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PAID3lendate, Arizona

Permit No. U9

AMERICAN GRADUATE SCHOOLOF INTERNATIONAL MANAGEMENT

VOL. 4-NO. < Glendale, Arizona 85304

AGSIM Loses MillerFEBRUARY 21,1975

DONALD MILLER

There are times when all of us have to endure a little sadness and tWs is one of those occasions. Dr. Voris has announced that Donald W. Miller. Vice President and Dean of Students, is resigning effective February 28 to take up a position as Assistant Vice President and Personnel Director with the Bank of Nevada in Las Vegas.

Students with personal problems always had a sym­ pathetic ear available in Mr. Miller. He would advise students having minor difficulties with language class pressures.

The Lamda Chapterb\ Alex Benzemann

"May we ne'er forget each other nor our friendships cease to grow."

This is essentially the ideal and aim of Delia Phi Epsilon. the international fraternity headquartered here at Thun- derbird. It is not the stereotyped frat with pledging, hell week, etc.. but a professional organization devoted to promote assistance to members in the international community, Membership is based on a can-

Friday, February 21Marketing Club will not meet

on February 21 at 7 p.m. in the Thunderbird Room, but on February 21 at 4 p.m. in the Pub. Free Beer.Saturday, February' 22 Arizona College Association meeting on campus - all day Sbnday. February 23 11:00 Lutheran Church Service - Interfaith Center (9:30 Sunday School)4:30p.m. Mass- Interfaith Center 5 p.m. - Continental Grain Placement Orientation Auditorium Monday. February 24 5 p.m. - Firestone Placement Orientation - Auditorium 7:30 p.m. - Toastmasters Intl. - Thunderbird Room Tuesday. February 25 5 p.m. Harris Bank Placement Orientation - Auditorium 5 pjn. Yoga Class - Sobo Lounge 7 p.m. Speech - "The Multinational Corp. as Seen by the U.N." - Mr. Gostave Fiessd. Special Assistant to the Under Secretary for Economic and Social Affairs of the United Nations.7:30 p.m. Investment Club - Clsrm. 4Wednesday, February 26 5 p.m. Continental Bank Placement Orientation Auditorium5:30 p.m. - Intl. FestivalCom- mittee '75 - Thanderbird Room7 pjn. J. I. Case Co. PlacementOrientation - Auditorium7:30 p.m. Woman's Club - SoboLoungeThursday. February 278 p.m. speech "The U.S. andI^atin America in 1975" by R.Richard Rubottom. Scholar inResidence. S.M.I",, and formerpresident of the University of theAmerican.Friday. February 2S5 p.m. Leo Burnett AdvertisingPlacement OrientationAuditorium

didate's willingness to help other members and to participate in Delta Phi Epsilon's actir.iitf

As a first semester student. I attended the organization's first meeting and was interested to learr. that rr.ui.v prominent businessmen and foreign service officers are members. This spring the National Board of Delta Phi Epsilon will present the Peace Prize to Dr. Henry Kissinger at Georgetown University.

There are thirteen active chapters in the USA and many in Europe and the Far East. The lambria chapter at T-Bird is the larger. V.'iUi Uic current job market uncertainties, many of its activities center around helping its members in their career development.

Nicholaus Wasilewski, Vice- President of the Placement Committee, suggested contacting alumni as a means of obtaining information about their com­ panies and job possibilities. Nick also mentioned the possibility of setting up and maintaining a file of articles and notes on job hunting and interviewing and leading informal seminars.

TJick St. Amant, V.P. of the Speakers Committee, suggested visiting key firms in Phoenix and talking to executives and learn- lng about their particular businesses and problems.

Jeff WMtehurst, V.P. of the Academic Committee, plans to organize a survey to evaluate professors* classes. Brian Pmkstaff, V.P. of the Alumni Committee, hopes to organize civic projects, for example, to spend time with some of the less fortunate children from the Phoenix area.

Garret Bowden. President of the Lambda chapter, welcomes new members and ideas; however, membership is not a passive matter. Delta Phi Ep­ silon wants people who are wiling to get involved and willing to contribute. It is also a good way to meet new friends, not only here at T-Bird. but also overseas.

Summer In Guadalajara

Plans for AGSIM's third "Summer in Guadalajara" are being formulated. A meeting will be held the week before spring vacation to explain the details of the program. Tentative in­ formation is currently available from Professor Jorge Valdivieso, Chairman of the Department of Modern Languages and director of the 1975 Guadalajara program.

roommates, spouses, finances, or just plain loneliness.

Although Mr. Miller, who prefers to be called Don, has a master's degree in Personnel Administration. 90 per cent of his course work is in guidance. He has had little need of this skill at AGSIM however, having seen few serious psychological problems among the students.

Mr. Miller's door was always open. He wanted the students to approach him not only as a member of the administration, but as a good fnend. His departure can only mean Nevada's gain and our loss

U.N. Economics Speciolisf To Speak

Special .Assistant to the Under­ secretary General for Economicand Social Affairs of the United Nations. Gustave Feissel. will deliver a talk on Tuesday, February 25. at 7 p.m. in the auditorium His topic is 'The Multinational Corporation as Seen by the U.N." He will also visit several International Studies classes on Tuesday.

