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   June 22, 1975 To:    All Participants of The Stelle Group The By-Laws Amendment
  Committee today has concluded its negotiations without success. The Trustees
  were unwilling to agree to a middle position between that which was
  originally presented by us to the membership in a notice for a special
  meeting dated May 10, 1975, and the Trustees’ position which was presented to
  the above committee on June 15th. A copy is attached for your information.
  You already have a copy of the May 10th proposal. The May 10th referendum
  proposal was essentially that any member or group of members has the right to
  propose rules, regulations, policies, guidelines and amendments to the
  By-Laws by submitting their proposal in writing in a petition signed by 10%
  of the members eligible to vote. Although state law required that only 5 days
  notice be given, the special meeting was called for May 24th in order to give
  the membership an opportunity to reflect and discuss the proposed referendum
  procedure. The Trustees were opposed
  to this referendum procedure. Rather than give the membership an opportunity
  to discuss the proposed referendum in an open meeting and allow the majority
  will to decide upon the merits of the proposed procedure, the Trustees tried
  to block the proposal. The Trustees sent out a notice on May 12, 1975, (or a
  special meeting—two days after the referendum proposal was sent out on May
  10th. The Trustees set the date for the special meeting on May 17th which met
  the minimum 5 day notice requirement in state law. This enabled the Trustee
  meeting to be held a week before the already scheduled meeting called by
  those proposing the referendum procedure. The trustee proposal was
  designed to accomplish two things: First, the proposal would have overcome a
  deficiency in the by-laws. State law specifies that where there is no
  provision in the by-laws for how to call a special meeting to deal with
  Stelle Group business, such as efforts to change the by-laws, then a special
  meeting of members may be called by members having one-twentieth of the votes
  entitled to be cast at such a meeting. The Trustee proposal would have given
  the Trustees authority to call a meeting with five days notice and also
  prescribed that a written proposal signed by 1/5th of the total votes
  entitled to be cast. and presented to the Trustees would require that the
  Trustees call a meeting within 60 days. Secondly, the Trustees
  proposal would have amended the by-laws to require that instead of a majority
  vote to amend the by-laws in the future, a 2/3rds vote of the total entitled
  to be cast would be necessary to amend the by-laws. This provision was
  designed to make more difficult the passing of the referendum proposal to be
  voted upon the following week. It was pointed out at the
  Trustee meeting that this was the intention of the Trustee proposal, and it
  was moved and seconded that the Trustee proposal not go into effect for
  thirty days so that the referendum proposal could be discussed and voted upon
  according to the existing by-laws and state law. The Trustees decided at
  that point that perhaps a compromise could be reached, and it was agreed that
  four representatives from the members who had called the special meeting
  would meet with the four Trustees and Merrilie Maull, legal advisor to the
  Trustees. They would develop an amendment package to be presented to the
  membership which would deal with both the Trustees’ and the members’
  concerns. The total membership decided that they wanted four persons to
  represent the membership-at-large, and so four persons were elected to
  participate in the negotiations. Negotiation meetings have
  been held once or twice a week since then. The meetings generally have been
  open, candid discussions of agreements and disagreements. At the conclusion of the
  first meeting, Gail Kieninger said that many people in the group felt a real
  need for a social get together and asked if The Stelle Group could use the
  Cullom Community Center on the night that we had rented the Center for the
  referendum meeting. We agreed, of course. Gail chose that night to announce a
  major new policy direction—a decision, she says, that was made by the
  Trustees in June 1974 that the Stelle Group is a Preparatory School. Although it is assumed that
  the Trustees were sincere in their desire to provide direction for the group,
  the timing of their announcement reflected a lack of respect for the
  negotiation process which they themselves requested. At the very time when
  negotiations had just begun to discuss what kinds of decisions are to be made
  by whom and with what procedures, Gail chose to announce that she and Jim
  have a special authority to teach and that this authority is outside the
  review of the membership. Whether this is true or not is a separate point for
  discussion. The point here is that the Trustees chose to go outside the
  negotiation framework to discuss their special authority. The negotiations continued
  without much progress toward a specific amendment package. The basic area of
  disagreement centered around the point that the Trustees state that policies
  are not enforced. Policies are presented by the Trustees to give guidance to
  the participants and participants are expected to follow them. The Trustees
  say that policies are not required to be followed in order to give people
  time to accommodate to a better way of doing things. Our view is that policies
  are frequently enforced. We gave several examples of policies that have been
  enforced. The Trustees admitted to only two of them being enforced. Some of the
  examples that were given areas follows: 1.    
