Reeling from repeated criticism by students, faculty and alumni, Palmer College of Chiropractic officials announced changes in its administrative structure, but fell short of meeting demands for the resignation of key directors including Board Chair Vickie Palmer and Chancellor Mike Crawford.

In a memorandum dated Oct. 15, 1997, Crawford stated that the Board "has taken action of historic significance to assure that all constituencies are appropriately represented in the shaping of policy and decision-making process."

The college stated that it would:

*** Add the immediate past presidents of two Palmer alumni associations as non-voting members of the Board of Directors. The new members would not be allowed to attend closed sessions.

*** Appoint an ad hoc committee of the Board to explore the concerns raised by students, alumni and faculty.

*** Retain the services of an independent consulting firm to provide a "comprehensive appraisal of compensation packages for key Palmer executives." One of the major complaints lodged against the school was the seemingly extravagant benefits provided to school officials. These included car allowances, an annual clothing allowance and membership to local country clubs and dining clubs.

*** Eliminate the position of chief operating officer, which had been filled by Larry Patten, who was forced to resign in August, after students and alumni passed a "vote of no confidence."

*** Reduce the University System support staff by an unspecified amount.

*** "Clarify" budgets in all areas.

*** Move the office of the Chancellor to a different facility. No details were provided as to where the office would be or why its relocation was deemed necessary.

The changes were decided by the Board, which left the school's home in Davenport, Iowa and met instead in California during the first week in October.

Although Crawford called the changes "far-reaching," they fell short of demands by various student and alumni groups.

On Oct. 5, the Illinois chapter of Palmer Alumni became the latest organization to pass a resolution accusing the Palmer Board of mismanagement. During a meeting with school alumni, Dr. James Loftus -- past state president of the alumni association and a major financial backer of the school -- demanded the resignation of Vickie Palmer "and her cronies" on the Board, including Crawford.

The group also called for the school to "regain its leadership in the chiropractic profession," by respecting B.J. Palmer's original philosophy of chiropractic care. Several prominent alumni have criticized the school for steadily leaning toward a more medical model and for including courses such as physical therapy in curriculum.

"Crawford claims he is committed to Palmer College," Loftus stated. "Well, he is not wanted."

Other issues raised in recent months have not been addressed by the Palmer administration, including accusations that the school has granted numerous interest-free loans to college executives.

According to Palmer's financial reports, these included: $30,000 to Crawford; $65,000 to J.R. McAndrews while he was president; $50,000 to William Gehlsen, the school's vice president of business affairs; and $75,000 to John L. Miller, past president of the school. Most of the loans have never been repaid. The college memo did not refer to these loans specifically or make any mention of action to be taken to recover the outstanding debt.

Nor did the Board take significant steps to rectify what many see as a "loaded" Board. In addition to the Board itself, Palmer appoints "certificate holders" who are authorized to approve or deny appointments to the Board of Directors. This is supposed to ensure a balance of power and prevent Board members from filling seats with their own friends or colleagues.

However, although not widely publicized, at least six of the school's "certificate holders" are either Board members themselves or have close personal or business relationships with Board members.

Vickie Palmer and John Blong are both Board members and certificate holders. Other certificate holders include Vickie Palmer's sisters Bonnie McCloskey and Jenny Sutton, her attorney Richard Bittner, and Bittner's law partner Michael Bush.

Voicing qualified approval of the Palmer actions was Dr. Frank Bemis, president of Palmer's International Alumni Association, who stated, "We're not 100 percent satisfied, but I would definitely have to say that it's clear our concerns have been heard and they are being addressed."