Mr. Feissel has been associated with the U.N. since 1963. Prior to appointment to his

present post in 1970. he hdd the position of Special Assistant tothe Director of the Office of Technical Cooperation. He is also Secretary of the Group ofEminent Persons to Study the Impact of Multinational Cor­ porations on Development and on International Relations.

He received his education at Hunter College and New York University and at Eeole Pratique des Hautes Etudes and the In- stitut d" Etudes Politiques (both in Paris/.

Resumes And Other TriviaBy Vichi Kludjian

Composing a resume is hard work .

It's getting even harder if vou nappen to be female Of course it doesn't have to be hard. It just so happens I made the mistake of asking a good friend of mine to give me a little advice as I sat at the typewriter slightly bewildered about "choosing" what to include in this almighty document.

Julie came right over and in­ stalled herself beside rr.t- so she mild peer over my shouldei

starting to take some shape until 1 got to vital statistics. Julie had a few cents to put in so I stopped.

"First, forget the marital status. None of their damned business. If has nothing to do with your qoalifications. and that's what you have to be evaluated on. Age shouldn't be a factor either.

After

formats were propped up in front of me. I though I'd use a clever combination to be original. Noting they ail began with one's full legal name at the top of the page. I promptly felt a surge of confidence no decision, I'd start with my name.-Vie...""Hey! What a sec." I gathered

Julie had a better idea."What's the matter with

starting with my name?""You don't want to give your

fun name. Vickie. Don't you realize it's a dead giveaway?" She correctly interpreted my blank stare as complete ignorance. "Look kiddo. They don't have to know you're a woman. Don't you know your rights? First initials and last name will do. You want this resume to be considered with no reflection in regard to sex. That means no name. The minute they see your first name, it'sall over."

"But I thought I had an ad­ vantage being a woman!"

"Listen you've got to be consistent. Women's Lib is People's Lib. This has to be a resume of a person. Not a woman."

Well maybe she has a point. Guess it won't hurt. I proceeded to type my name in neuter form, then filled in the easy stuff present and permanent address. phone number, etc. It was

followed her instructions. all. she was right. Sorta.

The education part rolled right aiong. The only objection I got was including one year's study at an all-girl's school. I was getting the hang of it so when I saw her put out her cigar and open her mouth. 1 anticipated the protest.

"Right 1 know. Leave out the name of the school."

Under "Work Experience" weboth put our heads together to come up with substitute titles for secretary." "receptionist" and------ -

You can leave that off. And of course height and weight, it goes without saying. They would either guess you're female or assume you're a malnourished midget. Go ahead and fill in the "date available." That's safe."

I had the feeling my resume would end up a little skimpy, but I

titles that would tag me as a j according to Julie. We arrived at "various staff positions in office services with responsibilities including equipment main­ tenance and repair (unjamming typewriter keys), evaluating and compiling management data for firm (filing expense account receipts for salesmen!, and, Julie's gem, "public relations and media liaison." That was tiffing the boss' wife he was in conference when she called and placing want ads with the local paper for a part-time janitor. Wow! And I was afraid this thing would be skimpy.

We weeded out the obvious female activities under "Other Interests" and kept photography and tennis. Membership in female organizations was canned from the start.

Whew! Finished. What a relief. As Julie drove away I noticed Td left out "Job Objective." Hmm- m... That shouldn't be too hard to think of.

"Career in international sales management or marketing eventually leading to top management position with export-import firm. Unless of course I decide to get married, in which case I'D probably follow my husband where his job happens to take him..."

Julie would be proud.

SMU Scholar Feb. 27Show me a man who will make

a prediction about the future of inter-American relations, and I'll show you a man who is willing to stick his neck out. We will have the opportunity on February 27th at 8 p.m. in the auditorium. R. Richard Rubottom will speak on "The U.S. and Latin America in 1975".

Mr. Rubottom's career has been spent in the State Depart­ ment, as well as in teaching and

university administration. He was Assistant Secretary of Sate for inter-America" Affairs under President Elsenhower.

The President's brother. Milton Eisenhower. who led several missions to Latin America and was accompanied by Mr. Rubottom. described him as "one of the ablest and most forthright men 1 have ever known."

Mr Rubottom is now Scholar- in-Residence at Southern

Methodist University and spent last month visiting Latin American countries.

Foreign Service CareersPersonal careers in the

Diplomatic Corps or State Department Administration may be of interest to some Thun- derbird students Mr.' Rubottom will be a: the Placement Center from 5 to 6 p.m. on Thursday to talk informally about Foreign Sen-ice Careers.

2-D*ST08-Ftbru»T21,1975*

Economic Blacklistby Michael Margotis

Last week Arab economic pressures on the West toe* a particularly disturbing turn with the manifestation of a blacklist against banking interest with Jewish connections. It is im­ perative both from a morale point of view and self-interest of the Western businesses and their governments to put an end to the entire Arab blacklist.

Repots have indicated that the Arab investment firms have listed Lazard Freres in Paris, theRothschild Merchant Banking group and S G Warburg and Co in London on their list and as a result these companies have been excluded from European syn­ dicates. As the Wall Street Journal put it 'Feb.^14. !975> "The blacklisting of these firms appears less to be an attempt to undermine Israel then an at­ tempt to inject anti-Semitism into Western Business practices."

