Greek system facing financial problems
By FRITZ BEESEMYER
The Greek system at USC, is. like other fraternity-sororitv systems across the country, experiencing financial problems.
It has been learned that in the spring of this year, only 77<7r of the beds in the fraternities were occupied. The sororities were better off, with 93*^ filled. Of the 29 fraternities in operation, only six are operating at capacity (designated as three or less vacancies). Sororities have a better record with 10 out of ^chapters operating at capacity.
The fraternity-sorority system at USC is 25th in size in the United States. Twenty-five percent ofthe undergraduate enrollment are members of a Greek organization.
Each Greek organization is different in terms of personality, facilities, size, alumni supervision, finances and management. and in national ties and tradition. They are democratic, self-governing societies—in effect, small businesses—with budgets ranging from as small as $25,000 to as high as $80,000 yearly.
One of the major problems facing these small businesses is rising costs. Real
estate taxes, insurance, kitchen operations. and maintenance have skyrocketed in the last couple of years. The rise in costs has become so great that it has become impossible to pass on all the increases to the members. As a result, the cost squeeze has begun to affect all phases of the chapter’s operations and is beginning to affect the quality of student life in these organizations.
A good example of the rising costs that are plaguing the Greek organizations is real estate taxes. Since 1968, the tax rate (the amount of each assessed valuation of $100 is multiplied to arrive at the tax dollar owed) has risen approximately 35<7r. Last year, the increase was 69r.
Construction costs have also risen dramatically. During the past four years, construction costs have gone up approximately 107c a year, and recently they have been increasing at the rate of one percent a month.
Despite the rising costs in construction, there is speculation that the Row will go through a remodeling phase within the next five years. The majority of the privately owned houses (those not owned by the university) are very old. Although
some have been extensively remodeled, most of these structures will go through another remodeling phase to bring them into compliance with the current building
codes.
The houses owned by the university (11 in all) enjoy a significant tax break. Unlike the privately owned houses, those that are owned by the university pay only nominal real estate taxes. The fair market value of the land and buildings is more than $6 million with the furnishings and equipment worth about $2.5 million.
In the past, the money for improvement of the chapters has come from chapter alumni and banks. However, financing is now becoming a critical problem. Recently, the area south of downtown Los Angeles (which includes the university area) has become a high-risk area and banks have become very reluctant to finance any construction. In addition, the university area has the second highest crime rate in Los Angeles.
In past years, decent loans were usually obtained with the influence of an alumnus, as lenders were not excited about making loans to Greek organizations. Now, alumni must often personally
guarantee the loan.
In addition to the difficulty involved in obtaining financing, the cost of it has risen from six percent to a high of around nine percent. This increase raises the total costs significantly.
Despite these increases, 11 houses plan to remodel in the next three to five years. Two sororities plan to build new facilities, and a third sorority has just recently completed a $92,000 remodeling.
The Greek organizations would enjoy a better financial position if they joined together to tackle mutual problems, it has been speculated. Most houses are operating on outmoded corporate structures. For example, food costs could be reduced through cooperative food purchasing. Another area where this technique might be employed would be insurance.
Within the past few months, 15 fraternities have formed an association called the University Associations Foundation. The association hopes to be beneficial in seeking solutions to problems that are of mutual concern to the Greek organization.
(Continued on page 2)
University of Southern California
DAILY
Grads face tight TROJAN job market—UPI
VOL. LXIV NO. 119 LOS ANGELES, CALIFORNIA TUESDAY, MAY 9, 1972
CHAIRMAN TELLS VIEWS
Board faces challenges
By TIM TAYLOR Contributing Editor
J. Robert Fluor’s first 10 years on the USC Board of Trustees were the Master Plan years, the years of massive fundraising and enormous university expansion.
“One of the greatest pleasures ofbeingonthe boardatthattime was to see the progress being made by the university,” said the trustees’ newly-elected chairman in a Daily Trojan interview.
Now. he said, the board and the university face even greater challenges. Rising costs and a tighter economy are taking their toll here as they have at other universities.
“It is my hope to see the university continue to progress as it did during the Master Plan years,” he said after his election last month.
Fluor spoke about tuition, which has increased from $60 to $82 per unit in the last four years.
“There is an extreme aware-ness(amongthe board members) of the problem of ever increasing tuition. Hand-in-hand with this is the problem of ever increasing costs and the unfortunately low endowment.” USC’s endow ment is about $40 million; Harvard has over $1 billion.
The board is aware, too. of the financial problems that many students are facing with the increased tuition. “There is a very great concern by the board that we have to do something to compensate for the fact that a lot of deserving kids cannot get financial aid.
“A commission of the board is being established to look at ways to relieve this situation,” he said. At the recent board conference in Palm Springs, he said, there was more trustee participation on that point than any other.
The Daily Trojan recently reported possible changes in admissions policy that may come about because of the tuition hike “The admissions policy may have to be much less selective just to fill classes, but I hope this will not be the case,” Fluor said. “That certainly is not what we’re striving for, so we have to
find other ways to solve the problem.”
