The Michigan Daily-Friday, January 7, 1983--Page 3
MSU, research group
deny conflict of interest
By FANNIE WEINSTEIN
An audit of Michigan State University
released Tuesday warned there might
be a conflict of interest between MSU
and a related research corporation,
similar to a proposed research enter-
prise at the University of Michigan.
But spokespersons for MSU, the MSU
Foundation, and NEOGEN, its off-
spring research corporation, say the
potential conflict of*'interest is a dead
THE REPORT, prepared by the state
auditor general's office, said the MSU"
Foundation may have violated its by-
laws in 1981 by spending $100,000 to
create NEOGEN, a private research
corporation designed to develop and
market the ideas of MSU agricultural
and veterinary researchers.
The by-laws of the MSU Foundation,
a non-profit corporation supporting
charitable and educational activities,
forbid profit-making ventures.
According to James Laughter,
executive director of the MSU Foun-
dation, the foundation is legally bound
by its articles of incorporation, not its
by-laws. He said the articles allow the
foundation to invest in a NEOGEN-type
corporation and blamed the confusion
on poorly drafted by-laws.
THE MSU AUDIT also said there
were potential conflicts of interest
among personnel of the university, the
foundation, and NEOGEN.
James Herbert, president of
NEOGEN, said there was initially some
overlapping of personnel, but only until
NEOGEN was able to get off the
For example, Herbert said
NEOGEN's interim president before he
took over in June, 1982, was Dr. Willis
Wood, a biochemistry professor at
LAUGHTER, who served several
months as NEOGEN's secretary
treasurer said, although he hadn't seen
the audit, he believed the situation "had
long since been taken care of."
The university appears satisfied that
the possible conflicts have been correc-
"The board of trustees is quite com-
fortable with the creation of NEOGEN
and the intent of its operation," said
Roger Wilkerson, secretary to the
NEOGEN has served as a model for
The University of Michigan's proposed
Michigan Research Corporation.
The MRC, in which the University
would be a minority stockholder, recen-
tly was endorsed by the faculty and is
now being explored further by a com-
mittee of faculty members and local
Officials attempt to save a beached whale spotted near a Georgia island Wednesday. However, the rescue efforts failed.
Reagan signs 1 to boost gas
k tax, rate hike set for April
Dance Theatre Studio
711 N. University (near State St.), Ann Arbor " 995-4242
co-directors: Christopher Watson & Kathleen Smith
day, evening & weekend classes
New classes begin January 10
From AP and UPI
WASHINGTON - President Reagan
yesterday signed a bill which boosts the
gasoline tax by a nickel to 9 cents per
gallon April 1, promising motorists and
mass transit customers a smoother and
safer journey in return.
Flanked by those who pushed the bill
through the lame-duck session of
Congress, Reagan set the wheels in
motion for a $5.5 billion-a-year program
that is expected to put more than
300,000 people to work on the nation's
highways and bridges.
"TODAY, AS this bill becomes law,
America ends a period of decline in her
vast and world-famous transportation
system," Reagan said during a
ceremony in the State Dining Room.
The law also will open many of the
nation's major highways to bigger and
heavier trucks. In exchange, truckers
will have to pay sharply higher use and
Reagan, taking a seat at a table in the
State Dining Room, signed the bill,
"before the bridges fall down.'
"ANYONE WHO'S driven the
family car lately knows what it's like to
hit a pothole, the frustration, expense
and danger caused by poor road main-
tenance," Reagan said. "Woeful tales
of highway disrepair have become part
of the trucking lore. Bridges are crum-
bling from under us in many of our
older cities while growth is being stifled
in our newer ones because the transpor-
tation system can't cope with the ex-
r "It will allow us to complete the Inter-
state system, make most of the Inter-
state repairs and strengthen and im-
prove our bridges, make all of us safer
and help our cities meet their public
transit needs," he said.
Under the law, 4 cents of the nickel
increase will be used to repair and
rebuild highways and bridges. The fifth
penny will go to mass transit programs.
