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■ Our endorsements for the August 7 runoff
The Red & Black
An independent student newspaper serving the University of Georgia Community
INSIDE
The Earthworms, a
Buffalo band relocating to
Athens, will be
performing in three
venues this weekend.
5
Weather: Stay inside and drink.
Today, mostly cloudy, 80s,
tonight, fair, 70, Frl., partly
cloudy, 50 percent chance rain.
THURSDAY, AUGUST 2, 1990 • ATHENS, GEORGIA • VOLUME 97, ISSUE 129
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Knapp: Fund raising hard but enjoyable
By BETH VALINOTI
Staff Writer
Despite several college presidents’ dis
content about fund-raising pressures,
University President Charles Knapp said
fund raising is one of the most enjoyable
aspects of his job,
"It is one of the things that I like beBt
about my position,” Knapp said.
Recent articles in national publica
tions, precipitated by presidential resig
nations, have revealed that fund-raising
pressures are causing Borne presidents to
quit.
Harvard University President Derek
Bok announced his resignation in June,
citing an expected $2 billion fund-raising
drive as the primary reason, according to
an article in U.S. NewB and World Re
port.
If anything could cause Knapp to leave,
he said, it would be a failure to keep hiB
constituencies working toward the same
goals, not the pressures of fund raising.
His constituencies include students,
faculty, staff members, the University
System Board of Regents and taxpayers.
Fund raising for public schools, such as
the University, involves lobbying the
state legislature and encouraging per
sonal and corporate donations.
The University has just begun the
second year of its ambitious Third Cen
tury Capital Campaign, a fund-raising
drive with the goal of raising $150 million
by June 1994.
Although the president and the De
partment of Development and University
Relations continually seek gifts, specific
projects are targeted during campaigns,
said Development Coordinator Kevin
Korbett.
"During campaigns, we specifically
focus on capital gifts for facilities, endow
ments and special school and college pro
jects,” Korbett said.
Knapp said he personally generates
gifts at lunches, dinners and meetings,
mostly in the Atlanta area, where the ma
jority of University alumni reside or
work. But Knapp iso travels to other
cities, such as New York, visiting Univer
sity alumni to encourage donations.
“It takes a lot of time and hands-on
work,” Knapp said. "But I wouldn’t be
moan the fact that it takes as much time
as it does.”
Knapp estimates that 40 percent of his
70- to 80-hour work week is spent on fund
raising.
“Some fund raising is hard to distin
guish from other activities,” he said. “If I
speak to an alumni group to gain support
for the University, I could also be gener
ating funds.”
John Crecine, president of the Georgia
Institute of Technology, spends about 30
percent of his time working on private do
nations and seeking better state funding,
said John Friedmann, special assistant to
Crecine.
Fund raising at the University is more
difficult than at Georgia Tech or Emory
University because the University’s pop
ulation base of possible donors is in At
lanta, home to both schools, but 70 miles
from Athens, Knapp said.
“I travel to Atlanta an average of two
days a week,” he Baid. “And it’s no fun
when your car breaks down in Dacula at 1
a.m.”
The Atlanta media give more coverage
to Georgia Tech and Emory because of
proximity, Knapp said. Therefore, he
said, he must make extra efforts to be in
Atlanta to represent the University.
“I would like to see a presence of the
University, like an office or building, in
Atlanta,” he said.
Traveling to Atlanta and dealing with
other demands on his time can be tiring,
he said.
‘Fund raising can be awkward when I
get cranky,” he sa,d. "Sometimes I make
bad decisions.”
Knapp prefers dealing with some po
tential donors more than others, but he
must put these preferences aside, he said.
‘You’ve got to be pretty adaptable,” he
said. “When I make a bad impression, it
doesn’t just cost me a friend; it costs the
entire University.”
Although Knapp is careful when
dealing with possible donors, he said he
doesn't refrain from speaking his mind on
issues when he thinks he should.
‘Tve tended to say what I think be
cause you can get into a jam by putting
yourself in neutral," Knapp said.
Unification vote: Too close to call
By DOUGLAS S. WOOD
Staff Writer
More than 50 citizens debated
the pros and cons of unification at a
meeting of Citizens for a Unified
Government Tuesday.
On Aug. 7, citizens will vote in a
non-partisan referendum to decide
whether to unify the Athens and
Clarke County governments.
“One government can do it a lot
cheaper than two,” said Pat Allen,
chairman of CUG.
Primary concerns discussed at
the meeting at Athens Regional Li
brary were about services to be
provided under unification and
new electoral districts.
CUG Vice Chairman Larry
Blount said the level of services
will increase, but the costs will be
less.
“We are not going to eliminate a
problem that has existed for de
cades over night," Blount said, ref
erring to past city-county relations.
Citizens raised questions about
the elimination of duplicate jobs in
city and county systems if unifica
tion passes.
Whether certain jobs remain
will be determined by the new gov
ernment, Blount said.