For nearly thirty years. anti- Jewish social and commercial legislation has been established throughout the Arab lands. In almost all the Arab countries

from Iraq in the east to Moroccoin the west where Jews have ived for centuries, they are prohibited to hold public office, inherit their family's properties, establish new businesses, receive loans or take sums of their money out of Arab banks; the list is endless When Israel became a state in May IMS, the entire Jewish population in Yemen was ajrlifted to Israel to avoid their total annihilation by the local Arab population. The same reasons were true for over 700,000 Arab Jews who found it necessary to flee their native countries Where no Jewish populations resided, as in Saudi .Arabia. Jews are forbidden to enter the country regardless if they are working for a Western firm or the United States Army or unless his name is Henry Kissinger.

Today the Arabs who have had great difficulties distinguishing economic sanctions against Israel and worldwide Jewry hope to use their resources of wealth as a tool to breed anti-Semitism in Western business circles. Does

BlundersDoe to some blunders of oar

own. the following article did not appear in its entirety last week. It is reprinted for your perusal.

One finds tnrough experience that there are blunders and then there are BLUNDERS. The former belongs in the realm of human error commonly dubbed "circumstances beyond our

rare combination of the former accompanied by more than adequate quantities of ineptitude and lack of foresight.

The last visit of the Evaluation Team of the Commission in In­ stitutions of Higher Education had this to say about T-Krd's population: "We were perplexed by the institution's stated ob­ jectives of maintaining its enrollment at approximately 750 students, which was contradicted by a projected enrollment for next year in excess of 800." Well, if the poor boys were "per­ plexed" by the "contradiction" in 1973, they'll be appalled by the "blatant denial" in 1975.

The problem of accurately predicting enrollment stems

from the infancy of our in­ stitution. AGSIM has not yet gained sufficient prestige to turn every acceptance letter into a registered student. Therefore if each entering class is to be up to full strength, a "buffer stock" of students must be accepted. The exact number ot no-shows is impossible to predict and no matter how sophisticated the methods, based on past attrition rates, much like the handicap attart Ffendtov, the retiull turnsinto something like 50-60 students more than anticipated.

At least that was the pattern until January 30.1975, the day the bookies took a bath. The projected enrollment for the Spring 75 semester was 801 still conspicuously above the 750 figure. All indicators pointed towards that figure, yet something went amiss. 908 students have arrived as of February 10th with more ex­ pected to trickle in through the 15th. We all allow for a margin of error. Dr. Gulick. but really an 18 percent BooBoo in this type of a situation is intolerable.

As to the confusion over how it happened, whether it was the economic situation, absence of

the draft, or the enhanced reputation of the school, shrugging shoulders in chagrin is

' not enough. Clearly the present system for determining attrition rates is inadequate. We respectfully suggest that you ask the new students why they came. Information gathered through such a survey could serve as a foundation for a new system.

It is the students and" faculty who will suffer the immediate

ofSeminars with :if> participants. fully four times greater than the optima! number, callously overtaxes professors and robs students of their opportunities. intimately, however, the school itself will bear the weight.

Alienation of the faculty could become a critical problem. Clearly some of the top professors give much more than

they receive. The school can ill- afford to antagonize them to the point of resignation. Moreover, just as the school's reputation is aggrandizing to the point of world-wide recognition, it would hardly be beneficial to allow reports of overcrowding and a stifling academic atmosphere to circulate unanswered,

A formal explanation of the circumstances leading up to the unfortunate situation would be a«ood first step A committment to rectify the situation in the future, with a target date for reducing the enrollment to the 750 area would help to cool matters fur­ ther and to arrest potential troubles. We also suggest a demonstrated willingness to ameliorate the situation for all those presently affected.

Jim Hildebrandt

thts seem impossible to you?* Only forty-two years ago whenthe Nazi movement started in Germany the same social and economic sanctions were im­ plemented and you know the rest You are probably thinking, "our society won*t allow this to hap­ pen" or "it will blow over". Many said the same thing then. Let me remind you of the camps we had %i this country for American Oriental citizens during the Second World War. They were established for reasons less than economic.

It is inevitable that these ethnic discriminating practices be stopped and the sooner the better. Before we ask ourselves. What will the next Arab demand be and where will it end? Before a few more Western businessmen act dishonorably, before public opinion explodes and leads us to who knows what kind of legislative action. From this incident and previous history, I as a Jew can only conclude that the rich Arab shieks and leaders don't want peace with Israel but rather to put an end not only to the state of Israel but to all the Jewish business interests in tbe world. With the present world economic position this can only hurt all of us in the long ran. Where vril! it end-

Michael Margons

PerspectiveFebruary 2«h is Estonian

Independence Day. On this date in 1918 tbe Estonians proclaimed independence after a long bloody battle with tbe Bolsheviks. Even today the Estonians, although illegally annexed by tbe U.S.S.R. in 1940. continue their struggle for civil liberties and individual rights in the U.S.S.R. often at the expense of their lives. Let us pause for a moment on Monday the 24th and reflect upon the efforts of not only the Estonians, but also the Latvians, Lithuanians. Jews, and other minorities in the U.S.S,R. who continue their struggle for human rights.

