Herbert W Armstrong

Having returned recently from the Orient with Mr. Armstrong, on Thursday morning, May 3rd, Mr. Stanley Rader updated church and college employees about recent developments in the Work. Dozens of questions were also asked and answered. He did not want to preempt Mr. Armstrong who is writing to the brethren about the trip, but he did confirm that the entire trip was a complete success and gave just a few details.

As usual, Mr. Armstrong went in his private jet, he stayed in the best hotels, had a major banquet and gave the Prime Minister of Japan a piece of Steuben crystal. Plans call for another trip next month, this time to Tunisia and Morrocco. Then they will follow that up with a trip back into Egypt and Israel accompanied by Mr. Armstrong's "Japanese sons." After that, in the latter part of August Mr. Armstrong is to visit China — Peking and perhaps several other cities — then make a return visit to Japan, and finally go to the Philippines for a mini-campaign during a 3-to 4-day visit in Manila. "All this will drive the Attorney General right up the wall," mused Mr. Rader.

Mr. Rader also noted that newspapers did not play up Mr. Armstrong's recent trip to Japan. 3rd they drawn attention to the aspects of Mr. Armstrong's trips which the Attorney General has objected to, he thought the stories would have ended up being too complimentary of Mr. Armstrong and the Church because they would have had to report exactly what Mr. Armstrong accomplished and who he met.

Stepping Up Our Projects In Japan

Mr. Rader told the employees that Mr. Armstrong affirmed all of our old programs and will be taking on new projects, stepping up our activities in Japan. When Mr. Armstrong returns to Japan in route to China he plans to have a public Bible study with Plain Truth subscribers. Further, we are going to step up distribution of the Plain Truth in Japan and reinstitute the newsstand program there. Looking down the road, it is hoped that %his will bring forth a Japanese language work over the next decade.

Commenting about the extraordinary favor God has granted the Work in Japan, Mr. Rader said that "these people have a great veneration for Mr. Armstrong as an individual and as a unique human being. They have a great feeling about his spirituality and look upon him as someone of great help to them. They like to [also] — be of help to us."

He noted that Mr. Armstrong's "Japanese sons" have been great friends and that there is much they can do for the Work. They give a lift in some places and they have helped knock down barriers in others that would otherwise be there. "They have, as Yr. Armstrong would say, opened some doors for us. Maybe doors that would open up anyway, but they do give us an assist."

"Doors" On Western Shores, Too

Answering inquiries about the European Work, Mr. Rader said that we have a strong branch office operation in Europe. He said that we are going to do our best to "beef up those operations over the next few years." Last fall Mr. Ray Wright had done a complete study of ways to develop the Work in Europe. We were ready to implement much of that this winter and spring, but we had to put that on the back burner because of the crisis.

"As far as the leaders are concerned, there is no great effort that we'll have to make to meet them," remarked Mr. Rader. "We could do so at any time. But they are the developed countries and I think that we have to be prepared in those countries in order to do more than just meet the leaders. We are going to have to be able to spend money in those countries as we do here, in order to compete with all the other things that are trying to attract the public's attention with goods and services."

Mr. Rader observed that our offices in those countries have only so much indigenous income and that we can only give them so much support, whereas it will take more money from the United States to get that particular effort moving in some vertical curve. He said that since the recent events have come about states side, the European Work will require a fresh look so as to determine what we will be able to do on a country-to-country basis. Meanwhile, he said ''we are holding our own and, more than that, we have good dedicated people" in the European Work.

Much Potential In "The Incredible Human Potential"

Mr. Armstrong's book, The Incredible Human Potential, is behind schedule about 6 to 8 weeks in reaching the bookstores, but there is another way in which it will also be furthering the Great Commission. The book will be mailed to the heads of state, ministers of government and ambassadors we have dealt with in the past or are dealing with at the present moment. "They will go out as a matter of course just as we send them other materials: Quest magazine, The PLAIN TRUTH, and so on. So that book will reach those people in that way." Mr. Rader added, "We are not going to send it to people we do not know. Mr. Armstrong does not like to foist anything upon someone or force it on them."

