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July 17, 2004

244^th Consecutive Monthly CESJ Meeting

(Accepted with corrections, August 18, 2004)

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Materials Distributed: Agenda, Core Values, Code of Ethics, Minutes of 06/23/04 meeting, Third Quarter Treasurer’s Report, NK Halifax Conference paper, “Justice-Based Management and the Just Third Way,” St. Mary’s Univ. description of Master’s of Mgt. In Coops & Credit Unions, Alan Wong’s Capital Homesteading marketing guide, Fr. Miller’s review of Capital Homesteading book, the Golden Rivet ONEEEA newsletter. “Art of Change & Act of Social Justice” diagram

Meeting was called to order at 10:00 AM by Bob Scanlon, rotating chairman.

The Opening Prayer was offered by Jean B. Fry. The Core Values and Code of Ethics were read.

Approval of Board and Executive Committee Minutes/Treasurer’s Report. Norman G. Kurland made a motion to approve the Minutes from the June meeting and the current Treasurer’s Report. Rowland Brohawn seconded the motion. The motion passed unanimously.

Norman G. Kurland gave some brief remarks on an article mentioning the founder of Alcoholics Anonymous who believed in the importance of having a “sense of the infinite”, however one recognizes and defines that for oneself. Bob mentioned that the belief in something higher than oneself is considered an essential step in AA’s program, acknowledging first the power of the addiction and then the need for help from a higher power in controlling the addiction. Norm raised as a question for consideration whether we should include in CESJ’s core values a statement that reflects this idea, even where a person does not specifically acknowledge the existence of God.

News/Information Items

Meetings with Bakir Al-Hassani (Iraq Oil Proposal; upcoming Dar Ul Salam Conference). Norman Kurland and Bob Crane had a two-hour meeting yesterday with Dr. Bakir Al-Hassani, Aly Azubaakuk (from Libya), and others at the Center for the Study of Islam and Democracy. Norm felt that the occasion was historic. Bakir is a relative of the late Grand Ayatollah Sadr of Najaf (the holiest city for Shiite Muslims). Ayatollah Sadr was assassinated by Saddam Hussein and his son is Moqtada al-Sadr who is leading the Shiite rebellion in Najaf against the coalition troops and the new Iraqi government. According to Bob, the Shiites tend to emphasize the idea of justice, more so than the Sunnis. By and large the Shiites in Iraq haven’t wanted to be involved in politics, at least until now. Bakir was a professor with a Ph.D. in Sociology, and taught at the Univ. of Baghdad and later in Libya and Europe. He was a high official in the Ministries of Labor, Planning and Economics. He co-authored with Dr. Mirakour, an Iranian and currently a top official of the IMF, a book entitled Essays on Iqtisad, the Islamic Approach to Economic Problems. (We will ask Bakir to try and arrange for Norm and him to meet with Dr. Mirakour.)

Norm met Bakir through Rowland, who works with Bakir’s wife, Huda, a graphic artist. After delivering to Huda a copy of Capital Homesteading for Every Citizen (including the proposal for Iraq), Rowland had suggested that she have Bakir call Norm. After daily, persistent reminders from Huda to read the book, Bakir eventually did so and realized many of the concepts of ownership and justice are similar to those in Islam. Apparently he remarked to his wife, upon reading the book, “God was speaking to these people” (CESJ). Bakir and Huda came over to CESJ and met with Norm, Marie, Dawn and Rowland. Norman Kurland suggested that when Bakir returns to Iraq in the Fall that he try to organize an Iraq CESJ that would reflect CESJ’s interfaith nature. Norm observed that Bakir’s reaction demonstrates the importance when reaching out to people of faith, of recognizing a universal source of absolute values (what some call “God”) in the CESJ Core Values.

At the meeting at CSID, Bakir confirmed that Ayatollah Sistani is the key person whom we need to contact in order to communicate the Capital Homesteading proposal for Iraq (“make every citizen into a shareholder of the Iraq Oil Company”). The group discussed the idea of a “multilogue” to be held on Mt. Sinai, to bring together religious leaders of all faiths. Iraq could become the launch point of the Abraham Federation.

Halifax Conference (International Association on the Economics of Participation). Norman Kurland, Marie Kurland, Dawn K. Brohawn and Rowland Brohawn represented CESJ at a conference by the International Association on the Economics of Participation. The conference was held in Halifax, Nova Scotia on July 8-10, 2004. Norm gave a panel presentation on “Justice-Based Management and the Just Third Way.” Dawn, Rowland, Norm and Marie participated in the sessions, posing questions to the panelists and talking to attendees outside the formal sessions. Norm’s broad range of experience and knowledge allowed him to present the Just Third Way alternative within many different contexts (macro and microeconomic) at the conference. He also served as spokesman and teacher on the subject of binary economics (acknowledging the presence of Patricia Kelso, widow of the late Louis Kelso, who also attended the conference). CESJ had a display of its books and materials. A number of people, including students, picked up our materials.

