United Cancer Council, Inc. - Page 71

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               In August 1985 an “annual fund” package was successfully               
          tested.  As a result, petitioner again had two control packages.            
          An annual fund package was first mailed out in substantial volume           
          (almost 500,000 letters) in December 1985.                                  
               Apart from the foregoing, for petitioner every substantial             
          volume prospect mailing and almost every test prospect mailing in           
          1985 was a sweeps package.  Five of these 1985 sweeps prospect              
          mailings each lost more than $100,000; one lost $228,569.                   
               However, from mid-1986 to mid-1987, sweeps packages produced           


               14(...continued)                                                       
          commitment from another party to make matching contributions.               
               In his letter dated Feb. 19, 1985, to petitioner’s executive           
          director, Watson complained that the projected $70,000 loss on              
          the Jan. 1985 poll package mailing (excluding at least another              
          $45,000 due W&H in fees) done at petitioner’ directors’ urging              
          was the largest single loss W&H ever experienced.  He stated that           
          it was essential that what happened not occur again and formally            
          requested that once petitioner approved a mailing package that              
          petitioner be committed to the package’s use, unless it was                 
          “obvious and conclusive” that the package’s continued use would             
          result in irrevocable harm to petitioner.  His letter concluded,            
          in pertinent part, as follows:                                              
                    I’m sure you are disappointed in what has happened in             
               regard to this Poll package mailing.  But, I assure you, no            
               one is as concerned as I am.  I hope it has been a lesson              
               for us all.                                                            
                    I had the hope, and still have the dream, that UCC                
               could be made financially strong within a relatively short             
               time.  And, I pray this setback doesn’t postpone that day              
               too long into the future.                                              
          Copies of this letter to the executive director were also sent by           
          Watson to three of petitioner’s directors.                                  






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