August 3, 1975

 

To: All Participants of The Stelle Group

 

We have during the past few months been attempting to create mechanisms which we feel would allow the possibility of righting what we perceive to be real in­justices, mistaken attitudes, and karmically unsound practices in The Stelle Group. In the beginning we voiced our ideas and suggested solutions either directly or indirectly to the present leadership of The Stelle Group; they were responsive neither to our ideas nor to our suggestions. Because of this attitude, we called a special meeting to incorporate democratic procedure in the by-laws of The Stelle Group; the trustees blocked this meeting. In the spirit of cooperation and out of the desire to preserve unity in The Stelle Group, we attended numerous lengthy meetings to negotiate some kind of comprehensive democratic procedure within The Stelle Group; the trustees proved themselves unwilling to compromise. We called a special meeting of The Stelle Group in order to incorporate into our by-laws a viable referendum procedure; the trustees on technical grounds refused to recognize the meeting, even though a clear majority of both members and associates voted in favor of the by-law amendements. Although the validity of this meeting can be proven in the Illinois courts, to do so will take a minimum of six months. Present cir­cumstances in and surrounding The Stelle Group lead us to believe that it is in the best interest of Stelle to ask for the removal of the trustees of The Stelle Group under Article III, Section 7 of the by-laws of-The Stelle Group:

 

SECTION 7. REMOVAL OF TRUSTEES. Trustees do not have the power to impeach a fellow trustee except as Section 5, Article II applies to expulsion from membership. Removal from Trusteeship without loss of membership lies within the power of the voting membership and their rights of petition and criticism.

 

We believe this course of action will enable Stelle to solve its internal problems and fulfill its role in the Great Plan of the Brotherhoods during the years to come.

 

It has become apparent to us that many participants of The Stelle Group are not aware of the immediacy of our situation nor are they aware of the real nature of the injustices, mistaken attitudes, and karmically unsound practices to which we refer. We would like to discuss them here and refer you to the attachments attending this letter.

 

     I.   In the first “Stelle, A City for Tomorrow” (1965), a system of investing in The Stelle Group was described which allowed for the depositing of monies in a central treasury. The brochure stated, “If a member later chooses to leave Stelle or is expelled, all the money in his account will be returned to him.” It was later realized that large sums of money used to buy steel, for instance, could not be refunded on demand, so this provision was, with some regret, dropped. By 1973, however, we had gone yet a step further in saying that Ralph and Mary Popkins, who gave $25,000 after having been promised a house in return, had no right to ask for their money back after they became disenchanted with The Stelle Group. The Popkins even wrote a letter to the membership asking for the return of their money, but this fell on ears deafened by statements from the leadership. (p.l)* Some members felt uncomfortable at having profited at the expense of another, but we were assured that such karma would be borne by many generations of Citizens of the Nation of God and was not unlikely ours to pay. Sadly, this practice of taking large sums of money (or other valuables) without fulfilling promises has been common in The Stelle Group during recent years. (p. 5, 10, 34)

 

     Late in 1974, the Putts family bought some 450 shares of Stelle Industries, Inc. stock ($45,000) in order to have their house built. (p.5, 6) Their disas­sociation on July 2, 1975, had highly political overtones (p.7), yet they have been expected to leave without even trying to recapture the life savings which will allow them to provide for their family’s security in the future. Part and parcel of their original agreement was their absolute trust in the fairness of the leadership, yet the trustees criticize the Putts for not abiding by the original agreement, even though lack of fairness on the part of leadership has become evident. (p.6, 7, 8, 9) The Putts family asks only for fair recompense for the house built with their money, and in this case it would not even pose a hardship for Stelle Industries, Inc. to return their money; the home carries no mortgage and can be financed for nearly the full amount of the Putts investment. To take matters even a step further, the trustees of The Stelle Group are bringing a lawsuit against the Putts family in an attempt to force them out of their home. In short, we have traveled the full circle from offering to return invested money to refusing to refund money even when it would be quite convenient to do so.

