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September 17, 2007

Dear Delegates and Parent Clubs:


The letter from Mr. Ferguson to the Delegates and Parent Clubs (see links at end of letter) contained many inaccuracies and distortions of fact. As such, it requires a factual response.


The proposal of the AKC to have a one-third presence on the AKC/CHF Board was the unanimous decision of the AKC Board. It was explicitly stated that we did not seek a majority or controlling board position. Mr. Ferguson's allegations about a "hostile takeover" are absolutely false.


If the AKC/CHF board is 30, we would expect AKC to have 10. If they reduce their board to 15, we would have five.


At present there is only one AKC director, Mrs. Nina Schaefer, on the CHF Board and she was appointed by the Foundation Board. At the Canine Health Foundation’s last meeting, they rejected the nomination of Mr. Steve Gladstone.


AKC, which donates approximately 1.2 million dollars a year, should have a more significant representation. This donation of 1.2 million dollars constitutes approximately one-third of the CHF annual income.


Mr. Ferguson wrote that we gave CHF an '"ultimatum" and then refused to meet with them again. This is absolutely false. We gave no ultimatum and of course we are willing to meet with the entire CHF Board to achieve a solution to this apparent impasse. What we did say was that if this drifting apart continued, the results would be very serious and could cause the CHF's loss of AKC identity and support. We founded the CHF for the well-being of dogs and have already donated almost 16 million dollars to it. We want it to thrive and succeed.


We are concerned with the drifting apart of our two organizations and offered a proposal to reverse that drift. At our meeting on September 9th, we discussed our concerns which included:


• Difficulty in obtaining financial reports

• Numerous acts of poor governance

• Complaints we have received from CHF directors about its governing


Attached to this correspondence is a letter from some CHF Directors detailing some of their difficulties in working with Mr. Ferguson.


The secrecy about the Lynch lawsuit costs continues to be troubling. The lack of current and audited financial statements is troubling. Ongoing personnel issues are troubling. In his final paragraph, Mr. Ferguson speaks of preserving the independent status of the CHF. Mr. Ferguson’s preoccupation with CHF independence should not supersede a commitment to the health of dogs.


The Board of Directors of AKC has a fiduciary duty to insure that the funds it grants to other organizations are wisely used. Our proposal will make that oversight possible. We seek not to control CHF but rather to contribute to its improvement so that we and the purebred fancy can regain confidence in it. It is in this spirit that AKC has offered an additional million dollars for the CHF Endowment Fund.


Ronald H. Menaker - Chairman

David C. Merriam - Vice Chairman


http://www.thedogpress.com/ClubNews/CHF-Menaker-Merriam-Response-letter-079.asp #104s151

For Additional Information:

Hostile Takeover of CHF by AKC

Response letter from CHF Executive Committee and Board Members




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