Important excerpts from Don Rutledge and Jane Anderson

askseek · 04-17-2017, 01:14 PM

Don R. on Daystar and other business failures

My first conversation regarding Daystar occurred in the Magnolia House in LA around 1970-71 summer time. Frank Deluna’s wife had inherited some money. He was looking to start a business. He and Tim Lee had come up with the idea of selling expensive exclusive motor homes. They were in the very early stages. I was in sales and very interested in running my own business. I was curious as to what I could learn. Frank and I spoke for about an hour on the porch.

A few days later, I happened to be in a group conversation with WL. The conversation went to the spreading of the local churches and the need for some of the brothers to serve full time and the need for funds to acquire adequate property. Since we were primarily a very young group, there was little surplus for any projects. WL mentioned the business that Tim and Frank were starting. He felt it “matched us,” what ever that meant I am not sure but those were his words. He then went on to share how he believed that the best way was to build the coach ourselves. He believed they could be manufactured in Taiwan which would provide jobs for the saints and resources for the Lord’s work in the Far East. Then they could be sold to wealthy Americans and by eliminating other entities, (that is keeping everything within the circle of the local churches) a substantial profit could be made on each unit. He went on to add that saints in the USA and Taiwan and Manila could invest for their own profit and provide a source of revenue for the “Lord’s Work.” He wanted to dedicate 35% of the profit for “the work.” 35% of the profit would go to the investors and I do not recall exactly what was to happen to the final 30% perhaps it was to go for the work in the Far East.

The project moved very quickly from there. Within about three years, a factory had been built in Taiwan and a facility for finishing the coaches had been acquired and put into operation in Orange county. The only problem was there were no buyers and we were in the midst of the oil embargo. The project did not last very long. I was very close to Bob Bynum, who sold the coaches in the Southwest. We knew it was a real losing boondoggle. I was with him quite a bit as he evaluated the product and market. Very BLEAK. Max Rapaport became the President and quit his job to run Daystar. He told me that “if there is a market for the Daystar, it is sitting on the head of a pin.”

About this time, I was in a conversation with James Barber. James was very enthusiastic about the whole venture and had invested in the business. I told him my opinion and how hopeless it appeared to me. His response was that even if I was correct, WL was God’s man for today and the Lord would bless it anyway. I was in more than one conversation where some brother expressed this superstition.

In my opinion, it was something that got way out of hand and took on a life of its on. People were extremely enthusiastic and optimistic about the project. WL did not have to do much to persuade the saints to invest. Every pitch I ever heard was off line from a regular meeting and whoever was directing the meeting was very careful to give a disclaimer at the beginning that the Daystar business was a business and not a part of the church but that it was owned and run exclusively by brothers and sisters in the local churches.

Quality of the Daystar unit: It had pluses and minuses. It was designed by an elderly gentleman who had designed the original Coke delivery trucks. Many in the RV community did not like the design and believed it did not match the time. The interior was spectacular. Marble counter tops. Teak wood. Soft Cadillac leather. The body was core 10 steel. This made it safer than a tank but also put it at the limit of weight. The problem was that paint did not bond well to the shell. Several of the units began to shed paint. I saw one in Austin, it had been sold, but it looked like a mangy dog.

The main problem was the price. They had originally been priced at around 60k. A handsome sum in 1973-74. Eventually I believe the units that sold sold for around 30k. There were a dozen or so shells at the plant in Orange County which were never finished out and were sold for the steel.

No one was the same after Daystar. WL has said that the recovery lost its virginity. At least there was a loss of the Lord’s presence and the glow that had been with many began to fade. The simplicity and purity was gone. LSM became a business. Fees were charged for conferences. Some who served full time began to receive a salary. Churches, elders and saints began to be evaluated based on their “usefulness.” The push for “good material” began. We had a call for the gospel song that had a line that went, “To the beaches, the parks or where ever we may.” This song ceased to be sung. The highways and byways were replaced with go the campus and bring in the good material. So. California was never the same in spite of great effort to recapture the era of blessing and glory.