CUG member Bob Carson said,
“If unification passes, who gets
elected is the critical question.”
Athens City Council member
Carolyn Reynolds is opposed to
unification, Baying that the mi
nority vote in government would be
diluted by the new districts created
by the unification charter.
Blacks are currently rep
resented by four black elected offi
cials out of 16, she said. Under the
new government, blacks would
have only one probable black rep
resentative out of 10 officials.
CUG member Milton Hill said
the unification charter was re
viewed by the U.S. Department of
Justice to prevent dilution of mi
nority votes. The Justice Depart
ment found no dangers of
misrepresentation.
Reynolds bIbo said city water
rateB would go up 35 percent, but
Blount said that figure was based
on a hypothetical situation.
The city has a $2.6 million profit
on its water service, and city serv
ices should be run at cost, not
profit, Blount said. The charter
mandates a water rate Btudy
within six months of unification.
Citizens also asked if current
districts would have to be redrawn
when the 1990 U.S. Census figures
are received.
CUG member Paul Hardy said
census figures won’t be available to
local governments until 1993, and
the districts will have to be reap
portioned anyway.
Arkansas to join SEC in ‘91
By DAVID PACE
Sports Writer
Selecting a new member for
the Southeastern Conference is
like a marriage, according to SEC
Commisioner Roy Kramer. Both
parties have to say “I do”.
On Wednesday, the SEC com
pleted the vows by unanimously
accepting the University of Ar
kansas into the conference.
Arkansas, a member of the
Southwestern Conference since
its inception 76 years ago, will
submit its resignation from that
conference effective June 30,
1991 and become a full-fledged
member of the SEC on July 1,
1991. It will not wait for study re
sults on the future of the SWC.
Arkansas Athletic Director
Frank BroyleB said that the
switch in conferences is ideal for
his school.
“We spent two months in se
rious discussion about the move,”
Broyles said in a telephone inter
view. “We included various de
portments on campus and it was
a unanimous decision.”
Not only will Arkansas become
part of one of the nation's richest
and most competitive confer
ences, the move ensures the
school’s inclusion into one of the
new so-called “super-conferencos’
that appear to be taking shape
across the country. The Big Ten
has recently selected indepen
dent powerhouse Penn State to
join its conference.
The expansion is not expected
to stop with Arkansas. Other
schools possibly being considered
for a Super-SEC are Texas, Texas
A&M,
Please See ARKANSAS, Page 8
Stafford loans OK for now
UGA not affected by default
By PATRICK FLANIGAN
Staff Writer
Although one of the nation’s
largest insurers of guaranteed stu
dent loans is on the verge of insol*
vency, it won’t affect the
University in the short run.
However, the University could
face problems in the long run, said
Ray Tripp, director of Student Fi
nancial Aid.
“Congress only appropriates so
much money for student financial
aid," he said. “Money that is used
to pay back defaulted loans is
money that could be used some
where else, like Pell grants."
When a student applies for a
guaranteed loan, such as a Stafford
loan, the amount loaned is deter
mined by the school, and the
money is borrowed from a private
institution.
The loan is insured against de
fault by a separate agency. These
agencies are, in turn, insured by
the federal government.
One such agency is the Higher
Education Assistance Foundation,
a private agency which currently
guarantees nearly $10 billion to
lenders.
The Atlanta Journal-Constitu
tion recently reported that HEAF
has a high default rate, which is
expected to drive it out of business
soon.
The company received a $200
million loan Tuesday from a com
pany — the Student Loan Mar
keting Association — which
specializes in buying student
loans. This bailout could cost tax
payers $60 million, according to
the articles.
There is no immediate cause for
worry at the University, though,
because local lenders are insured
by a state agency in good economic
standing, Tripp scud.
The Georgia Student Finance
Commission serves a function sim
ilar to HEAF’s, but its activity is
limited to Georgia, said Steve
Dougherty, commission director.
GSFC is a state agency, but is self-
supported; therefore, it must op
erate like a business.
Such companies, under contract
by the federal government, earn
money in three ways:
• They are paid a 1 percent ad
ministration cost by tne govern
ment for each loan they insure.
• They charge the student a 2.75
percent guarantee fee.
• When a student defaults on a
loan, the debt is eventually taken
over by the insurer, who is then re
imbursed by the government. If the
insurer then manages to collect
from the student who defaulted, it
keeps 30 percent of the reimburse
ment for collection costs.
“We have recovered 50.3 percent
of the money we insure which has
gone into default,” he said.
This is the agency’s measure of
success; the GSFC has the highest
recovery rate of defaulted loans in
the nation, Dougherty said.
By contrast, HEAF has recov
ered 17 percent. The national av
erage is 24 percent.
Mary Fowler, loan officer at
Athens Federal Savings Bank, at
tributes GSFC’8 success to man
agement.
‘There are steps which must be
taken before a loan becomes de
fault, called due-diligence,” Fowler
said. “A certain number of phone
callB within 30 days of non-pay
ment, more calls and written let
ters after 60 days. If you stay on
top of these things you won’t have a
default problem.”