The Sun Also Rises On Our Finances

"Income is up [approximately 10-11% over this time last year] and our department managers have managed to ease the working capital strain by monitoring the outflow of cash," reported Mr. Rader. He was also glad to report that the banks are all indicating a willingness to again extend credit to us. He said Mr. Jack Bicket, who is Assistant Treasurer, is in the process of determining which banks will give us the best terms, best interest rates and the best service.

Mr. Rader explained that the banks are now more aware, as is the informed public, that this lawsuit is much different than it was in January. Instead of being in a state of siege we are merely tending the technical aspects that have yet to be resolved. The lawsuit still needs to be concluded one way or another: either dismissed, thrown out or won. The immediate threat to the institution is now a thing of the past, but we still have to normalize our business relations.

State of the Lawsuit

So where are we in the legal process? Mr. Rader explained that we are not yet appealing to the California Supreme Court. We have appealed to the District Court of Appeals — that is the first step in the appellate process. That takes time to prepare. The record has to be collected and certified before sending up to the appellate court. We file a brief (a concise statement of the main points of the case), then the opposition files a brief stating the state's position. Then the matter is studied by the court. There will be an oral argument where our lawyers and the Attorney General appear before the court. Then more time is taken for more study and review by the court and then a decision will be handed down.

In the meantime, the District Court of Appeals has granted a 30-day "stay" on other aspects of the case (the questioning of the surety pledges and the receivership accounting) pending our filing a "writ of certiorari" (an order of a higher court to call up the records of a lower court) with the Supreme Court of the United States. That will be filed this week. The Church is asking the Supreme Court to extend the "stay" of the California court pending the determination of whether or not they will review our case. The U.S. Supreme Court is not required to take this matter up now; it is merely at their discretion to do so. The chances are very slim that they will treat our writ as we want them to, but there is always a possibility they will, especially because of the important first amendment issue presented in our petition.

Meanwhile, the Church is not being directly hampered by the state or by the orders of Judge Title in carrying out its commission. They have both been frustrated and thwarted in their efforts by our having taken our rightful legal - recourse.

Audit Nears Final Stages

"The audit is coming along fine," announced Mr. Rader, who had just spoken to representatives of Arthur Andersen and Co. The auditing firm is putting the finishing touches on the audit the Church commissioned in March. It is expected to be ready by the end of the month or early part of June. "I think the report will be such that it will be very difficult for the Attorney General to maintain himself in this lawsuit or to justify his conduct once the report is reviewed," Mr. Rader assured the audience.

Oops! A Refund?

As reported in a previous issue of The NEWS SUMMARY, the IRS is examining Mr. Rader's personal finances. One employee asked Mr. Rader about the rumor that he would be receiving a refund from the federal government.

Mr. Rader explained, "My tax accountants have indicated that for those years which are 'open years' (meaning years for which I may still file an amended return) there were very substantial deductions which they had advocated at the time that I take, but that I decided I would not. Now that we are involved in a tax audit for these years, they said they will file amended returns. They will therefore use the deductions they did not use before. It is their opinion that those deductions will produce a tax refund.

"The matter is proceeding in the normal course of events. It is a process of elimination. They [the IRS] obviously were given the same type of false information as was-the Attorney General and they are duty-bound to chase these leads down. But I don't work for any other entities - [Ether than God's Work] - nor do I receive benefits from them."

Troubles Could Have Been Avoided

During the meeting Mr. Rader stressed the importance of understanding how heinous were the actions of Mr. Cole and others who conspired with him. "If we had known for certain about the lawsuit we could have stopped it. That was the Benedict Arnold nature of Mr. Cole, Mr. Antion, Dr. Kuhn and others, some of whom are probably still working for us," Mr. Rader explained.

