Daily ig§ Trojan
Volume IXVI, No. 90
University of Southern California
m
_Los Angeles, California_
Thursday, March 14, 1974
Donated painting may be a fraud, IRS claims
A painting by Peter Paul Rubens. 17th-century Flemish master. donated to the university in 1965 by Armand Hammer “ap pears to be either a copy or a studio version” according to the Internal Revenue Service.
The authenticity and thus the value of the Rubens painting. “Venus Wounded by a Thorn.” along with the value of five other paintings that Hammer donated in 1965 is being challenged by the government.
Hammer, chairman of the board of the Occidental Petroleum Corp.. has been assessed more than $800,000 in back taxes
in this and a related dispute, which is now before the U.S. Tax Court.
The value ofthe works that he donated was set at $321,500 by an independent appraisal and Hammer deducted this amount from his federal taxes as a charitable contribution.
However, the Internal Revenue Service cut the value of the paintings to SI09.500. using an appraisal by its own panel of art experts.
A spokesman for Hammer said that some ofthe figures given by the Internal Revenue Service were in error.
Courses given high ratings by students
Student evaluations of teachers and courses in the Division of Social Sciences and Communication show students rate the classes generally as above average, including items such as course content and the teacher’s knowledge of the subject.
' All the evidence I have indicates that students consider our instruction quite above average.” said Donald J. Lewis, divisional dean “In general, students are quite happy with the courses.”
The evaluation, conducted at the end of last semester, was initiated by the administrators in the division so they could get an overall view of the effects courses have had on students.
A total of 5.701 questionnaires were returned. The questions were answered on a scale from one to five: one being a favorable response and five being unfavorable.
The information was fed into a computer, and a mean score of 1.79 was calculated for all the
questions combined. Lewis' response to the high ranking was.
•i'm delighted!”
He said the favorable outcome was undoubtedly affected by people wanting to be kind.
The results received by the dean's office, however, were only in compiled form. No statistics were available on individual classes.
Each department in the division conducted the evaluation for its own benefit as well as for the division's. Scores for specific courses and teachers were kept by the departments.
The main purpose of the evaluation was to standardize the evaluations already required by the division and gel an overall picture ofthe success of the division's programs.
The questionnaire was the first effort to establish a standard evaluation form. Improvements are already being considered for next year.
The spokesman said that appraisals by the government of the art works were “made from photographs.”
“The claim ofthe government for $800,000 in back taxes includes mathematical errors. In the year 1969 alone, the errors amount to $220,000 and the correct amount of the government’s claim is $535,000.” the spokesman said.
A statement by Donald Brewer. director of University Galleries. tended to support Hammer’s statement on how the government appraised the art.
Until he received a call Tuesday afternoon from United Press International, which released the story Wednesday morning. Brewer said that he had no knowledge that there was any question about the authenticity or the value ofthe paintings.
“I have no reason to doubt the authenticity of the paintings. I know the gift was well inten-tioned and I am grateful that the paintings are here and part of our collection.” Brewer said.
The painting by Rubens was valued at $45,000 by the government instead ofthe $75,000 that Hammer claimed on his tax return.
As a result of the lowering of the deduction for the Rubens, other paintings donated to USC. and a sculpture by Frederic Remington, a Western artist, to the Lyndon Baines Johnson Library at the University of Texas. Austin, the government said that Hammer owed $154,000 in taxes for 1965 and 1967 when the paintings were donated.
The remainder of the back taxes claimed by the government come from 1969 and 1970 when over $5.5 million of contributions to charities were disallowed by the Internal Revenue Service on the grounds that Hammer failed to qualify under the rule of unlimited charitable contributions.
THE REAL THING?—Cathie Mann, a feature reporter for KNXT's Newsroom, was one of several reporters on the scene after the Internal Revenue Service declared that a 17th century painting donated to the university was not the real thing. DT photo by Michael Sedano.
Health fee increase would fund pharmacy
BY ALIX RILEY
Staff Writer
A pharmacy that would sell prescription drugs to students at greatly reduced costs will be established if the proposed $6 increase per semester in student health fees is approved.
The current health fee is $16. and it is expected that if the increase is approved, prescription costs would be lowered 25 to 50 cents.
