BUILDING AN EMPIRE: Eighty-Six Years of Editorial Freedom 420 Maynard St., Ann Arbor, MI 48104 Wednesday, April 7, 1976 News Phone: 764-0552 Edited and managed by students at the University of Michigan Dangerous lab research still continues uncheckied Smith By DAVID ROTHMAN WASHINGTON, D.C. (PNS) -Or of the people who best exemplifi Washington's "old boy" network si neither in the White House, the Cabins or the Congress. In fact, he is not a elective or appointive official of an kind. Few people outside Washingt( have even heard of him. His name is Charles E. Smith: ti federal government's largest supplier( office space - and a good examp) of how Washington insiders operate. A small, charming Russian immigrar in his 70s, Smith is now more or les retired and lives much of the tim outside Washington. But his empire ar friends-who include a slew 'of notable ranging from Sen. Abraham Ribicofft Supreme Court Justice William Brer nan - remain an integral part of lif here. houses ginia. He and a host of other news- men - ranging from political column- ists Evans and Novak to Washington staffers of the Manchester Guardian and Kansas City Star - are Smith's tenants in an office building near the White House. Cross the Potomac into a hilly sec- tion of Arlington, Va. One past investor in Charles Smith's Key Building there - a 12-story skyscraper occupied by the CIA - was Sen. Ribicoff, the Con- necticut Democrat who sat on, and now chairs, the Senate Government Opera- tions Committee that helps oversee the General Services Administration (GSA). The GSA finds and rents most govern- ment office space. Other Key Building' investors have included Justice Bren- nan, prominent D.C. judge David Bazelon and the late federal judge Simon Soberloff of Baltimore. A long investigation has uncovered AST WEEK IT WAS LEARNED that the U.S. Air Force will not con- tinue its contract with the Univer- sity's Aerospace Engineering Depart- ment for fuel cloud explosion re- search, following the curtailment of its present funding on May 20. Although this knowledge was wel- come to those on campus who oppose such weapons-related research, the victory may be hollow since other potentially harmful research con- tinues unchecked here as well as at other universities all over the coun- try. For example, just this January the University Senate's Research Pol- icies Committee approved, by a wide margin, a classified research proposal concerning a sophisticated tactical radar system also funded by the Air Force. The proposal was known to be the same type of radar used on fighter jets. The problem is that, although there are regental guidelines which prohibit any research "the probable result of which . . . is to destroy hu- man life or to incapacitate human beings," the vagueness of the rule prevents its use in preventing any but the most blatantly destructive proposals. In the gray areas are hun- dreds of studies which make use of Defense Department monies to de- velop scientific methods related to those used in weapons - but which also have potentially beneficial re- sults. Another problem is that scientists and professors, dependent on grants for their own research, make up a majority on the Research Policies Committee. Thusitis not to be expected that they would disapprove research for their colleagues when the guidelines do not specifically prohibit it. THE GENERALLY LACKADAISICAL attitude of the student commun- ity is a contributing factor to the University's permissiveness on re- search whose connection with harm- ful weapons is even the most tenuous. The regental guidelines must be strengthened to clear up the Uni- versity's position on such possibly harmful studies. The Research Poli- cies Committee must end its back- scratching attitude toward granting the research. And it is crucial that students begin to keep more of a close and interested eye on Univer- sity research if they wish to prevent development of new and even more terrible weapons than those already at the disposal of the U.S. armed forces. US. s power base 1....... .... lh.+'. . . 111 J. .....v.......... . " 'Turn to the Post style section. Humor columnist Art Buchwald invested $24,000 in Smith property in Vir- ginia. He and a host of other newsmen - ranging from political columnists Evans and Novak to Washington staffers of the Manchester Guardian and Kansas City Star - are Smith's tenants in an office building near the White House.' ".x ,41 ..Y..,. .:'::. . .!. ","vf.14.J.F:::'~t::4.J.:t ".!""'.;.J":'y{t":'::V*v..: .'.'J"1:".."