Knights battles of letters polite,
bruising
By ARTHUR
JONES NCR Staff New York
Leaders of the prestigious and usually sedate Catholic
organization, the Knights of Malta, have been engaged in a polite but bruising,
three-month internal fight over the direction of the organization.
The struggle, outlined in correspondence obtained by NCR,
provides a rare look behind the formidable facade of the organization, formally
known as the American Association of the Sovereign Military Order of Malta.
Differences have pitted long-term association members, including
some Board of Councilors members, against William J. Flynn, president since
January 1996. Two members called for his resignation.
Tensions within the 1,200-member organization, known for its high
number of Catholic business, political and legal notables, were reflected in an
exchange prior to the Nov. 4 New York City semiannual board meeting.
In October Flynn, board chairman of Mutual of America, urged
William E. Simon, former U.S. Treasury secretary and self-made
multimillionaire, to resign from the board. Simon wrote back, I will be
pleased to resign -- right after you do.
Concerns raised by some members prior to the Nov. 4 meeting
included Flynns operating style, that he is too busy
elsewhere to be a hands-on president, that more than 50 percent of the
associations income is now going to administration, that meetings are
hastily scheduled to prevent full attendance, that charitable giving has
shifted from Third World needy to the U.S. bishops, that there is a
self-perpetuating board with no nominations taken from the floor and a
lack of open communications between board and membership.
Some members expressed dismay that the associations
chancellor and chief operating officer, Henry J. Humphreys, held a position
they say is expected to be voluntary, yet apparently pays a six-figure salary.
Some were also upset that Flynn personally hired a $50,000 media consultant
without approval of the entire board.
Flynn, named to succeed the Knights longtime president, the
late J. Peter Grace in what is considered a full-time voluntary job, appears to
have offended an important contingent of the associations members who
have long been involved in its charitable efforts. Two male members were
particularly incensed at Flynns mean-spirited and personal
attack on Cissy Ix, the associations hospitaller (coordinator of
association caregiving activities), who wrote an Oct. 15 letter to New York
Cardinal John OConnor outlining the groups growing problems.
Ix told OConnor, the associations conventual chaplain,
that President Flynn had sent only two letters to the members in two years and
that those had been for fundraising; that married couples now have to pay $100
to attend the day of reflection with OConnor (one member, she said, asked
if Flynn will next charge for confessions). She told OConnor that simple
receptions could be substituted for fancy ones now held at the Waldorf Astoria
Hotel and that because dues are being raised, potential members cannot afford
to apply.
In her letter, Ix said that a new chancellor was named before the
other was given notice. She also said that Flynn has ended the separate entity
the knights had created for their $7.5 million foundation, a move she said
would jeopardize restricted gifts and its fund management.
Only by limousine
She said that Flynn would attend a Boston area Mass and dinner
with Boston Cardinal Bernard Law only if met at the airport by a limousine, and
that Bob Reers, congratulated by Flynn for publishing the annual report each
year, was five days later notified that his services were no longer needed.
The secretive knights are known publicly for their personal
wealth, flowing black capes and social functions -- and at some times and in
some circles for suspect political activities. But they also pride themselves
for taking Holy Communion to the sick, for supporting Third World hospitals,
and for their personal, hands-on involvement in local charities such as AIDS
hospices, soup kitchens, hospitals and homes for unwed mothers.
Remaining apolitical was scarcely the American Associations
leadership style in the 1980s, when J. Peter Grace was president and had eight
knights on the $4.9 billion W.R. Grace board. Grace was linked to many
CIA-connected activities. One group of knights had direct or indirect links to
the Central Intelligence Agency (NCR, Oct. 14, 1983) and CIA Director
William J. Casey was himself a knight.
The approximately 15,000 worldwide members of the Sovereign
Military Hospitaller Order of St. John of Jerusalem of Rhodes and of Malta was
founded in the 12th century to protect pilgrims to Jerusalem. Its knights
fought in the crusades, acquired land and wealth, and went through a series of
historical successes and reversals down to the present day. Today the
organization is diplomatically recognized as an independent entity, a
nation of sorts, by some 40 countries, not including the United
States.
Three Knights of Malta associations operate in the United
States.
The New York City-based American Association, with some 1,200
members, including several hundred dames or female members, has
area organizations in Boston, Chicago, Providence, R.I., Fairfield, Conn., St.
