Prosecutors charged the entire Phi Gamma Deltafraternity chapter at which Krueger was a pledgewith manslaughter but did not hold thefraternity's officers responsible. The fraternitydisbanded to avoid prosecution.

Powers says the Krueger incident raised theclubs' fears that they would be unable to pay thecourt costs or the monetary judgment that wouldresult from a similar claim at Harvard.

"We just don't have enough money to deal withthe exorbitant legal fees," Powers said.

According to Powers, property taxes for a clubcan run $30,000 to $40,000 a year, which isroughly equivalent to the dues clubs receive fromundergraduate members.

Powers said that although the Owl has asubstantial endowment, the club runs a deficitbecause it cannot cover the $100,000 annualoperating costs. These expenses include thegeneral upkeep of the buildings as well as thecosts for throwing parties and punch events.

Other clubs have supplemented their income byleasing property. The Fly, for example, leases theformer D.U. club building at 45 Dunster St. toNantucket Nectars.

But clubs are not generally as rich as peopleassume says. Later-Club Council President Rev.Douglas W. Sears '69.

"There's this great myth that they're wealthy,"Sears says. "Basically, these organizations breakeven. They're not these great reservoirs ofwealth.

The difference between a club's operatingexpenses and the money it takes in through dues ismade up out of the pockets of graduatemembers--who consequently were worried about thedirection of the clubs, Powers says.

"Financially, the clubs are run by thegrads--and they're the ones held both criminallyand financially liable should something happen,"Powers says.

If a Krueger incident repeated itself atHarvard. both Powers and Sears say undergraduateand graduate board officers would probably be heldfinancially and legally responsible, and neithergroup has the money to handle such claims.

A Question of Liability

Under Massachusetts liquor liability laws, ahost may be held responsible for misconduct orhazardous behavior by guests to whom alcohol wasserved.

Sears says that, while some clubs are formallyincorporated and others are unincorporatedassociations, someone wishing to sue over an eventthat happened at a club could bring theundergraduate and graduate presidents to court--andpossibly win.

Sears says none of the clubs have licenses toserve liquor--technically, individual membersbring the alcohol themselves--but this detaillikely would not shield club members form legalaction.