Moose Magazine Online

Ross Refutes Anonymous Untruths, Details Restructuring

Director General spells outcorrections—and a 6/1/05 ‘every-Lodge-on-Internet’ deadline: ‘We must change . . . or become extinct’

By KURT WEHRMEISTER

> No one who has heard Donald Ross address any of the five previous annual International Conventions, since he became the Moose fraternity’s chief executive in 1999, should have been a bit surprised by what they heard from him in Charlotte on Saturday afternoon, June 26.

A hallmark of this Director General’s tenure has been to deal with challenges head-on—whether it has been the ravages of the severe financial downturn from 2000-03, or the need to discard outmoded practices, processes, titles, etc.

But also, to a greater extent than perhaps any of his predecessors, Ross never has sought to sidestep, gloss-over, or sugar-coat any awkward or uncomfortable topic that may be on the table; on the contrary, it has often become the first item dealt with in his speech text.

So it was—after the happy business of conferring the honor of Past Supreme Governor on retired Supreme Secretary Chet Albright—that, characteristically, Ross swung into the most distasteful item on his plate:

“Many of you, over the past several months, have received anonymous letters . . . critical of my performance as your Director General, or at least critical of some of the ideas and changes we have been working toward, which many of us believe to be in the best interest of the Order,” Ross said. “While . . . they did not sign them or identify themselves, I did respond by sending (in March) a “Rumors vs. Facts” message to about 8,000 men and women of the Moose.”

Four points from that response, Ross said, bear repeating:

1. Ritual program not in danger: “There is no truth to any rumor that there has been consideration of eliminating the Ritual (of enrollment) from our program . . . it has been changed, we believe for the better, several times in the past three decades, and I trust it will be changed, for the better, in the coming years as well . . . but only after many are consulted, including many present-day Ritualists. There has been discussion at membership meetings over the past several years . . . where we have repeatedly been encouraged to look at possible alternative methods of enrolling a new member—possibly as an option in addition to the prescribed Ritual. However . . . we’ve not even formed a team yet to start considering what the alternatives might be.”

2. Looking to enlarge, not “gut,” the Second Degree: “There are no plans whatsoever to eliminate the Moose Legion Council . . . (nor) to “gut” the Moose Legion, as one of the letters suggested.” On the contrary, Ross said, “There has been much “outside-the-box” discussion on how we might increase the membership of the Moose Legion . . . on how the Moose Legion could see its role as a stepping stone to more prestigious positions expanded . . . and yes, there has been discussion on the possibility of Chapter members being eligible for the Moose Legion . . . (but) it is way premature to bring anything to our Supreme Council for consideration, as nothing at this point has even been presented to the Moose Legion Council.”

3. Joint Management won’t be mandated by Moose International—though state governments may require it in coming years: “One of the anonymous letters suggested everyone ‘plan on attending the Convention in North Carolina and vote no.’ My Brothers, joint management . . . is strictly voluntary and no one has been forced to participate. There is nothing to vote on . . . two dozen Lodges and Chapters have voted to give it a try.” Ross said that “we would like to see the participating Lodges/Chapters double, and over the next few years, we should be able to draw some conclusions.” However, he cautioned that the number of states may grow in which “joint management may be required (by law) in order to get a liquor license. Thus you must be aware that under these circumstances, (joint management) could happen sooner rather than later.”

4. Women of the Moose aren’t going to be merged with the men, and all higher degrees will remain intact. “The Loyal Order of Moose and the Women of the Moose are partners. We have worked together for 90 years, and our future must include that partnership becoming even stronger as we face the challenges in front of us. And the suggestion , in an anonymous letter, that the Higher Degrees, specifically the Fellowship and Pilgrim Degrees for the men, and the Academy of Friendship, Star Recorder and College of Regents for the women, are being eliminated, or becoming meaningless, is, in one word—ridiculous.”

Ross also noted that one anonymous author posed the pointed question, “Who does Don Ross think he is?” He was to conclude his speech with a direct response to that question.

It was in a much brighter mood that Ross was able to give a largely positive report on the fraternity’s finances, which weathered the brutal three-year storm from 2000-03 but came back full-throttle in ’03-’04: “Our Moose Foundation fund balance was at about $100 million in 2000, and it dipped to $87 million by 2003. This past year it roared back to $111 million,” Ross said. This is to a level that once again allows earnings to be used for Mooseheart and Moosehaven operations. Ross noted that in 2003, he’d announced that for a year, any Endowment Fund contribution not restricted by the donor would be used to directly fund Mooseheart and Moosehaven operations instead of going toward fund principal. But now, an adjustment has been made, given the improved finances: “We have taken actions to split unrestricted gifts in thirds; one-third to Moose Foundation for investments and one-third each to Mooseheart and Moosehaven operations.

The much brighter financial picture this summer is due to prudent economizing as well as improved investment income, Ross said: At Mooseheart, while total actual cash outlay back in the 1998-99 fiscal year was $15.6 million, the amount needed for 2003-04 to operate Mooseheart was just $15.3 million. “That’s almost a 24% reduction in annual expense, taking 3% annual inflation into account,” Ross said.

At Moosehaven, with a higher effective inflation factor (8% annually, because of the preponderance of ballooning healthcare expenses), total annual operations went from $10.4 million in ’98-’99 to $13.3 million today—still less of an increase than inflation would have dictated.