Many participants were from the Coop movement, including some from Mondragon, and were largely from Europe and Canada. The CESJ team noted that the other participants were addressing the issues of economic empowerment and globalization from individual or firm level, rather than from a systemic and macroeconomic level. They appeared to be largely socialist, and expressed problems with property, profits, corporations, globalization. They largely advocated the “one person, one vote”, rather than “one share one vote” approach to worker participation in corporate ownership. They want to empower people, but are a little vague on the rights of the individual vis-a-vis the collective. After hearing a general acknowledgment that the coop movement is facing difficulties in preserving its values in the face of globalization, Norm suggested that they should re-examine whether there are certain aspects of the coop philosophy that need rethinking (particularly their tendency to accept unconsciously the “labor theory of value”). Norm mentioned that the Just Third Way offers new approaches to finance and investment that would avoid the power-concentrating tendencies of capitalism and socialism.

Some students came up to Norm after his presentation, indicated interest in the ideas. One student assisting with the conference and who is studying international development, had looked at the CESJ and Global Justice Movement web sites while at the conference. He told Norm that what Norm had said in his presentation made economics make sense. Dawn gave a copy of Capital Homesteading to the dean of St. Mary’s business school, and to Erik Maaloe, who is a Danish scholar on employee ownership and a CESJ member. In turn, Erik gave Dawn a copy of his authoritative book, The Employee-Owner, which includes the best case study to date on Fastener Industries and Weirton Steel. Erik also asked CESJ to become a distributor of his book.

Norm made connections with the president of the IAEP, Sonja Novkajik, a professor at St. Mary’s from the Czech Republic who teaches comparative economics. Norman Kurland found her presentation at the conference to be the most impressive that he heard, and offered his opinion that she could win the Nobel prize if she incorporated the principles of binary economics and the Just Third Way. While her emphasis is on microeconomics, she has connections with scholars at the Chicago School of Economics who are dealing with macroeconomics. We are working on getting a critical mass of people supporting our ideas. St. Mary’s University could become an academic base of operations for the Just Third Way. They are starting a “distance learning program” for a Master’s in Management Degree in Cooperatives and Credit Unions. Norm felt that Bob Scanlon’s work in Quality Management and Justice-Based Management would be very relevant to their program, as well as Kelsonian finance concepts.

Focus Topic: Marketing Capital Homesteading for Every Citizen.

How do we get more reviews and testimonials?

How can we tie the book marketing to the upcoming elections?

Alan Wong Internship Project (contacts to academia, policymakers and media). Alan’s CESJ internship project focused on three target markets: academia, policy makers, media. He has written letters to the Dean of Business at the University of Connecticut who was a former Vice President at the Federal Reserve in Chicago. This could open a lot of doors for CESJ. He sent e-mails to other University of Connecticut professors, including his own professors, and got two responses. They said they were interested in looking at the book. One said he would tell people about the book. He sent around fifty e-mails to various professors of economics around the country. Yesterday he wrote letters to Bill Clinton, Mike Espy, Tavis Smiley, and Bill Cosby. At Dawn’s suggestion, he also wrote to Bruce Feiler, the journalist and author who writes about Abraham as the symbol of unity for the different religions; Alan sent him the Abraham Federation paper and the Iraq proposal. Feiler wrote back to Alan, commenting that he thought that we have a great deal in common. After his internship is completed, Alan will follow up with his professor and Dean Hunter on meeting with Norm Kurland and arranging for Norm to speak with students and professors. As part of Alan’s internship, we were interviewed by Chaney Rankin, a representative and program director of the Washington Center for Internships and Academic Internships. She got interested in our ideas, and will speak to her colleagues about having Norm Kurland make some presentations to their interns.

Fr. Miller, Dan Parker and Geoff Gneuhs reviews. Fr. Miller will be publishing an excellent review of Capital Homesteading in the Social Justice Review and the Catholic Men’s Quarterly. He is also approaching Ave Maria Radio about having them interview Norm about the book. Geoff Gneuhs published a superb review in The Catholic Worker; he has sent letters recommending the book to the Dean of the Divinity School at Yale University. He had given a copy of the book to a Forbes reporter (who, tragically, was murdered in Russia). Dan Parker also wrote a fine review in the Whitecourt Advisor, emphasizing the book’s relevance to the social credit movement.