  No boarders in
  the home. It was stated that this had been enforced on one occasion. 2.    
  Persons wearing
  long hair may not work on the site. It was stated that this was a rule which
  has been enforced. 3.    
  School Policy, dated
  December 6, 1973, which states that a student who is not accepted for
  membership at age 18 may not stay in Stelle beyond his eighteenth birthday.
  This policy was recently enforced, but the Trustees state that it is not
  reviewable by the membership since it is an education policy. This is a
  policy in contradiction to the fact that Richard Kieninger has said that
  parents are responsible for children until age 21. 4.    
  The Rework and
  Restitution Policy. 5.    
  The Dress Code. In The Sun Rises,
  on pages 321-332, the Elder explains the meaning of The Ten Lemurian Laws. In
  discussing the Fourth Law, the Elder states, “Each citizen
  shall have what will become known as a vote. Before any new laws beyond these
  ten can become operative, they shall be submitted to the citizens, and each
  will, by his vote of yes or no signify his desire in the matter. This will be
  discussed under the tenth law.” p. 327 In discussing the Tenth
  Law, the Elder states, “The determination of the
  opinion or desires of the majority is to be established through the vote
  which I mentioned in discussing the fourth law. Neither the Council nor the
  later government shall have the right to enact and enforce any laws affecting
  the citizenry who will be affected by them. Anything less is a violation of
  both this and the seventh law which states that the commonwealth or
  government has no right to operate in the environment of an individual except
  under the conditions set forth in that law.” pp. 330-331. As previously stated,
  whether policies should be reviewable or changeable by the participants
  through a referendum procedure when the participants perceive that the policy
  is unjust or being enforced is a major area of disagreement in the
  negotiations. At the conclusion of the
  June 7th meeting, Merrilie Maull suggested a possible approach to referendum
  procedures that contained safeguards which the Trustees wanted, to prevent
  the membership from taking an erroneous action, and provided for any area of
  major concern to the members to be subject to a referendum procedure, which
  is what we wanted. On the surface Merrilie‘s idea seemed to have merit.
  Merrilie agreed to draft her idea for the next meeting, which was to be hold
  the following Thursday, June 12th, and to make it available to all of us
  ahead of time if possible. A copy of her draft proposal is attached. The meeting on Thursday was
  cancelled by the Trustees due to some business that could not wait. At the
  next meeting on Sunday, June 15th, the Trustees presented their version’ of
  Merrilie’s proposal. It became clear in response to our questions that
  Merrilie had given her proposal to the Trustees sometime during the week and
  the Trustees had reviewed it and revised it twice. Even Merrilie’s “draft”
  contained some changes from the idea she had presented verbally to all of us
  In the fourth paragraph a phrase had been added at the suggestion of the
  Trustees, “provided, however, that should a class of membership be created as
  a result of advanced training the panel shall be chosen by lot from among
  this class.” Merrilie’s verbal proposal
  was to include any area for referendum procedures as long as it went to the
  Trustees for review and to a panel of seven for appeal. This was what made
  the idea so attractive to us. Merrilie pointed out for
  our information several significant changes that the Trustees had made from
  her written draft proposal: 1.          
  Merrilie’s
  original draft read, “The right of any member to publicly criticize with
  impunity the policies, decisions, and government of the board of trustees is guaranteed.”
  Merrilie’s language is simply a quote from the existing by-laws. The Trustees
  are proposing to water down the existing by-laws. 2.          