Ross also updated his listeners on Moose International’s management restructuring (the move toward the alignment shown in the chart at the base of the text will be implemented over the coming year); and on two areas that will affect every Moose operation in North America over the next couple of years—the implementation of Centralized Dues Renewal, forthcoming in late 2005, and the deadline to have an updated computer and Internet connection available on-site in every Moose facility by June 1, 2005.

Regarding Centralized Dues Renewal, Administrators will continue to receive details on how this transition will be implemented, and newly-designated Membership Retention Director Deborah Meyer was to give further details later in the Convention. Ross did directly address “one of the most-mentioned concerns” about this plan, namely that it would make it difficult to accept members’ over-the-counter cash for payment of dues. He explained the options in detail:

“If a member insists on paying his dues personally at the Moose Home, all other offered options having been rejected, the Administrator can accept a check with the payment coupon and send them to the lock-box (a service provided by a Moose International-designated bank). Or, the Administrator can accept cash with the coupon, and send a Lodge check with the coupon to the lock-box. Or, the Administrator can immediately go online, log onto the lock-box and pay the member’s dues with a credit card . . . the member would receive an electronic receipt good for 30 days; the official membership card will follow in the mail. The bottom line is—for those of you concerned about receiving cash payments for dues—the system proposed will accommodate this type of collection.”

‘Let’s talk about technology, and the requirement that every Lodge have a computer and Internet access available to them by June 1, 2005,” said Ross, addressing the written notice that was sent in late March to every Lodge office. (By late 2005, plans are for the Internet to be the primary— increasingly the only—transmitter of nearly all business correspondence between Moose International and Lodge offices.)

“Is this an unreasonable request? I do not think so,” Ross asserted, noting that former Director General Frank Sarnecki first made the request back in 1997 that every Lodge be hooked up to the in-house LOOMIS system by Jan. 1, 2000!

“You have already gotten a five-and-one-half-year extension,” Ross said—and made it clear that no more extensions will be forthcoming. Technological change, he said, has “very quickly thrust upon all of us an environment that requires new thinking. While the challenges are complex, the upside potential is enormous. However, the winners won’t get there by resisting change . . . we are counting on every Lodge to be ready to communicate over the Internet by June 1, 2005. It is a battle we must win. We cannot allow this fraternity to get left behind.”

Ross updated his listeners on land disposition issues at Mooseheart that he had also addressed during his 2002 and 2003 speeches. He noted that over the last two years, some 233 acres outside Mooseheart’s campus perimeter had been sold in two separate transactions, netting $23 million, with $20 million of that invested. He reiterated from a year ago: “It is our plan to replace the sold acreage with the purchase of additional acres in a geographic area west of Mooseheart, or near Moosehaven . . . we must provide for the perpetuation of our charitable works with youth and the elderly.” Ross had also noted in 2003 that “rightsizing” at Mooseheart would involve the demolition of buildings that are either no longer useful or are economically impractical to maintain; this year he specifically reported that one such casualty (of 13) will be the sprawling, 60,000-sq.-ft. Roosevelt Auditorium/ Administration Building, constructed in 1918. “This once magnificent structure. . . has become a costly, mostly unused building.” Many have pleaded to save it, Ross said. “But it is simply not fiscally responsible to put millions into a building that has been gradually shut down, much of it unused for nearly a half-century.”

At Moosehaven, Ross noted that work continues toward the establishment of a separate “pay-as-you-go” option for retiring members who would like to live there, but balk at the traditional turnover-of-assets requirement. That traditional arrangement, Ross stressed, will remain available in any case.
The Director General concluded his 40-minute address with a direct, even defiant, response to one of the anonymous questions earlier in the year: “Who does Don Ross think he is?” He began his response by noting he has “often been overheard saying you should never use the pronoun ‘I’—which I am about to use 30 times,” and concluded (excerpts above; full text on www.mooseintl.org): “I am counting on each of you to help this fraternity be the most modern, aggressive, proactive, doggone best organization . . . as you have throughout its remarkable history!”

Moose International Management Restructuring* Reporting to Thomas P. Conway VP/Business Operations: Bradley Costello, Director/Claims & Loss Prevention Joseph R. Mech, Chief Financial Officer/Treasurer Joseph M. Meyer, Director/Information Systems Gloria Miller, Director/Human Resources D.J. “Charlie” Palochko, Director/Purchasing, Admin. Svcs., Catalog Sales, Fulfillment, Conventions Reporting to Kurt T. Wiebe, VP/Fraternal Operations: William B. Airey, Director/Membership Promotion & Marketing David A. Chambers, General Governor Tonie Ewoldt, Grand Chancellor/Women of the Moose
	Reporting jointly to Chambers andEwoldt will be James Morgan, Director/Community Sevice & Moose Legion Jerry O’Connor, Director/General Laws & Govt. Relations Barbara McPherson, Director/Youth & Family Programs & Higher Degrees Susan Hawkins, Director/Lodge & Chapter Development

James K. Fleming, Darrell E. O’Brien, Directors/Member Relations
Deborah P. Meyer, Director/Membership Retention
Michael Reemts, Director/Fraternal Education
Kurt N. Wehrmeister, Director/Publications

Continuing to report directly to Director General Donald Ross:
Leonard J. Solfa Jr., General Counsel

*excludes Moose Charities, Mooseheart Child City & School Inc., Moosehaven Inc.