----------

Linko was something that the office came up with. It was presented as an example of the wonderful God ordained leadership of the recovery. After a lot of money was raised and spent on the property and many plans made and a great hub bub made, the brilliant office learned that the land had not been approved for development and was basically useless.

I never supported this project and the young BBs promoted it as a means to humble the elders. Minuro gave a stirring speech at an elders coworkers meeting about how the elders would be blessed if they went to Linko and shoveled dirt. He promised that the Spirit would enliven you as you shoveled dirt and they would be greatly rewarded spiritually if they gave up being an elder and went to Linko to shovel dirt.

Just another boondoggle. Just another ridiculous project proposed by the office and the deputy authority. How things had changed!! Yet the Daystar fiasco was the beginning in the USA of one scheme after another which was divinely judged. We were very much like the nation of Israel. We had great victories and huge failures. Solomon built the temple and then his immorality and projects caused the nation to be divided. The Bible is faithful to record both the victories and blessings and the defeats and failures.

I recall a conversation with Witness Lee regarding the American character and his failure to take this factor into consideration. Witness Lee told me that he had learned that Americans are susceptible to “hero worship.” They do not critically consider what their leaders may propose. He believed that some of his wrong headed ideas had gotten support due to this flaw in the American character and that he needed to be careful not to take advantage of this weakness. Yet we know he repeatedly took advantage of this American characteristic.

----------

I would assume that every church handled these matters in their own way. In Dallas, we never presented Daystar to my knowledge even though there was a lot of talk as a brother attempted to sell them to the public and sometimes one was parked in our parking lot.

After a meeting, we permitted brother Chang to present his vitamin business. I bought some. Also we were contacted about a savings program that the LSM was sponsoring to encourage the young people to save their surplus. It was called “the little bankers.” An elder in a church would collect and record additions and interest to someone's account. I was asked to take care of the Dallas saints. I had a meeting with some of the young people and a few put in a few dollars. Unfortunately, I put $500 into an account for myself. We all thought we could just withdraw at any time. Then I learned the money went for a last ditch effort to keep Daystar afloat. Say goodbye to it. Later, WL asked me to sign a waver of forgiveness from the LSM. Silly me. I signed the release and kissed the money good-bye. Compared to what many lost in Daystar etc my little bit was something to just forget about.

I never mentioned Linko in Dallas but it was a big deal in Irving complete with models of the buildings to be built etc. Because the church in Dallas would not join in the cheerleading and fund raising from Irving there was more and more a strained relationship. Dallas did give money for Irving and the goal and purpose for the facility was shared. Benson came over a time or two and did some fund raising for that hall after a Lord’s table.

Usually Dallas had a sizable surplus in our bank accounts. On three occasions in Texas area elders meetings Benson and Ray put a press on Dallas to release our extra funds for Irving and LSM. We said no each time as our conscience did not agree that the money had been given by the saints for the questionable projects. This put quite a strain on our relationship.

Enough for now about these events. I am getting a little sick at my stomach.

aron · 02-12-2019, 05:38 PM

Quote:

Originally Posted by Don Rutledge

After a meeting, we permitted brother Chang to present his vitamin business. I bought some. Also we were contacted about a savings program that the LSM was sponsoring to encourage the young people to save their surplus. It was called “the little bankers.” An elder in a church would collect and record additions and interest to someone's account. I was asked to take care of the Dallas saints. I had a meeting with some of the young people and a few put in a few dollars. Unfortunately, I put $500 into an account for myself. We all thought we could just withdraw at any time. Then I learned the money went for a last ditch effort to keep Daystar afloat. Say goodbye to it. Later, WL asked me to sign a waver of forgiveness from the LSM. Silly me. I signed the release and kissed the money good-bye. Compared to what many lost in Daystar etc my little bit was something to just forget about.

I never mentioned Linko in Dallas but it was a big deal in Irving complete with models of the buildings to be built etc. Because the church in Dallas would not join in the cheerleading and fund raising from Irving there was more and more a strained relationship. Dallas did give money for Irving and the goal and purpose for the facility was shared. Benson came over a time or two and did some fund raising for that hall after a Lord’s table.

