DISCLOSE HOW CIA BAILED OUT COLLEGE FIRM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000400140009-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 16, 2016
• Document Release Date: December 15, 1998
• Sequence Number: 9
• Publication Date: February 22, 1967
• Content Type: NSPR

Approved For 'Release 2QQQ/05/2 =
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He said the cooperative wa
CHICAGO, ILL. yin debt for "a couple thousan
TRIBUNE dollars" in i+iay, 1963, when th
directors voted to transfer th
;cooperative to the N. S. A.
U-840,746 "We figured the N. S. A. had
S' i , 173 , 515 enough capital to buy the books
- .. % we needed," he said. "The
heavy debt ran up when the
FEB 2 2 156 N.. S. A. made commitments
f y ~' for books, bought the furnish.
ings, rented the business ma- S 0 L 0SE 6 chinos, and expanded the co
t.,
h
opera ., V V to ot
er campuses.. It
i U11 definitely was not mismanage.
C Ali RvPi U L E 0 ment on our part."
Under the N. S. A. direction,'
said Hyman, two other book:
~a a ?a'??1'.
r stores were opened thnz the co
"""www+++"' 4 t operative
one at the Universit
'
,
y
CPYRGIIT university of Chicago gra of. Illinois and the other at the,
uate student denied yesterda University of Michigan.
a Washington [D. C.] new "Went Too Fast"
paper's allegations that :;o, Hyman said the business
of his fellow students mismai ? failed because "the cooperative'
aged a cooperative book stor , wanted to go too far too fast.".,
running up debts which eves. Money was being spent for ma..
tually cost the CIA.$14o,0oo. hinery and books without any.,
Gerald Hyman, 24, of 551 * dication there would be suf
University av., a former dire icient sales, he said. .
tor of the cooperative, said thG "We had no idea that N. S. A.
the heavy debt was accrue was getting money from the'
while the store 'was being ma 1IA," Hyman said. "Nobody
'aged by the National Studen anted to take anybody for
association [N. S. A.], and n . nything. All we set out to do'
by the University of Chicag ~, vas establish a nonprofit busi-;
students. - css which. would enable Stu-)
Charges Are Detailed ents to buy books less expan-j
The Washington Star allceg 'ively than they could at a reg
lar book -tore
ran over their heads in debt. oard members, who allegedly,
Seeks an Expansion id not know of their organiza-'
The newspaper said th ion's ~'IA involvement, ques,,;
N. S. A. was seeking to (,N-are ioaed him as to how he. got the;
its campus services and bo+:gl-i htal $25,000. It was all .very,
the cooperative for $15,000 cash, ample, he explained. One day,;
When they discovered possibil- bile on a train from Philadel-~
ity of'a huge financial loss, the hia to Boston, he struck up,a,
N. S. A.? officers turned to the onversation with a wealthy.:
CIA,'tvhich provided $140,000 to reek rug merchant.
pay off the debts, the news- By the time the train reached:
paper said. Boston, the rug merchant- wass
"The University of Chicago impressed with N. S. 4.'s
students were not responsible ork that he wrote out a check
for -the ,debts'. Hyman: said, Hr $25,000, the president said.
l Nobody questioned the expaa;
ation.
that the students who manage During a semi-annual N. S. A
the. cooperative took the agenc f )oard meeting in 1964, the.
and the N. S. A. for the mono ,w . S. A. president explained,
in the following manner: hat he had undertaken some.
The students, working ithrt .ugged fund raising'to pay the'
their student government, de 140,000 debt, the Washington
cided to form a cooperativ ewspaper said.
bookstore to provide Lowe
prices on textbooks for collegit Lists I uppo
He listed the e support: ho had,
students. They tried to expan Often from foundations-all'
the store nation-wide and rai IA-backed-but the amount he'
into debt: They moved fat isted was still $25,000 short' of
Loop office?, rented expensiv, he total needed.
business machines, and quick] , The N S A supervisory
FOIAb3b
Approved For Release 2000/05/24: CIA-RDP75-00149.R000400140009-7