Louis and elsewhere. The 550-member Washington-based Federal Association
includes the Old South and Mississippi; the 550-member Western
Association covers the remainder of the country. The latter two are the fastest
growing associations. There was some suggestion that dissatisfied American
Association members might transfer to the Federal Association where dues are
half the New York-based knights $1,000-plus annually.
The dissatisfaction of some with Flynn is outlined in a series of
initially very polite letters exchanged during the past 12 months.
In November 1996, for example, J. Pepe Fanjul, southeastern
Florida area chairman, suggested to Flynn that his proposed bylaw changes,
which, among other things, would alter board term limits, if adopted with less
than unanimous agreement would result in resentment and division within
the organization.
Resentment and division certainly followed the Flynn
administrations changes from a 35-member board to a 24- member board --
three groups of eight with limited terms. Flynn told NCR, It used
to be that members could serve unlimited terms, and some were on the board for
30 and 40 years. Many of us thought that was not a good way to do it, and of
course you dont win popularity contests when you take 11 people off the
board and then have eight up every year for re-election, he said.
In July Frances OC. Hardart, Westchester County, N.Y., area
chairman, wrote diplomatically to Flynn that she was anxious to hear your
thoughts on these issues, which included questions on administrative
costs such as the proposed office move to larger and more expensive space away
from the Catholic Center (New York archdioceses chancery at 10ll First
Ave.) and the presence of four secretaries in an office
characterized by a lack of written information to board members and area
chairmen.
In August three knights, Francis H. Ludington, Robert F. Callahan
and Victor R. Coudert, praised Flynn for his Northern Ireland peace process
work and his participation in the dialogue between Christians and Jews. But
they also suggested that Flynn may have overlooked the implications
of shifts in the associations approximately $800,000 in annual giving.
They recounted that 31 percent went to AmeriCares (needy Third World
hospitals), 31 percent to the National Conference of Catholic Bishops, 23
percent to New York archdiocesan charities, nine percent to other dioceses, and
six percent to charities elsewhere in the world.
More to U.S. bishops
The three knights asked: Why replace the reduced AmeriCares
contribution with a similar one to the U.S. bishops? They said that while 80 to
85 percent of the American Association membership live outside the New York
archdiocese, 72 percent of diocese-direct giving went to New York. More than
the current six percent should be going to world charities, they said.
The three members were concerned that while the three U.S.
associations had been asked to raise half the $20 million needed to support
Holy Family Hospital in Bethlehem -- a campaign important to the grand master
and the pope -- the American Association had not participated in the initial
campaign, although the Federal and Western Associations had.
Morale is at a low ebb, wrote the knights, who spoke
of the abrupt cancellation of the usually standing-room-only Caregivers
Conference scheduled for last January and the ending of the low cost
social hour after the annual St. John the Baptist Mass.
While the association needed a paid administrator, they said, that
person should not be a board member.
We would like to sit down with you, they wrote. Six
weeks later they again wrote to Flynn, saying he still had not replied to their
letter, contacted them or returned their calls. The following week, Flynn
offered to meet for lunch at New Yorks fancy La Grenouille restaurant six
days after the Nov. 4 board meeting. The three knights suggested that
quiet surroundings such as the Princeton Club were more conducive
to private in-depth discussion than a public restaurant. They said that if he
would not meet prior to the board they would lunch Nov. 10.
Board member and lawyer Howard G. Seitz, writing of his concerns
in September, assured Flynn they were philosophical comments and
not a personal attack. Seitz disagreed with Flynns
interpretation of the role of the board and cited New York state law to make
his points.
Four days before the Nov. 4 board meeting, Seitz asked Flynn in a
letter: Do you believe that it is in the best interest of Malta and those
whom we serve for you to continue as president?
After the meeting, Seitz told NCR he believed the board
session was very positive and he was particularly pleased with
plans for a leadership retreat early in the new year for the new
team.
Whether the retreat will smooth ruffled feathers remains to be
seen. Going into the meeting, however, the mood had been set in part by the
letter Hospitaller Ix wrote to OConnor on Oct. 15 and the subsequent
letter Simon wrote to Flynn on Oct. 17, expressing substantial
agreement with her points.
Three days later Flynn wrote back to Simon asking him for his
resignation from the board for supporting Ixs most distressing and
disparaging attacks on policies set by the Malta boards as well as upon me
personally. The same date Flynn wrote to lawyer Seitz stating, I
have thrown up my hands at further attempts to respond to your continual
barrage of criticisms, suggestions, etc. The amount of time you put into these
efforts staggers the mind. My own agenda does not afford such a
luxury.