Wednesday to be T.K.’s last night
By DAN POOL
Staff Writer
Zoo Nites will be just a memory
after Wednesday when T.K.
Harty’s Saloon serves its last
drink.
Richard Middleton has an
nounced that he’s selling the fa
mous bar at The Station on Hoyt
Street. He said the new owners,
whose names haven’t been re
leased, plan to change the bar and
the name.
T.K’s, one of the oldest bars in
Athens, has been in operation with
the same name and location since
1974.
At their peak, Zoo Nites at
tracted crowds of 1,000 people or
more. Lately, however, the bar’s
clientele has been dwindling be
cause of the growth of other night
spots downtown, said Middleton.
‘T.K's needs to go down grace
fully,” he said. 'T.K's was great
when it was T.K.’s, but lately it’s
been going down.”
Late work nights also factored
into Middleton’s decision.
'You stay up so late every night
and Bleep r til noon every day, it’s
hard to do this very long and keep
your sanity,” he said. “It’s great
when you’re young, but Tm getting
a little older, and it’s not quite as
easy.”
Middleton was 24 and in grad
uate school when he bought the bar
four years ago. He’d been singing
in bars and thought he could run
one, he said.
“I learned on the job," he said.
"The first time I ran out of vodka, I
learned to keep extra cases on
hand because people would get
mad.”
Along with Zoo Nite, T.K.’s is
known for the murder of its orig
inal owner — none other than T.K.
Harty himself. The television se
ries “Unsolved Mysteries" ran a
story on the incident last winter.
Harty was murdered by a hit man
hired by the owner of a pizza shop
at The Station. Harty, who held
the lease to the entire building,
had evicted the pizza shop owner
Chad Lowery, of Lowery’s
Tavern, said nightlife has moved
downtown.
Lowery, who was once a bar
tender at T.K.'s, said he felt the bar
had failed to adapt to the changing
times. But he said he learned many
things when he worked there.
“From behind the bar, I got a feel
for what people like or don’t like,"
he scud.
A runoff recap: History is in the offing for Georgia voters this Tuesday
By DAVID JOHNSTON
Opinions Editor
EDITOR'S NOTE: For more informa
tion on the candidate> in Tuesday ’» Demo
cratic primary runoff or the November
general election, contact individual cam
paign organisations or the state party of
fices. For information on voter
registration contact your county board of
elections.
Georgia Democrats go to the polls on
Tuesday with the chance to make history.
If former Atlanta Mayor Andrew
Young wins the gubernatorial runoff
against Lieutenant Governor Zell
Miller, he will be the state party’s first
black nominee for statewide office. In
fact, Young is the first black candidate for
statewide office to make it into a runoff.
The winner of the runoff will face Re
publican nominee Johnny Isakson.
Atlanta attorney Mollie Fteeman
GUtsie is also attempting to make his
tory Tuesday in her race against Gwin
nett County attorney Robert Durden.
Glitsis, who would be the first woman
elected to a non-judicial statewide office,
is competing with Durden for the Publio
Service Commieeion seat being vacated
by Billy Lovatt, who ia the Republican
nominee for insurance commissioner. The
PSC regulates Georgia’s utility compa
nies.
Glitsis ia the former consumer’s utility
counsel.
Durden is a former chairman of the
Gwinnett County Democratic Party and
ran unsuccessfully for the state House of
Representatives in 1988.
Senators Joe Kennedy of Claxton and
Pierra Howard of Decatur will face each
other in the runoff for the Democratic
nomination for lieutenant governor.
Kennedy, who has the backing of
House Speaker Tom Murphy, is a 23-year
veteran of the state senate, and served as
president pro tern (the presiding officer)
from 1983-90.
Howard, who served in the senate for
18 years, has the backing of Vote Choice,
a pro-choice political action committee.
The winner of the runoff will face Re
publican nominee Matthew Towery.
The race for insurance commis
sioner pita incumbent Warren Evans
against challenger Tim Ryles, who led a
field of 6 candidates with 30 percent of
the vote in the July 17th primary. Evans
received 28 percent of the primary vote
Evans has been in office since 1985,
and has recently come under fire for
failure to control skyrocketing insurance
rates.
Rylea is the former director of the
state’s Office of Consumer Affairs.
The winner of the runoff will face
Lovett.
Locally, Rep. Karen Irwin of Winter-
ville faces a serious challenge in her re-
election bid in Georgia House district
13, post 2.
Hartwell businessman Allen Powell
led Irwin and two other challengers in the
primary vote.
Irwin is a strong advocate of abortion
rights, while Powell “opposes the com
mercialization of abortion for birth con
trol," and would seek to outlaw abortion
except in the cases of a threat to the life <rf
the mother, rape or incest.
Also on the ballot in Clarke County is
the referendum for the unification of the
city and county governments.