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favor with him. Mr. Armstrong has written and spoken about this
during the past few months, and I am certain that you will recall
similar efforts on his part to correct the problem during the past
several years.
Although my record of performance is well known and well documented,
there has nonetheless been a conspiracy to place a cloud over it, and
to impune my character, my reputation and my professional integrity.
My financial arrangements with the Church, matters which are of
record and known to all parties with the right to know them, have been
falsely distorted and made to appear wrongful. Accordingly, I am taking
this opportunity to share the record with you in order to put to rest
once and for all the speculations and misapprehensions in this area.
When I first met Mr. Armstrong the Work was very small
the total
gross revenues from all sources was less than $800,000 annually. Mr.
Armstrong soon learned that he could rely on me to get problems solved
-- problems that were not being solved by others for whatever reasons.
He asked me to represent the Work on a retainer basis. We agreed
that the Work would prosper, and in time I would be compensated in
accordance with the scriptural principle that "a servant is worthy of
his hire." I had great faith in the Work and in Mr. Armstrong and I
threw myself into my responsibilities with the zeal and energy necessary
to get the job done -- with little regard to my compensation.
By 1969, I had helped Mr. Armstrong in many ways and we had come to
love one anothe� very much. We had a very special relationship which
I shall always cherish as will my wife and my children. I was still
very successful on two other fronts -- in my law practice and in my
public accounting practice. At that time, however, Mr. Armstrong
and Mr. Portune asked me to come into the Work "a little more" by
giving up all other professional activities that-required my own
commitment of time and energy. We agreed and, from that time for
ward, I devoted all my time, talent and energy to Mr. Armstrong and
the Work. We agreed that whatever it took to meet my financial
requirements would be provided.
Prior to 1969 the only financial dealings that I had with the Work
were for the payment of my professional services, with one exception.
At Mr. Armstrong's specific request in 1967, I managed to arrange for
the financing of the first Falcon aircraft after all other attempts
to do so by Mr. Portune and his colleagues in the business office had
been unsuccessful. The only way that I was able to provide the
financing for the completion of the purchase of the falcon from Pan
American Airways was to arrange a tripartite agreement between Mid
Atlantic Leasing, Pan American Airways and the Church. Mid-Atlantic
Leasing was a partnership which was formed for the transaction. The
partnership was willing to act as the lessor if it would be guaranteed
certain tax shelter benefits. Furthermore, since it was impossible
for a partnership to be assured of the Church's credit-worthiness, the
partnership required that 1) I take part in the transaction and that 2)
I indemnify each of the other partners in the event of the Church's
default in any material respect.
After careful consideration and much discussion with all parties, it
,,as agreed that the financial arrangements were equitable for all