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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (April 15, 1976)
Md fl v.. das n n thuTZ&iy, epril 1 5, 1075 vol. CD no. 1 1 1 lincofn, nebrcska V -gaby r H ft J o L n 3: u!var BBGcral By Nancy Clerk . Earn more than $6,000 for a $12 investment! That is what a chain letter, reportedly circulating in UNL residence halls, offers potential investors. Although the offer sounds tempting, David Rasmussen, director of Student Legal Services and ASUN staff attorney, warns students that the odds of collecting $6,000 or even recovering the original $12 investment are poor. Rasmussen, who was contacted by several students from different residence halls about the letter, added that the letter violates federal postal regulations. According to UNL Ombudsman Al Dittmer, another student questioned him about the legality of the chain letter. The letter asks participants to mail money orders, which violates federal regulations that prohibit fraudulent soliciting schemes through the mail, said US. Postal In spector Paul Smith. More Ustat "Chain letters are not unusual on college campuses,' Rasmussen said. "D;it this one is more blantant than most in that it virtually promises the student a $5jCC0 return." The letter follows the standard chain letter form. A new participant pays $6 for the letter and $6 to the first name on the list, He then adds his came to the bottom cf the list, dropping the first name. The participant then is instructed to sell the new letter to two people to recover his $12 investment. The fetter promises the participant that he will receive more than $6,000 when his came reaches the top of the list. - The success of a chain letter depends on a continuous Cow of new participants, Rasmussen sail. Because it is impossible to continue indefinitely a steady Cow of customers, chain letters are considered fraudulent, he said. Rjile a fcs-ii -' - Although "those on the ground floor make a killing, he said, the letter is a poor investment for most students. Y.Tien students sign the letters, they do net know how many people have signed it before them, Rasmusea said. According to Lois Tefst, Lincoln Better Business Bureau manager, persons who sign a chain letter after its inithl stages lose money because "they simply run out of names to send the list to. In this chia ktter, 1 1 persons enter on the first stage and each sell two letters, bringing in 22 participants for the second stage, who bring in 44 participants for the third stage and so forth. '. GsstssserV gacises v, As the chain, progresses, the cumber of potential customers decreases. For participants entering on the 17th stage, they wiH have lost 1 ,6S0,96 potential customers a population about the size of Nebraska. Five residence hall directors contacted by the Dsfy Nebraskaa said they knew nothing about the chain ktter. Directors from C&ther, Pound, Harper, Smith, Abel and SeHeck Quadrangle Residence Hills were interviewed. . A sixth-floor Harper resident sail he knew about the chain ktter, adding that it has been widely circulated in several residence halls. He added that several chain letters have been circulated in the residence hall previously, including one for liquor instead of money. Although Nebraska laws prohibit knowingly obtaining money under false pretenses, there are no hws dealing specifically with chain fetters, said Lancaster Deputy General Atty. CEf Livingston. Postal authorities prosecute Because most chain letters are sent through the mail, he said the letters are usually handled by US. Postal Service inspectors. Postal authorities usually prosecute persons who initiate the letter, said Paul Smith. But, he added, anyone participating in the chain can be prosecuted. If anything connected with the letter, including the letter or money, s mailed, he said, the letter violates federal laws. The penalty for using the mail service to defraud is not more than $ I J00O fine or five years imprisonment or both. Most chain letters in Nebraska are started outside the state, Smith said. The person initiating the letter usually fc?s two to three participants working for him, he added. Smith, who handles mail fraud cases for 15 southeast Nebraska counties, said his office receives about 25 chain letter complaints a year. Most cf the complaints come from Lancaster County, he said. Chain ktter complaints can be directed to the ILS. Postal Inspector Office, 700 R St, 471-5172. Stzti Sazrr.lZr: Uncle Sam wonts his tax money by midnight, and he doesn't like to wait , , , . pJ2 Best Fitzgerald, Hemingway, Faulkner and the rest step aside, UNL Economics Prof. Campbell McCoftncIl has a best seller . . . . p.8 If f MS fl W f M-.4 tct By Ceurse PZ!er The new ASUN Senate began business Wednesday night by reafTinning its opposition to construction of a McDonald's Restaurant on the UNL campus. The resolution, introduced by Teachers College Sen. Laura Schory, requests the Lincoln City Council and City Planning Council rule against proposed changes in zoning which wculd allow a McDonald's to be built on two lots of land owned by the Nebraska Cook Store Co. The lots are at 1319 R St. and 1325 R St. The resolution also asks the council and planners to adopt a policy which creates a "commercial buffer zone" between City Campus and the downtown busi ness district. The resolution duplicates a resolution passed by the former ASUN Senate Feb. II. However, Tony Williams, first vice-president, said ASUN executives think the new senate should go on record either supporting or opposing construction of a McDonald's on campus. The Senate also approved 20-6 a resolution spon sored by Professional College Sen. Clarke Stevens placing the Senate on record as urging the Fees Allocation Board (FAB) to provide student fees money for the 1976 Homecoming Royalty election. Stevens said Corn Cobs and Tassels, spirit organiza tions which sponsor the election, got money to hold last year's election from the NU Alumni Association. How ever, he said the Alumni Association is less willing to provide funds this year. He said FAB previously had rejected spending money for the election and that his resolution would ask FAB to reconsider its decision. In other action, the Senate passed resolutions allow ing a member of the Governmental Liaison Commit tee to act as liaison between the Lincoln City Council and ASUN, and one thanking all state senators who voted to override Gov. J. James Exon's veto of portions of the 1976-77 NU budget. , Second Vice President Dennis Martin told the Senate two of the current eight permanent ASUN committees will be abolished. 'Martin said the Human Rights Committee and the Environmental Task Force Committees will be disbanded. He said the Environmental Task Force committee will have most of its duties taken over by the Nebraska University Public Interest Research Group. ASUN President B21 Mueller said a President's Cabinet will be established. The cabinet, which already is in cluded in ASUPTs Constitution, will have cine represen tatives drawn from various campus organizations, off campus students, cooperative Irving units and East Campus students. - 1 V j Cacr Cdrd tassresa Jeff j Kes tes Deny! Peases cf Crdii sa as L aEtfespts to J chsck-ia at C& fcrs. II j was Ce Dst cf a Ved- 1 MdM - Crsitsn, wtidi tie Le- PfettSa fey Td R&k - pyswen 6-0.