DATE: Saturday, August 30, 1997             TAG: 9708300409

SECTION: LOCAL                   PAGE: B3   EDITION: FINAL 

SOURCE: BY PAUL CLANCY, STAFF WRITER 

DATELINE: VIRGINIA BEACH                    LENGTH:   72 lines

ATLANTIC UNIVERSITY, A.R.E. COULD GO IN DIFFERENT DIRECTIONS THE SCHOOL WANTS TO MOVE TOWARD TRADITIONAL DEGREES AND ACCREDITATION.

Atlantic University and its parent, the Association for Research and Enlightenment, may have reached a parting of the ways that will result in the unique institution changing its direction and moving to separate quarters.

Leaders of the boards of directors of Atlantic University and A.R.E. said Friday they hope to resolve their differences over the direction of the school, but on the eve of classes, set to begin next week, there seemed little progress toward settlement.

The university, founded in the 1920s to further the teachings of Edgar Cayce, the mystical leader from whom A.R.E takes its inspiration, went out of business during the Depression, then reorganized a decade ago to provide alternative education.

It grants only a graduate degree in ``transpersonal'' thought that includes cosmic influences in life and the universe.

Atlantic University has only about 30 resident students but has 300 ``at-a-distance'' students who take classes by correspondence, although they come to the A.R.E center for part of their training.

The A.U. board, which is separate from the board of A.R.E., has been trying to move the institution toward traditional education and accreditation. And last year, after the death of the school's past president, the board attempted to hire a new president who was ``not touched by the writings'' of Cayce.

A.R.E., which supports the university financially and provides class space at the association's complex at the Beach's North End, made it clear that it disapproved.

``We're tired of funding a vision that does not match our own,'' said John Van Auken, one of the A.R.E executive directors who has tried to act as liaison with the university's board.

The ``renegade seven,'' as the Atlantean, a student newsletter, referred to the majority members of the A.U. board, balked and hired the president at a $210,000-a-year salary, but whether the appointment has officially been made was not clear.

A.U. apparently has experienced financial difficulties, according to A.R.E. documents, and needed help.

A.R.E.'s response was to offer a capital investment of $250,000, ``enabling A.U. to re-establish solvency,'' but only if the university permits A.R.E. to regain control of the board of directors. Ten out of 15 A.U. board members would be members of the association's board.

``It's a hostile takeover,'' said Frederick Kolb, chairman of the A.U. board.

``They don't seem to want to work with us. Or follow their own precepts, for that matter,'' Kolb added.

Kolb said the university might be forced to move to another location. ``A.R.E. hasn't left us a hell of a lot of choice,'' he said.

The association's board, in a resolution approved July 13, said that ``all reasonable measures to bring agreement between the A.U. and A.R.E. have been exhausted.''

Originally, the A.R.E. board gave the A.U. board until Sept. 1 to reach an agreement or move out, but an undefined extension has been granted, Van Auken said.

But he made it clear that A.R.E. will go forward with its plans to expand its educational program. The organization wants to build a new wing for alternative post-graduate education.

``It's obvious that they have a totally different vision of where we ought to be going, so there's no way we can continue to fund that vision,'' Van Auken said.

The A.U. board plans to meet by telephone Sunday morning, Kolb said. ILLUSTRATION: Graphic

ABOUT THE SCHOOL

Atlantic University, founded in the 1920s to further the

teachings of Edgar Cayce, the mystical leader from whom A.R.E takes

its inspiration, went out of business during the Depression, then

reorganized a decade ago to provide alternative education.

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