May 17, 2006 CONGRESSIONAL RECORD — SENATE S4691 There being no objection, the mate- moval of certain AU board members—par- board members of a tax-exempt university. rial was ordered to be printed in the ticularly focusing on members serving on the Do you believe this is the appropriate mes- RECORD, as follows: ad hoc committee that took actions regard- sage AU should send to students—it is all ing former AU president Dr. Ladner without right to violate the law if the penalty is de U.S. SENATE, the knowledge of key board members. minimis? Please provide a complete expla- COMMITTEE ON FINANCE, In reviewing the material, I understand the nation of these events and your views of Washington, DC, May 17,2006. views of those who believe the members of them, as well as all related material. GARY M. ABRAMSON, the ad hoc committee should be removed. In The issue of whistleblower protection at Chair of the Board, American University. the course of our review, I have also focused non-profit institutions has also been of great THOMAS GOTTSCHALK, on several key votes by some AU board mem- concern to me in the course of the Commit- Vice Chair of the Board, American University, bers. In particular, given all related informa- tee’s work. Whistleblowers in certain situa- Washington, DC. tion reviewed by the Finance Committee, I tions are protected from retaliation under DEAR MR. ABRAMSON AND MR. GOTTSCHALK: am seriously troubled by votes cast in Octo- state and federal law. A series of aggressive I am writing to you regarding the Finance ber 2005: 1) to amend the audit committee’s emails to other AU board members by one Committee’s review of governance issues at recommendation and secondly to reject the AU board member appear to attack whistle- American University (‘‘AU’’). AU is a feder- audit committee’s recommendations on a blowers trying to do the right thing regard- ally chartered non-profit, tax-exempt edu- vote for reconsideration; 2) to reject three ing the situation at AU. They include the cational organization. Congress enacted the identical recommendations from counsel, in- following language: ‘‘You are right in citing law in 1893 that first incorporated AU, ap- cluding Manatt Phelps as well as Arnold & a Nixon era example. People do not tolerate pointed its initial individual corporate mem- Porter, that had concluded that Dr. Ladner’s leaks any more. No one is so naive anymore bers, and specified the size and composition 1997 employment agreement was invalid; 3) to think that unidentified ‘whistleblowers’ of its board of trustees. Act of Feb. 24, 1893, not to terminate Dr. Ladner for cause; and 4) are public servants. You are right in saying ch. 160. In 1953, Congress enacted legislation, to increase cash severance to Dr. Ladner by there always must be a process for people to altering, among other things, the process by an additional $800,000 over eight years—after report wrongdoing but this is not the way.’’ which the AU board of trustees is elected. the board had already voted to increase Dr. As a champion of whistleblowers in Con- Act of Aug. 1, 1953, Pub. L. No. 183, ch. 309. Ladner’s cash severance by $950,000. gress for years, I can state categorically that The Finance Committee’s review is predi- It is important to bear in mind that these not only are whistleblowers public servants, cated on this unique history of the legisla- votes were made after the findings from they are often heroes—saving lives and tax- tive relationship between the federal govern- protiviti independent risk consulting re- payers billions. I commend you, Mr. ment and AU as a congressionally chartered ports, which I am releasing today; were Gottschalk, and former board chair Ms. institution, as well as on the Committee’s known to the board and that provided in de- Bains, for taking a strong line against any general legislative and oversight jurisdiction tail the expenses of Dr. Ladner and his wife effort to bring the Salem witchcraft trials to over tax-exempt charitable organizations. that he charged to AU. The report shows ex- northwest DC. But again, that a board mem- In conducting its governance review, the penses that would make for a good episode of ber might propose retribution against whis- Finance Committee has reviewed the numer- ‘Lifestyles of the Rich and Famous’—a life- tleblowers, as appears from some of these ous documents provided by AU and material style paid for by AU students and their par- emails.is inexcusable. I would appreciate provided by other sources, as well as discus- ents. In addition, as noted above, the board your general views on the benefit of whistle- sions with current and former board mem- members were aware of the findings of two blower protection at tax-exempt organiza- bers, faculty, students and AU employees. In respected law firms that found that Dr. tions, as well as your specific views on the addition, I have heard concerns raised by AU Ladner’s 1997 employment agreement was in- series of emails appearing to support aggres- students from Iowa and their parents. To valid. sive efforts to search, find, and punish those allow students, faculty and staff, and the While I fully understand that as Chairman who try to speak out against what is wrong. public to have a better understanding of the of the Senate