i'hEIISIIRER 5M8 dhliiIiEti. Iii JEGPth .

COLLEGE MAY FACE FEDERAL TAX SUIT

By DAVE HORWATT
By 5&3 Staff Writer

There will likely be a bun-
dred or less private colleges
(out of the present number of
slightly over 3,000) that survive
the next ten or‘ twelve years.
according to Mrs Donald Lam-
bie, Treasurer oi the college.

The problem “is of deep con-
cern t0 the President and trus-
tees” said Lambie, ”because
we can see the trend and its
hard to stop. We're getting
tightened down closer and
closer all the time.

We may not be able to re.
main 3 private college and
have to come under state and
federal control."

He added: “We just can't
keep raising tuition."

Grinnell is now being threat-
ened with a suit by the federal
government concerning certain
farm property the college owns
and claims as tax exempt.

The government contends
that ownership of a farm by
Gtinnell is an “unrelated"
business activity.

This means that the business
and profits derived irnm it are

not essential to the purpose for
which Grinnell was granted tax
exemptions and are therefore
taxableu

“The only out we have," said
Lambie, “is the test case or
the United States VS. The Myra
Foundation."

This test case which is now
on appeal in the Federal Court
in St. Louis will determine the
extent that a non-profit institu-
tion can get involved in busi-
ness and preserve its tax ex-
emption.

if the government wins the
test case, then there will at

least be an eilort to tax the
ram property Grinnell owns,
"it might open a lot of
things,” said Lambie. “It
might open our investment in-
come to being taxed. I’m not
sure how far the Federal gov-
ernment will go back (in our
records). If the government
taxes us we may have to sue,
I don't know. What I say is
that it's a step in a trend."
For about the past five
years, the college has depend-
ed on income from endowment
and gifts for onevlhird of the

Student Newspaper of Grinnell College

operating budget, and tuition
for the other twothirds.

As things are now Grinnel!
and private colleges generally
are more expensive than state
universities.

Under proposed tax revision:
by the 93rd congress, private
nonprofit foundations including
private and educational insti-
tutions would lose certain tax
exemptions.

The new tax provisions will

JEOPARDY—
(Continued on Page 2)

firm
“NVOOOMO”9
once again

the oldest o

‘ collage
/J newspaper

west of

~ the

Mississippi
I A] ”enema.
dsobebebobdedset:

 

Vol. LXXV

Grinnell, Iowa.

Friday, January 25. me

No, ll

 

SENATE lAUGHS AT RIC

By NEIL FISCHER

A usually stagnant student
Senate laughed itself silly Wed-
nesday night when SGA Presi-
dent Ric MacDowell tried to
explain proposed Changes in the
residence hall system for next
year.

Changes include, MacDowell
said, “sort of an alternating
dorm system on both North and
South campuses."

“South Younker will probably
be women, and North Younker
will probably be men," Mac-
anell stated. “The halls from
Loose to Haines will probably
be men.”

When MacDoWell said that a
“gate” was proposed between
the two “blocks" of segragated
dorms on South campus, most
senators couldn’t believe it

“A gate? You’re kidding, what
klnd of a gate will 1t be? A
turnstile?” asked Tom Thomas
(Gates).

“An electrified fence," a fe-
male senator suggested.

MacDowell said the gate
would be placed “across the
loggia" and added that it was
being done “for security reaa
sons."

He further added that eventu-
ally the gate would be replaced
by a $30,000 “reception center,"
which has already been ap-
proved by the College Trustees

“It would be in a Central place
(probably between James and
l-laines halls) where the traffic
would go,” MacDowell statedu
“Traffic could drift out of tile
Forum at midnight and into it."

“It sounds like a covered
sidewalk,” another senator
mused.

“No, really." MacDoWell em-
phasized, ”it would be a place
to go and pick up your date, It
would be open 24 hours a day,
and it would have a woman on
duty. You could go there and
call up your date at two in the
morning."

, “But they

turn all the

phones,” a senator suggested.

“Not the hall presidents',"
MacDowell quipped.

The proposed changes, the
SGA President continued, should
be finalized by the next Senate
meeting (January 31).

President Leggett delegated
the taslr or studying changes in
the residence hall system In
the Student Affairs Committee,
and we've been working on it.
After we finish the report will
go back to the president,” he
explained to the group ln ARl-i,

Asked about off campus
houses, MacDowell Said that
several changes had been sug-
gested

“They might be places where
students over 21 could live and
make their own rules. as long
as those rules didn’t conflict
with the rules of the city.”

or, MacDowell said, they
might he oo-ops. Or they might
be arranged, he added, so that
a professor might live with stu-
dents working on an s-credit
hour project with him.

Most of the real yuks centered
around the question of security
in an alternating dnrm system.

MQCDDWell Said that it’s easier
to guarantee “security” on
South campus than on North
campus.

Senators seemed to interpret
this as meaning South campus
might consist of freshman and
sophomore students onlyu

MacDowell said it wasn’t so.

He explained that all classes
would be represented in every
dorm under the proposed sys
tem. Students would be placed
he said, "by a quota system."

But, the SGA President finally
admitted, “the real purpose is
of course to decrease illegal
visitotlons."

“It's obviously an insecurity
complex," a senator then inter-
jected. ,

“All this talk about alternat-

LAUGHS—
(Continued on Page 2)

’LADVIIRD HAS CALLED THIS MEETIN' THIS MORNING TO DISCUSS

198 Cops

STDNY HOOK
BUSTED

STONY BROOK, N.Y., Jan. 19
(LNS) —« A gigantic pot bust
took place at the State Univer-
sity of New York in Stony
Brook, Long lsland, on Jan. 17.

A force of 198 detectives are
riving in 72 police cars came
to the modern campus at 5 am,
armed with warrants, pass keys
and a dormitory plan.

The police acted on the basis
of secret indictments handed
down by a Suffolk County grand
jury

The arrests totaled 33, and
were largely due to the eilcrts
of undercover detectives—some
of whom were bearded and long-
haired According to a report
in The New York Times, des
tectives collected boxes of pills,
tobacco pipes. psychedelic post-
ers and other items they consid-
ered possible evidence. They
checked bathroom water tanks,
the interior of telephones and
medicine cabinets, _

THE EARTHA KITT CRISIS‘

é AAAAAAAAAAAAAAA/A/AA/A/A

Fea’rures Index
DRAFT DODGER’S GUIDE TO

EUROPE

An unoff

have both
STORIES

r A

it?

AND . . , LaJ's Response to the GSM Viet Petition; >
Report on German Radical Universities; Gamb-
ling on Campus; Ladies March on Congress; A
Freshman Looks at the RA. System; Opens on

tionnaire
on Page 2

Other Campuses; Gr
r . . and much more a
Black.

X AMM/A/AA/AMAM /\ A A AMA/AAAM

VVVVVVVVVVVVVVVVVVV V

we v3."

X‘
>

— Collegiate Press Ser-

vice’s David Saltman explores the
ins and outs of deserting the U.S.
Anny abroad .

POSTPONED PUBLICATIONS —« >

.Page 6 '

icial Grinnell yearbook

and an official admissions booklet >

been stymied ......
ON Page 11.

WM F. BUCKLEY, JR. takes an in
depth look at the State of the Union >
message and the state of its aulh- >
or’s mind ....... COLUMN ON Page 3

OUR FIRST FAVORABLE EDIa >
TORIAL # Background and ques-

on Page 5; EDITORIAL

innell’s First Draft Dodger
. a inside the new Scarlet it:

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