Maroon

              loyola maroon Vol. XLVII Loyola University, New Orleans, La., 7011R Friday, February 12, 1971 No. 16 SGA names committee, funds carnival group The Student Government Association (S(IA) Puesday provided tor student representatives CDn Di president i a I c o m mi 11 e e a n d 'appropriated SIOO to the New Origins Mardi (lr;is Coalition. Business administration (H\t freshman Hob Rayhawk, law school freshman Hunt Downer, and Arts .mil Sciences (A&SI senior Bill Dohine weie elected In SGA to the President's Advisory Committee. The committee, endorsed hD the University Senate lust week, will be composed ol student, (acuity, stall and administrative representatives. The Advisor) Committee was proposed by the Coordinating Committee from the Conference on Academic Goals which took place last fall. Such an Advisors Committee would, according to the Coordination Committee sponsoring its formation, advise the president on ways to decent ra 11/e t he universit \ \ administration. In other action the SC i A responded to .1 call tor help from the Mardi (iras Coalition, i month end a half old organization dedicated to assisting Murdi Gnu visitors who come to town without monej or a place to stay. The SGA appropriated SIOO to aid the coalition in i goal to keep visitors from starving or sleeping in the streets. In ,i motion made by I'at O'Keef. vice president of SGA, studenl representatives voted to request Father Kennelly to "lend assistance wherever possible" to the efforts Of the Mardi (Iras Coalition. The coalition also asked the SGA to allow the coalition to use I oyola's Field Mouse as a sleeping facility lor M a ril i (i ra s visitors. SGA representatives spoke against the request, noting that the SGA has no authority to grant such permission. I lie SGA also passed a motion from the chair requesting that all university departments ask their teachers to find ,i IllbstitUte teacher lor their classes when the original teacher is unable to attend class. Ihe SGA approved the request hD 10 to 7 votes with 3 abstentions. _J Jesuit named to post me Rev J I mile Pfuter, SJ., chairman of the department of rheology and Religioui Studies ;it I oyola, has been named academic dean ol Notre Dame Seminary. Hie appointmeni was made this week in .1 joinl statement issued by \i hhishop Philip M. Hannan, Chancelloi of Notre Dame Seminary; \l sp. 1 . Alexander C) (iigur. rector-president of Notre Dame; the Very Rev John Edwards, S.J . Jesuit provincial: the Very Rev. Michael F. Kennelly, N.I. president ol Loyola; and the seminary Board of frustees. Id the announcement, Msjm Sigur noted that Fathei Pfister is the first Jesuit in the nktory of Noire Dame to hold such .1 high administrative post. Father Pfistei will retain his present position on the Loyola faculty and will continue to reside at 1 oyola fhe appointment is effective immediately. \ New Orleans native, Fathei Pfister attended Hoi) Name ol Jesus elementary school, Jesuite high school, and later the Jesuit Seminary at Cirand Coteau. \s a scholastic, he taught honors courses at Jesuit High and following his studies «;is ordained in June, 1958. two years later, Fathei I,lister was assigned to Loyola to teach theology and philosophy, and in 1964 he became chairman of the Department ol I neology Fathei Pfister luis pursued advanced studies m the United States. Belgium and France. In addition to his doctorate in sacred theology which he received "summa cum Laude," he also holds a master of arts degree, a licentiate in philosophy, and a licentiate in sacred theolog) He is ,i member ol the American Catholic Theological Society, the Mariological Society ol America, and is regional chairman of the College I heplogy Society Falhei Pfistei is a member of the Bishops' Committee for Ecumenical and Interreligious Affairs .ind the \i hdiocesan I iturgical Committee. His is iisioil in several editions ol "Who's Who". RLV J tMILL PFISTER, S J Vamvd academic dean Du teminary Frosh sweetheart to be named tonight One of tin., freshman coeds shown above lD.is been tlmscii Freshman Sweetheart in balloting Wedncsdav and Phursday. flic winner will In, announced .u the Freshman Swcethcarl Dante tonight which is being sponsored In the Stuiicnl (ioveriimenl Association. Ciandidates fr«nn \uU iDD rij»hi are in the uppei row: l\iii l).i\is. Ai\S: l\''j,ii\ FlyiiH. Ac\N: Itiwei r«iw: I is.i Pope. AtSS: Shiela Anderson. liA: and Luna Downey. Aa.