UNA executives discuss Svoboda, new headquarters
Treasurer's report
Report of UNA secretary
VPs' and Canadian director's reports
President's report
Miscellaneous matters
JERSEY CITY, N, J. - The Executive Committee of the Ukrainian National Association held its regular quarterly meeting here at the fraternal organization's Home Office on March 3.
Among the topics discussed were the future of Svoboda, the Ukrainian-language daily newspaper published by the UNA, the sale of the UNA building in Jersey City and relocation of the UNA Home Office, and the status of proposed mergers with two other Ukrainian fraternal organizations.
The executive officers also created a special committee to draft a mission statement for the UNA "setting forth with specificity the role the Ukrainian National Association intends to play within the Ukrainian American and Ukrainian Canadian communities" (as provided in a resolution adopted at the November 1996 meeting of the UNA General Assembly).
Among the grants approved at the meeting was $5,000 for publication of a commemorative book on the 1947 Akcja Wisla, the forcible resettlement of Ukrainians from ethnically Ukrainian lands in eastern Poland to other areas of the country. The funds will come from the Buchynsky Fund, an endowment created thanks to the bequest of a deceased member of the UNA.
The Executive Committee meeting was chaired by Ulana Diachuk, UNA president, and attended by Vice-President Nestor Olesnycky, Director for Canada Peter Savaryn, Vice-Presidentess Anya Dydyk-Petrenko, Secretary Martha Lysko and Treasurer Alexander Blahitka. Also present as an observer was Stefan Hawrysz, chairman of the UNA Auditing Committee, as well as the editors-in-chief of Svoboda and The Ukrainian Weekly, who prepare reports on the proceedings for their respective newspapers.
First on the agenda were officers' reports, and the first to speak was Mr. Blahitka.
Mr. Blahitka began his report by noting that the UNA's annual statement for 1996 had just been delivered from the printer on February 28. He gave a brief outline of its contents.
The UNA's ledger assets amount to $67,768,351 - a decline of $7,766,879 from a year earlier. This is a result of a letter received from the New Jersey Department of Banking and Insurance in October 1996 (which was discussed at the previous Executive Committee meeting). The insurance department threatened to non-admit the entire amount of the UNA's $13 million loan to the Ukrainian National Urban Renewal Corp. (UNURC) due to investment limits.
The UNA disagreed with that position and, after consultation with its actuary and outside accountants, proceeded to reduce the amount of the loan from its ledger assets by the exact amount of the surplus set aside due to valuation of the building corporation. This accounting transaction resulted in a decrease of ledger assets and an equal decrease in liabilities for the deficit net worth of the UNURC. Thus, Mr. Blahitka explained, the UNA's surplus was reduced only by approximately $560,000, which is the amount over that allowable under the insurance department's investment regulations. The insurance department has not responded to the UNA's repeated requests for a meeting to iron out differences.
Next the treasurer looked at operation results, which showed a net income from all of the UNA's insurance business of $989,322. This compares with last year's net of $1,246,711 from the insurance business. The resulting $257,389 decrease in net income is due to the drastic decrease in annuity sales from $1,628,739 last year to $490,084 this year. A good sign is that the collection of dues increased by $713,667. However, this increase was basically brought about by the Additional Insurance Program initiated by Secretary Lysko.
Mr. Blahitka continued by pointing out that the UNA made progress in reducing the losses incurred by its fraternal operations: 1996 showed a net loss of $1,512,010, which represents a decrease of $179,441 from 1995 when the loss was $1,691,4510. The UNA's subsidy to its official publications decreased by $179,512. Expenses of Soyuzivka were reduced by $196,004 from a year earlier, and the closing of the Washington Office saved $147,913, he added.
Earned receipts from Soyuzivka increased by approximately $29,000. Even though UNA publications' income increased by $191,116, the resulting profit on an accrual basis was only $24,325. This compares favorably with last year's loss of $106,391, Mr. Blahitka underlined, marking an improvement of approximately $130,000.
The preponderance of good news regarding operations does not compensate, however, for the continued loss of surplus in the total of $2,134,255, the treasurer continued. Of course, there are acceptable reasons for the decrease in surplus, for example, the net realized capital loss of $1,465,504 comes from transferring Canadian funds to the U.S. and the resulting loss on the exchange rate. The UNA has received advice to slowly start transferring Canadian funds and bank the losses, since they go against surplus anyway as unrealized capital losses. Another $1,142,923 charge against surplus was the result of operations of the building corporation, Mr. Blahitka noted, adding that this is another reminder that the sale of the UNA's headquarters building is necessary.