." Am mmm KY : J by J tJm a .. t"".SVJ.44sm : :t:"4::::"i }": was ranking minority member of the House Public Works Committee-which approves funds for federal building pro- grams. CHARLES E. SMITH amassed most of his tax-supported empire during the Kennedy and Johnson administrations, after meeting a Who's Who of politicians and judges in Washington.. Through charity work, he met the wife of then-U.S. Court of Appeals Judge David Bazelon. Through the judge, Smith met Ribicoff; Arthur Goldberg, who served on the Supreme Court and later as U.N. ambassador; Abe Fortas, an intimate of Lyndon Johnson and a Supreme Court justice before resigning under conflict-of-interest allegations; and Justice Brennan. In each case, with these men and others, Smith showed a knack for turn- ing powerful friends into investors. While Fortas and Goldberg apparent- ly never put any money into Smith property leased by the GSA, Brennan, from 1964-67, held a 2.16 per cent lim- ited partnership in the same CIA-occu- pied Key Building in Virginia that Ribi- coff helped back. The case of Ribicoff especially il- lustrates the financial, social and politi- cal ties that Smith has cultivated with official Washington. FROM 1963-68 RIBICOFF had a 2.88 per cent limited partnership interest- with $20,000 - in the Key Building. Smith in 1964 wontthe lease on the building, at more, than $400,000 annual rent, and began collecting the next' year. Contrary to its own instructions, the lease did not list the building's part- ners. And rather than naming Ribicoff, Arlington County partnership records named a "David Kotkin, Trustee," a past law partner of Ribicoff, in his place. The lease also violated its own Para- graph 11 prohibition against renting from congressmen unless they are involved in incorporated companies. Smith, and Ribi- coff were involved in a partnership, not a corporation, Paragraph 11 is based on Section 431 of Title 18 of the U.S. Code, which pro- vides fines of .up to $3,000 for viola- tions. But because the law's statute of limitations is five years, and Ribicoff withdrew from the partnership more khan seven years ago, he could no longer be prosecuted. ACCORDING TO RIBICOFF, a cap- ital gains tax canceled out any profits he made on the Key Building. But he continued investing in Smith's non-gov- ernment-leased property. And in 1973 when Ribicoff set up a "blind" trust for himself after reporters began ques- tioning his financial holdings, the trust did not sell his shares in Smith's prop- erty. The trust is run by a bank on whose board Smith's son Robert sits. Estimates of the value of Ribicoff's interests turn- ed over to the trust have ranged from $100,000 to $250,000. Smith replied in late 1974 to gations of impropriety this way: know GSA like we do, nobody influence them. It has to go right the line, all the way." alle- "You could down Tenants Union strike ends successfully, triumphantly Twenty-three buildings maintained by Charles E. Smith Management, one of his companies, house some 16,000 fed- eral workers - more than half a Pen- tagon full. SMITH'S BUILDINGS and those own- ed wholly or partly by his business associates collected a quarter of the Washington-area rent paid by the federal government in 1974, Federal Times re- ported. Smith Management alone took in over half of that - roughly $15 mil- lion in taxpayers' money - from its government leases. Drive through the fashionable busi- ness district near theWhitesHouse and you will pass the buildings of Smith and his friends. Park your car and your money will quite likely end up in the coffers of Kingdon Gould and Dominic Antonelli, banking and real estate associates of Smith who own the giant PMI parking empire. Read your Washington Post. Although the front page has run exposes of al- leged improprieties at Madison National Bank, which Smith helped found and which has financed some of his ven- tures, real estate editor John Willmann has extolled Smith's projects in his own section. Willmann owns $1,300 of stock in Madison National Bank, having bought into the bank when it was founded in 1963. TURN TO THE POST style section. Humor columnist Art Buchwald invest- ed $24,000 in Smith property in Vir- no proof that Smith's contacts with Ribicoff and others have led to his federal contracts. Nor is the main is- sue whether the federal government has gotten a good deal in renting from Smith. Rather, it is whether the gov- ernment got the best deal. The dif- ference between good and best can add up to millions: The GSA is now pay- ing landlords all over the country about $375 million in annual rent. THE INVESTIGATION has revealed, however, that Smith has prospered as Uncle Sam's landlord while: 0 Making large political contributions rto Influential Republicans and Demo- crats alike; " Enjoying helpful decisions from the GSA; * Bringing well connected people into his real estate partnerships. The Smiths - including son Robert Smith and son-in-law Robert Kogod, both now partners - have portrayed themselves simply as public-spirited contributors who act as a family in "virtually all things that are charitable ,. community, civic, political." But the Democratic Smith and Kogod gave at least $70,000 to Richard Nixon in his 1972 campaign. They each gave $3,000 to Ribicoff's 1974 reelection cam- paign. And in 1970 Smith spent $900 on then Florida congressman, William Cramer's unsuccessful race for the Sen- ate. Cramer, a conservative Republican, r nrr rrr rr rrrr rr r -- THIS IS YOUR F.B.EYE But Smith, a stranger when he first came to Washington from New York in the 1940s, has come a long way since' first befriending the powerful. Smith once had trouble arranging sewer connections because, as he puts it, he didn't know the "right people." Today the "right people" are Smith's good friends. David Rothman is a Washington based freelance investigative reporter who writes for 1NS, the Nation and the Progressive. E RECENT SETTLEMENT of the four-month-old Trony rent strike must rest very well with its organitz- er, The Ann Arbor Tenants Union, and for good reason. In addition to the handsome con- cessions won for the striking tenants, the Tenants Union won for itself a prize never before enjoyed by the stu- dent run organization - recognition by a rental agency as sole bargaining agent for its tenants. And a new grievance procedure won by the Tenants Union gives fu- ture Trony tenants a larger part in the solving of tenant - landlord dis- putes, particularly with the old stickler, maintenance problems. THE SETTLEMENT not only stands out as a glowing achievement for the Tenants Union, but a victory for all those who rent in Ann Arbor. Hopefully, the strike action will set a precedent in town for both land- lords and tenants by increasing ten- TODAY'S STAFF: News: Michael Blumfield, George Lob- senz, Jenny Miller, Jeff Ristine, Tim Schick, Jim Tobin, Bill Turque, Barb Zahs Editorial Page: Michael Beckman, Stephen Hersh, Lois Josimovich, Tom Stevens Arts Page: James Valk Photo Technician: Steve Kagan ant involvement in what concerns them greatly - the condition in which they are forced to live. It is refreshing to see that some people in town not only care, but take some action against what student renters are forced to endure in this substandard housing market. We applaud the Tenants Union members for the hard work they put in to bring the strike to a successful close, and for their devoted efforts to revolutionize the Stone Age con- ditions of Ann Arbor's housing mar- ket. Fditortal Staf ROB MEACHUM EBILL TURQUE Co-Editors-in-Cbief JEFF RISTINE.............Managing Editor TIM SCHICK Executive Editor STEPHEN HERSH ............ Editorial Director JEFF SORENSEN ................ Arts Editor CHERYL PILATE .............. Magazine Editor STAFF WRITERS: Susan Ades. Tom Allen. Glen Allerhand, Marc Basson, Dana Bauman, David Blomquist. James Burns, Kevin Counihan, Jodi Dimick, Mitch Dunitz, Elaine Fletcher. Phil Foley. Mark Friedlander, David Garfinkel, Tom Godell, Kurt Harju, Charlotte Heeg, Richard James Lois JosImovich, Tom Kettler, Chris Kochmanski, Jay Levin, Andy Lilly, Ann Marie Lipinski, George Lobsenz, Pauline Lu- bens, TeriManeau, Angelique Matney, Jim Nicoll, Maureen Nolan, Mike Norton. Ken Par- sigian, Kim Potter, Cathy Reutter, Anne Marie Scfliavi, Karen Schulkins, Jeff Selbet, Rick Sobel. Tom Stevens, Steve Stojic, Cathi Suyak, Jim Tobin, Jim Valk, Margaret Yao, Andrew Zerman, David Whiting, Michael Beck- man, Jon Pansfus and Stephen Kursman, I To The Daily: THERE IS A leaflet ci ing around campus false tributed to the Student 0 ing Committee. This lea poorly typed, sloppy jo not produced by the SO{ does it express the views organization. Written in cal" jargon rhetoric, motes views that distort pose the interests of the For example, SOC is p ed as planning the dorm1 and favoring elimination third of the teaching assi opinions diametrically o to the interests of the SO didates. This malicious represe of our views is one in line of anonymous leaflet derously attacking the S Organizing Committee a members. Student Organizin Committee April 6 To The Daily: THE CONTINUING w revelations about the CI vert activities - fromt mala in 1954, to Chile in1 prove that this organiz fundamental task is tot social change perceiv threatening to U. S. int and to suppress politica sent both at home and a The CIA has finance helped install dictatorsi governments of Iran, guay, Chile and many countries. It has spied o infiltrated numerous politi ganizations in this country Mothers for Peace to the Letters SOC Liam Gamson (Sociology), Zel- da Gamson (Residential Col- rculat- lege), Herbert Hames (Ger- ely at- man), Robert Hefner (Psychol- rganiz- ogy), Max Heirich (Residential flet, a College), Kenneth Langton (Po- , a litical Science), Les Owens His- b was tory), Marc Ross (Physics), f he Joel Samoff (Political Science), of the Ruth Simmons (RC), Alan Wald it pro- (English), Robert Weisbuch or op- (English), Thosas Weiskopf SOC. (Economics), Ernest Young resent- (History), Marilyn Young (His- lottery tory). April 6 of onetea s stants tnns ppose To The Daily: C can- IT IS ALL to easy to ignore student government but their ntation effect on student groups is a long strong. Both MSA and LSA have :s slan- supported the Tenants Union tudent and their assistance has helped nd its us get on our feet. The tenants Union voted at g its general membership meeting to give full support to the mem- bers of PESC, the Program for