 

     The Popkins have filed suit against Stelle Industries, Inc. and The Stelle Group for $25,000 plus interest, and an additional $25,000 in damages for fraud. (p.2, 3, 4)

 

     The Brotherhoods may indeed be spreading the cost of building the city over many generations, but we do not believe this gives us the right to use deceit in order to accomplish our purpose, and we see every possibility that Lemurian Laws One and Two have been violated in the cases mentioned. (p.1—4, 5-9, 10-13, 18-19, 33, 34-36)

 

     II. In The Ultimate Frontier Dr. White discusses the concept of tithing as “voluntary” contribution of a tenth of one’s wages. In Stelle, however, the concept of tithing has been extended to include twenty-six hours worked each week above and beyond the forty hours which are actually paid hours. If an individual working for Stelle tithes less than the required twenty-six hours, then twenty-six hours are taken off the top and hours are deducted from the paid time; in this manner the sixty-six hour week is enforced. That this practice is a direct violation of the minimum wage section of the Fair Labor Standard Act has been known for at least six months; Jim Howery has refused to consider several suggestions that it be discontinued. It is neither a tithe (a tenth part of one’s wages), nor is it voluntary, nor is it legal.

 

     Last month Craig Zeilenga and Jim Dale, former members of The Stelle Group, filed complaints with the U. S. Department of Labor relative to this practice. When the Department of Labor was called last week, the official in charge was apologetic for not having looked into the legality of our system long ago. He said that they will be coming to Stelle to audit our books within a few weeks. If in fact it is shown that time above forty hours per week was worked for Stelle Industries, Inc. and The Stelle Group, the Department of Labor will demand cash payment to all indi­viduals at 1.5 times the hourly rate at which they worked. The total amount of such cash settlements is conservatively estimated to be $250,000. Inability to pay can mean bankruptcy for Stelle Industries, Inc., dissolution of The Stelle Group as a corporate entity, and charges filed in the Peoria Federal Court.

 

     We realize the need to sacrifice some of our leisure time in order to build Stelle, and many people feel only joy in working sixty-six hours per week. A single man may be able to put in eighty hours per week without undue strain, but a married man may find that working over fifty hours per week has an eroding effect on the stability of his family and home .... with disastrous results. We believe that the amount of time worked, above the time mutually agreed upon by employer and employee for a fair wage, should always remain a matter of individual choice, and the necessity of devising a system which is within the bounds of state and federal law is obvious. The direct relationship of priority points to residence in Stelle should provide enough incentive for members to donate as much time and money as they are able to while maintaining a balance in their personal lives.

 

     III.          We feel the matter of priority points and their relation to residence in Stelle also deserves review. At present priority points are ostensibly used as the means for determining whether or not members move to Stelle, except that this deter­mination is also subject to a judgment by the trustees of The Stelle Group as to whether or not a given member is “ ready.” Several full members have been told quite directly that no matter how many priority points they get, they will not be allowed to move to Stelle unless they start growing in the “right direction.” Members have, in fact, worked for years, bought stock in Stelle Industries, Inc., and worked up detailed house plans with the architectural staff of the Department of Building in happy anticipation of their move to Stelle; only to be told at the last minute that they would not be allowed to live in Stelle until they showed more “emotional maturity.” Our charter from the State of Illinois defines the corporate purpose of The Stelle Group as, “Exclusively for religious and educational purposes within the meaning of Section 501 (c) (3) of the Internal Revenue Code of 1954, as Amended.” The by-laws of The Stelle Group state, “GENERAL POWERS: The business and Affairs of the Corporation shall be managed by its board of trustees.” Legal counsel informs us that in regulating housing in Stelle, and in many other areas, the present trustees of The Stelle Group are in fact exceeding the authority inherent in their office. We also submit that to state to members that money and time donated to Stelle will earn them a place in the community (“Eligibility for Rental Housing in Stelle”), when actually they can be judged “unacceptable for residence in Stelle” at any time regardless of their standing on the priority list, amounts to confiscation of their invested time and money, and a denial of their rights. We believe this practice to be a violation of the first and the second Lemurian Laws  “No one may profit at the expense of another.” “No one, nor the government, may take anything from a person or another nation by force.

