Cardinal editor's photos in today's NYT

One of The Daily Cardinal's photo editors has some photos in a (front page!) article in today's New York Times. Having seen how much work he puts in, he definitely deserves it. Congratulations, Kyle!

The article is about the Conserve prep school in Land O'Lakes (near the U.P. border), which is shutting down allegedly in response to the bleak economy. Despite the school's $181 million endowment, its trustees (who also manage the Central Steel and Wire Company) think the school can no longer function.

Obviously, this has parents in an uproar, especially over the fact that the school's trustees hardly attempted to diversify the school's investments, instead opting to invest $131 million of its endowment in their own company! Understandably, parents are taking the trustees to court in hopes of removing them from their positions.

This suggests more than simple negligence, but corruption at its worst: jeopardizing a school, which provides financial aid to about 70% of its students, to keep its corporate underbelly plump.

Daniel L. Kurtz, a partner at the law firm Skadden, Arps, Slate, Meagher & Flom who heads its exempt organizations practice and is not involved in the case, said that in his opinion, even if the trustees were not directed to diversify their holdings, they had certain obligations.

In his view, “the trustees have to act in the best interest of the beneficiary, which is the charity,” he added. “Holding on to a stock that declines in value simply cannot be a means of fulfilling your fiduciary obligations.”

Appealing images for an unappealing story.