MANSFIELD OFF-BASE ON INTEGRATION See Editorial Page YI L Ink4r ig~ :43 tii BRISK High-55 Low-40 Generally cloudy; rain unlikely 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 Y p9 V ' . h.. v f. ''( tY ' ' i: i': ', v .. .:: _ : '.:. ..v......:::. -_ -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 l <, s' - i ,