted re-
has become big business. cently although the company char-
Both government and private tered itself on April 7.
industry, working through indus- T
trial parks, government labora-i. The company, whose president
tories and universities, have cre- is Neil 0. Staebler, former con-
ated a $20 billion per year complex gressman-at-large and now a
devoted solely to the research and Democratic National Committee-
development of new. techniques man, also boasts a prestigious
and products. board of directors.
In relation to the sheer size of The campaign to create the
such programs with their multi- Capital and Services corporation
million dollar grants and loans, was directed largely by Staebler,
the small company with bright Waldo I. Stoddard, president of
ideas but limited resources too the Michigan National Bank of
often gets stifled. Ann Arbor, and Kenneth Heining-
er, manager of Staebler & Son, an
Ann Arbor firm owned by Staebler.
Heininger has been named gen-
eral manager and treasurer of the
new company. He and Stoddard
are both members of its board of
directors.
gThe beginnings of the company
go back several years, according
' to Heininger. Statebler, Stoddard
and he had noticed that many
private business interests had
consistently sought after capital
backing outside of Michigan. The
SBA support for Michigan was
very small; of some 750 such com-
panies in the country,'only seven
are in Michigan and only about
three of these are still active, ac-
cording to Heininger.
'Our purpose in forming the
company,"'
frankly to
fit to the
said Heininger, "is
see whether any bene-
state may come from
Bright, director of the office of re- Loans and licenses to start
search administration of Wayne small-business investment firms
State University. .havebeen ifficultntnotain ii
'I
encouraging small businesses to Other members of the board in-
remain in the state." clude Eugene B. Power, a former
The men felt it a wise policy to Regent who is chairman of the
bring in people with a technical board of University Microfilms, a
background, as well as those with subsidiary of Xerox Corp., and
a demonstrated history of business Arthur Gustine, retired president
acumen.sof King Seely Thermos Co.
The company is very much in-
Many of the directors, such as terested in promoting spin-off in-
Gordon J. Van Wylen, dean of the ;dustries around established sites,
University's college of engineer- according to Heininger. However,
ing, are associated with the three he said, "We are not going to
largest academic research com- limit ourselves to any particular
plexes in the state. type of business. We are certainly
On the board from other schools going to enter into helping those
are. John W. Hofman, director of whose ideas and past performance
engineering research at Michigan indicates a chance for growth and
State University and John R. expansion within the state."
} 11i4YG uVri1 f11111t.U1L 4V vulla111 111 I
I
recent weeks. The government has
suffered considerable loss in the
SBA program. Much of this was
due to unwise investment choices
and the difficulty in getting a
wide backing by many stock-
holders.
One of the things discouraging
the small-business investment pro-
gram is the reluctance of the gov-
ernment to charter companies
which it has not thoroughly in-
spected. Hence the services of the
academically and legally trained
personnel will be invaluable to
the company in locating sound
prospects.
The loan of $300,000 is made in
the form of a commitment; the
company must pay at the rate of
one per cent per year. The loan
cannot be drawn upon until the
company's own assets reach 60 per
cent of the loan, and then only if
the small business meets SBA
approval.
The Capital and Service com-
pany will invest in the small busi-
nesses primarily by granting loans
and the purchase,, of minority
holdings of stock, or both, accord-
ing to Heininger.
The firm will operate out of its
Ann Arbor headquarters, at 410
Wolverine Bldg. Because the com-
pany received its licensing just a
few weeks ago, its investment in
small businesses has not yet begun.
DESPITE MHEA FAILURES:
Aid Director: 'Funds Available
For Any Qualified Students'
School Paper
Confiscated
In Illinois
Name Change Brings
Anger, Indigliation
From Administration
By CAROLINE MIEGEL
Although 45 per cent of the
state banks have refused to par-
ticipate in the Michigan Higher
Education Authority loan pro-
gram, "no student, if academical-
ly qualified, should be unable to
attend the University for financial
reasons," according to Walter B.
Rea, director of financial aids.
"The loans and grant programs,
state, federal and University spon-
sored that are now in progress, can
meet the actual needs of stu-
dents at the University."
If a student is turned down byj
the state program, he can seek
assistance from federal programs
-the Educational Opportunity
Grants and the National Defense
Education Act loans-or from the
University.
Understhe auspices of the Mich-
igan Higher Education Act of last
June, University students received
$400,000 in education loans this
ment of money for students was
only a small portion of the loans
that can be made through the
new program.
