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P
ASTOR GENERAL'S REPORT, July 11, 1980
Page 15
was a big article in FORTUNE magazine a few weeks ago where AT&T had a
similar problem. Bought an apartment house cooperative in New York for
its president for $950,000. It's his apartment, and the company is
paying for the interest, taxes, the maintenance and the upkeep and every
thing else.
"But I mean, what I'm trying to point out to you, what the Attorney
General is trying to do is trying to take a transaction that was perfectly
normal, so normal that without our knowing about it, at the very same time
practically, Ralph Parsons, right over here, our neighbor, the largest
employer in Pasadena, was making the very same arrangements for the very
same purpose with its president. The chairman of the board, Mr. Parsons,
had things that had to be done to get his work done just as Mr. Armstrong
had certain things that had to be done in God's Work.
"I only point that out to you to show you how it isn't just a matter of
record that proves that I've done no wrong and that Mr. Armstrong has
done no wrong and the Church has done no wrong, and hence the brethren
obviously; but, I mean, if the Attorney General had run an investigation
he would have seen there was nothing strange about this at all."
Mr. Rader commented that Mr. Armstrong was talking about the matter
recently to investigators of an agency other than the Attorney General's
office. He mentioned how he and Mr. Portune (when he was still Business
Manager) had thought the house was necessary for the Work. When they
saw one that they all considered suitable and a very good buy at the
time, they bought it. Later Mr. Rader bought it. Mr. Armstrong further
told the investigators:
"Later when property values had gone up, Mr. Rader sold it for a big
profit. But what I say is, so what? It's his house. I figured it was
necessary fdr the Work. We were dealing with a type of people who lived
in a standard and a station in life that we needed to entertain them
properly, and so we did."
Quality.
P
lays Important Role in the Work
Mr. Rader dwelled for a time on his feelings about his personal posses
sions and money in general. He talked about how he spent some of his
income and explained why he wore expensive suits:
"Well, I know we don't take a vow of poverty here. If we did I would
be one of the first ones to do so. But for the moment, the things that
I spend my money on, that I earn, I use for the Work. Mr. Armstrong
knows that. My suits are expensive, but certainly that's not capital.
Maybe I spend too much money on my suits, but I'm representing Mr. Arm
strong and that's the way he wants me to dress for the places that I have
to go.
"And when I met Mr. Armstrong I dressed that way. And when Mr. Armstrong
first met me, he told me that my professional office was the finest pro
fessional office he had ever seen. That was the only capital or tools
of the trade that I had.