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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Jan. 27, 1976)
Page 2 THE BATTALION TUESDAY, JAN. 27, 1976 ’I WONDER IF THOMAS PAINE HAD ANY GOOD ADVICE FOR LIVING ON A FIXED INCOME... Fees questioned Editor: Correct me if I am wrong, but ac cording to your, “Fee request” arti cle, the M.S.C. Directorate & Co. are asking the entire student popula tion to support the indulgences of a few special groups, and that some of these groups represent only 2% of the total student population. I go to certain of these activities and pay the required admissions. It would seem ridiculous for the entire student body to have to submit to another Student Service Fee in crease just to support those ac tivities. Equally ridiculous would be for me to pay increased fees to support programs I don’t attend. It would seem logical for each group to carry their own weight, in the form of in creased prices particular to their group. Those who feel that the programs aren’t worth the extra cost should not expect others, who agree, to pay it for them Peter Silver stein To The Battalion: I write, not against smokers but against the lack of regulation about smoking in classrooms and labs. I’m speaking for the hundreds of stu dents, myself included, that find it hard to pay full attention to learn in a smoke filled room. I would like to. correct this situation. Laurel Easley Senior ’74 Pension Act confuses advisers Associated Press NEW YORK —- The 1974 private pension act makes the future income of workers more secure but it has created a dilemma for some invest ment advisers, one that some of them feel can be resolved only by the courts. The confusion centers on the in terpretation of prudence, the use of which any fiduciary -— that is, a News Analysis handler of other people’s money must be able to demonstrate. But how do you prove prudence? You’ll find this requirement way back in the common law. For many years it meant simply that the fiduciary must manage other people’s affairs in the same way a prudent man would handle his own affairs. It was the golden rule. Then society became in stitutionalized. Tbe affairs of trusts and pension funds, which hopefully will go on “forever, must be man aged differently than the affairs of individuals. The “prudent expert” became the measure. But even the experts can’t figure out how to interpret the introduction of another factor by the Employes Retirement Income Security Act. Prudence, it maintains, dictates that pension funds also must be adequately diversified. What does adequate diversifica tion mean? Fiduciaries say they are puzzled. There is “confusion but not exasp eration, said Jerome Valentine, president of the Financial Analysts Research Foundation and vice pres ident of Texas Commerce Bank, Houston. While defending the high standards of ERISA, he still believes “everyone will operate in great doubt. ” You may say at this point that you’ll just let the experts worry about it. But it concerns you more vitally, because it’s your money that’s in volved and it might be your pension funds that bring the clarifying court case. As often applied, the prudent man rule means that a f iduciary may show prudence by defending the indi vidual companies in a portfolio as having been selected wisely and re sponsibly. Now that diversification is called for, that interpretation might change, but nobody knows in what way. “It’s good that the law doesn’t tie us down, but bad in that we don’t know how the courts will interpret it,” said Valentine. Modern portfolio theory, as prac ticed by many trust departments, pension funds and other fiduciaries, maintains that risk is a factor of the overall character of a portfolio, not simply a characteristic of each com pany in the portfolio. Those are the theories, but how would you as the individual whose money is involved, interpret this situation: The fiduciary believes that pollu tion control companies have a good future because there’s plenty of business ont there and the govern ment is requiring compliance. He decides to buy. Most of the concerns in this indus try are relatively new and small and therefore somewhat risky. But modern portfolio theory suggests you spread the risk by owning more than one, so that a poor decision can PEANUTS MY PET POCK 15 AM EXCELLENT 60LFEK...HI5 FAVORITE COURSE IS “ PEFFLE