One million dollars has beenSpcatoTeDi
guaranteed for loans under PA 60, Special to The Daily
but due to unrealistic acceptance EDWARDSVTLLE, Ill. - About
of the program by the banks, only 4500 copies of the Alestle, the pa-
a fraction of the loans were grant- uro h dadvlecmu
ed per of the Edwardsville campus
of Souithern Illinis U iv ity
fa
to
to
NEI
ui ouU li nuoi s niversity.,
all. This statute allows students The MHEA authorizes loans to er "eized b h n s at
procure loans from banks vir- students from private banks at a were seized by the university at
uallyinterest free. maximum interest of 6 per cent, its orinter Thursday because the;
Rea emphasized that this allot- But banks can obtain at least 7 staff changed the name of the
per cent interest from short term paper without authorization.
- - loans ,and many smaller banks in
the state are unwilling to perform The staff sought to rename the
a public -service and issue any paper the Spectator after an Ed-
large amounts for student loans, wardsville paper of 1819 through
Rea said. 1826. That paper, Alestle editor
The MHEA pays the six per cent Dale Armstronsi explained, was
interest on the loans and charges! the first in Illinois to oppose
the student only .5 per cent. The slavery.
N S W illIR E student does not have to pay off The paper un 'ier its old name
the principal until he has com- Tpe aer yeserday.
pleted his studies and is permit- appeared later yesterday.
ted between 10 and 15 years to Security Police
reimburse the banks. The loan Armstrong said that SIU cam-
plan is also open to non-Michigan pus security policemen confiscated
-Daily-George Junne
TWO VOICE POLITICAL PARTY MEMBERS are shown in the final stages of their sit-in at Vice-
President Wilbur K. Pierpont's office. Their protest was concerned with the lack of communica-
tions between the organization and the University over the role of police on campus.
C iteLg in.Negotiatons
As Major Cause of Sit-in
-4
THE FAILJURE of the University Payroll Department to issue
paychecks to as many as 40 per cent of the University's teaching
fellows' yesterday may lead to some organized protest next week.
Rumors have been circulating that the teaching fellows who
were not paid will hold a meeting Monday to plan some form of
action demonstrating their dissatisfaction with the Administra-
tion. Several instructors contemplated walking out of their
classes next week to demonstrate their situation.
The Payroll Department is evidently making "a maximum
effort" to get these faculty checks out, according to another
teaching fellow who has not been paid. Most staff members of the
University were paid yesterday, the last day in September.
LLOYD WENDT, editor of Chicago's American, told members
of' the University Press Club yesterday that American cities are
facing a serious crisis in law order. Speaking to the Press Club's
49th annual meeting, Wendt criticized recent Supreme Court rul-
ings as making the job of modern law enforcement more difficult.
* * *'
STUDENT GOVERNMENT COUNCIL this week approved the
final form for the much-debated draft referendum, dividing the
remainder of the issue into two separate divisions.
The first subdivision offers three separate choices to the
voter. He may opt from the following: 1) all able bodied males
must serve; 2) only some able bodied males randomly selected by
lottery must serve; or 3) only some able bodied males chosen on
a selective basis must serve. The third choice also asks the student
to check what 'reasons he deems criteria for deferment.
The second question concerns type of duty, with two choices
presented: 1) all those chosen should serve in the armed forces;
or 2) all chosen should have alternative governmentally-approved
types of service open to them.
residents, but they must pay the copies of the renamed paper after
full six per cent. it had been printed at the Wood
If the student is unable to ob- River Journal plant. They were
tainntat n scheduled to be distributed to
Sit-In Ends;
Pierpont Will
Meet Voice
Other Vice-Presidents
Will Also Discuss
Use of Policemen
By REGINA ROGOFF
Members of Voice Political Par-
ty ended their all-night sleep-in
yesterday after Wilbur K. Pier-
Pont, vice-president and chief fi-
nancial officer, agreed to partici-
pate in an open meeting designed
to discuss the role of police on
campus.
The decision to end the vigil,
begun Thursday night to bring
about changes in the University's
policy of calling in plainclothes
officers to be present during cam-
pus demonstrations, came at 5:15.
University President Harlan H.
Hatcher called the move "a wise
decision" in a statement issued
later in the day.
Other Vice-Presidents
The meeting Pierpont agreed to
attend will be held on Monday and
will include Vice-Presidents Rich-
ard L. Cutler of the Office of Stu-
dent Affairs, Gilbert Lee of the Of-
fice of Finance- and Michael Rad-
ock of the University Relations
Office.