\S. Office of Provost created The university president a n no un C til We il n e s d a v t li e appointment of the Rev. James Carter. S.J.. Vice President for Academic Affairs to the new post of Provost of the University. At I lu- nine time, lie disclosed th.it John Kkholdt.Vice President for Business and Finance lias assumed the title of Senior Vice President for Finance. Both announcements were made in a letter to the university community by the Very Rev. President Michael F. Kennelly. S.J. According to the announcement both appointments became affective lust Wednesday. As provost. Father Carter will continue to function as the university's chief academic officer, serving as acting rector-president in Father Kennelly's absence. However, under the new arrangement the vice president for student affairs and the vice president for research will report directly to the provost. Previously, they had reported to the president Additionally, the provost will have the power to make appointments to these two vice presidential positions "with the approval of the president." Late Wednesday, Father Kennelly told the Maroon that the appointment did not constitute a significant change in the university's administrative structure. According to the announcement, as senior vice president of finance. Bckholdt "will be responsible for all business and financial aspects of the operation of the university" and "all other university executives and administrative offericers will report to him regarding business ot financial matters." Ickholdt will continue to report to the president. The vice presidents for development, community relations and broadcasting will continue to report directly to the president Because of the timing of the announcement, the vice presidents for finance, research, student atlaris and academic affairs were unavailable for comment. Father Carter now University Provost REV JAMES CARTER. S J Holds new title. Provost "/ the Univenit\ Stock fraud case aired in court By GARY ATKINS Maroon Associate I Jit or Ken nelly always followed Sharp's advice "...nothing more than a vehicle for the enrichment of the promoters.' A multiniillion dollar stock fraud controversy centering around a trusted financial adviser of Loyola's president went to court in Dallas this week. The Securities and Exchange Commission is asking a Federal district court to enjoin several Texas financiers from what the SKC says have been consistent attempts to sell unregistered stocks. Centering in the SFC suit is Frank W. Sharp, who for several years advised Loyola's president, the Very Rev. Michael F. Kennedy, S.J., on financial matters. According to the SEC, Sharp used lather Kennelly and the Jesuit Fathers of Houston, Inc., as a "device" to obtain funds from the public and then used the money to manipulate stock in various Texas companies. Father Kennelly was president ol the Houston Jesuits at the time the alleged stock manipulations occured. lather Kennelly is not named in the SIC suit as a defendant but has given voluntary testimony to Federal investigators According to a transcript of that testimony, just secured by the Maroon, the Jesuits, acting on Sharp's advice, would sometimes loan money to Sharp or his companies it was this money, the SEC says, that Sharp then used to manipulate stock, apparently without the knowledge of the Jesuits. Asked by SEC investigators if he discussed with lawyers details of the Jesuit transactions with Sharp, Father Kennelly said, "No sir, not all of them." On at least two occasions, according to his testimony. Father Kennelly, acting on Sharp's advice, authorized loans totalling $4 million without consulting lawyers. In one of the loans, involving S3 million, collateral was 20.000 shares of stock in the Sharpstown State Bank, which Sharp controls. Eventually, the amount of collateral stock was reduced Asked if any other stock or real estate had been given as collateral to the Jesuits because of I he reduction. Father Kennelly answered. "Not to mD knowledge." He also said that the notes for the $3 million had not heen paid oil or renewed. lather Kennedy told (he sir he had always considered Sharp ,i "greal benefactor" of the Jesuits and, though he did nut always understand the financial deals Sharp proposed, he always followed Sharp's advice. Ovei the years, the Jesuits advanced some Sd million to Sharp 01 Ins companies. Sharp first met lather Ken nelly when he aided the priest in establishing Str.ike Jesuit C ollege Preparatory School in Houston in 1959, In addition to giving K5 acres tor the school. Sharp later promised to give the Jesuits 60,000 shares of stuck in the Sharpstown Hank, according to lather Kennelly's testimony. the Jesuits received the stock in increments of JO.ODD slum's ovei .1 period oi tax Dc.ns. Kathei Kennell) said. According to the SEC suit, the stock was given ostensibly as .1 gilt, but was "actually to gain Itlie Jesuits' I ccml idcncc." In return, Sharp, a Protestant, received ,1 nuiiihei ol liil'li C'atholii honors, including an audience with the Pope ami the title ol Founder ol the New Orleans Jesuits Kennell) was! 111 I'Ki.v named an honorary director ol the Sharpslown Hank I hrough the D ears Shai yD i ame t'D he one ol Kennedy's inoie trusted linanci.il advisers. But, according to the SI ( Sharp's slock dealings were catching up \\u\i him Ihe SlC charged that Sharp ami other le\.is financiers "systematically looted"' businesses to manipulate slock As a "final act ol desperation," the SI ( s.ins. Sharp moved to obtain some S2OO million in I