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January 24, 1994 - Image 1

Resource type:
The Michigan Daily, 1994-01-24

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One hundred three years of editorial freedom
Fraud allegations investigated under the Statement


This is the first in a series offour
reports this week in which the Daily
will examine specific cases brought
against students under the Statement
of Student Rights and Responsibili-
The annotated story of the State-
ment of Student Rights and Responsi-
bilities sits in a three-ring binder in
the office of Barbara Olender.
This story is told in 20 chapters,
each one the tale of a case resolved
Bentsen Says
China will
.keep favored
trade status
BEIJING(AP) -The biggest busi-
ness sin a Texas horse trader can com-
mit is to be fooled into buying the same
horse twice.
But Treasury Secretary Lloyd
Bentsen, a Texan and no fool, seemed
eager to give China credit all over again
for a human rights concession it made
two years ago - agreeing to let U.S.
officials visit prison factories to ensure
they are not exporting to the United
"I trust that this pattern of coopera-
tion will continue," Bentsen said in
ise to allow U.S. visits to five prisons.
He didn't mention that the visits should
* have been allowed months earlier un-
der a 1992 agreement.
Bentsen's remarks showed the
Clinton administration's eagerness to
find a way out of its commitment to cut
off China's low-tariff trade status if
China does not make "overall, substan-
tial progress" on matters such as ac-
counting for political prisoners and re-
laxing repression in Tibet.
Since Clinton made that commit-
ment, China has mostly ignored his
human rights checklist and focused on
wooing U.S. companies.
The companies, in turn, have put
pressure on Washington to renew
China's most-favored-nation (MEN)
status in June, knowing they might be
shut out of billions of dollars' worth of
sales and contracts in China if MFN is
During his four-day visit last week,
Bentsen repeatedly held out the pros-
pect of ending the annual renewal or-
deal and giving China permanent, un-
conditional MFN-if they make some
concessions and help Clinton save face.
The outlines of a deal are already
See CHINA, Page 2

through the code of non-academic
Four of these chapters describe
investigations into allegations of fraud
against the University.
In four cases, three students have
been investigated for fraud and the
unauthorized taking or possessing of
property or services. Two of these
students are studying at the graduate
In case 93-020, the members of a
student organization filed a case
against their student treasurer on
March 29, 1993. They accused the

viser of the code, also investigated.
The organization determined that
the treasurer should return the
money and make a formal apology.
The student complied.
Antieau found insufficient evi-
dence to continue an investigation
under the code because restitution
had been made. She dropped the
Case 93-029 is an identical case.
Again, members of a student orga-
nization accused their treasurer of
embezzling several thousand dol-
lars, a portion of which came from

the Office of Student Affairs.
Case 93-021 appears to deal with
the same student organization. On
the same date, the president of a
student organization was charged
by members of his organization with
the embezzlement of several thou-
sand dollars. A grant from the Of-
fice of Student Affairs accounted
for a portion of the embezzled funds.
The summary states the student
returned the money.
In case 93-022, a student ac-
cused a fellow member of a student
organization with falsifying docu-

ments of the Student Organization
Accounts Service (SOAS).
Antieau dropped the case be-
cause the SOAS did not consider
the documents fraudulent.
These four charges of fraud that
were dropped during investigation
are a fraction of the 20 charges
dropped during investigation be-
tween Jan. 1,1993, and Oct. 8,1993.
The judicial adviser investigated
a total of 74 charges relating to 44
cases. A student may be charged
with more than one violation in a
single case.

treasurer of embezzling several thou-
sand dollars from the organization's
The organization engaged in an
internal committee investigation of
the questionable bookkeeping while
Mary Lou Antieau, the judicial ad-


Clintons' tax deductions
were for losses on interest

Most of the $68,900 that President
and Mrs. Clinton say they put into the
Whitewater real estate venture in-
volved interest on loans they took out
for the company and were subse-
quently able to deduct from their per-
sonal income taxes.
According to tax records and in-
terviews with Clinton advisers, the
Clintons deducted at least $41,000 on
tax returns from 1978 to 1988 for
interest on loans for Whitewater De-
velopment Co. Inc.
The Clintons' prime financial role
at Whitewater appears 'to have been
paying this interest for a money-los-
ing company they co-owned. And like
most Americans who make loan or
mortgage payments, they took the
interest deductions.
This may explain why the Clintons

never declared a $68,900. capital loss
on their income taxes, as some critics
have questioned.
The deductions included $19,021
in interest payments itemized on the
Clintons' 1980-91 tax returns that they
had made public in 1992. They also
deducted about $10,000 in
Whitewater-related interest in 1978
and about $12,000 in 1979, according
to White House senior adviser Bruce
Lindsey and Denver lawyer James
Lyons, who reviewed Whitewater for
the Clinton presidential campaign in
The Clintons have not released
their 1978 and 1979 tax returns, but
Lindsey and Lyons confirmed the fig-
ures in interviews with The Associ-
ated Press last week.
The Clintons began Whitewater
in 1978 with James and Susan

McDougal to develop a retirement
and vacation community in the Ozark
Now federal authorities are inves-
tigating whether funds of the Madi-
son Guaranty Savings and Loan that
James McDougal owned in Arkansas
were improperly diverted to other
entities, or used to pay political or
personal debts of prominent Arkan-
sans, including then-Gov. Clinton.
The Clintons and McDougal have
denied wrongdoing.