Usually Dallas had a sizable surplus in our bank accounts. On three occasions in Texas area elders meetings Benson and Ray put a press on Dallas to release our extra funds for Irving and LSM. We said no each time as our conscience did not agree that the money had been given by the saints for the questionable projects. This put quite a strain on our relationship..

The above confirms my earlier post on the issue of a minister abusing his authority in the church. Poor business decisions. Fraud. Money laundering. A supposed "investment" with promised "profits" suddenly turned into "donations".

Quote:

Originally Posted by aron

I'm throwing out the idea that Witness Lee was "the" apostle, or even "an" apostle, if he was leveraging his position to borrow $100K from Sal Benoit and the believers in Massachusetts. Positive cash flow or not, he was wrong hitting up church members for $$ for his kid's business. Totally unethical. (And I presume that what we have documented from MA was repeated around the country. We don't know how much in total flowed from local churches to Phosphorous to Daystar to Timothy Lee).

Quote:

Originally Posted by Don R

By then I had seen so many snafus from WL that if there was really anything to the teaching of deputy authority, it sure was not WL. Let him take the lead in a spiritual enterprise or a business enterprise and failure was sure to result. And no, James Barber and Ray Graver, the failures of WL were not a test from the Lord..

04-17-2017, 01:14 PM	#1
askseek Member Join Date: Mar 2017 Posts: 37	Re: important excerpts from Don Rutledge and Jane Anderson Don R. on Daystar and other business failures My first conversation regarding Daystar occurred in the Magnolia House in LA around 1970-71 summer time. Frank Deluna’s wife had inherited some money. He was looking to start a business. He and Tim Lee had come up with the idea of selling expensive exclusive motor homes. They were in the very early stages. I was in sales and very interested in running my own business. I was curious as to what I could learn. Frank and I spoke for about an hour on the porch. A few days later, I happened to be in a group conversation with WL. The conversation went to the spreading of the local churches and the need for some of the brothers to serve full time and the need for funds to acquire adequate property. Since we were primarily a very young group, there was little surplus for any projects. WL mentioned the business that Tim and Frank were starting. He felt it “matched us,” what ever that meant I am not sure but those were his words. He then went on to share how he believed that the best way was to build the coach ourselves. He believed they could be manufactured in Taiwan which would provide jobs for the saints and resources for the Lord’s work in the Far East. Then they could be sold to wealthy Americans and by eliminating other entities, (that is keeping everything within the circle of the local churches) a substantial profit could be made on each unit. He went on to add that saints in the USA and Taiwan and Manila could invest for their own profit and provide a source of revenue for the “Lord’s Work.” He wanted to dedicate 35% of the profit for “the work.” 35% of the profit would go to the investors and I do not recall exactly what was to happen to the final 30% perhaps it was to go for the work in the Far East. The project moved very quickly from there. Within about three years, a factory had been built in Taiwan and a facility for finishing the coaches had been acquired and put into operation in Orange county. The only problem was there were no buyers and we were in the midst of the oil embargo. The project did not last very long. I was very close to Bob Bynum, who sold the coaches in the Southwest. We knew it was a real losing boondoggle. I was with him quite a bit as he evaluated the product and market. Very BLEAK. Max Rapaport became the President and quit his job to run Daystar. He told me that “if there is a market for the Daystar, it is sitting on the head of a pin.” About this time, I was in a conversation with James Barber. James was very enthusiastic about the whole venture and had invested in the business. I told him my opinion and how hopeless it appeared to me. His response was that even if I was correct, WL was God’s man for today and the Lord would bless it anyway. I was in more than one conversation where some brother expressed this superstition. In my opinion, it was something that got way out of hand and took on a life of its on. People were extremely enthusiastic and optimistic about the project. WL did not have to do much to persuade the saints to invest. Every pitch I ever heard was off line from a regular meeting and whoever was directing the meeting was very careful to give a disclaimer at the beginning that the Daystar business was a business and not a part of the church but that it was owned and run exclusively by brothers and sisters in the local churches. Quality of the Daystar unit: It had pluses and minuses. It was designed by an elderly gentleman who had designed the original Coke delivery trucks. Many in the RV community did not like the design and believed it did not match the time. The interior was spectacular. Marble