Mike Greaney “Suggest a Book” Internet Campaign; Amazon.com updates; Harriet Epstein/follow-up with VA Tech professor; Humberto Rodriguez/Amtrak Chairman meeting. Mike Greaney did a keyword search on the Internet for “suggest a book” and has sent e-mails to 20-30 different web sites, recommending Capital Homesteading. His approach is to find out what the web site is about and then tailor his e-mail to the group’s interest. We have sent material to Amazon.com to include in their “Search in the Book” feature for the Capital Homesteading listing. Unfortunately, Amazon is very slow. Harriet Epstein met with Jim Wolf, Director of the Center for Public Administration and Policy at Virginia Tech. Prof. Wolf had skimmed the book and found it interesting. Harriet mentioned to him that we are seeking an academic base for these ideas. Humberto and Sarita Rodriguez managed to get a meeting with the Chairman of the Board of Amtrak in Dallas. Humberto gave the Amtrak Chairman a flyer on the book, and referred him to Norm Kurland who could show Amtrak a long-range strategy for addressing their ongoing financial problems (by obtaining low-cost credit through the discount window of the Federal Reserve and designing a corporate restructuring along the lines of Justice-Based Management, to turn Amtrak’s workers and regular customers into its owners).

Follow-up on Steve Roy Capital Homestead Website (Paypal donations issue). Steve is setting up a dedicated web site for marketing the book. The website is in development; Steve has presented CESJ with three graphic options. Norman Kurland hasn’t been able to touch base with him. There is the logistical problem of accepting donations over the Web, which could require registering in all 50 states. How do we handle the solicitation issue? Paypal is a low-cost option. There are some clumsy aspects of using it (Paypal requires that users register with it before they can use the system to pay for things). Steve found one service that specializes in charitable contributions, but has more requirements. Mike will develop a flow chart on how orders and payments will flow between web sites, and how book orders will be sent to customers.

Other marketing approaches: Blog sites; Capital Homestead blog; Wikipedia entry. Blog sites (similar to on-line journals, which outside readers can leave their comments) are available for free. We can maintain our own, but we will need CESJ bloggers and blog moderators. Wikipedia entries are collaborative entries on an internet encyclopedia. There is a problem with getting people to DO it. Our volunteer staff is stretched thin, so we must rely on the personal initiative of others. Even then CESJ needs to coordinate those activities and we don’t have anyone who has accepted that responsibility. Bob Scanlon recommended we tie in with the “Just Faith” 30-week program and have them study our materials, particularly on social justice and Capital Homesteading. (Their program, which is short on systemic approaches, stresses reading and then hands-on action.) CESJ can give them substance for their social justice activities. Bob has been in touch with Jack Jezreel, the founder of the program. There are about 250 groups around the country, with 15-18 people. We need to get CESJ’s writings on their reading list. Bob Scanlon subscribes to his newsletter. He will send Jack Jezreel a copy of the book and the flyer, and try and set up a meeting between Norm and Jack. Bob also mentioned that Bob Brinker of “Money Talk” on WMAL, 4-7 pm, also recommends books.

Decision/Follow-Up Items

Victoria Grof Update. We were thankful and delighted to learn that Victoria’s operation showed that her tumor was benign and not cancerous, as her doctors had feared. We now wish her a speedy recovery.

Meeting suggestions for Fr. Bill Christensen’s visit (8/15-22/2004); Bangladesh Project update. Fr. Bill will be here for one week in mid-August. He has asked us to set up meetings for him during that time. Some suggestions included: the Center for the Study of Islam and Democracy, the Just Faith group (through Bob Scanlon), see if Bakir can arrange a meeting with Dr. Mirakour at the IMF, hold a special CESJ gathering at the Kurlands’ home for Fr. Bill, see if we can arrange radio and/or TV interviews.

Fr. Bill reported to Norm that he now has a new legal team for the Bangladesh JBM garment factory project. Norm is waiting to hear from the new lawyers on his suggestions that they start with the documents developed for implementing ESOPs in Egypt.

Possible land donation for Carbondale CIC and Pepper Holder consultancy. Norman Kurland spoke on Capital Homesteading and the Community Investment Corporation (CIC) in Carbondale on Lincoln’s Birthday. Since then, Bill Perk has been pushing the CIC idea for Carbondale for some land under a contract to North American Bio-Resources. He wants to establish a vertically integrated biodiesel and fish farming, etc. operation and develop through a CIC another 90 acre site, possibly suitable for an Equitech facility for producing advanced waste-to-energy systems. Norm and Bill are also in touch with Luis Zambrana and Frank Parker, of North American Bio-Resources. NABR has hired John Linehan, who has worked with Dean Price and Bill Perk on the CIC proposals. Norm sees a lot of people with diverse talents are coming together, reacting positively to social justice. Zambrana and Parker need additional money for their bio-diesel project. Norman Kurland put them in touch with the people at the National Coop Bank. They have agreed to cut the workers and farmers in on the ownership, along with the citizens. They are also open to developing a relationship with Equitech. It may take a while, but things ended on a positive note. Zambrana has a number of prospects throughout the country, including in Illinois and New Mexico. He sees the ESOP/CSOP/CIC model as a way of replicating around the country. Norm sees possible applications in the Oglebay Norton project (substituting biodiesel for the increasingly expensive diesel fuel used by the ships).

