The Michigan Daily - Thursday, October 20, 1994 - 3
.Trooper offers partial support for Whitewater allegations
The Washington Post
WASHINGTON - An Arkansas state
trooper said yesterday that in the mid-'80s he
heard Bill Clinton urge the owner of a lending
company to make a $300,000 government-
backed loan to the wife of Clinton's partner in
the Whitewater real estate deal.
The account by Trooper L.D. Brown, who
was close to Clinton until the two had a falling
out over Brown's job, offers partial support
forthe most direct allegation against President
Clinton under investigation by independent
counsel Kenneth W. Starr. The charge that
Clinton tried to arrange a Small Business
Administration loan to an unqualified bor-
rower in part prompted the special prosecutor's
investigation into Clinton's personal and cam-
paign finances in Arkansas during the 1980s.
* David L. Hale, the owner of the lending
company, has alleged publicly that Clinton
Starr: Clinton pushed for loan to business partner's wife
and James B. McDougal, Clinton's former
business partner, pressured him to give the
SBA loan to McDougal's wife, despite the
fact that she was not disadvantaged, as the
SBA requires and the proceeds were not used
as intended. Hale's attorney has said there
were witnesses to Hale's meetings with
Clinton, but has declined to identify them.
David Kendall, Clinton's attorney on
Whitewater, said yesterday, as he has previ-
ously, that Clinton never discussed the loan
with Hale. McDougal also has denied that
Clinton tried to arrange the SBA loan.
Kendall said Brown has had "an ax to
grind against the president for a long time.
His recent false assertions about confessed
felon David Hale are another attempt to chop
away." George Stephanopoulos, senior adviser
to Clinton, said Brown "has got an absolute
history of credibility problems" and hostility to
Clinton. Brown previously has made public
allegations about Clinton's personal relation-
ships with women. He said yesterday he has
been reluctant until now to speak out about the
alleged conversation with Hale, because he
was concerned he might lose his job with the
Arkansas Gov. Jim Guy Tucker this spring
sought Brown's transfer from an elite, special
investigations unit to the highway patrol sec-
tion of the state police, saying he was un-
happy with Brown's performance on a high-
profile case. Brown, who is suing to get his
old job back, contends he was demoted be-
cause he talked to federal investigators about
financial dealings of Clinton and Tucker, also
under investigation in the Whitewater probe.
According to two former members of then-
Arkansas Gov. Clinton's security detail, Brown
enjoyed an unusually close relationship with
Clinton as a security officer during the early
The relationship soured after Clinton de-
cided not to appoint Brown deputy director of
the state crime lab, a job Brown said he ex-
Brown said he has told investigators for
Starr of the brief meeting between Hale and
Clinton and has also turned over his personal
diaries, although he said he never wrote about
the encounter. The Washington Times, citing
federal law enforcement sources, reported yes-
terday that Brown told the special prosecutor's
staff that he overhead Clinton press Hale to
maketthe SBA loan. Hale. who pleaded guilty
in March to mail fraud and conspiracy to de-
fraud the SBA on other loans, has been cooper-
ating with the independent counsel for some
months. His firm. Capital Management Ser-
vices Inc., was licensed by the SBA to make
government backed loans to disadvantaged
Hale has contended that McDougal wanted
him to lend $300,000 to an advertising com-
pany owned by his wife as part of a larger
scheme to clean up the books of McDougal's
failing thrift, Madison Guaranty Savings &
Loan. At least some of the loan money was
used to buy land in the Whitewater
corporation's name. The loan was never re-
By AMY MENSCH
Daily Staff Reporter
Expanding companies came to
present their new ideas, innovative
products and services to potential in-
~stors at the University's 15th an-
'Mal Capital Growth Symposium. The
Business School's symposium is one
of the longest-running venture capi-
tal symposiums in the country.
The companies were screened,
selected and aided in the develop-
ment of their presentations by the
University's Office for the Study of
Private Equity Finance, who spon-
jored the event.
The companies paid $325 for one
person to attend the symposium and
$195 for each additional person in the
firm and were "either in the early stages
and post-start up periods, or they were
established firms that wanted to ex-
pand their current operations, intro-
duce new products or supplement bank
funding," said Prof. David J. Brophy,
director of the Office for the Study of
j vate Equity Finance.
