Here is the final response by Mr. Hanon Russell:
Bill:
I appreciate your taking the time to reply. First, let me note that
although a number of people have reacted to my initial message (and
certainly more may in the following days and weeks), I have neither
the time nor inclination (with one exception) to respond to each email
and I will not do so. No one should mistake my choosing not to respond
to any point that may have been raised as an admission, acceptance,
waiver or anything else on my part. I shall deal with the one
exception later in this message.
You raise an apparently valid point about the arrangement with the
House of Staunton, to wit, it appears that we were offered the same
"arrangement" and turned it down. Well, this is not exactly what
happened, and the differences are critical and the reason why I have
turned the matter over to our attorney.
I had been approached several years ago by Bill Hall to include some
USCF Sales material in the mailings that the USCF made to new members.
It was recognized then, as now, that the new member group did indeed
purchase equipment, books and the like at a significantly higher rate
than would normally be expected. I was offered the opportunity to have
the back side of the introductory letter/card feature some products in
return for splitting the cost of the printing. My recollection is that
the cost to USCF Sales was a little less than $4,000 at the time. We
elected to try it. It was not successful.
When the initial printing had been used up, Bill Hall contacted me and
asked if I was ready to do it again. I declined, citing the minimal
return for the dollars spent. He understood and that is the last I
heard of it until Lev Alburt contacted me. He wanted to promote his
books and asked what my position was. I told him I had no objection so
long as USCF Sales was able to make the sales. Lev agreed and the
flyer that was reviewed by the USCF and me and included in the new-
member mailing specifically referenced USCF Sales - its address, toll-
free 800 number, catalog numbers. Everything.
Apparently still seeking sponsors for the new-member mailing, the
House of Staunton was contacted. I say "apparently" because I did not
find out about the arrangement between the USCF and the House of
Staunton until the beginning of April 2008. It is not insignificant
that in stark contrast to the Alburt flyer, neither the USCF nor the
House of Staunton ever informed me about what was going on. Not once,
in spite of multiple contacts with both concerns. My understanding is
that I did not find out about this arrangement for almost a year.
When I did discover what was taking place, I immediately confronted
Bill Hall. His response was (1) USCF Sales had declined to be involved
in this project and so the USCF was free to bring another firm into
the arrangement; and (2) there really was no difference between what
was going on with the House of Staunton and advertising by other
companies in Chess Life. As far as the first point is concerned, had
it been done properly, like the Alburt flyer, I would not only have
had no objection, I would have welcomed it. However, it is difficult
based on how this arrangement was carried out by both sides for me to
believe that in fact everyone understood what was being done and what
should and should not be disclosed.
In fact, USCF Sales has always offered chess sets from the House of
Staunton. We would have been pleased to have the House of Staunton
promote its products in the same manner as Alburt was promoting his
books - by including a flyer promoting the sets and directing them to
USCF Sales for purchase. Instead, the HOS material included (a full
color flyer and a second "coupon" offering 10% off) had no mention of
USCF Sales and encouraged the recipient to contact HOS directly. Sales
by USCF Sales of HOS sets that may have been made as a result of this
mailing were lost; we made none.
To take the position that a select, targeted mailing to a group known
to spend a lot more easily in the first few months of a new membership
is no different than advertising in Chess Life reflects either a
complete unfamiliarity with marketing and sales or disingenuous spin.
Or both. For God's sake, a new member is receiving the first contact
from the U.S. Chess Federation and in it are flyers encouraging the
member to buy fine chess sets, (the "official" USCF sets I believe is
a term used more than once in the paperwork) directly from a vendor
other than USCF Sales. Remember USCF Sales? We send you 12% off the
top of every purchase. Even when we sell a HOS chess set. 12%. I am
sorry if you cannot differentiate this from a paid ad in Chess Life. I
see the difference very clearly. So do our attorneys.
Now for the "exception" to which I referred. A member of the Executive
Board, Mr. Bauer, chose to respond to my initial message. You along
with everyone else on the list received his message. I had put forth
what I had thought was a legitimate concern, constructively
questioning decisions I saw as bad for the USCF and bad for USCF
Sales. Instead of replying in similar fashion, he chose to create
untruths out of whole cloth, fashioning a personal attack against me
and my son. One wonders what color the sky is in his world. Mr.
Bauer's reputation for conducting himself in this disgraceful manner
should not have come as a surprise to me, and I already know from
private messages that it was not a surprise to others who saw what he
wrote. However, that does not change the fact that these comments are
beneath contempt.
Bill, I respect your different views on these matters but must also
assert that I strongly disagree. As the HOS matter is currently being
handled by our attorneys, and the Chess Life matter may soon be, I
regret that I will not be responding any further to your or anyone
else's remarks. Not even when Mr. Bauer again launches personal
attacks...
Regards,
Hanon
Hanon W. Russell
USCF Sales.com
http://www.USCFSales.com
ChessCafe.com
http://www.ChessCafe.com
Toll-free (orders only please) 1-800-388-5464 (KING)
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Fax: 203-783-9673
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Milford, CT 06460 USA