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Copyright 1987 The Da7y Tar Hee
Volume 95, Issue 36
Stadeett-Fiuiini credit mimom chartered to.stsurt 'fal operation
By DAN MORRISON
The first student-run credit union
in the Southeast will begin full
operation at UNC next fall.
The credit union was officially
chartered Friday by the State Credit
Union Division of the State of North
Carolina, and a board of directors
comprised of nine UNC students will
"1 got the idea to begin a credit
union from a friend of mine at (the
Uniersity of California at) Berke
ley." said Todd Hart, a junior
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Wayne Wright and Mike Gates from Pittsboro work on power
poles in Carrboro Monday. They spent most of the morning
By REBECCA NESBIT
The Chapel Hill Town Council
voted 5-4 Monday to postpone a
decision on an amendment to the
town's noise ordinance. Student
Body President Brian Bailey and his
executive assistant Kevin Martin
proposed the amendment.
The council members would have
had to vote 6-3 in favor of deciding
the amendment Monday, so they will
revole to have a public hearing for
Student Government leaders pro
posed the amendment in an attempt
Official backs 16-campus system
over increased UNC-CH autonomy
By ERIC BRADLEY
The chairman of the UNC-System
Board of Governors said Monday
that UNC-CH's decade-and-a-half-long
association with the 15 other
schools in the UNC System has been
good for the University and that the
system doesn't need to be overhauled
to grant UNC-CH more
UNC-CH's Faculty Council
rejected a resolution introduced
Friday by its chairman, George
Kennedy, requesting that the govern
ing policy of the UNC System be
studied by the N.C. General
"The system s working well," BOG
Chairman Philip Carson said. "1
think Chapel Hill's success in the last
14 or 15 years speaks for itself."
Since 1972 the 16-campus UNC
System, including UNC-CH, has
been governed by a president, the
Board of Governors and a Board of
Trustees for each of the institutions.
In the resolution he introduced
F riday, Kennedy said that the
current system was cumbersome,
and that it inhibited the University
from developing and reaching its
"I raised this question because it
f ABD?Page2. .
economics major from Dallas and
president of the newly-formed credit
"They (Berkeley students) have
had their credit union for about 3
or 4 years, and it has been extremely
successful," Hart said.
Hart has had experience working
as an investment banking analyst for
Paine-Webber in San Francisco.
Although UNC is the first univer
sity to establish a student-run credit
union in the Southeast, the credit
union is one of several university
savings and loan facilities nationwide
-V - . ... s.
to create a noise ordinance that
would satisfy both the Town Council
and the University. Bailey and
Martin met with Chapel Hill Mayor
James Wallace on Thursday and
proposed three major changes in the
February-revised ordinance to make
it less objectionable to students:
Allowing higher noise levels for
outdoor parties and concerts on the
UNC campus, with sound levels of
80 decibels for functions held Thurs
days through Saturdays. The ordi
nance now allows a maximum noise
level of 75 decibels for any outdoor
function in Chapel Hill.
seems to me it's been asked infor
mally behind the scenes," Kennedy
said Monday. "I don't like situations
where you can't talk about things like
Carson said Monday that the idea
of the University being inhibited by
the present system was new to him.
"No one's talked to me about it,"
he said. "I would look at what's
happened since there's been a unified
system. I think you'd find it's been
the most productive period in the
University's history. I think Chapel
Hill's made marvelous progress. I
don't think they've been inhibited."
Robert Eubanks, vice chairman of
the UNC Board of Trustees, agreed.
"Look at the position we're in vis
a vis a few years ago," he said.
Although the system doesn't need to
be overhauled, Eubanks said,
Kennedy raised an important issue.
"It needed to be on the table for
them (the council) to consider, and
they took a stand," he said. "I think
their vote was fairly perceptive on
But the progress made at UNC
under the present system doesn't
necessarily mean that the system
must never change, he said.
"You make a lot of progress and
then sometimes you run up against
Serving the students and the University community since 1893
Tuesday, April 14, 1987
that cater to the financial needs of
The credit union at the University
of Massachusetts at Amherst, estab
lished in the late 1960s, remains the
oldest university credit union, with
more than $1 million in assets.