"Mr. Armstrong has said we are not going to go on a 'witch hunt.' We know who some of those people are, we know where their sympathies were. But Chapman, for example, admitted under close questioning he had been called by the attorney who represented the dissidents. He never told Mr. Armstrong, he never told me, he never told Mr. Helge. He then went down there and he signed an affidavit attacking Mr. Armstrong."

Mr. Rader continued to explain that "other people were involved. If we had known for certain even one day before, this lawsuit would never have occurred. The whole thing could have been prevented by one phone call! That's the nature of Mr. Cole's misconduct. Now he told Mr. Armstrong that a lawsuit was coming, but he didn't say where it was coming from, he didn't say he knew the people that were involved, he didn't give him Mr. Armstrong the information necessary for us to act. When Mr. Armstrong asked me about it I said, 'I haven't even heard the rumor.'"

Mr. Rader mentioned that a few months before, Mr. Helge had lunch with Mr. Cole to talk about certain rumors in the field. Mr. Helge started to explain that these rumors were false and what should be said. Mr. Cole then told Mr. Helge, "We don't Want your help. We just want to tell you what the conditions are."

"The whole thing was very beautifully orchestrated," said Mr. Rader. "It just didn't work. It caused some damage and it brought a lawsuit, but it [turned out] much different than it was planned. But for the fact that the state is involved, the Whole problem would be behind us. Now, as long as we've got the problem we want to maximize the coverage and the value of keeping the name of the Worldwide Church of God out in front so more people will want to know about it. I am certain that more and more people will be mindful of the need to know more about the Worldwide Church of God."

About Mr. Rader's Statement "By God You've Got It."

A few people have been critical of Mr. Rader's remark, "By God you've got it," made to Mike Wallace on the "60 Minutes" program. At the end of the employee meeting Mr. Rader recalled what led up to that point in the interview and what he had in mind at the time.

Mike Wallace had just asked, after hearing that Mr. Armstrong gives Steuben crystal gifts to heads of state just as President Eisenhower did, "Mr. Herbert Armstrong is a head of state?" Mr. Rader replied, "Exactly, exactly," With that Wallace queried, "Then you are his secretary of state?" and Rader quickly responded "You've got it. By God you've got it. That's it. That is the whole key. This is a state and we are representatives of God and I am Mr. Amstrong's secretary of state."

Mr. Rader continued to explain to the employees in the Auditorium, "When I am on these programs I am very mindful of what I say. I have to think of our audience and the general audience. I have to try to think to give a little levity to balance it off. Any who have seen 'My Fair Lady' will remember words of that nature when professor Higgins was delighted with his pupil, Elisa Doolittle, getting the point.

"In this case, however," continued Mr. Rader, "I quickly mixed it with two things. A touch of levity (if you saw the video tape again you'd see I smiled very broadly) and I was also indicating [that] 'BY GOD' his mind had been opened-up. It only took [Mike Wallace] an hour and a half [into the interview]. Later in the program I pointed out it took me almost 20 years to understand where Mr. Armstrong was coming from, what this Work was all about."

"SECRET TAPING" OF THE 60 MINUTES INTERVIEW

As many of our readers will recall, Morley Safer held up a couple of tapes at the end of the "60 Minutes" Mailbag segment April 22, and said that Mr. Rader didn't know that they knew he was secretly taping Mike Wallace while Mike was taping him. The obvious intent was to make it appear that their use of surreptitiously obtained tapes was not wrong — that we did the same sort of thing.

We did tape the "60 Minutes" interview in Mr. Rader's office. Not with a mike under Wallace's chair, though. But, this was not a confidential telephone conversation. This was an interview being made expressly for broadcast to the whole nation. Everyone in the room knew the interview was being taped. No confidentiality was being violated.

In contrast, the surreptitiously obtained tapes of Mr. Armstrong's private confidential phone conversations were made without his knowledge while he thought he was speaking to an associate in confidence. The tapes were spliced together and edited to say what they wanted.

Evidently "60 Minutes" does not think their viewers are smart enough to see the difference between legally obtained tapes of interviews made for public release and illegally-obtained tapes of private, confidential telephone conversations!