In February Norman Kurland spoke on a radio show in Carbondale. The host, Pepper Holder, is now homeless, because he couldn’t pay the increased taxes on his house. (Holder has a civil rights background, and is a community organizer.) Bill Perk wants the new owner of the house to donate it to CESJ and get the tax deduction, let Pepper live there as the caretaker, with the understanding that he would help organize a CIC in the Carbondale community, with rent as payment. The house could serve as a CESJ local chapter. The local chapter could incorporate under its own non-profit status. Until the Illinois CIC legislation is passed, Bill wants to have CESJ take over the tax lien properties and the land can be sold to the CIC. The long-range plan calls for upgrading the neighborhood with Equitech technology, bringing in industrial companies to provide a productive base for the residents to work in and own. Bill will donate $1,000 per month to cover Pepper’s living expenses, allowing him to help establish a Carbondale/CESJ and organize the community behind a CIC. Bill will get in touch with Bill Moyers to support the idea, seeking a solution to the “Oligarchization” of America. Also Bill Gates, Sr.. Norman Kurland moved to authorize Bill to negotiate to form the organization to acquire the land in Carbondale. Need to ask Brad Spencer about tax and legal effects on CESJ’s 501(c)(3) status. Motion was seconded by Bob Scanlon and passed unanimously.

NABR (North America Bioresources — Luis Zambrana) meeting on farmer and citizen ownership. Above.

Abraham Federation Project (Bruce Feiler contact). See Alan Wong report above.

Oglebay Norton Employee Buyout update. Waiting on feedback from the company on the preliminary proposal, and for permission to complete our due diligence. This buyout has the potential to upgrade the role of unions substantially. The workers association paid for former USWA President Lynn Williams to attend the meeting in Pittsburgh between Norm Kurland, Dave Gustafson (ONEEEA’s financial analyst, and Dave McCall (Regional Director of the USW), and Ron Bloom (Special Financial Advisor to the USW President). We want Lynn to be part of our team in this effort, to provide an organized labor perspective.

Brazil ESOP Project update. The prospects are opening up again. Norman Kurland spoke with Bishop Herbert Hermes, who reported that Gilney Vianna and the head of the union at Gethal will be visiting the town with the bishop. Norman Kurland suggested that he should go along on the visit to help present the technical aspects of the proposal to the company and workers. (Apparently Brazilians are resistant to doing things with Americans.) The bishop offered to underwrite the trip, but Norman Kurland said he would prefer that the Brazilian government approach the World Bank for the money. Norman Kurland will speak to Michael Clasby, who can open the door to the World Wildlife Fund and the World Bank to finance the trip.

CESJ Web Project update. More names have been added for a total of 6,761. Rowland reports that people visiting the CESJ web site are going to the Reagan speech on Project Economic Justice (following Reagan’s recent death) and the summary of the Capital Homestead Act. The article on South Bend Lathe is almost always in the “top ten.” He will be adding Father Ferree’s article on Social Charity, along with the new diagram on “The Art of Change and the Act of Social Justice.” He will also try and track the numbers for “views or downloads” of the Capital Homestead book. We need to add the meeting minutes to the CESJ web site (start with June 2004); Rowland will make a spot on the web site, calling it “CESJ Project updates”. Bob suggested presenting the newsbriefs as project updates, showing the name of project, brief explanation of the project, and list of reports with the latest project report on top. The second category could be entitled “Completed Projects.”

GJM Project update. No recent changes in the website. Important thing is that it’s there. Will be increasingly important over time. Dan Parker makes changes and additions from time to time. Norm feels that the Global Justice Movement should become the action arm of CESJ (or the Just Third Way movement); this site allows for a broader audience than CESJ’s.

Focus topic for next meeting. Marketing Capital Homesteading. We will revisit the action items.

Additional recommendations for marketing the book: (1) send a pitch for the book to the shared vision signatories and to the people who have signed up as Global Justice Movement members. (2) We need to develop a 1-page response letter to the SVS signatories and GJM members.

The next Executive Committee Meeting will be held at noon on Wednesday, August 18, 2004. The next quarterly Board Meeting will be held Saturday, October 16, 2004 at 9:30 am.

A motion to adjourn was made by Rowland Brohawn and seconded by Dawn K. Brohawn. The motion passed unanimously and the meeting adjourned at 3:40 pm.