  In the first
  sentence of the last paragraph on the first page, the Trustee proposal states
  that only by-laws or rules may be appealed to a panel of seven. It excludes
  regulations, policies, or ordinances from being appealed. These provisions
  were in Merrilie’s proposal. The net effect of the
  Trustee proposal would be to exclude everything from a referendum procedure except
  rules or by-laws which do not come under the Departments of Religion or
  Education or the Admissions Committee. Since the Trustees have announced that
  Stelle is a Preparatory School and on a previous occasion stated that the
  community will not be incorporated into a municipality, then it becomes
  obvious that if the Trustees choose to say so, almost everything could be
  considered religious, educational or admissions. The Trustee position is
  hardly one of compromise or effort to reach mutual agreement. During the week of June
  15th, we worked to draft a proposal that would be acceptable to us. It was
  based upon Merrilie’s original idea. This is not to imply that Merrilie
  supports our proposal. It is to say that we have modified our original May
  10th proposal in significant ways to where we now propose several safeguards
  that were in Merrilie’s proposal. The proposal that is
  submitted for your consideration still has the provision that any member or
  group of members has the right to propose rules, regulations, policies,
  guidelines and amendments to by-laws. changes thereof or repeals thereof. The
  procedure provides that ultimately the Trustees have the right of review of
  any proposal before it can be submitted to the participants for a vote. The
  Trustees have the right to veto the proposal if they think it is not in the
  best interests of all concerned. The only way the veto can be overridden is
  if those who submitted the proposal appeal to a Legislative Review Board made
  up of seven members drawn by lot. A majority decision is necessary to
  override the Trustees’ veto. So we are not proposing a
  true referendum procedure that a proposal is automatically referred to the
  membership for a vote. In effect, the proposal has to be submitted to the
  executive branch first, that is, the Board of Trustees. If they do not concur
  with the proposal, it has to go to the judicial branch, that is a panel of
  seven peers or the Legislative Review Board as we call it. A proposal takes a
  majority opinion of the Legislative Review Board in order for it to be
  submitted to the participants for a vote. Any proposal to amend the
  by-laws has to go through the above outlined procedure. With all of these
  safeguards it seemed appropriate to maintain the provision in the existing
  by-laws that only a majority vote is needed to change the by-laws. This is in
  keeping with the Lemurian principle outlined in the Tenth Lemurian Law of
  majority rule. In order to make the
  by-laws consistent with the proposed referendum procedure, it is necessary to
  modify the section on powers of The Trustees. This proposed provision
  spells out the powers of the Trustees so that it will also be consistent with
  the Seventh Lemurian Law, “No
  individual shall have the right to operate in the environment or personal affairs
  of another unless asked to do so by that person. The commonwealth or
  government may do so only where criminal or treasonable intent can be proved,
  or the civil rights of another have been violated.” pp. 328-329, The Sun
  Rises The elder goes on to say, “Alas! This law will be one of those most commonly
  violated, either consciously or unconsciously, by countless thousands. Many
  there are who, through their lust for power, will seek to dominate others and
  to bend them to their will, and countless will be the devices and schemes
  used for this purpose. Observe carefully the working of this law. That no one
  has the right to operate in the environment of another does not say that one
  cannot do so, but woe unto one who does! The repercussions can be little less
  than devastating!” p. 329 In
  summary, the Trustees have found our proposal essentially unacceptable to
  them. Therefore, the negotiations have come to a stalemate for all practical
  purposes. It seems appropriate to us to refer the whole matter back to the
  membership for resolution. This is why we have called for a Special Meeting
  this coming Friday night, June 27th, at 8:00 P.M., at the Cullom Community
  Center. You
  will receive two notifications of the meeting. One has this summary of the
  referendum process and negotiations from our perspective. It also includes
  other attachments. The other one will be mailed to you in order to avoid any
  possible objection that this is a legally called meeting according to the
  provisions of state statute and decisions reached at the meeting will be
  lawful and binding. A
  Special Meeting requires that a presiding officer be elected to chair the
  meeting. Please be prepared to make this the first order of business so that
  the meeting can proceed in an orderly fashion. Respectfully submitted: Malcolm R. Carnahan Walter W. Cox Alfred A. Davis Richard  T.
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