Regarding the sale of the UNA building located at 30 Montgomery St. in Jersey City, Mr. Blahitka said the UNA's real estate agent, Cushman & Wakefield, printed a marketing book at the end of January. The UNA has since received about 10 purchase offers, ranging from $16.5 million to $19 million, which is very encouraging. The UNA anticipates more offers soon. Upon receiving what is considered a serious offer, the executives shall inform the special committee formed by the General Assembly to review the offer.
The UNA's attempt to locate a new building focused on a few buildings in Morris County, N.J.; however, the UNA is unable to purchase a new building prior to selling the one it now occupies. Mr. Blahitka added that the UNA should investigate some type of lease with an option to buy (with regard to its new headquarters) in order to lease the space it now occupies at 30 Montgomery St., thus increasing the rent roll and giving more value to the property. It also would be wise to not delay obtaining a new building, since the market is extremely hot right now and prices of buildings are increasing almost weekly, he added.
The UNA treasurer then reported on the Ukrainian National Urban Renewal Corp., noting that there was an increase in assets of $294,678 as a result of tenant build-outs that are capitalized. Rental income received was reduced by $73,000, or 2 percent. In operating expenses there was a larger decrease in commissions paid to real estate brokers due mainly to the extension of leases or leasing additional space to current tenants. Heating and air-conditioning maintenance doubled for last year, Mr. Blahitka reported, explaining that, as the building ages, more problems occur.
Mrs. Lysko reported that the UNA closed 1996 with a total membership of 59,083 members, as compared to 61,126 in 1995. This downward spiral has been seen since 1970, when UNA membership reached its zenith at 89,107 members. Every year since 1970, she explained, the UNA has consistently lost members, or rather failed to replace the deaths, cash surrenders and endowments that occur annually. In terms of percentage, the loss in 1996 was smaller than in previous years, she added.
At year's end, the UNA had 54,369 members in the U.S. for a total amount of insurance of $142,749,954; in Canada there are 4,714 members insured for the amount of $31,163,263.
In February, Mrs. Lysko said the UNA had reported all data regarding membership, insurance amounts and types of insurance to the various state insurance departments as required by law. As of December 31, 1996, the UNA had 8,795 juvenile members; 19,838 adult members; 4,739 with accidental death and dismemberment policies; plus 25,711 juveniles and adults with paid-up policies - a total of 59,083.
The Universal Life policy developed in 1991 is increasing in volume: 321 policies for $13,385,842 have been sold. The most popular policy in the adult department remains the P-20, while endowment policies remain the product of choice for children. Mrs. Lysko said that in December the UNA concluded the Additional Insurance Program started in September of 1995. The UNA gained 2,290 active members and $604,500 of new premiums through the program.
The secretary continued by reporting that the UNA has tried many ways to increase membership: it hired regional organizers, created an executive position and now is trying to recruit a professional sales force. None of these alone are sufficient to reverse these losses, and the UNA still must rely on the strong cooperation of branch secretaries, Mrs. Lysko explained.
Unfortunately, a record number of experienced older secretaries are retiring due to age or disability; each month there are a few who pass away. At the same time, she continued, it is difficult to recruit new people. Mrs. Lysko added that the UNA must learn to use its two newspapers more effectively to talk about itself and to encourage new people to join its ranks.
Mrs. Lysko also said that she had started two new programs in January that are now in the process of development. One of these is a new insurance program for Ukrainian parochial schools which works through their parent clubs. Thus far this approach has been tried with St. John the Baptist Ukrainian Catholic School in Newark, N.J. Another program being developed is selling term insurance to members of Ukrainian credit unions. This program would be offered to those who recently purchased a home and therefore have the greatest need for life insurance protection.
The UNA secretary noted that since November 1996 five secretaries had passed away: Stella Ryan, a longtime employee of the UNA and secretary of Branch 3 died in Jersey City in December; Michael Marchuk, Branch 106, Dmytro Prystaj, Branch 43, Anne Mandziuk, Branch 143, and Myron Siryj, Branch 281, all died in January of this year .
The following branches have new secretaries: 10 - Lubov Streletsky; 86 - Nadia Demczur; 106 - Maria Pelych; 123 - Edward Chomko; 143 - Luba Mosner; and 399 - Andrij Skyba.
Roman Prypchan, Branch 399, Sophia Holyk, Branch 123, and Ivan Sierant, Branch 86, retired from their duties as secretaries. Mrs. Lysko added that the UNA appreciates their efforts in recruiting new secretaries for their branches and thanks them for their years of dedicated service to the UNA. She also thanked the president of Branch 106, Andrij Iwaniuk, for finding a new secretary for his branch upon the death of Mr. Marchuk.
The secretaries of Branch 10, Konstantyn Chilchenkowski, and Branch 95, the Rev. J. Kovalchuk, decided to merge their two branches and to resign their positions as branch secretaries. The secretary of the newly merged branch is Ms. Streletsky.