Finance Committee, I’m not In particular, do you believe such efforts governance issues still facing AU, I am today here to direct the management of the affairs send the appropriate message to AU stu- releasing relevant material provided to the of AU or its board, I do want you to know dents—especially given that a large number Finance Committee. It says volumes about that I am considering proposing federal leg- of AU graduates will be employed in public problems of AU governance that students, islation that would require changes in the service? faculty, and supporters often have to learn structure, composition, and governance of Finally, let me return to the overall issue about the work of the AU board from the the AU board, as Congress has done pre- of governance. In meetings with my staff, U.S. Senate Finance Committee rather than viously. In particular, in discussions with Fi- AU representatives have given assurances from the board itself. I understand that gov- nance staff, AU board members have noted that AU will have in place governance re- ernance changes are to be proposed that pro- that they do not view that under current fed- forms that will provide students and faculty ponents claim will ensure that there will be eral law the AU board has the authority to a meaningful and substantive voice at AU. I greater openness and transparency at AU. I compel a board member to resign. Please view this as a vital part of AU governance look forward to meaningful reform in this confirm if that is accurate, and please also reforms coupled with greater sunshine and area and expect to be informed of the details provide your views about the wisdom of Con- transparency that I mentioned at the begin- of those proposals. gress amending the law to provide the AU ning of my letter. Please inform me in detail While I am releasing quite a bit of infor- board such authority and, if so, suggested what the governance reforms are as to stu- mation today, I am frustrated that there is changes to the law. certain key material that I cannot release In addition, I want to draw your specific dents and faculty. today. When the Committee began this in- attention to a board meeting that discussed Given that Congress is currently consid- vestigation on October 27, 2005, I received as- Mr. Ladner’s compensation package. In gen- ering reforms to provisions of the tax code surances of cooperation. The Washington eral, under federal tax laws, outside review affecting charities as part of the conference Post stated on October 28, 2005, ‘‘Gottschalk and justification for the salary of a highly on the pension bill, I ask that you provide said yesterday that the board would do ev- compensated individual at a public charity answers to this letter within 10 working erything it could to cooperate.’’ Unfortu- provides a safe harbor from penalties under days. Thank you for your time and courtesy. nately, those words have not always been Section 4958 of the Internal Revenue Code. Cordially yours, met by deeds. While AU has over time pro- My review of tax-exempt organizations and CHARLES E. GRASSLEY, vided material requested, AU continues to corporations has found that in the over- Chairman. redact material provided and most frustrat- whelming number of cases outside consult- f ingly labels key documents’ ‘confidential’ ants provide a justification for the salary re- and not to be released to the public. This is quest that is being considered. In fact, the HONORING THE INDY RACING not what I would expect from a university AU situation is the only example Finance LEAGUE that benefits from tax-exempt status and Committee staff have seen of an outside con- Mr. BAYH. Mr. President, I rise was chartered by act of Congress. I call on sultant stating that a salary of an individual today to applaud the Indy Racing you to hold to your public commitments of at a public charity is too high. full cooperation and allow for public release However, in calling for a salary for Dr. League, IRL, for its decision to use of all documents without redaction that Ladner higher than that recommended by ethanol in its race cars and the impact have been requested. AU students, faculty outside consultants, some AU board mem- that decision has had on efforts to in- and supporters have a right to a full under- bers appear to have rejected concerns about form Americans about this important standing of the board’s actions. complying with the laws passed by Congress alternative fuel. Since 1911, Indiana has One of my principal governance concerns and instead described financial penalties for been the center of the autoracing relates to the legal structure and composi- violating federal law as ‘de minimis.’ Com- world, setting the standard in racing tion of the AU board. The Finance Com- ments that suggest that federal laws should mittee, during its roundtable discussion on be disregarded because penalties are ‘de for drivers and fans alike. And now, the charitable governance, heard from AU stu- minimis’ are stunning when I hear them Indy Racing League is setting a new dent leaders, faculty, and former board mem- from members of for-profit corporate boards; standard, this time for greater energy bers, a number of whom called for the re- they are shocking when they come from independence.