Dear Editor,to these days of journalistic

irresponsibility, it is both refreshing and sad to see that AGSIM is not spared from this phenomenon. Specifically I am referring to PJ.'s Corner as published on February 7 and 14. 1975. Mr. Jawetz is to be com­ mended for his honesty related to his inability to research a problem before writing about it.

However, confession to stupidity is no excuse for

stupidity! If this had been a business situation it is quite probable that in addition to his loss of credibility. Mr. Jawetz would have been terminated.

Corporations will quite often excuse poor judgement and in­ competence, but rarely will they tolerate the type of stupidity demonstrated by Mr. Jawetz.

Students at AGSIM would do well to learn from Mr. Jawetz's mistakes by remembering that first you must get FACTS and second don't confuse your "fleeting remarks" with "con­ structive criticism."

Sincerely, Michael T. Curtiss

iaa G iorEditor.................................. .... Jim HildebrortdtProduction Editor................................. Oione PoulCopy Editor................................... lorno BjorklundBusiness Manager ................................. Uku HerniaPhotography Editor ............................... . Paul TveitStaff ....................... Rovi Loi. Walter Boeauero Beth Perry

Sue Lutter, Vickie Kludjian, Pmcas JowitzCraig Williams, Jon Friedlande'

Jeff Slocum. Afex BenjemonnDovid Patenge. Franco Mo'mo

DAS TOR is the official campus newioap^r 01 tne American Graduate Schooi o! In. tenuttonai M»ft*9em«Bt. Opinions expressed <n mis publication a r* ^ot necessity those ot th* 0*1 Tor st«rf

To my friends who were sur­ prised by the structure of last week's "P.J.'s Corner". I wish to make known that for reasons of space the material submitted was reduced to half its size. What was supposed to be a publicistic column, has been reduced in the process to a simple news reporting. Having discussed this with the editor. I was promised to receive in the future adequate space to continue writing for this column as planned. I promise herewith that the material that was deleted will be touched upon in the future weeks.

This issue I would like to concentrate upon the first guest lecture of this term. Dr. Lamont Eltinge. Director of Research for the Eaton Corporation. South- field. Michigan, who spoke last Thursday at 3 p.m. on the "Energy Crisis." In order to listen to Dr Eltinge. I had to leave in the middle of Mr. Kaufherr's Seminar in In­ ternationa! Management, where we hosted an excellent guest speaker the head of Greyhound leasing Corporation.

Dr. Eltinge "s topic attracted my attention as 1 was wondering who is thi- person who dares these days to speak on such a subject - the Energy Crisis. This subject

can be perused or it can be abused, but it seems to me that it would be quite impossible to lecture on the Energy Crisis to people who read the newspapers, without having something new to add to what is already known.

Dr. Eltinge developed a con­ ventional discussion on the lack of oil reserves. Then he suggested that i11 The Constitutional system was not designed to solve problems and (2> In order to get out from the Energy Crisis it is not enough to supply energy to existing technologies, but we should develop new schemes and systems. The idea here is that as cars use gasoline, and other machines use natural gas. it would make more sense to change the whole technology, so that methanol would be used as fuel because it may be easier to produce.

Dr. Eltinge spoke in the favor of "A system dynamics model of resource - fuel - engine - use complex, and a mixed - economy Energy and Ecology Cybernetics Corporation should be integral pans of the effective management of the un­ precedented development of society's 2lst century mobile - dispersed power system." The key is E2-C2 (Energy - Ecology Cybernetics Cor­ poration ) and a suggested model is coal - methanol Sterling machine - Work. The govern­ ment is no good, and private industry should do it.

Now with due respect to

whoever brought this speaker to AGSIM. I will just register my feeling that so much MUMBO- JUMBO I have not heard for a very long time. The Energy Crisis will be solved when tbe Government will decide to back a massive effort to produce gasoline and gas from coal and oil-shales. Those technologies have been developed, and have been proven, and what is needed are di government capital in­ vestment and (2) guaranteed price to the industry.

These fuels do cot demand a change in the machines using them, though needless to say that an improvement in- those machines will do us afl a lot of good. What Dr. Eltinge is suggesting is a total remokfingof our technology, though perhaps ";> preferable, this is a much longer - process, and none of the steps in ; his process, have yet been % demonstrated.

The energy crunch is an im­ mense problem and it has to be tackled now, as it is at the base of major global upheavals. Let ts'.iv not compound the problem txm more. ;

The net result from Dr.*] Qtinge's proposal is INACTION and PROCRASTINATION, as 4 those steps that can be taken now are described as less sensiSe when compared to the steps mat « have not yet been proven. .-

Dr. Eltinge also said in reply to one question "I am not sure that I /: followed the question but I think I can answer it." t 0?)

PincasJawitz -.*

By Oiaae PaulFlorence and Stanley Dworion. The Apartment Gardener. TheNew American Library, New- York. 1974.

fa the interest of economy, student dorms and apartments are invariably bare and lamentably sterile. In the past to remedy the drabness of their environment, students have sought first aid from the drug- store panoply of Endless Summer - Jams Joplin - ski posters. Yesterday's decorating panacea has been replaced. Today the most popular source of instant decoration is the indoor plant.