counter tops. Teak wood. Soft Cadillac leather. The body was core 10 steel. This made it safer than a tank but also put it at the limit of weight. The problem was that paint did not bond well to the shell. Several of the units began to shed paint. I saw one in Austin, it had been sold, but it looked like a mangy dog. The main problem was the price. They had originally been priced at around 60k. A handsome sum in 1973-74. Eventually I believe the units that sold sold for around 30k. There were a dozen or so shells at the plant in Orange County which were never finished out and were sold for the steel. No one was the same after Daystar. WL has said that the recovery lost its virginity. At least there was a loss of the Lord’s presence and the glow that had been with many began to fade. The simplicity and purity was gone. LSM became a business. Fees were charged for conferences. Some who served full time began to receive a salary. Churches, elders and saints began to be evaluated based on their “usefulness.” The push for “good material” began. We had a call for the gospel song that had a line that went, “To the beaches, the parks or where ever we may.” This song ceased to be sung. The highways and byways were replaced with go the campus and bring in the good material. So. California was never the same in spite of great effort to recapture the era of blessing and glory. ---------- Linko was something that the office came up with. It was presented as an example of the wonderful God ordained leadership of the recovery. After a lot of money was raised and spent on the property and many plans made and a great hub bub made, the brilliant office learned that the land had not been approved for development and was basically useless. I never supported this project and the young BBs promoted it as a means to humble the elders. Minuro gave a stirring speech at an elders coworkers meeting about how the elders would be blessed if they went to Linko and shoveled dirt. He promised that the Spirit would enliven you as you shoveled dirt and they would be greatly rewarded spiritually if they gave up being an elder and went to Linko to shovel dirt. Just another boondoggle. Just another ridiculous project proposed by the office and the deputy authority. How things had changed!! Yet the Daystar fiasco was the beginning in the USA of one scheme after another which was divinely judged. We were very much like the nation of Israel. We had great victories and huge failures. Solomon built the temple and then his immorality and projects caused the nation to be divided. The Bible is faithful to record both the victories and blessings and the defeats and failures. I recall a conversation with Witness Lee regarding the American character and his failure to take this factor into consideration. Witness Lee told me that he had learned that Americans are susceptible to “hero worship.” They do not critically consider what their leaders may propose. He believed that some of his wrong headed ideas had gotten support due to this flaw in the American character and that he needed to be careful not to take advantage of this weakness. Yet we know he repeatedly took advantage of this American characteristic. ---------- I would assume that every church handled these matters in their own way. In Dallas, we never presented Daystar to my knowledge even though there was a lot of talk as a brother attempted to sell them to the public and sometimes one was parked in our parking lot. After a meeting, we permitted brother Chang to present his vitamin business. I bought some. Also we were contacted about a savings program that the LSM was sponsoring to encourage the young people to save their surplus. It was called “the little bankers.” An elder in a church would collect and record additions and interest to someone's account. I was asked to take care of the Dallas saints. I had a meeting with some of the young people and a few put in a few dollars. Unfortunately, I put $500 into an account for myself. We all thought we could just withdraw at any time. Then I learned the money went for a last ditch effort to keep Daystar afloat. Say goodbye to it. Later, WL asked me to sign a waver of forgiveness from the LSM. Silly me. I signed the release and kissed the money good-bye. Compared to what many lost in Daystar etc my little bit was something to just forget about. I never mentioned Linko in Dallas but it was a big deal in Irving complete with models of the buildings to be built etc. Because the church in Dallas would not join in the cheerleading and fund raising from Irving there was more and more a strained relationship. Dallas did give money for Irving and the goal and purpose for the facility was shared. Benson came over a time or two and did some fund raising for that hall after a Lord’s table. Usually Dallas had a sizable surplus in our bank accounts. On three occasions in Texas area elders meetings Benson and Ray put a press on Dallas to release our extra funds for Irving and LSM. We said no each time as our conscience did not agree that the money had been given by the saints for the questionable projects. This put quite a strain on our relationship. Enough for now about these events. I am getting a little sick at my stomach.