VerDate Aug 31 2005 04:23 May 18, 2006 Jkt 049060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\A17MY6.030 S17MYPT1 ccoleman on PROD1PC71 with SENATE S4692 CONGRESSIONAL RECORD — SENATE May 17, 2006 This year all of the IndyCars will THE LEGACY OF CHIC HECHT together for increased mutual under- race on a 10-percent ethanol blend be- Mr. ENSIGN. Mr. President, I rise standing. We were indeed lucky to have fore switching to a 100-percent ethanol today to celebrate the life of Chic Sister Rose live in for so fuel next year. With this change, the Hecht, a friend, a leader, and a great many years. From 1968, when she first corn harvested on farms across the Nevadan. Chic served my home State came to Seton Hall in South Orange, country will power the fastest cars in and this country with honor, humility, New Jersey benefited greatly from her the world. and great devotion. He leaves behind wisdom and her tenacity to act as a The ethanol that will power its race the legacy of a true statesman, an in- bridge between people of different cars will deliver the same high-per- telligence officer, a successful busi- faiths and backgrounds. Sister Rose formance capabilities that drivers rely nessman, and most importantly, a has made many contributions to the on, only without harmful air pollution. committed husband and father. New Jersey community. As a member It also represents an important step to- For me, Chic’s legacy is that of a of the New Jersey Holocaust Commis- ward reducing America’s dependence public servant who was fiercely loyal, sion, she helped write a 1994 law man- on foreign oil, by providing a renewable unwavering in his principles, and an dating the teaching of energy source grown in our own fields. all-around decent human being. and genocide in the schools in New Jer- By tapping the energy potential of Chic was drafted into the Army after sey. As a member of the Seton Hall America’s farm fields, we can ensure a college and served as an intelligence community, she forged an educational reliable domestic energy supply to officer in Berlin during the Korean outreach program in Christian-Jewish meet our Nation’s needs while ending war. Chic retained a lifelong member- studies. our reliance on unstable countries such ship in the National Military Intel- Last year, Sister Rose moved back to as Saudia Arabia, Russia, and Ven- ligence Association, and in 1988, was in- Racine, WI, to live with her Sisters in ezuela for their oil and creating thou- ducted into the Army Intelligence Hall the convent in which she initially en- sands of jobs for Hoosier farmers. tered religious life. Many in the New Every Memorial Day weekend, mil- of Fame. Chic served in the Nevada State Sen- Jersey community sent her off with lions of Americans and sports fans heavy hearts, knowing she was ill and from around the world watch the Indy ate for more than a decade before win- ning a U.S. Senate seat in what has knowing that they might never see her 500. But this year, when they tune in to again. But it was her wish to live her see who wins the Brickyard, they will been called the biggest political upset in our State’s history. During his term last remaining days with her Domini- also be watching the future of Amer- can Sisters in Racine. As her life went ican energy unfold at 220 miles per in the Senate, Chic served on the En- ergy and Natural Resources Com- full circle, the path she took is an ex- hour. ample to us all. With its decision to use ethanol as mittee; the Banking, Housing and Urban Affairs Committee; and the Se- In her early years, Sister Rose was the fuel for the IndyCar series, the IRL dismayed at the disparaging comments is leading the way to encourage greater lect Committee on Intelligence. In the Senate, Chic worked with President she heard about . She learned from public use of renewable fuels. After all, her teachers that Jews killed Jesus; if a high-performance vehicle can win Reagan in persuading the to lift restrictions on the emigration of she heard whisperings of other anti-Se- the Brickyard running on ethanol, then mitic statements in her close-knit surely ethanol is good enough for the Jews—a part