The pharmacy, which would be located in the Student Health Center, would provide services only to students under the care of the center, and would carry a limited number of drugs. No over-the-counter medications or nondrug items, such as cosmetics. would be sold.
Dr. Addie Klotz. director ofthe
^(Second of tiro articles.)
How much did the National Student Lobby accomplish at its recent conference in Washington. particularly in persuading members of Congress to support its stands?
Some of the lobby's impact on Capitol Hill cannot really be known until Congress acts on specific legislation.
But on two of the lobby's five major concerns, congressional committees took action that could be considered the result of the efforts of some 900 student delegates.
On one high-priority concern — increasing the availability of federally insured loans to students from middle-income families—the lobby got some results.
On Feb 26. before the five-day conference ended, the House special subcommittee on education examined legislation to accomplish that goal and cleared it for action by the full House Education and Labor Committee.
Students from families with Jess than $20,000 in adjusted in \___
Lobby’s efforts in D.C. advance student goals
come would no longer be subjected to a complicated financial means test to get a loan. The test denied loans to many Similar legislation was passed Feb. 5 by the Senate.
On another concern of the lobby—the reinstatement of discount airline fares for those under 22 and over 65—hearings on the legislation were promised soon.
Rep. John Jarman (I) Okla.). chairman ofthe House subcommittee on transportation and aeronautics, said he would call hearings in time for the House to act before .1 line 1
If legislation is not enacted by then, the discount fares will not exist. The Civil Aeronautics Board last year ordered the fares to be phased out The Senate passed a bill Nov. 5 that would reinstate the fares. Progress on the lobby's three
other concerns was harder to measu re.
For instance, the lobby sought to increase funding for the College Work-Study Program.
But a House subcommittee on appropriations has just begun hearings on President Nixon s budget requests for the 1975-76 academic year.
So it will not be until later in the year that efforts can be made to increase Nixon's request of $250 million.
Though members of Congress could and did endorse the lobby's statement calling for low or no tuition at two-year and four-year public i nstitutions. the real battles will be fought at the state level.
However, the delegates did win some congressional support for the State Student Incentive Grants Program, under which the federal government matches
funds of state scholarship programs.
Finally, lobby members sought support for the concept of a full minimum wage for students and youth instead of the Nixon administration’s proposal to allow employers to pay them only 80ri to 85r< of the minimum wage.
Legislation to increase the minimum wage is under consideration in both houses.
A major event of the conference was the testimony of four students before the House special subcommittee on education. The panel was arranged by the lobby.
Among the four was Peter Wong, editor of the Daily Trojan.
The 900 delegates did more than discuss economic-related issues. They reviewed other problems in higher education and the impact of the energy crisis on college students.
They also heard many speeches—Rep. Paul N. McClos-key (R-Calif.): Bob Woodward: Washnuiton Post reporter who
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center, said the idea of the pharmacy was conceived after a study revealed that 80^ of the prescriptions issued by college health centers were never filled because the students didn't have enough money or because they forgot.
This raises a very important question in the case of a student who really needs care.” she said.
Klotz said that by having a pharmacist spend time with the student and inform him about drugs, doctors' prescribing practices will be of a higher quality and there will be an increased awareness about drugs on the student’s part.
Tom McCarthy, manager of the pharmacy located in the basement ofthe Student Union, said that the pharmacy would lose a percentage of its prescription business if another pharmacy was established. He was reluctant. however, to speculate on how much business would be affected.
“Nobody knows the answer right now.” he said. “I don’t see it (the pharmacy) being closed down, because we still have to serve the faculty and staff.
"We would have to project how much we would lose, then see what services we could extend to the faculty and staff to compensate.”
Dr. Klotz said that through a heightened drug awareness, the pharmacy’s business could actually be increased.
"I don't see it as a competitive thing.” she said
The existing pharmacy is run by the School of Pharmacy, and its profits go to the university. Any price changes would depend on the administration, said McCarthy.
Edward S Brady, associate dean ofthe School of Pharmacy, refused to comment until more specific plans are made. He and Dr. Klotz are meeting this afternoon to discuss the proposal
Dr. Klotz said the proposed pharmacy, besides benefiting
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