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Full Disclosure: U.S. Schools Cash Out
tighty-four schools have divested themselves, in whole or in part, of Smith Africa-related
■■stocks—53 of them since April 1985. Forty-two schools divested fully (at least $267 million),
and 42 schools partially ($217 million). Below, a list of full divestors.
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Antioch College NA
Arizona State Untv. 3.1
Barnard College .946
Bates College 6
Cal State. Northridge 2.3
City Univ. of New York 10
Clark Untv. 6
Columbia Univ. 41.7
Evergreen State College NA
Fairfield Univ. 4
Hampshire College .04
Hartford Seminary 6
Howard Univ. 8
Univ, of Iowa 2-5
Iowa State Univ. .15
Univ. of Kentucky 1.6
Univ. of Louisville 9
Lutheran School of Tbeol NA
Univ. of Maine 3
Univ. of Massachusetts .6
Univ. of Miami 17
Univ. of Minnesota 36
Univ. of Minnesota
(Foundation) 5
Michigan State Univ. 72
Western Michigan Univ. .2
Mount Holyoke College 14.9
State Univ. of New York 16
State Univ. of New York
Stony Brook Foundation .08
Northeastern Univ. 21
Ohio State Univ. 11
Ohio Univ. .06
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Univ of Rhode Wand
(Foundation) .888
Rooseveh Unrv NA
Rutgers Untv » 14.B
Sarah Lawrence College .66
Seattle Untv 2.6
Teachers College. Columbia 6
Temple Univ. 2.49
Univ. of Vermont . 2.1
Wayne State Univ. NA
Western Washington Univ. NA
Univ. of Wisconsin • 11
A« ofMarefc IB. IMS 8ourc* Th» Africa Fund
88888888585
Through I ant December. the
value of that portfolio had ris
en by 27 percent But accord
ing to chairman Stanford Cal
derwood, Trinity launched the
portfolio just 12 days before
the advent of the current bull
market He also cautions that
this portfolio was outper
formed by another Trinity
fund that invested in com pa
niea with South African
holdings
"People look at our record
and say it can be done." Bays
Calderwood "We look at our
record and say. Weren’t we
lucky ' This is one hell of a
bull market ” He warns, more
over, that if everyone attempt
ed to switch to an antiapart
heid portfolio, it would merely
drive the price of the stocks to
unrealistic levels, setting the
universities up for a low
Given the difficulties of di
vestiture—and the rela
tively minor result that it
is likely to bring—why has
South Africa so ignited today's
campus activists? For one
thing, answers Feierman of
Wisconsin, the apartheid sys
tem is an issue that crosses ide
ological lines "You can have
conservative students who take
seriously the idea of equality
under law," he soys, "and who
take the antiapurtheid move
ment seriously because they see
apartheid as violating than
basic freedoms." Others, how
ever, see the pressure campaigi
as a kind of moral mouthwash, a
convenient vehicle for student
Among the 200 top U.S. companies operating in South Africa are
Johnson & Johnson, Kellogg, Xerox, Coca-Cola and Revlon. To be
as uncontaminated, for example, as many students might want
schools and corporations to be, a student would have to divest
himself of cars, records, soft drinks, computers and many other
staples of the campus life.
Because trustees are charged with protecting the assets of
their schools, they must consider the possible negative effects
that divestiture might inflict on stock portfolios. Such caution
has been upheld in the only court case to date that deals directly
with the matter. In 1977 students at the University of Oregon
voted for the complete divestiture of $20 million in stocks with a
South African connection The state board of higher education
agreed, but the Oregon Investment Council vetoed the decision—
and the students sued. In December 1984 a circuit court ruled
against the students, finding that divestiture would violate the
"prudent investor” rule. The decision is now on appeal.
Supporters of divestiture argue that investments can be pure
yet profitable, pointing to the record of the Boston-based Trinity
Management Corp., which in July 1982 began operating a $15
million "South Africa-free” portfolio for Michigan State.
selt-righteousness. bouton uni
versity president John Silber. an outspoken foeofdivestiture.calls
the movement an "exercise in simple-mindedness "
What is certain is that the protests will continue Harvard
students will keep urging their alumni to contribute to a special
Endowment for Divestment rather than directly to the school
students at Michigan State will maintain their boycott of product
made by Coca-Cola. Around the country, campus teach-ins will
hammer home the inescapable conclusion that South Africa
peculiar institutions are both brutal and repugnant.
In the end, such lessons may be the most lasting legacies from
this year of antiapartheid fervor. No one can justifiably fault tin
sincerity of American students in attempting to right an obviou
wrong. They may be unlikely to transform the economy or th<
intransigent racism of a government far away, or to deter Pretori
from a bloody course of racial strife. Nevertheless, they hav
already achieved two major accomplishments: they have help^l
keep a cause burning brightly in the public eye, nnd demonstrate!
that they care about something deeper than their resumes
Harry Ahukion with Peter Younokuii and in Capr 7Wn
Connie Leslie in Nnv York, Donn a J ai.bertin Botlon.
fcRiR lliMMlLitACN in Hrrkelry, Catherine 1.iden in Bloomington
ami bureau report*