THE NEW 9-cent rate will apply to
gasoline and diesel fuel. Gasohol,
which is exempt from the present
highway tax, will be taxed at 4-cents
Government predicts sharp
lincrease in natural gas
Reagan said the work financed by the
new revenue is expected "to stimulate
170,000 jobs with an additional 150,000
jobs created in related industries."
However, his chief economic adviser,
Martin Feldstein, told him in a memo
last month that the program might
boost unemployment. Feldstein ex-
plained the money taken out of con-
sumers' pockets by the new tax would
cost jobs in other areas while it would
be many months before anyone goes to
work on the roads.
Reagan's action marks the first time
the gas tax has been raised in 23 years.
Hospital fire causes
Thirty-one children were evacuated
from Mott Children's Hospital Wed-
nesday night when a fire broke out in a
linen closet in the hospital's west wing.
No injuries were reported.
A fire department spokesperson said
the blaze was reported about 10:30 p.m.
by the mother of one of the patients.
When Ann Arbor firefighters arrived
several minutes later, the fire had
already been brought under control by
an automatic sprinkler system in the
closet and hospital security officers
armed with a hose.
Hospital officials reported damage to
the closet. The cause of the fire is
Thieves forcing their way into a local
jewelry store late Wednesday night got
nothing for their efforts, according to
police. Burglars broke into the Golden
Chains Inc. store at 3016 Packard St.,
ransacked an office, then fled after ac-
tivating an alarm, police said.
Storeowners reported nothing missing.
Police say they are continuing their in-
Dance Theatre Studio offers a complete schedule of
Modern, Ballet & Jazz classes for adults and Ballet and
Creative Movement classes for children. Our studio, across
from the UM campus, is staffed by experienced,
WASHINGTON (AP)- In gloomy
news for Americans who heat their
homes with natural gas, the Energy
Department yesterday revised upward
the already steep price increases
predicted for the rest of the winter.
The forecast now envisions
homeowners' bills climbing by 25 per-
cent in the first three months of this
year compared to the same period last
IN ITS "Short-Term Energy
Outlook," the department predicted a
price of $6.17 per thousand cubic feet-
20 cents more than the projection DOE
made just three months ago.
Consumer groups said the depar-
tment is at last recognizing that prices
are rising much faster than anyone had
expected because of contract mistakes
committed by many of the country's in-
In the first three months of 1982, con-
sumers paid an average of $4.93 per
thousand cubic feet. Since then; many
interstate pipelines have been caught
between slumping demand caused by
the economic recession and contract
clauses that require them to pay for a
certain amount of gas whether they
have a market for it or not.
IN MANY cases, pipelines have
closed wells producing low-cost gas and
passed on to consumers the costs of the
expensive gas they are buying.
In November, the wholesale price of
natural gas posted its steepest jump
since early 1980, rising 5 percent in, a
Members of Congress, outraged over
steep gas prices coming despite record
surpluses, introduced more than 150
bills last year to change the law. The
most militant call for an immediate
freeze on prices and forced
renegotiation of contracts between
pipelines and producers.
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The Tae Kwon Do Club will provide a martial arts demonstration today at
7 p.m. in the CCRB Activities Room.
Public Health-Danger! Radioactive Waste, 12:05 p.m., SPH II Aud.
Cinema Guild-A Clockwork Orange, 7, 9:30 p.m., Lorch.
Cinema II-The Last Waltz, 7,9:05 p.m., Angell Aud. A.
AAFC-Alien, 7, 9:15 p.m., MLB 4.
Hillel-Mark Wilkinson, "The Diaspora: Jews in Shanghai?" 7:30 p.m.,
1429 Hill St.
Anthropology-Louis Marano, "Windigo 'psychosis': the ethnographic
context and some ethnohistorical cases," 4 p.m., 2003 Angell.
Univ. Duplicate Bridge Club-New players welcome, 7:15p.m., League.
Int'l. Student Fellowship-Open to all foreign students, 7 p.m., 4100 Nixon
League-Int'l. Night, Greece and Turkey, 5 p.m., League.
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That's where we hide the frames,
trade books, art prints and posters.