The meeting, which will be open
to all students, will be held at 2
p.m. Monday, in a place to be an-
nounced today.
Edward Robinson, '67, President
of Student Government Council,
played a major role in arranging
the meeting.
Robinson said the meeting will
be sponsored by the office of the
vice-president for student affairs,
the faculty assembly sub-commit-
tee on student affairs and SGC.
Originally, a meeting on the sub-
ject had been scheduled to in-
clude Cutler, the faculty sub-com-
mittee on student relations, and
Voice.
Wanted Pierpont
Voice members wanted the meet-
ing to include Pierpont and the
other vice-presidents. One source
said Pierpont refused to see Voice
members because he felt Cutler
should be the contact with the
students.
On Sunday there will be a meet-
ing between Voice members and
Prof. Leonard Greenbaum of the
engineering English department,
to discuss the agenda for the
meeting on Monday. Greenbaum is
the chairman of the faculty sub-
committee on student relations.
The Voice members have charged
that Cutler has in effect turned
down a two-week-old petition to
investigate the University's posi-
tion on the police issue.
aynrqs fe-spds relon asise
Imay request federal loan assist-
students yesterday.
i.
ance. Last year, 8,420 loans were Armstrong said the staff had By PATRICIA CHOPP
made to University students un- asked the university's printing Daily News Analysis
der the National Defense Educa- and art service to design a new
tion Act. The total amount, $3.6 masthead for the paper, but the' Voice members cite both the
million, marked a 45 per cent in- administration refused to release presence of plainclothes police at
crease over the total of the pre- it to the staff. campus events and the problem of
vious years.TdJh student-administration negotia-
years. ~~The Wood River Journal thentinasrsosfrheri-n
Under the NDEA, the Universitym dns tions as reasons for their sit-in
matches one-ninth of the federal set a masthead in type, Armstong in Vice-President Wilbur K. Pier-
loans and takes liability for 10 continued. After a call to the pont's office yesterday and Thurs-
per cent of the collection loss. The printing plant, the administration day.
student is Charged a three perr .-ITh n t he fact that the
charges, plainclothesmen wereI
again present at a rally on the
Diag.'
I
1
T
i {
i
c
A
cent interest rate only after he
has completed his undergraduate
work and is allowed up to 15 years
to repay the loan.
In addition to its loan program,
the federal government grants
funds for study under the 1965
Higher Education Act. In its first
year of operation, the Education-
al Opportunity Grants gave the
University $194,200 for 340 differ-
ent cases.
Patterned after the University's
own grant program, the EOG
searches out the "culturally dis-
advantaged" student and gives
him anywheire from $200 to $800
for each of his four years of un-
dergraduate study.
iey oppse n at ualu
Old Name Ann Arbor police force has con-
Armstrong explained that the tinually received requests from
old name-a combnation of Alton, the University administration to
East St. Louis and Edwardsville send plainclothesmen to political
where SIU has branches or centers demonstrations on campus. They
-was criticized because it was: ;charge the detectives are not only
meaningless. present at the events, but bring
dnr nnt ..n en rC
When confronted by Voice, Cut-
ler said that the decision to have
police on campus was not actual-
ly his. realm of authority. In fact,
Wilbur K. Pierpont, vice-president
and chief financial officer, had
authority over police requests.
Pierpont has authority in these
matters because his office han-
dles insurance claims on personal
injury and property damage on
campus
However, the OSA has on occa-
sion been the office requesting the
presence of police.
Efforts Blocked
For about a week, Voice says,
their attempts to speak with Pier-
pont were squelched. Finally, on
Thursday, Voice members enter-
ed Pierpont's outer office where
he told them that he could not
deny that the decision to bring
police onto the campus was his.
He added only that Voice could
not speak to him about it, but
should make their . grievances
known to Cutler. He then left.
The Voice members decided to
remain in Pierpont's office until
they were granted the right to
discuss the matter with him. They
see the sit-in as the result of the
demand of a campus organization
to discuss a policy decision with
the person who, in effect, makes it.
It has been submitted, he said,
as a joke when a contest to name
the paper was held in 1960. The
administration had since resisted
efforts to change the name, he
said.
The staff put out the paper un-
der its old name after three fac-
ulty members said it would be
printed under its old masthead
or not at all.
1 along cameras anat ape recur saJ 6
with which they take photographs
of students attending the rallies-
and record what is said.
