That sounds a bit political. When the supervisor said this, were they inside or outside of the dorms?
In 1973 some students from Dabney Hovse hung a large "Impeach Nixon" sign on Millikan library (the tallest building on campus).
This upset the founder/President of a major oil company, who cancelled a planned $1 million donation to Caltech.
It also upset the Dabney family, which Dabney Hovse was named for. They disowned it. I'm not quite sure how you disown a house that is named after you, but I'd guess it includes stopping any ongoing charitable giving to the house or the school it is part of.
That "Impeach Nixon" sign was quite unusual for Caltech. Students just really don't have time for such things, because the workload is large and intense. The only known organized act of public protest there before that was in early 1968, when Caltech students went to NBC's studious in Burbank to protest the cancellation of Star Trek.
Possible outcome of the Star Trek protest: Leonard Nimoy came to campus in Spring 1972 to campaign for George McGovern in the California primary.