 

     IV.    The control of rental housing in Stelle by the board of trustees of The Stelle Group has been cited as an overextension of their authority as corporate officers. The enforcement of the statement in the Membership Manual entitled “Policy Statement: The Privacy of the Family” is another example of the trustees’ overextension of their authority. At the by-law amendment committee meetings, Jim Howery admitted that he enforced this “policy” on at least one occasion. A third example of the trustees’ overextension of their authority is the resolution in the Membership Manual which states, “6. FURTHER RESOLVED, that a person residing in Stelle who has reached the age of 18 and has not been accepted as a student participant, shall be required to leave the city within 15 days. 2-27-75” This “resolution” is being enforced as a rule in the case of Rolf Raillard, who was informed that he would “be expected to leave Stelle by August 10, 1975” as a result of rejection by the Admissions Committee. Gail Kieninger has denied enforcement in this case, because, as she says, “the Raillards can always move out of Stelle if they want Rolf to live with them.” Several years ago, when the Raillards were given to understand that Stelle would be taking care of education through college, they donated their life savings to buy steel for the factory. (p.29). While there were no strings attached, they certainly did not’ expect their children to be asked to leave their home against their will. It is obvious that an incorrigible youngster cannot be allowed to stay in Stelle, but rules to this effect must be passed by a majority vote of the membership in order to be binding. Rolf Raillard cannot, by any stretch of the imagination, be called incorrigible; for Gail Kieninger to ask him to leave Stelle is, in our opinion, a violation of both the seventh and the ninth Lemurian Laws . ... “No person nor the government may operate in the environment of another unless specifically requested to do so by that person. The government, however, may enforce the law in treasonable, criminal, and civil suits.” “The sanctity of the home is inviolate.” It is, in addition, beyond the authority of the trustees of the corporate entity called The Stelle Group, to pass resolutions and then enforce them as rules which are binding on the membership. According to our by-laws, such rules must be passed by majority vote of the membership in order to be binding.

 

     V.  During the past several months, the pattern of reprisals taken on the basis of disagreement with the policies, decisions, and government of the trustees of The Stelle Group, has become increasingly obvious; despite the fact that our own by-laws state, “SECTION 6, RIGHTS OF PETITION AND CRITICISM. Any member of the organization may propose changes in the by-laws, and the board of trustees must grant hearing to all such proposals. The right of any member to publicly criticize with impunity the policies, decisions, and government of the board of trustees is guaranteed.” This provision in our by-laws has been repeatedly violated by the board of trustees. For example:

     a.  Four associates signed the call for a Special Meeting to be held on June 27, 1975 ... Laurie Putts, Jerry Putts, Dayle Petersen, and Peter Heist. One of these, Peter Heist, publicly removed his name from the call; all the other associates received notices of their discontinuance within a few days.

     b.  As of April 18, 1975, Bob Hanauer was recommended for the next term as a director of Stelle lndustries, Inc. (p.20) On April 19, 1975, he publicly stated his objections to the trustees’ manner of proceeding just prior to Richard Kieninger’s trial. During the following week, his consideration for the directorship was with­drawn (and, indeed, its official existence was denied by Jim Howery, President of Stelle Industries, Inc., p. 18), and Malcolm Carnahan, who supported Jim Howery as an able administrator at the time, was nominated instead. On June 22, 1975, Bob Hanauer signed the call for a Special Meeting to be held on June 27, 1975. On June 26, Bob was demoted. It is interesting to note that Bob Hanauer went from director of Stelle Industries, Inc. and prospective trustee of The Stelle Group to gardener in about three months, which exactly parallels the expression of his disagreement with policies, decisions and government of the board of trustees of The Stelle Group (p.14—19)

     c.  In June 22, 1975, the Huntsbergers and the Alexanders signed the call for a Special Meeting to be held on June 27, 1975. On July 1, 1975 they received a notice which stated, “Since by your recent actions you haye demonstrated your disagreement with the established order in The Stelle Group, I believe your continued attendance at the public meetings would be inappropriate at this time.” (p.32) The Huntsbergers were also discontinued, along with several other persons, from their orientation classes because of their “recent actions.”

