This article reports on the dispute about the creation of an institute named for the late economist and free-market advocate Milton Friedman at the University of Chicago. Five months after the University of Chicago announced plans to invest $200-million in an economics institute named for the late Milton Friedman, the project is still generating rancor on the campus. The institute's designers say that the university needs a deep-pocketed research center to maintain its eminence in economics. But critics warn that the institute risks becoming a mouthpiece for Mr. Friedman's free-market policy views. That role, they say, would violate the spirit of the "Kalven Report," a much-cited 1967 document that proclaimed that the University of Chicago must remain politically neutral. Last week, more than 120 faculty members signed a petition requesting a university-wide meeting at which the faculty could debate and vote on resolutions related to the center. The new petition arose because the project's critics were unhappy with an October 15 Faculty Senate meeting that was largely devoted to the institute. At that meeting, the ground rules forbade any resolutions or formal votes.