The conference is an attempt to
promote Michigan companies. The
14 companies that attended adver-
tised their cutting-edge technology in
computer software, interactive me-
dia, biotechnology and even paper
products. The symposium, which at-
tracted investors from across the coun-
try, was considered to be a great suc-
Larry Greene (left) listens to a presentation during the 15th annual
Capital Growth Symposium, yesterday.
By ALLAN IZIKSON
For the Daily
Today the Kelsey Museum of Ar-
chaeology officially opens its doors
to the public after a 18-month hiatus.
The museum will feature a new exhi-
bition, "Byzantium, University of
Michigan Collections and Expedi-
This opening will also mark the
beginning of the 20th annual Byzan-
tine Studies Conference, sponsored
by the Rackham School of Graduate
The museum's new exhibition will
feature a number of precious gold
coins from the Byzantine Empire and
two special pieces of papyri.
After remaining closed for more
than a year, some students are looking
forward to visiting the museum.
"I walk by (the museum) all the
time, but it is always closed," said
Judie Kaiser, an LSA junior. "I think
it would be really interesting to see
what's inside it."
The Byzantine conference, which
also opens today with an evening re-
ception at the museum, will last until
Before the reception, Prof. Eliza-
beth Clark, who teaches religion at
Duke University, will deliver a lec-
ture called "'Family Values'?
Women, Asceticism, and the Recon-
struction of Early Christian History."
Housed on State Street next to the
LSA Building, the museum has for
more than 20 years displayed arti-
facts excavated from around the world
by University archaeologists.
As part of the renovations, the
museum has installed a special room
called Sensitive Artifact Facility and
Environment (SAFE), to house its
most fragile items.
"In addition to SAFE, the mu-
seum also improved its library facili-
ties, put in a new high-tech security
system, installed the long-needed el-
evator and built a handicap-acces-
sible entrance in the back of the build-
ing," said Dana Buck, the museum
These new improvements will
benefit the students and faculty in a
variety of ways, Buck added.
"The elevator will allow handi-
capped students to get to the
museum's second and third floors
more easily. The security system will
enable the Kelsey to extend its hours,
which will be helpful for those at the
University who rely on the museum
for research," Buck continued.
The renovation was funded in part
by a donation from the Eugene and
Emily Grant and by a grant from the
National Endowment for the Humani-
cess by all those who attended.
"Raising venture capital is an in-
creasingly competitive enterprise for
entrepreneurs, but it also has become
competitive among investors, all of
whom seek the advantage that comes
with getting in early :on promising
ventures," Brophy said.
David Mange said his company,
Battle Creek Investment Growth Cor-
poration, had participated in the sym-
posium twice before. Mange was try-
ing to promote a device that neutral-
izes blood viruses and he was excited
because he had "made a good contact
with an investor knowledgeable in
Mange was looking to form an
investment partnership since finan-
cially the company needs more money
than it can provide.
William E. Taylor, president of
Colorbok, a paper product company
that develops unique products with
an emphasis on design and quality,
was at the conference "to raise funds
to develop products to sell in the
mass market." Although Taylor's first
product 10 years ago was a complete
failure, company sales now total $17
million. For Taylor, the symposium
is a "one-stop shopping opportunity
where there are many high-quality
investors" such as venture capitalist
fund managers and investors.
Carl Belczynski, director of re-
search at the Office for the Study of
Private Equity, agreed the confer-
ence was a success and said the office
plans to hold another one in April.
Belczynski said there were "great
responses" from the estimated 40 to
50 investors who "theoretically have
billions of dollars under manage-
ment." Over the past 14 years, the
symposium has helped more than 350
growing companies raise nearly $200
million in growth capital.
M-Quality Expo higlights employees'
proposals to improve efficiency at 'U
The Washington Post
PORT-AU-PRINCE, Haiti -
President Jean-Bertrand Aristide
dodged questions yesterday about
his pending choice of prime minis-
ter and plans for economic recov-
ery, although he acknowledged a
mounting sense of public urgency
for him to confront those issues.
In his first news conference since
U.S. military restored him to the
tional Palace on Saturday, a jovial
Aristide switched easily from French
to English to Spanish as he deflected
questions from hundreds of Haitian
and foreign journalists.
