]Cbe Battalion
Breezy
and
warmer
Thursday, January 21, 1971
FRIDAY — Clear to partly
cloudy. Winds Southerly 10 to
12 m.p.h. Becoming Northerly
10 to 12 m.p.h. High 71, low 61.
SATURDAY — Clear to partly
cloudy. Winds Northerly 5 to
10 m.p.h. High 69, low 38.
845-2226
tudent march nets
5,000 for Aggies
j^ey.
5/
’f7/
By DAVID MIDDLEBROOKE
Batallion Editor
■ Texas A&M President Dr. Jack
ft. Williams presented the Stu-
lent Senate Wednesday night
Irith a $6,000 gift—the direct re-
ftilt of a student march on his
home.
1 The Senate also heard a report
jjm the Operation Feedback stu-
mt opinion poll conducted the
d of last semester.
The gift was made by the
trake Foundation of Houston
ter George W. Strake Jr. read
|bout the student march on Wil
iams’home last Nov. 1 (his first
|ay as president) to welcome him
the campus.
Strake contacted Williams con-
jrning a contribution to Texas
&M’s scholarship fund, but
dlliams suggested that any gift
rompted by the march be made
irectly to the students.
"Our organization continues to
ft much impressed by the Texas
l&M student body,” Strake said
ft a letter accompanying the
Aeck, “its fine traditions, its
ftillingness to stand publicly for
Bcency and order, and its appre-
ation for the history and prom-
[e of our state and nation.
“We want to express our grati-
de to the students of A&M for
eir attitudes,” the letter con-
■nues, “and we do so by means
ft a gift in the amount of $5,000.
ft is our request that this money
ft; used in support of appropriate
udent programs and student ac-
vities, as determined by the stu
dent government with approval
of the University’s administra-
|on.”
ng with the Senate after
\ Talkir
presenting the check, Williams
repeated his often-voiced opinion
that the Texas A&M student
body is the greatest anywhere.
“You’re just a cut above any
other student body,” the presi
dent said.
Noting A&M provides 10 per
cent of the nation’s veterinarians,
Wiliams said A&M is moving
ahead steadily. He said Texas
A&M has the largest desaliniza
tion project in the United States,
is one of 11 Sea Grant universi
ties in the nation and is the site
of the U. S. Toxicology Center.
Texas A&M also has the largest
extension program anywhere, he
said.
During his talk, Williams said
he hopes to see campus housing
for women become a reality with
in the next two or three years
and repeated his feeling that
ROTC is a vital part of Texas
A&M and will be here as long as
he is president.
He said he believes the Bonfire
is a valuable tradition, and per
forms a useful function by thin
ning and clearing land that is to
be thinned and cleared anyway.
Williams also said he thinks
students should have a strong
voice in rules governing campus
life (“They occupy a city of their
own”) and have a voice in cur
ricula development.
In addition, he said, students
should formally rate faculty
members and assist in making
rules and determining procedure
and policies.
Public Relations Chairman
James P. O’Jibway told senators
Operation Feedback cost about
$105, including $8.50 in computer
time and around $44 for key
punch operator time.
Slightly under 7,000 students
participated in the survey—about
half the student body.
In giving the results, O’Jibway
said breakdowns showing cadet-
civilian, dormitory - day student
and men-women vote were not
yet available.
The results:
1— The efforts extended to
ward Bonfire should be used in
a more constructive manner:
Yes, 36.5 per cent; No, 49.5; Un
decided, 15.
2— The Student Senate should
have greater control over the al
location of student fees: Yes,
47.5 per cent! No, 31; Undecided,
21.5.
3— The university should pro
vide on-campus housing for
women? Yes, 85 per cent; No,
9.5; Undecided, 3.5.
4— The Rules and Regulations
state, “The university accepts re
sponsibility for the extracurricu
lar life of the individual stu
dent.” The university should
have a governing responsibility
for all of the students’ activities
outside the classroom? Yes, 16.5
per cent; No, 74; Undecided, 9.5.
5— The Aggie Sweetheart
should be selected from A&M
coeds only? Yes, 35 per cent;
No, 52; Undecided, 13.
6— Undergraduate students
should be required to live in on-
campus housing? Yes, 8.5 per
cent; No, 87; Undecided, 4.5.
7— Do you feel that the A&M
Student Senate is functioning as
an effective student government?