Jan DeBoer listens while children rally for the "Walk a Mile in Stephanie's
Shoes" campaign at the courthouse. Jessica's new name is Stephanie.

Public gets rare glimpse of treasures in museum vault

It wasn't publicized as much as
Geraldo's ill-fated opening of Al
Capone's vault, but it certainly was
much more successful.
Yesterday's once-in-a-lifetime
peek at the University Museum of
Art's vaults was attended by nearly
1,000 people from across the state.
Many more were turned away.
Those lucky enough to have little
white slips of paper serving as tickets
were granted access to a large room
filled with moving metal grates that
held several hundred previously un-
seen paintings.
The occasion for the opening was
the 25th anniversary of the founding
of the Friends of the Art Museum.

The group raises money for the mu-
seum -$40,000 to $50,000 annually
- and urges alums and others to
donate paintings to the museum.
The last time members could re-
call the museum opening its vaults to
the public was 14 years ago.
"It is a unique opportunity that
members of the public are almost
never allowed at other museums,"
said Richard Shamerlin, a member of
the Friends council. "It really is quite
In all, the art museum has 14,000
pieces of art and less than one-tenth
are on display at one time. The major-
ity are stored in the vaults, but some
are kept at an annex storage facility.
Most of the drawings were en-
cased in paper to prevent exposure to

light, which might fade them.
Thousands of pieces of Asian art,
from tea bowls to wood carvings,
were on display. The University mu-
seum is widely regarded as the pre-
miere site for restoration of Asian art.
The council's members reflected
on the plan to build a new art museum
"within five years."
Wayne Kilbourn, a museum
staffer, said the new complex - on a
site yet to be determined - would
comprise exhibits from the Kelsey
and Natural Science museums.
The museum, which sits on State
Street opposite the Union, was origi-
nally home to the alumni center.
Museum security was tightened
for the event because many priceless
works sit in the vault. The elaborate

security system the museum employs
in the exhibition halls is not installed
inside the vault.Ut
Among the paintings on display in th n i i gsm
the fire-proof vault are three .of the than 14,000 paintIngs,
four Picasso's recently donated by drawings and other objet,
the Robert Walker Foundation. Less than 10 percent of
A painting by the noted 20th cen- art objects are on display'at
tury German painter Emil Nolde, n time
tur Node UYesterday's -opening t ,,
"Egyptian Women," was also dis- public was the first in
played yesterday. pears
Nearly 20 years ago, a thief stole
the painting and replaced it with what d Among the palntngs n.
museum staffers called a poor forg- of the four Picassos, vaued,
ery. Because it was skillfully placed at more than $3.5 nlli.
in the frame, the real painting's ab- * While the vault is nowr
sence was not immediately known. closed to the public, scholrs
By a "stroke of good fortune," the are still free to use it
police caught the thief and the paint-
ing was returned.
U.N. to investigate
Gerany's human

*Fraternities, sororities kick 1
off Winter Rush program

Seeking to make the University
smaller and more personable, fraterni-
ties and sororities began Winter Rush
* yesterday.
For the next two weeks, fraternities
will hold hours when rushees can come,
meet the members and tour the house.
Rushees go to as many houses as they
want on any day.
"It's an informal atmosphere.
There's enough pressure involved with

Sigma Chi is conducting its first
rush since getting off a two-year proba-
tion. Numbers have been down, mem-
bers said, and they hope they will go up
this year.
"I don't think anyone would be that
crazy to ignore a big effort on our part to
keep up the house as well as we have
over the last two years with everything
that we had working against us," said
Fisher, an LSA senior.
On the first night of rush, rushees
said they wanted fraternities to make

g In an unprecedented
move, U.N. tribunal
calls Germany to
answer for violence
against foreigners by


in Bonnconfirmed Saturday that com-
plaints against Germany would be
heard soon by a low-level committee
of the 53-member human rights body
in Geneva.
She said it was "very unlikely"
that Foreign Minister Klaus Kinkel
wAld nersnalt annear befnre the

i \ll": ritiy M "' r '

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