     d.  Dave Livingston, Ben Miller and Steve Hartmeyer had all been vocal in their objection to current administrative policy in The Stelle Group. On May 25, 1975, at the end of the day, all three were laid off from Stelle Industries, Inc., even though all three were Stelle Construction Company foremen, and other workers were not laid off who had far less experience and ability. The superintendent of Stelle Construction Company, Walter Cox (also vocal in his objection to current administrative policy), was not even informed of the layoffs until after they had occurred. Walter Cox was “laid off without intent to rehire” (fired) shortly after the by-law amendments were successfully passed on June 27, 1975, even though the construction company still had more work to do. No notice was given to the individuals who were laid off (one week’s severence pay was forwarded), even though the possibility of layoffs had been antici­pated for several months.

 

     e.  All the women who participated in the evening meal program, and who supported referendum, were discontinued from the dinner program. Gail Kieninger told Jill Price she was being discontinued from the program because Gail wanted to have the meals in Stelle proper. Gail told Cindy Foreman, who lives in Stelle, that she felt it was “for the greatest good of all concerned” that Cindy be dis­continued from the program. It is interesting to note that at least one person who presently supports the trustees, and who does not live at Stelle, has continued to serve evening meals.

     f.   Immediately after signing the call for a Special Meeting to be held on June 27, 1975, several individuals noted unreasonable pressure from their superiors in Stelle Industries, Inc. or in The Stelle Group. Several were demoted (Mike Epps, Tom Pacer) or ignored in their positions of responsibility; and one, Quincy Pond, quit. Otto Kindshoven was fired with little cause. (p.31) The fifth Lemurian Law states, “All advancement in position shall be based upon merit and the performance of service alone. … Under this same law, no man may be deprived of his position so that one less apt or qualified may replace him. Furthermore, before any may be removed from his merited position, even to be replaced by another better qualified, the one to be displaced must be provided with another position equally as good.” We submit that the pattern of reprisals demonstrates the trustees’ lack of adherence to the fifth Lemurian Law. It has become all too obvious that one’s status in The Stelle Group depends primarily on the extent of. his support of current administrative policy.

 

     VI. On June 27, 1975, a Special Meeting of The Stelle Group was called in the Cullom Community Center. Even though a clear majority voted in favor of the by-law amendments presented at the meeting (despite tremendous pressure from the present leadership that they not do so), the trustees have chosen to ignore the decisions of the membership in these matters. The by-laws of The Stelle Group state, “Article II. Section 2.  DUTIES OF MEMBERS. It shall be incumbent upon all members, individu­ally and collectively, to accept the lawful decisions of the majority membership and to uphold the high principles of The Stelle Group set forth by the book, The Ultimate Frontier.” The trustees claim that the meeting was not a lawful meeting because it was not held at the corporate offices of The Stelle Group (Stelle, Illinois). This objection, if valid, would also serve to invalidate many other meetings of the membership, including the meeting held in the church in Evanston, Illinois, when we elected to adopt a system of responsibility/authority, because our corporate offices at the time were in Chicago, Illinois. It is based on pure technicality, as the intent of this provision in state law is to insure that the meeting place is accessible to all members of the corporation; 90% of the membership was present at the start of the June 27, 1975 meeting.

 

     On June 22, 1975, the parents of the Stelle School presented to Gail Kieninger, director of the Department of Education of The Stelle Group, many suggestions for improving the Stelle School. (p.37-48) Nearly all the parents signed this proposal, yet it has been ignored by Gail Kieninger, and the parents’ request to meet with her to discuss the proposals has not been honored.