Yes, 26.5 per cent; No, 36; Unde
cided, 37.6.
8— Should political candidates
be allowed to speak on campus?
Yes, 80 per cent; No, 12; Unde
cided, 8.
9— The relation between cam
pus security and students is sat
isfactory? Yes, 45 per cent; No,
38; Undecided, 17.
The only item of new business
brought before the Senate was a
proposed constitutional amend
ment which is intended to alter
the method by which the consti
tution may be amended.
Secretary Bill Hartsfield,
chairman of the constitutional
revision committee, proposed that
amendments require a favorable
vote of at least two-thirds of the
senators present and voting at a
meeting, and the approval of a
majority of students voting in a
constitutional referendum.
The present method requires a
three-fourths vote of the Senate
membership and approval by the
university’s Academic Council.
Hartsfield said poor attendance
by senators at meetings made ob
taining the required three-
fourths of the membership alone
difficult enough, let alone a fav
orable vote by that many.
Some senators objected to the
proposed amendment. Rick Bris
coe (sr-LA) said such a provi
sion as two-thirds of those pres
ent and voting could allow pass
age of an amendment by a mi
nority of senators. Another sen
ator said that, under the propos
al, as few as 26 senators could
approve an amendment.
Action on the amendment will
be taken when the Senate meets
next Thursday.
191 grad students
elect 5 for GSC
The election of five regular and two first-year representatives to
the Graduate Student Council for 1970-1971 was announced today by
I. A. Bedinger, vice president of the Graduate Student Council and
(pairman of the elections committee.
The five regular representatives are: Carl Lahser, and Ronald
lomas, College of Science; Ronald V. Crabtree, College of Architec-
tn e; Richard A. Zepeda, College of Education; Stanley D. Kosanke,
lollege ofVeterinary Medicine.
First year representatives are Sandra G. Rennie and Philip J.
hillips.
Ballots for the election were sent by mail to the almost 2,700
raduate students in December, but only 191 were cast.
Revenue sharing
hot political topic
IF IT IS a choice between moving snow from the front of a
|rural mail box or erecting a temporary receptacle, the
average New Englander will take the easy way out. West
1 Newbury resident Mrs. Rita Maglione, top, uses a plastic
jack-o-lantern hanging from a sponge mop, while Mrs.
i Claire Franklin uses a stove pipe extension. (AP Wire-
? photo)
Editor’s note: Few pieces of
legislation are likely to generate
more debate in the new Congress
than “revenue sharing.” Here is
a report on the program; what it
is and how it would work.
WASHINGTON <A>>—Pressure
is growing inside and outside
Congress for revenue sharing, an
idea that looks simple but isn’t.
Under revenue sharing the fed
eral government, blessed with in
come-tax revenue that automati
cally goes up faster than the
over-all economy, would turn
over some of the money to hard-
pressed state and local govern
ments, with no strings attached.
President Nixon, committed to
his “new federalism” policy of
strengthening state governments,
will press harder than ever for
revenue sharing this year. Gov
ernors and mayors are clamoring
for it, a recent poll shows 71 per
cent of Americans like the idea,
and a growing number of con
gressmen and senators appear to
be lining up behind it.
Opponents of revenue sharing
include fiscal conservatives who
see it as another spending plan,
organized labor and the National
Education Association which say
it has hidden pitfalls, and many
members of Congress simply re
luctant to let power pass out of
their hands or to raise taxes for
the benefit of another level of
government.
Debate over the issue will heat
up when President Nixon deliv
ers his State of the Union ad
dress to Congress Friday. He
has promised a new, expanded
revenue sharing plan.
The arguments criss-cross par
ty lines and ideological boundar
ies. Republicans, Democrats, lib
erals, moderates and conserva
tives can be found on both sides
of the issue.
THE DEBATE
FOR—Pinched by rising costs
and lagging tax takes, many
states and cities predict cutbacks
in basic services or increases in
taxes without increased federal
aid, an Associated Press survey
showed last month. Federal aid,
in the form of no-strings federal
University National Bank
“On the side of Texas A&M.”
—Adv,
ff MLJm
Texas A&M President Dr. Jack K. Williams presents Student Body President Kent
Caperton with $5,000 check given to the student body by George Strake Jr. (Photo by
Tom Nelson)
Tower, Church coming
PF schedules speakers
Veteran U.S. Congressman John B. Anderson,
Texas Senator John Tower and co-authors of legisla
tion that would have forced immediate withdrawal of
U.S. troops from Southeast Asia are spring Political
Forum speakers to Texas A&M.