Unfortunately, many would-be indoor gardeners become discouraged when the leaves of their once healthy-looking, highly-pampered, Safeway bargains start to turn brown. When the plant dies, they blame it on their black thumb.

Leaving aside the fancy botanical jargon. The Apartment

Gardener provides a simple and total guide to buying, raising, and Jiving with apartment plants.

The Apartment GardenerFebn*721,1975-D«TOR-3

Remembering all too well their many failures, the authors, a husband and wife team, seek to help the horticultural neophyte as wen as the accomplished gardener avoid the many common pitfalls of indoor gardening.

Particularly helpful is their evaluation of several hundred species of plants commonly o(- fered for sale in supermarkets, florist shops and nurseries. They discuss each plant separately. giving a brief description of the features which would make it a - first-rate, an acceptable, or an impossible houseplant.

Care and propagation methods are also noted. For example, its dainty leaves and its endearing name make the Helxinr soleiroUi. or "baby tears." an irresistible buy. Yet the reader is warned that the high humidity requirements of this plant make it a very difficult and impractical houseplant. a sure candidate for disaster in the dry Arizona climate

At one poverty-stricken point in their horicultural career, the authors would go, down to

Riverside Park in New York Cityand follow the mounted police looking for fresh horse manure. Though they still recommend manure in their basic soil mix, they have switched to the more practical, if more expensive. processed stuff. The no-nonsense instructions to potting, watering. feeding, and propagating indoor plants stress simplicity as well as economy.

For readers who are a little more experienced or more daring, there are entire chapters devoted to the use of fluorescent lights, toe building of terrariums, and the culture of more unusual indoor plants such as orchids, cacti, and the kitchen garbage favorite, the avocado.

Apartment gardeners have problems particular to apart­ ments. For years at lectures, on their radio show, and now with their book, the Dworkins have tried to help apartment dwellers solve these, problems. At the same time they have helped make apartments fit for human habitation.

Between The Bookends

'Women Executives are Dif­ ferent." Meyer. Pearl, Dun's Review, January. 1975. pp. 47-48.

Some important ideas to be kept in mind by personnel departments and women seeking positions. An aid on what to ask from a potential employer.

"The Multinational Corporation ( and Worldwide Inflation," / Hackett, John T. in Financial E*eaniire, Feb., 1975.

The performance of MNCs during the next few years will not appear as exciting or dynamic as ( in the recent past The basic } problems will require greater : management ability and in- \ novation than in the growth and { expansion period of the past. \"The Roots of Serendipity," { Austin. James H. in Saturday \ Review World. ?*>, 2.1974. pp. SO- t 64 i

A bit removed from our normal j recommendations, but perhaps ( one of the most rewarding, this ! selection is best summed up in / the words of George Bernard } .Shaw: "What is life but a series ^ of inspired follies? The difficultyis to find them to do. Never lose achance; it evervdav."

doesn't come

Corporate Window.,by Craig Williams

Of all the companies scheduled to recruit on campus this semester, the one least expected to cancel its engagement would be the Caterpillar Tractor Company. Caterpillar has been a regular visitor to the campus for a number of semesters and several Thunderbirds have embarked on international careers through its recruitment programs.

Furthermore, Caterpillar has been enjoying considerable success over the past ten years - a trend which culminated in a record - smashing consolidated profit of $246.8 million for 1973. Nevertheless, Caterpillar recently cancelled its Feb­ ruary "25 visit to Thandertard Campus without offering an explanation.

Caterpillar was not the first company to cancel a recruiting engagement at A.G.S.I.M., nor win it be the last. However, one must wonder as to why the Caterpillar executives felt it necessary to forego an op­ portunity that they have always depended on so regularly in the past.

Only Caterpillar executives know the real reasons behind their cancellation of recruiting activites. As a result, we can only speculate as to what could have prompted such a decision. Granted, companies do maintain quotas as to how many people they hire within certain periods of time. However, this is the beginnine of a new year and Caterpillar's quota could not

possibly be filled by now. / The fashionable

thing to do for a company

that has suspended

its

recruiting operations is to blame the state of the economy. But has the depressed economy affected Caterpillar to such an extent' Although 1973 was a record - breaking year for Caterpillar in terms of profits and sales, data does exist in the 1973 Annual Report which provides some insight into the present financial condition of Caterpillar Tractor Company.

Upon reading the 1973 Statement of Financial Position for Caterpillar, one figure literally jumps out at the reader. On December 31. 1973 the com­ pany had an ending inventory of $818.3 million a figure which represents an astonishing 64.8 per cent of Caterpillar's current assets.

Such a high inventory figure (due partially to the LIFO method of inventory valuation) indicates that Caterpillar executives have placed a greater emphasis on inventories than on other more liquid assets. Cash and short-term investments when combined only comprise 3.7 per cent of total current assets.