 

     We believe these actions are not in keeping with our own by-laws nor in keeping with the “high principles .... set forth in The Ultimate Frontier. “The executive officers of the government will not be the leaders of the people, but will be strictly public servants having supervision over only their respective departments and offices. (p.223, emphasis added)

 

     In short, we believe that the evidence is overwhelming. that the present trustees of The Stelle Group have acted in such a manner as to incur negative karma for the group as a whole, karma which each and every member shares by virtue of his membership in The Stelle Group. We believe that the present trustees have acted sincerely to implement what they consider to be correct, but we believe they are sadly mistaken, The picture of Stelle at the present time is not a pretty one;

 

1.              Stelle Industries, Inc. and The Stelle Group are being sued by the Popkins for $50,000.

2.              Stelle Industries, Inc. and The Stelle Group are soon to be audited by the Department of Labor, with the probable result of demands for cash settlements amount­ing to $250,000 by conservative estimates.

3.              The Stelle Group and Stelle Industries, Inc. are suing the Putts family in order to force them out of their home.

4.              Richard Kieninger is suing Stelle Industries, Inc. and The Stelle Group for removing him illegally as the voting trustee of the controlling portion of stock in Stelle Industries, Inc.

5.              The past several months have seen the demise of Stelle Metal Products, Stelle Graphics and Stelle Piano Shoppe as profit-making divisions of Stelle Industries, Inc. Fortunately, business is improving at Stelle Woodworking and Stelle Molded Plastics.

6.              Stelle Construction Company has only four employees, and no new construction is under way. (Steel for the factory addition was erected under the terms of a contract drawn up over a year ago.)

7.              The membership of The Stelle Group has remained essentially at a constant level for over a year.

8.              Whereas several hundred -interested people used to attend the monthly public meetings in Chicago, only about fifty people attended the list meeting.

9.              The majority of The Stelle Group is severely divided and statements have been made by the trustees to the effect that dissatisfied members should leave, despite their commitment to the Great Plan of the Brotherhoods and tremendous personal investments in Stelle.

10.          State and federal law is allegedly being violated by the corporate officers of The Stelle Group and Stelle Industries, Inc. (p.l-4, 22, 33)

11.          The student body of the Stelle School has dropped drastically as parents have left Stelle or removed their children because of what they consider to be a deleterious environment in the school. Suggestions for change have been ignored, and many other children will be taken out of the school by their parents if the situation is not resolved. (p.40-51)

12.          The trustees of The Stelle Group are harassing people in order to force them to leave Stelle (p. 7,8,9,24,25).

13.          Business contacts and residents in the area surrounding Stelle have become all too aware of the apparent discord in Stelle. Rumors about Stelle, many based on fact, are running rampant.

14.          A majority of the full members of The Stelle Group, favor removal of the trustees.

15.          A majority of the associates of The Stelle Group favor removal of the trustees.

16.          At least 70% of the stock of Stelle Industries, Inc. is held by persons favoring a change in the leadership of The Stelle Group (p.37-39)

17.          Little is being done by the present trustees to solve the problems; rather they are being ignored and a rosy picture of Stelle Group affairs is being painted for new associates and interested parties.

 

We believe the appointment of interim trustees by vote of the membership, with candidates stepping forward from both factions, will allow us the opportunity to resolve the enormous problems which will be ours to face during the coming months. We do riot feel that The Stelle Group can afford to allow these problems to go unsolved any longer. We ask for the removal of the present trustees from office, and the appointment of interim trustees to serve until the scheduled election in April, 1976; and we pray that those elected, with the support of the membership, will be able to establish a solid foundation for the future growth of Stelle.

 

 

Sincerely,

 

Malcolm Carnahan

Walter W. Cox

Richard T. Hellner

 

 

 

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* Reference to attachments (typ.).