of his legacy that will en- dure for generations. Chic went on to community. Concerned that a people family minivan, too. were being unfairly treated, Sister I have introduced a bipartisan bill serve 4 years as the U.S. Ambassador to Rose made it her passion to fight anti- that will promote the use of ethanol the Bahamas. Semitism and to bring attention to the and other biofuels, and I will continue But it was Nevada that was always culprit Catholic texts in which anti- to support efforts to find new ways to home to Chic. And Chic never lost that Semitism was perpetuated. She wrote use ethanol in the future. I applaud the down-to-earth, man of the people cha- her doctorate dissertation on this topic Indy Racing League for leading the risma that won him friends wherever at St. Louis University. In 1965, the way in this effort and, along with thou- he went. While his charm helped him Vatican used her dissertation as a basis sands of other Hoosiers, look forward make friends throughout his life, it to this year’s ethanol-powered races. was his loyalty that made him a life- for , the declaration that forever changed the relations between f long friend. I will miss Chic. He was the first to Catholic and Jews. AMERICAN LEGION POST 51 OF step up when I was being criticized, and Sister Rose continued her commit- EAST POINT, GA he believed in me when very few others ment to Jewish-Christian relations by Mr. ISAKSON. Mr. President, I rise did. In politics, you learn quickly who forging strong bonds with the Jewish today to recognize in the RECORD your real friends are, and Chic was a community. She was unconventional, American Legion Post 51 of East Point, real friend. feisty, and strong willed always want- GA, for its unselfish efforts on behalf of He left the Senate more than a dec- ing to make principled decisions in our brave soldiers serving in Iraq. The ade before I took office, but I am well support of her cause. She wore a neck- Post 51 family has adopted Charlie aware of the impact he made. Chic was lace of the Star of David fused to the Company 324th Signal Battalion from a great role model, and I hope to carry cross. In 1986, she protested the inau- East Point, GA. This Reserve unit on his legacy and the lessons he taught guration of President , made up of 144 service men and women me: to be fiercely loyal, unwavering in former U.N. Secretary General, because is in the process of deploying in sup- principles, and an all-around decent he had served in a Nazi unit. In 1987, port of Operation Iraqi Freedom. human being. she went to the Soviet Union to protest The post held a barbeque for the sol- Chic will be missed, but he has set an the treatment of Russian Jews. She diers’ families, planned a Christmas example for us all to follow. God bless visited frequently, often bringing party for the soldiers, and Post 51 him. students with her. At a particularly members attended the deployment vulnerable time for Israel, Sister Rose f ceremony for nine members of Charlie decided to attend the Rally for Israel Company. Post 51 has also dedicated ADDITIONAL STATEMENTS on April 15, 2002 on the Mall in Wash- countless hours supporting the families ington, DC. Despite her poor health, of deployed members by helping with when she learned that there was no home repairs and offering financial ad- THE DEATH OF SISTER ROSE Catholic speaker on the program, she vice. THERING insisted on speaking to show her soli- Mr. President, I am very proud of our ∑ Mr. MENENDEZ. Mr. President, New darity. And as no surprise, it was Sis- troops serving in Iraq and Afghanistan, Jersey and the Nation mourn the May ter Rose that was given the honor of and I am equally proud of organiza- 6, 2006, passing of Sister Rose Thering, giving the invocation. tions such as American Legion Post 51 a selfless luminary, who was a leader in Her legacy is great. It lives on in the for all it is doing to support our sol- stamping out bigotry and intolerance documentary ‘‘Sister Rose’s Passion’’ diers and their families here at home. and who brought Christians and Jews that won a Tribeca Film Festival

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