Such an emphasis is common financial strategy during a period of increasing sales volume and unprecedented profits. Cater­ pillar sales increased $580.2 million or 18.2 per cent from the 1972 figure, while profits in­ creased by 16.4 per cent. Even more important. Caterpillar was able to turnover its inventories almost two times through the course of the year.

However, one must wonder whether Caterpillar executives let inventories get out of control. If one considers just the domestic market, the answer would most definitely be yes.

Although 1973 was a record-breaking year for the

company, the chances'of a duplication of such a per­

formance in 1974 were highly unlikely considering the

business in whicp Caterpillar is

involved.

Quite obviously. heavy machinery manufacturers such as Caterpillar depend heavily upon the construction industry and needless to say, construction in the United States suffered considerably during 1M74. AS a result, one would assume that Caterpillar was unable to move such an enormous inventory while very few highly liquid assets were available to meet current liabilities which totaled SS75 8 million.

The ratio which refers to the availability of liquid assets to meet current liabilities, known as the "quick" or "acid-test" ratio, was dangerously low at 68 per cent In addition, although working capita] ithe excess of current assets over current liabilities) increased $14.1 million between 1972 and 1973, cash and short-term investments the more liquid assets actually decreased $35.1 million.

A second source of potential financial difficulty can be found in Footnote 9 of Caterpillar's 1973 Annual Report According to the note, "the computed value of vested benefits exceeded the amount of pension fund at December 31. 1973. by ap­ proximately $320 million."

to view of the fact that vested benefits are dollars that long standing employees have claim to. this statement is telling the reader that Caterpillar has an additional liability that does not appear on the balance sheet. Such a situation is referred to by- accountants as hidden corporate debt a problem that is becoming more and more prevalent among major business concerns.

In some cases, pension liability is greater than the market value of the company. Caterpillar is such a case. While its pension liability amounts to $320 million. Caterpillar's stock is only worth $148.3 million. If this liability were to be carried on Cater­ pillar's balance sheet, the book value of its common stock could decline as much as 20 per cent ormore.

Hie point of all of these figures and ratios is that a company operating solely in the United States under the conditions described above would be in very serious financial difficulty. However. Caterpillar is a long established multinational organization with tremendous overseas capabilities.

While the construction industry in the United States is seeing its worst years in recent times, the oil-rich nations of the Middle East and other areas are just beginning to find uses for heavy machinery. As a result, in 1974 Caterpillar's overseas operations

were able to pick up the slack created by the depressed American construction industry.

.As a matter of fact, 1974 was another record year for Cater­ pillar in terms of sales which totaled over $4 Diiuon oi which overseas operations contributed 50.4 per cent. Caterpillar was able to move the enormous in­ ventory it had retained from 1973 thus being able to meet its current liabilities without going into the money market.

The initial question still remains: Why has Caterpillar chosen to eliminate A.G.S.I.M. from its recruiting program? At a time when Caterpillar is depending more and more on its overseas operations, it has chosen to avoid the school that has die reputation and the ability to provide the students most qualified to assume this new international responsibility.

As was previously mentioned, only Caterpillar executives know the real reason behind their decision, but one thing is for sure: they cannot do the fashionable thing and blame the economy.

Of all the companies appearing on the interview list this semester, the biggest surprise is the February 25 engagement of American Motors. At a time when car sales are so low that the consumer must be given cash incentives to persuade him to purchase an automobile, it is a wonder that the smallest of the domestic auto producers deems it necessary to recruit on college campuses.

This point is even more bewildering when one considers that the level of unemployment in the auto industry recently reached an unprecedented 11 per cent and that American Motors' international activities outside of the United States and Canada*are extremely limited.

It is no surprise to anyone that the auto producers* employment situation in 1975 stems from in­ ventory problems. Just as Caterpillar's inventory strategy was consistent with its record - breaking sales volume, car manufacturers built up their inventories in anticipation of a continuing trend of increasing sales.

It was only two years ago that major automobile manufacturers could not produce cars as fast as dealers could sell them. As a result, during a period of decreasing demand, these companies have vast amounts of inventory that cannot be sold and large assembly plants employing thousands of people that nave shutdown.

It is fairly obvious that American Motors would not be on

campus next^eek if it faced the same financial situation that Caterpillar would have if it had to depend on the domestic market. However, a brief analysis of American Motors' 1973 Annual Report reveals that this is not the case.

While AMC built up an ending inventory of $201.3 million during 1972, iiiis Hguie only represented 44.7 per cent of its total current assets as compared to Cater­ pillar's 64.8 per cent. White Caterpillar depended heavily upon sales in order to meet its current liabilities. .American Motors maintained a total of $109.4 million in cash and marketable securities a total which represents 24.3 per cent of total current assets.

Assuming feat AMC couW not sen one car during 1974, it could still meet its current liabilities without building up its long or short term debt. In other words. American Motors maintained a quick, ratio of 92 per cent. Stated differently, at the beginning of 1974, AMC held 92c in cash or its equivalent for every dollar of current liabilities. This figure is a considerable improvement from the 64c that Caterpillar had maintained.

As was previously mentioned. Caterpillar would have been in serious financial difficulty without the international business that it was able to produce. Although international sales have increased con­ siderably for American Motors, it does not possess the degree of international activity capable of producing the sales volume necessary to offset declining sates in the United States.