Richard Cutler, vice-presidentI
for student affairs, says that the
detectives are present on these
occasions to protect the Univer-
sity community from the possibil-
ity of violence.
Voice members retort that plain-
clothesmnen have little chance ofI
stopping a disturbance. They as-
sert that plainclothes police only
intimidate and harass students,
'and that only uniformed police
can prevent riots and other dan-
gerous incidents.
Other Motives
Hatcher
EDITOR'S NOTE: The follow-
ing statement was issued by
University President Harlan H.
Hatcher an hour after Voice
members ended their sit-in yes-
terday.
The members of Voice who
had been occupying Vice Presi-
dent Pierpont's office for near-
ly 26 hours made a wise decis-
ion in vacating that office.
The proper channels of com-
munication had been and re-
main open. In addition, a fac-
ulty committee, the Student
Government Council, and the
Office of the Vice President for
Student Affairs had scheduled
a joint public meeting for Mon-
Statement
day afternoon to discuss the use
of police on campus. Four vice
presidents with responsibilities
in this area have been invited
to attend the meeting.
I hope this small group fully
understands that we will not
tolerate a situation in which
a group of inidividuals take over
a university office, commandeer
its telephones, disrupting offi-
cial business.
We have a responsibility to
the 45,000 members of our stu-
dent body, faculty and staff to
continue normal activities and
we will not abrogate these re-
sponsibilities.
HILL AUD. CONCERT:
Non-B osso Brubeck Intimates Intricacy
M
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-_ -r-V- - - v-v- Voice further suggests that the
use of cameras and tape record-
By JOYCE WINSLOW Not only intricate timing marks ers implies other motives for theirj
his style. Brubeck also uses intri- presence.
So these four men n grey suits cate contrapuntal devices in his Detective Capt. Harold E. Olson,
and conservative dark ties, hswork. This means that two differ- of the Ann Arbor Police Depart-
unpolished and hair receding, ent melodies are played at the ment, replies to this last sugges-
solemnly walked out onto Hill mnrpist hsls ugs
Audiorim'ssta lat nghtandsame time in a piece of music. The tion by saying that cameras and
the atwoimelodiesarundparallelctoleachtape recorders are "working tools";
the audience clapped. They could other. The result is usually har- 'of the department.
have been professors of English monious rather than discordant. To stop police from entering the
ILS.All btoewr lse,
all erydistngushe. No boso, Brubeck makes full use of fugue.' University without the knowledge
cl er istnguis . bN joz bs A particular melody line is played if students, Voice has proposed
coolo or shazamo, but Jazz musi- isby nentrmnhn that police enter the University
cians nevertheless. The Dave Bru- first by one instrument, then t po thUnisrsity
picked up by the other instru-j only in uniform and only with the
beck Quartet. 'ments in rotation. This device' consent of both students and ad-
Dave Brubeck is a family man. aevs t efta of Th rod, ministrators .
Five sons. Paul Desmond would lyiano. drm sax and bas, Voice acknowledges the fact that
look more natural holding a pipe are substituted for human voices. certain situations may require a
than an alto sax. Together with police presence, but they contendI
Joe Morello, drums, and Eugene Most of Brubeck's work reflects that such occurrences can easily
Wright, bass, they play a "to- !the neo-classical influences of the be seen beforehand and prepared
getherness" kind of jazz. French Modern School, and rightly for. Voice feels it should be the
This doesn't make Brubeck any so, for Brubeck studied under the responsibility of the students to-
less of a jazz musician. Part of great Darious Milhaud. gether with the administration to
his charm and individual style is As usual, the Dave Brubeck decide when the University can
Policeman Scoffs at Proposal
To Alter 'U Policy on Police
Detective Captain Harold Olson We have and will appear there as appears to be violated or when a
of the Ann Arbor Police Depart- many or as few times as necessary disturbance occurs," but he did not
ment yesterday called Voice politi- to enforce the law and to main- specify just when such pictures
cal party's proposals on the Uni- tain order." have been necessary in the past,
versity and its relationship with Responding nor what laws were being violated
the police department as "patently In response to student accusa- 'at the time.
ridiculous." tions that members of the Ann Accusations
Voice's proposal calls for the Arbor police force have used Olson claimed that student ac-
joint decision of University au- cameras and tape recorders at cusations of "harrassment and
thorities and students on when the Voice rallies, Olson commented intimidation" by city detectives
police should be called to the that the detectives he commands at a recent program are "less than
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