Simon replied to Flynn, There is no place in the Knights of
Malta for egotism and arrogance. This is not about Bill Flynn or Bill Simon;
this is about our cherished association and our service to the Lord. Malta is
whats paramount here. Ordinarily, at any other organization, these
concerns would be discussed in an open and rational way.
Almost a year after his original letter, Pepe Fanjul wrote to
Flynn that Malta is a charitable organization and in my opinion should be
run in a pluralistic way where opinions of the membership and councilors are
freely expressed, discussed and given serious consideration.
Lacking consensus
Wrote Fanjul, To me, the test of consensus-building is
simple: Success means unanimous votes. This is not happening now. In the past,
the board always voted unanimously on everything. The meetings were not
confrontational; they were run efficiently with a spirit of cooperation and a
mix of seriousness and humor sadly missing today. We do not want the lack of
morale at the board to permeate to the membership in general.
In August last year, Flynn told NCR that even a few
of our own members seem to have the misconception that membership is really a
reward for achievement in the business or professional world, or for generosity
to the Catholic church and charities.
The fact of the matter is, said Flynn, that
service of the poor and protection of the faith have been two basic foundations
of the knights from the very beginning. In all the positions Ive held in
business and with different boards, Flynn said, the only
measurement of success Ive ever used has been the effort and ability to
really make a difference.
He said he wanted to enlist more blacks and more women,
people who are known for their service to the poor.
Protesting the manner in which the association is seeking
publicity, Hardart, in her letter to Flynn, said, I feel I must mention
my embarrassment at the repeated mention in public statements of a search for
African-American and Hispanic members. I cannot imagine that anyone we could
invite to join the order would enjoy being a token or quota member.
Having served on the Admissions Committee for a number of
years, I am aware that we have admitted some very attractive African-American
and Hispanic members and that the race of a candidate (even if we knew it)
never enters our discussions. Perhaps the media consultant does not know or
understand the qualifications for membership in the Order of Malta.
On Nov. 5 Flynn told NCR there had been an excellent
four hour meeting at which the board approved administration action plans
for 1998.
Flynn said that decisions included plans to decentralize the
operations around the United States to a greater degree. We want to place
much greater responsibility and authority in the hands of area chairmen and
local people in each diocese to develop the various projects the
Malta mission calls on us to do.
More funds will be disposed of locally, he said. Rather than
have everything directed by one small grants committee, both international and
national projects and causes, area chairpersons will take greater
responsibility in deciding what we should be doing.
Ten board committees -- finance, nominating and the like -- were
named and a slate of officers was elected. Humphreys will remain as chancellor
but has resigned as administrator; John Reiner, previously secretary, was
elected hospitaller. Internal communications need real attention,
said Flynn, because there was a great deal of misunderstanding on a
number of things, including how we spend our money, what for and who decides.
All this has been clarified -- and the results were overwhelming, nearly
unanimous, on these issues -- and Im very happy about that.
Of complaints of high administration costs, Flynn said there are
many ways to run a not-for-profit, and that while there is an important role
for volunteers, you couldnt run the Boy Scouts or Girls Scouts with
only volunteers.
When you have a 9-to-5 operation, said Flynn,
thats a full-time job (for an administrator) and were now
looking for such a person.
As for the high rental move, Flynn said that was a secondary
issue, that the organization needs more room at a time that New York City rents
are skyrocketing. Any future rent will suffer in comparison to the very
favorable rental from our present landlord (the New York
archdiocese).
However, he said, the entire board will vote on the budget and
what expenses we have or dont have will depend entirely on
boards decisions.
All Flynn would say to the question of Simon calling for his
resignation was that Simon was not re-elected to the board. Simon was not
seeking re-election.
On the issue of the exchange of letters and concerns of some
members, Flynn said, it was very damaging to Malta that people should
release internal memorandums to the press. It is something that really
isnt done -- its considered a breach of responsibility. We
havent tried to tag people with that because it gets awful messy. But you
do that in a corporation and youd be thrown out on your ear.
He continued, I would like to stress that one thing that
characterizes Malta is very, very dedicated people. That leads to very strong
opinions about how best to do something and there can be very strong
differences of opinion, he said.
There was as close to perfect unanimity as one can hope for
and I think we have a common sense of purpose and mission with all the
questions that honest people raised answered fully, he said.
Coudert seemed to agree. One of three knights who had written to
Flynn, Coudert told NCR that best as he could gather from secondhand
information after the board meeting, most of our concerns have been dealt
with satisfactorily.
National Catholic Reporter, November 14,
1997
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