Most of AMCs international activity outside of the United States and Canada consists of exports and assembly plants located in Mexico and the E.E.C Such an operation is not capable of providing AMC with 50 per cent of its sales as was the case for Caterpillar in 1974.

Unlike Caterpular, American Motors has not become My dependent upon sales in order to maintain a stable financial condition. As a result, during a period when inventory turnovers are few and far between. American Motors can afford to look toward the future in terms of employment and other needs.

What AMC's needs are whether international .or domestic, marketing or finance will not be teamed until 2he personnel representatives arrive on campus. However, if «oe doubts the wisdom of such a visit, he need not base his doubt upon the present problems of the auto industry. American Motors knows what it's doing.

Belgium's Socialist PorfyThis is the fourth in a series of

on Political Parties. Taken from a paper by- Jim Hildebrandt.

Trie current political situation in Belgium is typified by the most recent difficulty in maintaining a tripartite coalition of the government. The Belgian Socialist Party (KB), a member of that coalition, has been taking up the challenge of Belgium's center left.

In its bid for power, the PSB has been attempting to broaden its voter from the traditional

of workers and non self- employed professionals. Along with tfu's attempt to broaden its scope, the PSB has tackled the problem of finding a solution to Belgium's perennial problem of biinguaiism and biculturalism. That is to say. the long-standing feud between the French and the Flemish.

The PSB has come to the realization that unless Belgium

can resolve her internal cultural differences, or at least learn to live at peace with them, she will rapidly lose her position of prestige and importance in the EEC. ' -

On a larger scale, is the PSB's concern for Europe and her objective of continental unification. As a first step, the PSB envisions a plan for the reform of the InternationalMnwtan* ?v<rfi»rr! focfuded inthis *ptan would be two major premises: the first being that it would not rest on a national

currency (presently the U.S. dollar), and that itnot be on gold as an in­ strument of reserve.

Coupled with these two isa feeling on the part of the PSB that many of the EEC's problems could be solved by a system of fixed parities and a central reserve system. The PSB is careful to note, however, that the unification of Europe is a political objective of which the monetary aspect is only a con­ sequence.

The main standard of the Socialist Party is a

unified Socialist Europe. A main threat to that objective is the mJtinational etterprise (MXC>. The MNC presents both an economic and political threat to socialism. Yet the PSB is not so tmreaitslic as to propose mass expropriation. Instead, the PSB calls tor an acute vigilance over the MNC's operations and lays out several guidelines:

I. effects of MNC on balance of payments.

1. balance of tendwlogy bet­ ween countries and groups, ie, VS.. Japan, and EEC.

3. monetary speculation in large amounts by the MNC.

4 fiscal responsibility.5. apportionment of resources.(in the subject of religion, the

KB feels that the solutions to man's problems come from his

The party recognizes, however. th;it many individuals do not find a sufficient response to the sense

of their own existence. Therefore, it that must be given sufficient to conduct his life according to his own philosophy or religion,

The PSB envisions an eight pnmt taxation reform, part of which would be accomplished in the short term, <")ne of the pro­ posals is the creation of a >upi.pnor oouiviJ en imports. It would be composed of in­ dependent experts and fiscal admin islrators who would report to the Parliament of the economic and social impact of proposed and pending legislation. In general, the other proposals follow the traditional Socialist pattern of the redistribution of wealth.

The PSB is undergoing dynamic reforms from within. The ultimate intention _ of the party is to regain firm control of the Belgian government and to enhance its position among Europe's political parties. The next election is four years away. however, and the PSB will have to work hard and maintain its strength if it hopes to achieve its goals.

If the rise of socialism is a direct result of the massive world-wide economic dislocation, then perhaps the new spirit will collapse before the party has a chance to prove itself in the polls, However, one must op-

current dilemma to imagine so quick a slackening of the socialistITV.

Speakers Committee Needs Your HelpThe ASLC Speakers Committee

for the Spring Semester isof Jorge Verduzco,

Chairman, "phone 7157, box 910;Jawitz, phone 7», box

4S5; PM Lacy, phone TW, box818; Prof, ConkBn, Faculty

AqpMMMMive. and Mr, GatesDavison, AdministrationBepresentative.

The Committee is responsible for securing speakers of national prominence to address the student body on campus. It has a Emited budget with matching funds from the Admmistrau'on. These funds are designated primarily to finance the speaking commitments of the ASLC and those of the various clubs on

campus. It works closely with the various academic departments of the school in encouraging and financing speakers recom­ mended by them.

The Committee members would like to receive students*suggestions as to whom to invite to campus.

The Happy BookerWhy <fo our library costs go up,

you ask? Wen, IH tefl you of one reason which, by the way, should never be a factor at a school like this. Thievery! The purposeful procurement and pilfering of public papers, periodicals and pamphlets while passing them off as personal property.

How many times has a student knowingly walked out of the library with clipped-out articles or entire books and magazines after having told the guard that ftey were either the person's own

PRESENTING OUR . 2nd MIDNITE

SPECIAL'

'THE NIGHT OF THE LIVING DEAD!"

Friday, Feb. 21,197512:00 Midnite!