Branch 167 in Toledo, Ohio, merged with its parent branch, 165. At the last meeting of Branch 167, Secretary John Welgan, in agreement with the branch's members, donated $2,000 to the Ukrainian National Foundation. Mrs. Lysko commented: "We want to thank Mr. Welgan and his members for this act of loyalty to UNA. This example should be followed by all UNA branches. Often we see branches donating money to many worthy causes, but forgetting that the UNA, its publications and its various funds should be supported primarily by its membership."
In January, 19 small branches merged; this completes all branch mergers, Mrs. Lysko reported. The existing branches now have the required minimum of 15 adult active members. This process of merging branches that had fewer than 15 members had started three years ago; it served to strengthen the existing branches and gave a vote to those members who for years were locked into branches without a vote or representation. Coming into the convention year, the UNA will have fewer branches with greater representation of all members, the secretary observed.
VPs' and Canadian director's reports
Ms. Dydyk-Petrenko reported that, as usual, she is focusing her efforts as a UNA officer on preparing summer entertainment programs for Soyuzivka. Though there are budget constraints, she said there is a strong possibility that the rock group The Ukrainians from Great Britain, which will be touring North America, will perform at the upstate New York resort. She added that several Canadian groups, including the well-known Shumka dancers, have expressed interest in appearing at Soyuzivka.
The vice-presidentess noted that she had attended the ethnic luncheon, held as part of the inauguration ceremonies of President Bill Clinton, as a representative of the UNA. She also reported that the Ukrainian American community in Arizona is interested in hosting a visit by a representative of the Ukrainian National Association. She added that such a visit could be combined with visits to California and other states in the western U.S. in order to promote the UNA and its fraternal activities.
Dr. Savaryn reported that he continues to work with branch secretaries in Canada to find younger assistant secretaries. He also said that schools in Canada should be approached with a program similar to the one offered in New Jersey, and he proposed that a series of articles about the UNA be written specifically for the Canadian press prior to the May 1998 convention in Toronto.
Mr. Olesnycky noted that he is working once again on the By-Laws Committee that is preparing amendments and revisions for the 1998 UNA convention. Some of the proposals being considered include: establishment of a corporate board whereby UNA officers would be hired/fired, not elected; and the use of modern technology in the UNA's marketing. Mr. Olesnycky added that he also represents the UNA as legal counsel.
Mrs. Diachuk began her report by reviewing organizing achievements during 1996: 859 new members were enrolled, and 1,627 persons took advantage of the Additional Insurance Program, for a total of 2,486 new certificates. New insurance written totaled approximately $18 million. Thus, the yearly quota, which had been set at 2,220 new members, was fulfilled by 120 percent.
The UNA's top organizers during the report period were: Miron Pilipiak, Branch 496, who enrolled 47 new members. He was followed by Eugene Oscislawski, Branch 234, 25 members; Mr. Hawrysz, 15 members; Paul Shewchuk, Albany District chairman, 13 members; Dr. Atanas Slusarczuk, former secretary of Branch 174, 12 members; Christine Gerbehy, Branch 269, Advisor Stefko Kuropas, Branch 176, and Michael Turko, Branch 63, 11 members each; and Michael Kihiczak, Branch 496, 10 members.
The UNA's professional salespersons in the United States enrolled 148 new members insured for $6,235,011 and sold 137 annuities totaling $270,352. In Canada, the professional sales force signed up 130 new members for $8,073,561.
As regards organizing results for this year, the president stated that the first two months were not very successful, as 60 new members were enrolled during the month of January and 64 during February. The quota for 1997 has been lowered to 1,000 new members in keeping with a recommendation of the UNA General Assembly.
Mrs. Diachuk remarked that the UNA continues to look for new secretaries, who are being trained via courses held either at Soyuzivka or in their districts.
Turning to the matter of UNA publications, the president said that, as of the end of 1996, Svoboda had 8,177 subscribers, while The Ukrainian Weekly had 7,551. Both newspapers lost subscribers during 1996: Svoboda - 1,403; The Weekly - 1,138. The losses now appear to have stabilized as they had decreased during the last quarter of 1996, Mrs. Diachuk added.
The publishing house's deficit in 1996 stood at $273,302, but that figure does not include medical benefits, pensions and group insurance, which would bring the total deficit up to approximately $500,000. The 1996 budget had foreseen a deficit of $227,120, but turned out to be $ 46,182 higher than projected, she continued.
The UNA Almanac for 1997 was well received and some $32,000 in payments/donations were received. The press funds of both newspapers received an additional $40,630 in donations.
The president also reported on changes in editorial staffs: at Svoboda, Roman Yurevych retired; at The Weekly, Associate Editor Marta Kolomayets left for another position. Mrs. Diachuk emphasized that thanks for many years of dedicated service are due to Ms. Kolomayets, who was the first Weekly correspondent to serve in the Kyiv Press Bureau and was instrumental in its establishment.