PEACH"! HAHAHAHA! nr <YOU HAVE A PRETTY DULL GROUP HERE, MA'AM c? Q Cbe Battalion Opinions expressed in The Battalion are those of the editor or of the writer of the article and are not necessarily those of the university administration or the Board of Regents. The Battal ion is a non-profit, self-supporting enterprise operated by stu dents as a university and community newspaper. Editorial policy is determined by the editor. Represented nationally by National Educational Advertising Services, Inc., New York City, Chicago and Los Angeles. The Battalion, a student newspaper at Texas A&M, is published in College Station, Texas, daily except Saturday, Sunday, Monday, and holiday periods. Sep tember through May, and once a week during summer school. LETTERS POLICY Letters to the editor should not exceed 300 words and are subject to being cut to that length or less if longer. The editorial staff reserves the right to edit such letters and does not guaran tee to publish any letter. Each letter must be signed, show the address of the writer and list a telephone number for verifica tion. Mail subscriptions are $16.75 per semester; $33.25 per school year; $35.00 per full year. All subscriptions subject to 5% sales tax. Advertising rate furnished on request. Address: The Battalion, Room 217, Services Building, College Station, Texas 77843. The Associated Press is entitled exclusively to the use for reproduction of all news dispatched credited to it or not otherwise credited in the paper and local news of spontaneous origin published herein. Rights of reproduction of all other matter herein are also reserved. Second-Class postage paid at College Station, Texas. Address correspondence to Listen Up, The Battalion, Room 217, Services Building, College Station, Texas 77843. Members of tbe Student Publications Board are: Bob G. Rogers, Chairman; Dr Gary Halter; Dr. John Hanna; Roger P. Miller; Dr. Clinton A. Phillips, Jeff Dunn, Tom Dawsey and Jerri Ward. Director of Student Publications: Gael L. Cooper. MEMBER The Associated Press, Texas Press Association Editor James Breedlove Managing Editor Roxie Hearn News Editor Pam Whigham City Editor Jim Peters Contributing Editors Sandy Russo, Steve Gray Sports Editor Paul McGrath UNIVERSITY STUDIOS SHOOTING SCHEDULE FOR THE AGGIELAND 76 SENIOR and GRADUATE MAKEUPS LAST DATE FOR DEAD ELEPHANTS IS JANUARY 31 JUNIORS and SOPHOMORES .JAN 19-JAN 23 JAN 26-JAN 30 FEB 2-FEB 6 FEB 9-FEB 13 FEB 16-FEB 20 FEB 23-MAR 12 A-G H-M N-R S-V W-Z MAKEUPS FOR be offset. But what will you say when, after buying three risky concerns, the fiduciary decides to buy a forth? Using modern portfolio theory as his defense, he says he has reduced the risk. But you might argue it is more likely that one of four than one of three will go bankrupt. Valentine feels every fiduciary somehow must defend himself both ways: He must choose each company prudently and he must be able to defend the entire portfolio as an en tity. But doesn’t that automatically follow? Not necessarily. The individual companies do well and the entire portfolio does well — until a hurricane hits and impacts the earnings of all. TAMU — TOWN HALL YOUNG ARTISTS SERIES presents The Art of the Troubador as Recreated by Guitarist MARTIN BEST with EDWARD FLOWER in three performances Free Preview concert — 1:00 p.m. Wednesday, Jan. 28,1976 — MSC Student Lounge Free Workshop — 8:00 p.m. Wednesday Jan 28, 1976 — Rudder Forum Concert — 8:00 p.m. Thursday Jan. 29,1976 — Rudder Theater Tickets (No Reserved Seats) A&M STUDENT FREE W/ACTIVITY CARD STUDENT DATE $1.00 GENERAL PUBLIC $2.50 Tickets and Information: MSC Box office — 845-2916 we’re tooting our horn . . ■ . . for this great sale! color & song." - San Franc/Jp ' A 2-hour program at/ofoi 4*' PRESENTED BY TEXAS A&M UNIVERSITY TOWN HALL UNIVERSITY VARIETY SERIES THURSDAY FEBRUARY 5, 1976 8:00 P. RUDDER CENTER AUDITORIUM STUDENT/DATE $3.50 GENERAL PUBLIC $6.00 TICKETS AT MSC BOX OFFICE FIRST FLOOR OF RUDDER TOWER 845 !! Houston { symphond and I Singing Cade| cl in fOI A TAMU Centennial Performo/JAI OFI Mon., Feb. 2 8:00p^ Rudder Auditorium Tickets Regular - 7.50, 6.20, 4.95 A&M Student - 6.00, 4.95, 3.95 Tickets and Information MSC Box Office - 845-2916 Presented by / UP TO 50% OFF LADIES’ BLOUSES, DRESSES AND PANTS. MEN’S SPORT COATS & PANTS. TEXAS A&M SOPHOMORES AND JUNIORS ONLY In the Memorial Student Center