Aristide has been working with a
team of international advisers to pro-
mote a take-charge image amid what
he acknowledged today are increas-
Haitian President Jean-Bertrand
Aristide addresses reporters at a
press conference yesterday.
ing public demands for action on
pressing economic issues. But aides
and close associates express skepti-
cism about his performance.
At least one favored candidate for
the prime minister's post withdrew
his name from consideration this
week, reportedly to avoid the "aggra-
vation" of working with Aristide.
By RONNIE GLASSBERG
Daily Staff Reporter
The Office of Undergraduate Ad-
missions faced a challenge - it was
taking too long to respond to people
calling the office for assistance. To
solve this, it hired students to answer
calls on the routine tasks.
While the solution may be a simple
one, throughout the University, em-
ployees are being asked to improve
their areas through a concept called M-
Today the University will hold its
first M-Quality Expo to highlight in-
novations and improvements in vari-
"M-Quality is a program that the
University has adopted, the purpose of
which is to empower employees to
make decisions with regards to process
improvements," said Chief Financial
Officer and Executive Vice President
Farris W. Womack.
The expo, which begins at 10 a.m.
in the Michigan Union, will have more
than 50 exhibits that show how people
across campus use M-Quality.
"We want this to be a community
celebration of what people are doing to
improve and innovate within the Uni-
versity," said Robert Holmes, assistant
vice president for academic affairs.
"This is an example of how the Univer-
sity is trying to move from theory to
M-Quality attempts to utilize people
working in different University set-
tings to improve problems, instead of
waiting for a superior to propose
"The people who know how to im-
prove the activities are those closest to
it," said University President James J.
Duderstadt. "People at the University
do know how to do things better."
M-Quality started in the Univer-
sity Hospitals in the late 1980s, but
did not enter the University as a whole
until two years ago.
The program has moved farther
ahead in the administrative side of the
University, but also includes the aca-
In the Office of Undergraduate
Admissions, employees have used the
ideas of M-Quality to improve phone
contact with the public.
The office last year added 10 new
employees, nine of whom are students,
to answer phones, said Jay Basten,
assistant director of admissions. Be-
fore this, the admissions counselors
handled all phone calls.
Students handle the general ques-
tions -such as sending out an applica-
tion - and refer callers to the counse-
lors only for more specific questions.
Basten said the change has allowed
the office to answer more calls and
better serve those who need informa-
"M-Quality really encourages in-
put from those who are on the front
line," Basten said. "We're really happy
with the way the students are working
In the residence halls, M-Quality
has been used to improve the hours of
"All of these functions don't just
happen. Someone has to be thinking
about them and planning them,"
The expo closes today at 6p.m. and
runs from 10 a.m. to 2 p.m. tomorrow.
Besides the exhibits, the expo also
will feature several speakers.
U Amnesty International meet-
ing, 764-5619, Dana Building,
Room 1040, 7:30 p.m.
Circle K International weekly
meeting, 663-2461, Michigan
Union, Pond Room, 7:30 p.m.
Q Eye of the Spiral informal meet-
ing, 747-6930, Guild House
Campus Ministry, 802 Monroe,
U Intervarsity Christian Fellow-
Lounge, 10 p.m.
Q U-M Gospel Chorale, rehearsal,
764-1705, Trotter House, 7:30-
Q Undergraduate Math Club
meeting, 913-6982, Modern Lan-
guages Building, Room B131, 4
Q Undergraduate Michigan In-
vestment Club meeting, 995-
3666, Lorch Hall, Room 173, 7
U "Forum: Smask the KKK in
Lansing", 764-5682, sponsored
by the National Women's Rights
Organizing Coalition, East Quad,
Room 126, 7 p.m.
U "Information Resources, Inc",
information session, sponsored
by CP&P, Business School, 6-8
U "Marketing Your Graduate De-
gree", sponsored by CP&P,
Frieze Building, Room 3065,
Lynn Rainville, Brown Bag Lec-
ture, Ruthven Museum of Natu-
ral History, Room 2009, 12-1
U "Studies of Coherent Nuclear
Motion and Electronic Re-
sponse", Prof. Jeffrey A. Cina,
Chemistry Building, Room 1640.
U 76-GUIDE, peer counseling
nhone line. 7 n m.-8 a m.
-m - -