[sustran] AAA -- Accountable to Anyone?

[Carlos Cordero V.]

we got this from another mailing list, seems very interesting

>Posted by sburrington at clf.org
>Here is an interesting account of one citizen's attempt to find out whether
his
>AAA chapter was accountable in any way to anyone.  It's long for an e-mail
item,
>but I thought it worth transmitting in full regardless.  Reactions would be
>welcome.
>
>Stephen Burrington
>Conservation Law Foundation
>sburrington at clf.org
>
>* * *
>To Whom is AAA of Southern New England Accountable?
>
>Ted Smith
>Cambridge, Massachusetts
>April, 1999
>
>    Several months ago it occurred to me that I had never seen an annual
report
>from AAA.  As a member in good standing, I thought I deserved to see an
annual
>report.  The inspiration for my curiosity arose from knowing that AAA
lobbies
>actively for highway and vehicle legislation in state capitals and does so
>because it wishes to influence transportation policy, generally in the
direction
>of supporting the role of automobiles.
>
>    Knowing the transportation policy can be contentious, that the U.S.
Congress
>sees it differently from many other signatories to the 1997 Kyoto Protocol
on
>global warming, and feeling that I should have a right to know how my
membership
>dollars are used by AAA, I set out to acquire an AAA (Southern New England)
>annual report.  I was interested to see financial data and a list of the
>positions AAA takes when it lobbies for specific legislation "on my
behalf".
>
>I began by visiting the reception desk at the High Street office of AAA in
>Boston and simply asked for a copy of the latest annual report.  The
>receptionist quickly called for the branch manager, Christopher Hurren
>(617-443-9300).  Mr. Hurren asked what I wanted?  I explained.  He appeared
>puzzled and a little surprised.  He told me that he had never seen an
annual
>report.  He then excused himself to call AAA headquarters (Southern New
England)
>in Warwick, Rhode Island.  After several minutes on the phone in his
office, he
>emerged, told me there was no annual report, but that I could call someone
in
>the Rhode Island office.  On the back of his card he gave me a name and
number
>to call.  Hurren then told me that he had been at this branch for five
years,
>that he knew how much money his branch made, but that he had no idea how
much
>the entire AAA of Southern New England made.  (Note:  I had not asked him
about
>revenues.)   He seemed interested and encouraged me to report back to him
with
>whatever information I could come up with.  He added that he felt certain
that
>AAA was not legally required to publish an annual report, but he did not
attempt
>to explain why it didn't.
>
>I called the Warwick, RI number given to me and reached a self-described
former
>newspaper man, Bob Murray (401-732-5000, Ext. 411), who apparently handles
>government and public relations for AAA.  Although reserved at first, once
he
>warmed up, he seemed happy to talk-especially about the history and the
>(fiscally responsible Yankee) culture of AAA.  He knows, for example, that
the
>first American cars were manufactured in Springfield, MA; that the first
real
>interest and hubbub over cars in this state was in Worcester, not Boston;
and
>that the wealthy of Newport, RI first organized a club at the beginning of
the
>century.
>
>Back to the Annual Report request:  He told me that they had never (sic)
>published one.  I asked whether there was any reporting to the public
beyond
>their in-house quarterly magazine which never carries financials nor policy
>material I was seeking?  The answer was, "no."  He offered no explanation
for
>the absence of an annual report:  they just don't do one.  I said, "Golly,
a
>membership organization that doesn't give any real information to its
members?"
>He said, "That's the case, but there aren't any stockholders."  I replied,
"That
>may be, but I am still surprised that a Member cannot obtain an annual
report."
>He didn't seem to know what to say.  I let it go by suggesting that he, a
former
>newspaperman, might favor of a more open publications policy.
>
>He told me that only one person asked to see an annual report last year.  I
am
>the first one in a year to ask.  I got the feeling from him that no one is
>interested in the financial and policy affairs of AAA.
>
>Murray said that the organization's by-laws date to 1902 and that AAA has
been
>remarkably stable and resilient over the years-always carrying 6 months of
>operating costs in reserve in the event of some kind of downturn.  So he
>said-seemingly at pains to represent the fiscal integrity of the
organization..
>
>He called AAA a non-profit/profit-making corporation, but I decided not to
press
>for the formal IRS designation, figuring this wasn't his area.  It is
chartered
>and wholly owned in Rhode Island, he said.
>
>There has been no annual meeting in recent memory.  I gained the impression
that
>they would shudder at the thought of dealing with the membership of 1.7
million.
>
>They have quarterly board meetings, according to Murray.  The Board is