"A student credit union is perfect
for students because it offers a low
cost place to conduct financial
transactions, at minimal or no cost,"
"You can't beat investing your
money someplace where there is no
overhead or salaries."
i. . "
inspecting power poles for decay for the Duke Power Company,
and they replaced any rotted poles.
Brian Bailey said, "If we do this,
it will encourage more events like
Springfest. which went very well last
weekend. Since the rise in the
drinking age, there has been a move
to come back on campus, and if we're
given the incentive to do it then a
lot of problems will be solved."
B Allowing amplified sound levels
of 70 decibels for functions held
Thursdays through Saturdays with
out a noise permit from the Town
Council. The ordinance now sets a
week-long 60-decibel limit for func
tions without a noise permit.
B Extending the cutoff time for
a dead end," Eubanks said. "Maybe
some things need to change. It's just
common sense. You have to change.
That's what I do in my business. If
I hadn't changed two or three times
in the last several years, I'd be out
of business right now."
Kennedy said more trustees
should be on the board, despite the
N.C. law that sets the number at 13.
"A larger BOT might be more
diversified and more reflective of
alumni and the needs of the state,"
Only one trustee is a full-time
educator: William Darity, who is a
professor at the University of Mas
sachusetts at Amherst. Darity is also
the only black member of the BOT.
He has recently threatened to resign
in protest of UNC's investment
policy in South Africa.
Eubanks said the board probably
doesn't need to be enlarged.
"Usually in business, the greater
the body, the more cumbersome the
decision-making process," he said.
"But maybe in academia it's
But Kennedy said it was still
worthwhile to criticize the system.
"Raising the issue might lead to some
my people go.
Chapel Hill, North Carolina
A priority of the founders of
UNC's credit union will be to grant
small loans to students who would
otherwise be turned away by major
Hart said the credit union will
allow students to take out loans for
small consumer items such as com
puters, since major banks prefer big
Junior Cindie Brewer, secretary of
the credit union's board of directors,
said the organization will have
longer office hours on Thursdays,
Fridays and Saturdays to better
DTH Steve Mattesdn
functions with maximum noise levels
to 2 a.m. on Fridays and Saturdays.
The ordinance now sets the cutoff
time for these days at midnight.
Bailey said. "If we move this
(cutoff time) to 2 a.m., when the
noiseTuns out, there will be nowhere
else to go. Students can't go buy
more beer because the stores and
bars are closed. The students will
stay at the party. It might mean noise
until 2 a.m. but the noise will stop
then, as opposed to students going
out, getting more beer and making
noise until 4 a.m."
Many council members said 2 a.m.
was too late, agreeing that 1 a.m.
would be the latest.
The February changes in the noise
ordinance were prompted by a rise
in the number of noise complaints
that the Chapel Hill Police Depart-
See COUNCIL page 6
Marriott hit by thefts; rumors
of embezslemeet Mefouiiided
By JO FLEISCHER
Assistant University Editor
Rumors of a $30,000 embez
zlement from UNC's Marriott
food service appear to be
unfounded, but UNC Police are
investigating three break-ins
involving campus food outlets
which appear to be inside jobs,
according to Marriott and UNC
; On Friday, March 27, Marriott
reported the theft of cash enve
lopes containing the day's receipts
'. $437 . frbm snack bars in
Ehringhaus and Hinton James
residence halls to UNC Police,
according to police reports.
The following Monday, March
31, an attempted break-in
occurred in Chase Hall. Thieves
were unsuccessful in entering the
building, but did $200 in damages
to a door.
1 Charles Antle, associate vice
chancellor of business and chair
man of the Food Service Advi
sory Committee (FS AC), said the
$30,000 rumor was brought up at
Another benefit of the credit union
would be the experience it offers
students interested in gaining expe
rience in accounting, marketing,
administration or public relations.
"It's not just for business stu
dents," Brewer said. "Advertising
students can get involved with things
like PR, and anyone else who is
interested can learn as they go
Hart said he anticipates broad
student interest in the credit union.
"A survey of UNC students in
By KIMBERLY EDENS
Although Student Congress
members expect to receive more than
$25,000 in requests this fall, they left
only $14,767 in surplus funds after
Sunday's final budget hearing.