'1.50 Per PersonWith This Ad.

) ) ) ) ) ) ) ) )

JE

)

belongings or copies of the original material that he had made? There is nothing more frustrating than looking through a book or magazine for an article that your professor has asked you to read, and finding a gaping hole where the alleged article should have been, but no long is.

Come now campers, we're all ostensibly adults with a modicum of integrity and respect for others, and their possessions or so I've been told. What possible reason for stealing materials from the library could there be? Personally, I can't find any. And don't delude yourself that these incidents are few and far between. They're not.

Every term in his Marketing ffiOclass. John Undholtz is forced to warn his students not to take stuff out of the library for use in

the scrapbooks. Not only does he warn, but he admonishes the kids when the library informs him that they've gone on a carnival of clipping anyhow. It's em­ barrassing and saddening to think that students, about to enter the business world, are still resorting to the old "steal - a - candy - bar - from - the - drug - store - while - no one - is - looking" routine.

All is not lost however. The vast majority of students on this campus are responsible in­ dividuals. And it should be our responsibility to prevent this thievery when we see it occuring. Library costs will go up, but let's make sure that those cost hikes are legitimate, and not due to the stupidity of a few, and the un- watchfulness of many.

John Friedlander

Flying ClubFormed last semester, the

Thunderbird Flying dub is off the ground Two of the club's were on

for last Friday. The club's is to provide professionally maintained air­ craft and expert instruction to members and their families at the cost. Mem­ bership is open to students.

faculty, and alumni.

In addition to low-pricedthe club offers a free

onat 6 p.m. in

2. Fee further in­ formation, contact Ken Mc- Pherson at 937-3ffi, or Terry

at 942-2158. The club is Box 933. AGSDI.

Promoting AGS1MThe office of Records and

has a busy spring recruiting in full swing. Director of Placement Charles Fonvielle visited five schools inFlorida the week of February 10. This week John James Arthur. Registrar and Relations Officer, visited Southwestern atMemphis. Memphis State

University. Vanderbilt University. University of the South and the University of

at Knoxville.Dr. L. Gulick. Jr.

of AdmissioiB, is for viste to the University of Jfevada at Las Vegas andUniversity. San Jose' JjJtate University and

Arthur Addresses Language Teachers.form James Arthur. Registrar

and College Relations Officer, will be the Keynote speake* at the Conference of the Houston Area Teachers of Foreign Languages, to be held at Dominican College on March 8. He will discuss "Career Opportunities for

Language Majors."

While in Texas, Arthur will alsorecruit at the University of Houston. Rice University. University of Texas at Austin, St. Edwards University and the Uriversitv of Texas at El Paso.

Check Cashing PolicyBusiness Office nours are from

9:00 a.m. to 5:00 p.m.; however, checks may b* cashed onlybetween 9:30 a.m. and 4:90 p.m.Cheeks are to be made out to "Cash" and endorsed on the back by the student cashing them. Two party checks will be accepted up to $25.00 with the understanding

that if the check is by the bank for any reason, the student who cashes it is responsible for the KM returned check fee.

Please do not ask tot checks of a larger amount be cashed or that cheeks be cashed after 4:W pjn.

A1ESEC CAR WASHFRI.FEB.21 10am-4pm

Behind The Post Office IBooks And Bombs

<CPS HED) What will President Ford's plan for sending SOO million in supplemental foreign aid to the tottering military government of South Vietnam and Cambodia cost the average student?

One educator said toe money could be used to allow 0)0,000 students to participate fa the College Work-Study program and

another 400,000 to receive Bask Educational Opportunity Grants.

American Association of University Proiessors General Secretary Joseph Dufley, to a letter to the association's membership, said such an in­ vestment would be "significantly more productive" than shipping "war materials" to Indochina.

Vets And Federal Income Taxes

Applications For Pub. Manager For Summer Session Are Due In Don Miller's Office By Wednesday, Feb. 26th.

it Wit A

Here are tips from the Veterans Administration on federal income taxes for veterans filing returns.

In general, officials noted, veterans benefits are exempt from federal income tax, and need not be reported as income.

This income tax exemption applies to dividends and proceeds from government Me insurance policies, but federal estate tax does apply to insurance proceeds. Also, interest earned on govern­

ment life insurance dividends left on deposit or credit with VA is

considered income and most be reported on federal income tax returns, it was explained.

Among major tax exempt vet­ erans benefits are compensa­ tion, pension, GI Bill and aO** educational assistance, includingsubsistence payments to vocational rehabilitation tramees.

Abo exempt are grants to service disabled veterans eligible for specially adapted homes and cars, and clothing allowances for veterans whose prosthetic devices tend to wear out or tear their clothing.

Happy Hour With The Marketing dub4-5 PM At The Pub

FREE BEERNew and Prospective Members

Today 2/21/75*2 dues

Payne & Morrison florists, Inc.

3526 West Glendale Ave. Phoenix Phone 939-9778

'S.OO GIFT CERTIFICATE *5.00

MEN'S STORESincerely invites you info its store with this special *5.00 giit certificate. Good for any minimum $ 10.00 purchase.

'5.00Chris Town Mail Phone 242-656 7 Robert LWahlenmaier

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