At the UNA's upstate New York resort, the president reported income of $1,013,592, a figure 3 percent higher than in 1995 ($983,069). Expenses totaled $1,546,894, which includes capital improvements and repairs ($68,955), salaries and payroll taxes ($464,802), and state taxes, ($145,899). In 1995 expenses were $100,000 lower, but the increase in 1996 may be explained by the costs of remodeling the Q-Café. Other expenses not included in the aforementioned total were liability and property insurance, plus medical benefits and group insurance. The president said that prices at the resort this year will be raised by 5 percent; this is necessitated by federally mandated wage increases.
Mrs. Diachuk also noted that the longtime manager of Soyuzivka, Walter Kwas, had passed away in December 1996 and that his funeral was attended by many of the resorts' employees and guests, as well as UNA colleagues.
The final matter on which the UNA president reported was the status of proposed mergers with the Ukrainian Fraternal Association (UFA) and the Ukrainian National Aid Association of America (UNAAA). She began by noting that there had not been much progress toward the mergers, but added that, hopefully, now that the UNA's annual report for 1996 had been completed and its loan to the UNURC re-figured, there might be some forward movement.
As regards the UFA, the president said the association's president, John Oleksyn, had erroneously stated in an article in Narodna Volya that the UNA was forcing the UFA to sell its resort, Verkhovyna, in Glen Spey, N.Y. In fact, Mrs. Diachuk underlined, it is the New Jersey Department of Banking and Insurance that is calling for the sale as the UFA's entire reserve is tied up in the resort. As a result, the UNA had to withdraw its merger offer until this matter is rectified. Meanwhile, a five-year projection of the effects of the UNAAA's merger with the UNA has been completed and that merger is now more probable.
Turning to the topic of UNA donations in support of various projects and causes, Mrs. Diachuk noted that $9,500 had been paid out of the Ukrainian National Foundation as the first installment to cover publication in Ukraine of a new children's book, "Ivasyk Telesyk," by Ivan Malkovych. She also noted that the UNA had agreed to support the U.S. tour of the Ukrainian folk dance ensemble directed by Roma Pryma-Bohachevsky. The first performance, scheduled for May 11, Mothers' Day, at New York's Alice Tully Hall, is sponsored by the UNA and the Self-Reliance Ukrainian Federal Credit Union of New York.
Finally, Mrs. Diachuk reported on requests for donations that had been received by the UNA. A decision was made to allocate $500 to a camp being organized in Cherkasy by the Ukrainian Youth Association (SUM), and to award a $5,000 grant to the Federation of Ukrainians in Poland for publication of a commemorative volume on Akcja Wisla.
Under the rubric of "miscellaneous," Mrs. Diachuk proposed that Svoboda be published as a daily, but only two times per week at a savings of $216,000 per year. She suggested that three days' issues could be published in one edition and that two issues could be published in another; thus, five issues per week would still appear, but they would be printed and mailed only twice per week.
After a lengthy discussion the motion was tabled.
Mr. Blahitka mentioned that he needs guidance on a building, referring to the issue of whether the UNA's new office building should include space for a print shop. Mr. Olesnycky made the following motion: that the UNA's new building not have a print shop on site. He added, however, that it could be located elsewhere. The motion passed with four votes for (Mmes. Diachuk and Lysko, Messrs. Olesnycky and Blahitka) and one abstention (Ms. Dydyk-Petrenko).
Other matters raised during the "miscellaneous" agenda item were the creation of a special committee on the UNA's mission statement and the hiring of EMI Associates, whose president is Eugene Iwanciw, a UNA advisor and former director of the UNA Washington Office, to lobby for U.S. foreign aid to Ukraine.
The special committee is to prepare a proposal for a mission statement that will be discussed and adopted at the General Assembly meeting in November. Selected to serve on the committee were: Mr. Olesnycky, Dr. Savaryn, Ms. Dydyk-Petrenko, Advisors Taras Szmagala Jr., Ms. Hadzewycz, Walter Korchynsky, Nick Diakiwsky, Mr. Iwanciw and Stefko Kuropas.
After a brief discussion it was decided to hire Mr. Iwanciw for a six-month period, with the stipulation that the General Assembly will review the matter at its November meeting and then decide whether to hire Mr. Iwanciw for a longer period of time. It was emphasized that this proposal does not imply re-opening the UNA Washington Office, but that all efforts would be made to ensure that the UNA is given the credit for such lobbying activity on Ukraine's behalf. The motion made by Mrs. Diachuk was approved by all present.
Copyright © The Ukrainian Weekly, March 30, 1997, No. 13, Vol. LXV
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