The Texas Legislative Budget Board director,
Thomas M. Keel of Austin, is also on the spring
agenda, announced Political Forum chairman Charles
R. Hoffman.
Keel, who will speak March 17 on “Where the
Tax Dollar Goes,” is the first scheduled speaker.
Hoffman said that with the Texas Legislature in
session, firm commitments have not been possible for
the noon series.
“We. will have other speakers from the Texas
House and Senate,” he said. “These will be
announced as arrangements are made.”
Hoffman said the committee of the Memorial
Student Center is working for an early February
speaker to lead off the spring series.
Congressman Anderson, third-ranking Republi
can in the U.S. House from Illinois, has accepted
Political Forum invitation to speak April 22.
The forum chairman said prospects are good for
having Senator Tower and the famous Cooper-Church
amendment (to withdraw troops immediately from
Vietnam) authors as speakers. Sen. John Sherman
Cooper is a Republican from Kentucky. He worked
with Sen. Frank Church, Democrat of Idaho.
Political Forum brings to the campus leading
government and political figures for presentations and
discussion on matters of current interest. Question-
answer sessions are usually part of the Political
Forum format.
Fall speakers included Sen. J. Strom Thurmond
of South Carolina; Sen. Bob Packwood, R.-Ore.; Sen.
Mark O. Hatfield, R.-Ore.; State Rep. Minton J.
Murray, Texas House Appropriations Committee
Chairman W. S. Heatly and State Sen. Oscar H.
Mauzy.
Political Forum patronage subscriptions enable
public-free admission to all persons interested in
hearing viewpoints expressed by series speakers.
revenue sharing, is the answer.
AGAINST—States and cities
have only themselves to blame,
since they can always raise their
own taxes. Anyway, the federal
government already gives them
about $25 billion yearly in direct,
conditional grants-in-aid and
about another $7 billion in indi
rect loans and subsidies.
FOR—The problems of the ’70s
are primarily local-police protec
tion, education, health, sanita
tion. Cities and states that raise
taxes to meet these problems
drive out taxpaying citizens and
businesses. Federal revenue shar
ing would spread the tax burden
equitably and allow problems to
be met where they occur.
AGAINST—-The same thing
could be accomplished by stream
lining grant-in-aid programs. Be
sides, revenue sharing would
make state and local govern
ments more dependent than ever
on federal handouts and reduce
incentive for low-tax areas to
bring their levies in line with
high-tax neighbors who suffer
from the difference.
OUTLOOK
Whatever plan Nixon proposes
Jan. 22 will face a tough go in
Congress.
Chairman Wilbur D. Mills of
the House Ways and Means Com
mittee, says he is more opposed
than ever because of growing
federal deficits. He says he may
hold hearings, but they will be
late in the year at best.
Meanwhile, pressure is mount
ing. Nelson A. Rockefeller of
New York and other big-state
governors are calling for it loud
er than ever.
In an unusual maneuver that
could bring considerable heat to
bear, the National Legislative
Conference and allied organiza
tions are pressing a call for a
constitutional convention to write
a revenue-sharing amendment. If
34 state legislatures pass resolu
tions calling for such a conven
tion Congress is obliged under
the Constitution to convene one.
However, if revenue sharing
should clear committee much of
the rank-and-file support for it
could evaporate in wrangling
over details.
In short, the outlook is for
much discussion. Action is an
other matter.
Grand jury examines suit
DALLAS t/P)—A federal grand
jury studied Wednesday the
multi-million dollar Texas stock
fraud suit, while angry politicians
demanded a legislative probe into
how top state officials came to
have their names involved in the
depositions.
“The Texas Legislature has
sunk to an all-time low,” said
Rep. Jim Earthman, R-Houston.
“This scandal reflects on the in
tegrity and honesty of all mem
bers. State government should be
a servant of the people and not
a vehicle for private gain.”
The fact that a grand jury was
already at work was announced
in Houston by U. S. Atty. Anth
ony Farris. It had been disclosed
Tuesday that the FBI has been
investigating alongside the Se
curities and Exchange Commis
sion, which brought the civil suit.
U. S. Dist. Judge Sarah T.
Hughes in Dallas has issued a
temporary restraining order halt
ing the sale of unregistered stock
in the companies concerned and
freezing any further deals.