>self-elected; members do not participate.  There is great continuity in
board
>membership.  There are apparently no terms (or else re-election is close to
>automatic), and some serve for 25 or more years.  Committees meet in
between
>board meetings.  I did not ask about Board member compensation-information
which
>I have not seen published as it would be in annual corporate publications.
>
>The AAA of Southern New England is one of 93 clubs that is accredited every
five
>years (rigorously, he says).
>
>This club was founded originally by the Newport, RI elite.  A reasonably
good
>history is available (1900-1974), but acquisitions by AAA in the last 25
years
>make recent history harder to follow.  Mr. Murray has the history in a
>loose-leaf binder and assured me that AAA has archives to preserve some of
its
>past.  (I might have asked if a book had ever been written about the
American
>Automobile Association nationally, but didn't.)
>
>Membership data are not published, but the total has been growing-bumped up
>recently by Massachusetts insurance discounts to AAA members.  (The latest
>annual membership growth figure was stated to be 8% by Murray, a growth
rate is
>which above the norm.)
>
>Murray then explained that he used to prepare a Chairman's report annually,
but
>(he told me) that the chairman hasn't prepared an annual report for about
the
>last three years.  He laments this fact-feels that there should be a
historical
>record.  But the chairman hasn't asked for him to work on a report.  (Note:
>This means that not only does AAA not have a public annual report; they
also may
>not have an internal annual report-the availability of statistics
>notwithstanding.  Since I was told there was no internal annual report, I
have
>to take it as fact for the time being.  But it would be extremely unlikely
to
>find that the CEO does not prepare an annual report for the Directors.)
>
>I asked for the 1999 annual budget figure.  He told me it wasn't available.
I
>then politely asked for the 1998 budget number-assuming that last year's
budget
>number was history and could be openly shared.  Again, he told me that this
was
>not available.  At that point I made a passing reference to the fact that
the
>financials  would show up in the tax returns which are on file with the
various
>states and he said that in Massachusetts it would be in the Insurance
>Commissioner's files.  (Not the Attorney General's files?)
>
>Revenues?  My arithmetic shows that 1.7 million members @ $30 membership
fee
>(his figure; I pay $41.00) totals $51 million.  He said this was about 60%
of
>total annual revenues.  This means total annual revenues of AAA Southern
New
>England could be in the range of $85 million or more, a non-trivial
operation.
>
>The largest expenditure is allocated to road service-about $25
million/year, he
>said.  The latest annual figure Murray gave to me showed 1.4 million road
calls
>at an average figure of $17.
>
>The number of employees in Southern New England AAA, I was told, is about
1,200.
> Murray said or implied that they are all happy and like working for AAA.
>
>I asked if they use AAA funds to lobby for legislation?  "Yes", he said,
and
>identified himself as one of the lobbyists.  This raised a question in my
mind:
>on whose behalf are they lobbying?  Not mine, at least not with my
agreement,
>because I don't know what they lobby for and have no input.
>
>He happily rattled off some board member names, indicating that the newest
was
>Alan Morse, Chairman of Harvard Pilgrim Health.  He said it took four
months to
>get this new member chosen following the resignation of someone who had
served
>for 30 years.  Other board members mentioned were:
>
>        John DiBiaggio-President of Tufts University
>        Ruth Sheer-foundation person (and board secretary)
>        Wayne Budd-Bell Atlantic
>        Dave Finneran-Lobbyist
>
>    Summary Notes.  AAA/Southern New England is a membership organization
of 1.7
>million members.  It has an annual budget which probably approaches an
estimated
>$100 million.  It has neither an annual meeting nor does it publish an
annual
>report.  It is not a charitable organization, but is not intended to earn a
>profit.  It lobbies for specific legislation that affects public policy.
Its
>internal operations are unknown to both its membership and to the general
>public.
>
>    A public policy issue at stake here is one bearing on road
transportation.
>Once this topic is raised, a wide range of policy concerns comes into play.
The
>one in which I have greatest interest at the moment is global climate
change-or
>the reduction of greenhouse gas emissions.  Modern vehicular transport is a
>major contributor to emissions.  An organization which promotes road
>transportation is, willy-nilly, directly involved in greenhouse gas
emission
>issues.  This fact begs the question of AAA's role in non-public,
>non-accountable actions intended to influence the course of public policy
>decision-making.  For which generation does AAA speak?
>
>
>
>
>
>
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