But because some student groups
do not spend all of the student fees
allocated to them, the surplus will
probably cover the requests. Student
Government representatives said
"I'm somewhat concerned (about
the figure)," Finance Committee
Chairman Neil Riemann (Dist. 12)
said. "But 1 think it will be enough
to fund certain capital (expenditures)
that come up."
The Black Student Movement,
Carolina Symposium and the other
groups that make budget requests in
the fall will probably receive some
money, but most likely the amount
they receive will be less than they
The BSM, which received $14,240
last year, was not included in the
budget process because it did not
turn in its request before the Finance
Committee deadline. The sympo
sium, which received $12,381 two
years ago. also was not included in
the hearings because it was not
officially recognized by the Univer
sity in time.
"They (the BSM and the sympo
sium) will get something," Student
Body Treasurer Jody Beasley said.
"But, I'd imagine that the BSM
would be wanting around the same
figure as they asked for last year,
and you've also got to take into
consideration capital expenditure
requests in the fall and any other
the committee's April 1 meeting.
FSAC members were told by a
Marriott official that the rumor
was false, Antle said, but that it
might have been started because
of misinformation related to the
snack bar burglaries.
Bill Dux, Marriott's director of
food service at UNC, said Mon
day that he had heard rumors of
a large embezzlement, but he
called them "totally unfounded."
An internal audit done by Mar
riott three weeks ago found no
irregularities, he said. "I'd like to
know who's spreading this.
"If there was a $30,000 prob
lem, it would be a pretty serious
problem," Dux said.
UNC Police reports during the
past month contain no reports of
embezzlement of a large sum
from Marriott, but they do con
tain the three reports of breaking
and entering. Marriott officials
said all reports were handled bv
the UNC Police.
Sgt. Ned Comar of UNC
Police, recalling the March thefts.
today in the Pit
Learn about the class of '88
1 1 a.m. 2 p.m.
Business Advertising 962-1163
early December told us that 41
percent favored the credit union, and
at least 35 percent said they would
initially invest (a total of) $150,000,"
Also, UNC's credit union will offer
interest rates higher than the present
rate of 4.75 or 5.25 percent.
The credit union will be insured
for up to $100,000 per account by
the National Credit Union Admin
istration Share Insurance Corpora
tion, an organization similar to the
Federal Deposit Insurance
"In light of these circumstances,
$14,767 is not a lot of money," he
said. "The offset to that is that
reversions (unspent funds that are
returned to the congress) are such
that we can count on between $5,000
to $15,000. There's really no way to
know, but somebody is going to get
Riemann said the congress will
probably have more than the $14,767
surplus to allocate. "That estimate
of the surplus is the most conser
vative one we have," he said. "It
doesn't include reversions.
"In addition, the summer congress
may not allocate the full $2,000 (the
amount they are allowed to allocate),
and the figure for incoming student
fees is the most conservative one."
To 22 of the 26 student groups
that requested funding, the congress
granted the full amount recom
mended by the Finance Committee.
Beasley said the congress should
have examined the groups' budgets
for possible cuts more carefully. "On
final budget day I saw a lack of
serious scrutinizing," he said. "1
think had they (congress members)
taken their job more seriously, then
more money might have been cut.
"Especially toward the end (of the
hearing) a lot of organizations were
sliding through the process and
weren't getting the attention the
process merits," he said.
BSM President Kenny Perry said
Monday that his organization would
wait until the fall budget process to
decide what to do about funding.
"I'm worried about it, but at this
point in time there's really nothing
we can do," Perry said. "If that
See CONGRESS page 6
said security gates to both snack
bars were either left open or keys
were used to gain entry. No
damage was sustained to the gates
or to safes containing the receipts.
It would be "beyond coinci
dence" if the snack bar break-ins
were not committed by a former
or current Marriott employee, he
Dux said the investigation is
being left up to UNC Police, and
no action would be taken against
any Marriott employee unless
someone was arrested first.
Dux said he would not spec
ulate as to whether the March
burglaries were perpetrated by
former or current employees. The
security experts are trying to
determine if a "professional
criminal" could gain entry into
areas thought to be secure by
Marriott. "I'm not a crime expert;
I run a food service." he said.
Marriott is now using security
"support services" to make their
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