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Ruth Tunstall-Grant, director of the popular art school at the San Jose Museum of Art, and eight of her 10 staff members have resigned in the wake of the museum's recent plan to cancel all exhibitions until fall 1989. "This was the final straw," said Tunstall-Grant, 40, who has been at the museum since 1979. Mary Anne Garland, the museum's executive director, said Monday she was surprised by the resignation: "I hate to see her leave; she made a substantial contribution to the museum."

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