Students, faculty express disgust for tobacco stock

Considering its reputation as a nationally acclaimed research institution, many students and faculty question why the University would place its dollars and cents in tobacco companies.

About 20 students, faculty and community members told of their disgust for University funds being linked to tobacco companies at a forum in Rackham Auditorium last night.

Biology Prof. Lewis Kleinsmith, vice-chair of the Senate Advisory Committee on University Affairs, said such investments go against the University's goals.

Kleinsmith said the University's missions of being a reputable research and health care provider are contradicted if it ignores the "enormous scientific body of evidence" indicating that tobacco products are lethal.

"If the University respects research, perhaps it should act based upon it," Kleinsmith said.

JESSICA JOHNSON/Daily Physics Prof. Martin Einhorn speaks out against the University's investment in tobacco stocks at a forum last night at Rackham Auditorium.

The eight-member student, faculty and staff Advisory Committee on Tobacco Investments scheduled the event to allow the public to express their views.

The committee formed in September after being appointed by University President Lee Bollinger and Chief Financial Officer Robert Kasdin. In 1997, SACUA passed a resolution calling on the University Board of Regents to divest from tobacco investments. The group was charged with the task of determining whether the investments are conducive to the mission of the University.

Law Prof. Kyle Logue, who serves as chair of the committee, said that as of Aug. 31, the University's investments in tobacco stock totaled approximately $17 million. The amount is about .05 percent of the University's investment portfolio, Logue said.

LSA and Music first-year student Jocelyn Frank said she is against the University being a share holder in tobacco companies because people focus on financial benefits of tobacco and ignore the negative health risks.

Frank said she does not smoke but is bothered that she is indirectly supporting tobacco through the University.

"The idea that this is coming closer to me through (the University) is disturbing to say the least," she said.

In a phone interview, Logue said colleges such as Harvard University, Johns Hopkins University and Wayne State University have already formed policies to refrain from investing in tobacco companies.

Sporting a black sweatshirt with the message, "For KIDS sake dump the tobacco stocks," Douglas Kelley, a retired staff member from Flint, said the University should follow suit.

"This University prides itself as the Harvard of the Midwest. We should note that Harvard divested several years ago on the motion of its Med School," said Kelly, a member of Educators for Tobacco-Free Investments.

Rackham student Devra Coren said if the University maintains its investments it shows that students opinions aren't valued.

The Michigan Student Assembly approved a resolution in support of divesting from tobacco stocks at their Jan. 12 meeting.

"It shows that it is the bottom line that really matters," Coren said.

Physics prof. Martin Einhorn said he thinks the University would benefit from a set of criteria to determine what stocks are appropriate for the University to support.

"What the University does with money is not value free. We need to come up with principles on how to invest funds," Einhorn said.

Logue said the event allowed him to be presented with new facets of the issue.

Since the group's formation, the members have met three times and will convene once more this term and next term. Logue said he hopes the report of recommendations to the regents will be completed during Winter term.

An e-mail group, established by the committee to field opinions about the issue, has already received more than 200 responses. Logue said although there are no other public forums planned, concerned community members are encouraged to send their comments to tobacco@umich.edu.

11-30-99