Meanwhile, it was revealed that
Lt. Gov. Ben Barnes’ name
showed up Wednesday with the
SEC probe through a defendant
in the suit who said a loan to
Barnes was on a list of “problem
loans” last year at a Dallas bank.
The defendant, Joseph P. No
votny, a former president of a
Houston bank also involved, told
SEC agents a liability ledger for
Barnes showed a $60,000 loan at
Dallas Bank & Trust Co.
Barnes acknowledged he had a
$60,000 loan paid up at the Dallas
bank, one of three named as de
fendants in the suit, last July 1,
but he said he had no other in
volvements with banks or firms
controlled by Frank W. Sharp of
Houston, a central figure in the
SEC probe.
It also developed Wednesday
that former Gov. Allan Shivers
told the government he had play
ed a key role in persuading Gov.
Preston Smith to veto the banking
bill only three weeks after Smith
had allowed the legislature to
pass it.
The SEC, bringing charges
against former Texas Atty. Gen.
Waggoner Carr, 14 other persons
and 11 Texas business firms, al
leges the stock manipulations
were used to allow purchase and
sale at a profit of stocks by in
fluential Texas politicians at a
time when banking legislation
was being passed in the legisla
ture.
The legislation, said the SEC,
was an attempt “to avoid further
regulation of the banks by the
Federal Deposit Insurance Corp.”
The legislation passed, but Gov.
Preston Smith, named as a pur
chaser of stock, killed it with a
veto.
The plan began in the summer
of 1969, according to the SEC,
when the banking bill was intro
duced.
None of the state officials was
named as a defendant, but their
names appear in the depositions
because of their purchases of
some of the stock involved in the
suit.
One recorded transaction shows
that Gov. Smith, in partnership
with State Democratic Chairman
Elmer Baum, bought 20,000
shares of National Bankers Life
Insurance Co. (NBL) and sold
them two months later for a pro
fit of $125,000 for the two of
them.
Another tells of NBL stock
bought by House Speaker Gus
Mutscher, Jr., who made $22,000
on one transaction.
Other purchasers, according to
the SEC, were Rep. Tommy
Shannon of Fort Worth, Rep.
W. S. Heatly of Paducah, speak
er aides S. Rush McGinty and
Sonny Schulte, Houston Mayor
Louie Welch, and five of the as
tronauts.
The stock is alleged to have
been sold through the Dallas
brokerage firm of Ling and Co.
without going through SEC pro
cedures.
Action by the SEC followed
nine months of intensive investi
gation and lengthy interrogation
of both defendants and witnesses.
Farris said FBI agents have ap
peared before the grand jury in
Houston.
“We in the southern Houston
District are not investigating
what is going on in the Northern
Dallas District,” he explained.
“Some things in Dallas, how
ever, parallel things here and are
being presented to the jury in
an investigative capacity.”
He added that no indictments
were being sought at this time.
Houston banker - developer
Frank W. Sharp is one of the
central figures named alongside
Carr as a defendant in the SEC
suit.
Several of those named in the
depositions have already protest
ed their innocence of any wrong
doing.
Smith denied knowledge of
whether he profited or lost on
the stock deals. According to Jo
seph P. Novotny, one of Sharp’s
former employes and a defendant
in the suit, Smith was loaned
money along with other public
officials by one of Sharp’s Hous
ton banks so that they could buy
stock.
Houston Mayor Louie Welch,
who bought 10,000 NBL stock
last year, says he stands to lose.
The Rev. Michael Alchediak,
president of the Strake Jesuit
School in Houston which was
built on 85 acres of land given
by Sharp, said auditors were
working on the books.
“Our preliminary information
indicates we have been seriously
taken advantage of,” he said, re
ferring to the school’s invest
ments.
Baum, who has made invest
ments with Smith since 1962,
would only say he bought the
stock because “I thought the
company had a chance for some
growth.”
Like Mutscher, Shannon, and
McGinty, he denied getting any
inside tips about the insurance
company stock.
Several officials, including Lt.
Gov. Ben Barnes, who presides
over the Senate, said they never
acquired any NBL stock.
Michael Ling said he thought
his brokerage firm actually lost
money in buying and selling more
than 380,000 shares of NBL
stock. Ling is one of the 15 de
fendants named in the SEC suit.