Educational and Social Change, CIA in the coming election. Dan Be- Jesky and Dick Brazee, the can- ave of didates for President and Vice- A's co- President respectively, have Guata- long been advocates for tenants 1973 - and dorm residents. ation's Last spring they worked on thwart the Rate Study Commission and ed as produced a report which con- erests, vinced the Regents that a dorm al dis- increase was not required. This broad. report was an important boost d and to the tenants movement in its in the early stages and showed that Uru- students themselves did more other conscientious work than hired n, and bureaucrats. Jodi Wollens, an- cal or- other member of PESC wns on , from the steering committee of the Black TU and helned organize the to ing committee its unanimous; SOC, we feel, supported student group has worked with the TU advocate for tenants and residents. SOC has mad into a meaningful organ and it is important tha influence remains strong In order for student g ment to do its part in ch the Ann Arbor housing sit students who are con with the issue of housing be elected. We urge st to vote in MSA and LS1 tions and do their part f proved housing. Anh Arbor Tenan Union April 6 To The Daily: I WOULD LIKE to a name to the growing list ple who feel that the so Ann Arbor Hash Bash is gusting event that dis Ann Arbor and studentsi eral. To suggest that s are the major compon this yearly debacle is m ing and absurd. Most s that I have talked to ignore the "festival", re with a kind of detached ity, or are appalled by t level of the proceedings very disconcerting' to be ing to class and be har by roving packs of adol who have skipped sch come to Ann Arbor for t pose of getting stoned.I mance of teenage group ity totally escapes m adults to smoke ma among other adults is a from encouraging child of the TU support fo has consi The Dai voted I was two." In the article you r SOC. also quoted a woman who said stently that she gave her four year old ps and child a "toke or two". Such a as an journalistic policy is not only I dorm grossly irresponsible but also e MSA is indicative of an amazing lack iization of perceptiveness of the staff t their of the Daily. To accept and pa- rade destructive behavior as a govern- social norm or to imply that anging such behavior represents a posi- uation, tive force is to be guilty of mor- cerned al nihilism. g must If the duty of a newspaper is tudents to be absolutely objective in re- A elec- porting the news then the ar- for im- ticle that appeared on April 2 concerning the drug festival ts could have been considerably shortened. For *example, it might have read something like hash this: Today in Ann Arbor approxi- dd my mately 5000 adolescents, street of peo- people and high school students )-called gathered to take drugs and a dis- drink beer in the rain on the credits University of Michigan diag. in gen- About 50 students looked on tudents while roughly the same number ent of participated. mislead- But if you feel as I- do that tudents a newspaper should exercise either some form of leadership then gard it the article might have read: curios- Today was a sad day in Ann he low Arbor. We students, because of it is our ambivalent attitudes, have walk- allowed ourselves to lend re- angued spectability to a shabby display escents of exhibitionism and juvenile ool to delinquency. By not voicing our he pur- objections we have encouraged The ro- children to skip school, take toxic- drugs and be exploited by psy- e. For chonathic young adults. There, rijuana will not be another one of these far crv drug festivals next year without ren to a protest. MSA To The Daily: THE DAILY HAS been bought off again. How else can one ex- plain their persistent support of mandatory funding, especially considering that, last term, over 60 per cent of the student voted for voluntary funding. The Daily claims that "There doesn't seem to be much danger of (corruption) happening under the present MSA system. Unfortunately the MSA sys- tem is not significantly differ- ent from the SGC system - ex- cept for the name. Furthermore, in the same issue as the Daily's editorial, Bob Garber, Pres. Comm FOR HONEST STU- DENT GOVT. and MSA candi- date on the SCREW MSA ticket, exposed the corruption that con- tinues under MSA. In the last two months MSA has used stu- dents' money to finance their own campaign for mandatory funding, and in doing so, they have violated campaign elec- tion codes. MSA has deliberate- lv oversnent the $60 campaign limit snecified in its own code. In fact, they have. spent well over $100 just on three large Daily ads alone. But most out- rageois and shocking of all was their imnneachment of the entire Centrl Student ,idieiarv ourt, in order to avoid, litigation for illeagllv collecting student d'ies. The corruntion continues. Stu- dents are only going to get re- snonsible government if MSA is forced to be resnonsive to the ne-ds of its constit1ients. How- e-er, as long ns funding is man- dnfrvthernrlr ol;icans m