uropean stocks at .1 fraction ol theii value the stocks. Ihe Sl( s.iDs. were • * 111 j 1 1111 ,11 'hlue chip \niei it .111 securities' allegedly Incited in Zurich. Su it/erland I .11 money. Sh.up 1111 nod 1 n lullu'i Kennelly. according to the SI ( Sharp lold I .it liei Kennelly that, following Ihe sale iDl the stinks, a foundation would be sol up tm SI 1,1 k e Jesuit .iihl I"D 1 'l.i Ihe i (ind 11 hi 11. .u^ordinal to I .111101 Kennelly's 1 ost imony 1 lial Loyola would then invest sSCD million 111 that money from the foundation 111 SII.II p's hank Ihe deal, according lCl I ;il 1101 Kennelly. u.is lust discussed in May, l')7(l \, 1 ording I" Ins sl.ilciiicul . I alhei Kennelly laid down three conditions tin pail k ipal ing 111 1 lie propositi Ill.li Ihe "slmks umild ii"l be I.Hilled. that they would he brought into 1 ItiD countr) under the eye of the government, legitimately, and that tin's would be sold on the market in the way ull itocki are sold. legitimately." Last tall, at a meeting of the Board ol Directors oi the Sharpitown Bank. Sharp asked lather Kennelly to sign a lettei agreeing to have I oyola depotii the $50 million. lather Kennelly told the SEC that, "to the hest of |his| knowledge." Sharp had prepared the letter, though he said he had "some recollection*, of correcting whal was given to him. \sked ii he had authority "to commit the university to deposit SSO million in the Sharpstown Stale Bank mi ,inD condition," Fathei Kennelly answered, "Absolutely not." Presumably, such an agreement would have to he approved hy I d\ ola's Board ol Directors, Before an) deal could he completed though. Sharp's financial practices came under scrutiny hy the SI C On Dec 30. Ihe SI ( contacted lather Kennelly. later that afternoon, Kennelly talked to Sharp, who. according to lather Kennelly's testimony, urged him not to talk to ihe sI ( \ci ording to I ather Kennelly. Sharp told him that the SI ( investigul mi) was a "witch hunt Later. Kennelly met with Sharp's lawyers, who. lie said, told him "that there was possibly |a question of| manipulation ol stock |involved in the sir invest igat ion I, thai there could he indictments, that Sharp was an innocent victim." On .lan S. lather Kennelly resigned from the Board ol Directors ol I lie Sha i psl own Hank and submitted Ii ims e I I I o SHC investigators. On Jan. the SI ( hied Us 11\ il suit in Dallas charging ih.ii Sharp .ind several cithei Fexas financiers have foi foui years been selling unregistered slock and making "lalsc and misleading statements concerning the companies in which the stock WUS sold." I he suit also said i In- husinessmen hail established companies which "were used as nothing more than a vehicle tor the enrichment ol the promoters..." Since the filing ol the suit, ihe Sharpstown Hank has collapsed, following i lun ol SIS million on its deposits, and several othei ol Sharp's companies have gone into I eileral i ei I'ivership. I ,ii del KeiinelK on ihe advice ol lawyers, has declined to comment on I lie use. except It) saD it would he inappropriate loi him to make any statement which might adversely alfeii the riuhls ol those involved. Foreign studies slated for summer By lONA Kl M KOI Maroon Stall lC f port it Once again plans lor the Loyola University International Studici Program (ISP) arc in progress. I he LSI, oilers lour programs, all of which are open to college students throughout the U.S. I he Mexico/Acapulco program differs From others because it has summer school status. All credit earned hy students is granted by Loyola. Six hours are granted lor I he six week session Loyola students live with Mexican families selected hy a Housing Committee of Inert-Americana. I his arrangement permits the student* to learn uhoul Mexican life, philosophy and culture. The Mexico/Acapulco excursion lasts from June 17 to July M) and includes a July 4 holiday in Wiipulco. I he Iliosl popular route Willi Loyola siiideuls is I he Cultural lour ill I mope I he lour l.isls 41 ilays. 11,D111 June lC) lo July -I I lie lour. leaving from New Vnk has listed on its itinerary London. Paris. Mailrul. Amsterdam, Barcelona, Nice, Florence, Rome, Venice and Vatican City. The tour price includes transportation, hotels, meals, sigh I seeing, services and tips. Ilie remaining two ate more concentrated lours of I mope. Ihe Northern I uropcan low lasts 22 days, from July 2{D to August I,). Departing from New York the tour includes Copenhagen. Oplo. Paris, Stockholm, Iranklurl. /.uiicli and (ieneva. Ihe lour provides lor sightseeing, hotels, and meals. And hnully Ihe (irand loui iDl I urope visiting (iei mans . Swil/ei land. I ranee. Italy, and I'oiliigal. II lasts JJ days horn July 22 to Augusl \2. Ml accoiuodalions aie provided loi in Ihe lour price. I ulliei IK'in.iiil loiiii.ii. directoi ul the Internal ional Studies I'mgiam. extends a cordial invitation lo member* iDl ihe New Orleans C(i miminil y lo iCDin Hie I iD) iD|u Univeisily giiuip depailuie I iDl ml C ii ma I ion i .ill SI I.