Following is further dialogue from Mr. Stanley R. Rader, submitted Jan. 1st, 1979, which was scheduled to appear in the Pastor's Report on January 3rd. This Pastor's Report containing this material was ordered cancelled by C. Wayne Cole on Wednesday, the third.

Ted Armstrong was less than candid when he revealed details about his own salary to the press. To set the record straight, in 1977, his earnings as reflected by his W-2 forms issued by the Church and the College were $174,645.78. As of January 1, 1978 his base salary was $150,000 per annum. (In addition to his use of three homes — in Big Sandy, Pasadena, and Tahoe — plus the cost of $750,000 per annum for use of the Falcon Fanjet and an unlimited expense account for him and his associates.)

Several other members of his staff or very directly under his supervision were also very highly paid. Robert Kuhn was paid in 1977, $106,969.22 and in 1978, $83,702.36. Ray Wright was paid in 1977, $106,969.22, and in 1978, $122,728.81.

I think it would be of interest to you that I quote some comments that appeared in a letter from Ted Armstrong to Mr. Herbert W. Armstrong dated June 29, 1977: "Anything you can do to urge Stan to step out of a direct 'line function' and to retain his 'chief counsel' capacity with you, personally, as your constant traveling companion and the one who serves you in your dimension before kings, emperors, prime ministers and world leaders would be very beneficial to the Work. In that way Stan is would be wearing only the title of what he is actually DOING for you! And-Ray, therefore, is would be wearing the title of what he is actually DOING on a day to-day-basis!" Continuing on. "RAY WRIGHT is the one who is doing the lion's share of the actual day-to-day administering of the financial affairs for the Work! It was Ray and I who had to put our heads together to go over all of the emergency procedures necessary and as you know, you and I teamed up and had to write letters to the Church calling upon the brethren to fast and to get in large emergency substantial special offerings in order to survive the cash-flow crunch that occurred only a couple of months ago. We are still in a day-to-day struggle to keep our heads above board.

"Meanwhile just as was true many years ago, Stan is away almost all of the time because of your need of his services, and his almost constant travel. Stan wears only as a title the 'Executive Vice President for Financial Affairs' label. But he is NOT in practical fact, occupying that as a job, or as an activity."

I trust that the aforesaid will answer your questions and will help you to understand what my capacity was until sometime in April 1978 when under Mr. Armstrong's specific instructions I began to act for the first time as Treasurer and responsible to Mr. Herbert W. Armstrong for the financial affairs of the Work.

In closing, I recently conversed at some length with Mr. Ralph Helge who has been receiving some of the questions that ministers have raised. He, too, has had great difficulty in making some of you understand that it is not the Work's responsibility to prove a negative. It is not the Work's responsibility to reply beyond the simple declaration "It is not true" when responding to the most salacious as well as fallacious and defamatory rumors that Ted Armstrong and others are spreading about Mr. Herbert Armstrong, Mrs. Ramona Armstrong and others. I, too, cannot understand why upon hearing any of the flagrant rumors that have been recently brought to my attention, you cannot simply respond to others "That is not true!"

—Stanley R. Rader

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Pastor General's ReportJanuary 08, 1979Vol 3 No. 1