Fluor, however, is not without ideas for helping to solve the problem. “The one hundredth anniversary of the school is coming up (in 1980) and we may have another major fundraising drive, hopefully directed toward the endowment.”
Endowment funds are invested by the university, which can use the interest for operating expenses diminishing the principal.
“I hope to set out on such a program with the help ofa bunch of dedicated trustees, who will either make contributions them-selves or enlist gifts to the endowment from their friends,” he said.
The 1960s saw much emphasis placed on the development of USC’s graduate and professional schools. In the 1970s, it appears that the College of Letters, Arts, and Sciences will be getting more attention.
In accord with this widespread feeling. President John Hubbard elevated John Cantelon, dean of Letters, Arts and Sciences, to the new board-created post of vice-president for undergraduate studies. Three divisional deans were then appointed to serve under him.
“There is no question that from an administrative standpoint, the steps we have taken have been in the direction of restructuring and strengthening LAS,” Fluor said.
The new chairman said that he hopes to set up a special committee, headed by a board member, to help raise funds specifically for LAS. Fluor’s predecessor, the late Mr. Kenneth T. Norris, set up a similar group, called the Board of Counselors, to aid the USC School of Medicine.
“The idea is just getting started,” Fluor said. “What is certain is that LAS is going to get much more attention than it has in the past and that it will have a much more effective voice.”
Fluor also spoke about the chances for getting a student on the board. The question comes up every time a board chairman is interviewed.
He answered by directing his comments to another question about the impact on the board of the ASSC elections, which have once again been postponed by administrative action.
“The ASSC elections have a definite impact,” he said. “If the students can’t govern themselves, their ability to work on the Board of Trustees has to be questioned.
“If the students could demonstrate a consistent pattern in their elections, then they would have a stronger case. But instead, it seems to be a continuing hassle.
“I think the students could have a more effective voice than they have,” he said. Citing the chronically low student turnouts for ASSC elections, he said, “You (the students) have such minimal representation now that it’s hard to believe that this really is the voice ofthe students as a whole.”
By GEORGIA GOBEL
Although there are rumors of a mild upturn in job opportunities, June graduates will still face tight competition in a limited job market, according to a United Press International survey of 41 colleges and universities in 20 states.
For USC graduates, the problems are the same, despite the fact that a survey by the College Placement Council indicated a five percent increase over 1971 in the employment of new college graduates in business, industry and government. However, the increase may not be reflected in on-campus recruiting, said Bruce Reisenberg, director of USC’s Career Planning and Placement Center.
Nationwide, the UPI survey indicated that graduates in accounting are most sought after, followed by the medical sciences and service-oriented groups such as food, real estate and housing. Specific business areas such as banking, retailing, insurance and sales are also available, while those trained in computer technology and nursing can still find jobs. UPI also indicated the new legislation designed to provide women with equal opportunities will benefit the career woman.
Yet all is not bright, especially for the liberal arts graduate, considered by UPI to be entering a depressed employment area. “Generalists, such as art, social science and the humanities majors, have fallen on hard times,” a Boston University official said. Those graduates who majored in English, foreign languages or elementary education are considered to among those who will find it almost impossible to find jobs.
Richard Berg, director of the Educational Placement Office at USC said, “It’s too early to tell what the teacher demand will be. In a political year, school districts are not anticipating new revenue sources out of Sacramento and hiring will not take place until late summer. A measure of teacher demand will hinge upon what happens this summer.”
Berg was optimistic though, feeling the graduate from the USC School of Education has received a superior education so when jobs are available in the field, USC students will be the most sought after.
What does this mean to the USC student looking for a job or planning a career this spring? Reisenberg feels with the strong competition, an applicant must be aggressive and well organized.
Reisenberg said students should utilize the available campus recruiting programs. He also suggested that students research companies and organizations and initiate contacts on their own.
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Registration packets available; departments giving out H cards
Students can pick up registration packets in person at the Registrar’s Office today.
H cards can be obtained from departments by students who have already received their packets.
July 5 is the deadline for return of packets to the Registrar’s Office.
Board continues election study
The third meeting of the Elec-tion Board that has been charged with recommending a solution to the ASSC election fiasco will be held in the Student Activities Center today at 1 p.m.
In a meeting Friday the board heard testimony from witnesses on alledged bribes, threats, and the formation of a secret fraternity formed to gain control of student government at USC.
At the start of the meeting an analysis of the election difficulties was presented to the board by Carl Emerick, assistant to the vice-president for student
affairs. The report delved into the procedure problems behind the two cases decided by the Stu dent Court on write-in votes and the candidacy of Jack MacNamara.
After the report, Jerry Reitman, former justice on the Student Court, testified to what he believed was the formation on campus of a new secret fraternal organization along the lines of T&E, a group investigated by the House Committee on Un-American Activities, that used to control student governments
at different universities including USC.
Reitman also testified that a bribe had been offerred him earlier in the year if he would agree to a certain decision before the court.
Testimony was also presented that James Factor, a close friend to Michael Trope, had supposedly talked to someone over the phone and said that if Reitman did not stop writing letters to the Daily Trojan attacking the court then he “could end up in the river.”