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updated 2:54 PM UTC, Jul 28, 2018

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Holiday teletype art: greetings from communications era past

Dear Friends: 

Sharing this re-creation of the art once delivered via wire-service teletype machines to media newsrooms around the nation during the quiet hours of Christmas Eve has become my annual way of delivering holiday greetings to those who have been kind enough to allow Flynn's Harp into their email 'bag' each week. 
   
 
 
Holiday teletype art: greetings from communications era past In the days before computers, wire service teletype machines clacked away in newspaper and broadcast newsrooms around the nation and the world, bringing the news from all points to local media outlets.
 
But in the quiet of the Christmas holiday in years past, in the offices of AP and United Press International, the teletype paper coming from the teletype printers would be graced with holiday art. 

  

For those of us who at an early stage in our careers had a turn with the lonely Christmas Eve or overnight vigil in the UPI offices  as older writers got to spend time with their families, the holiday art created and transmitted by teletype operators is one of the special memories of working for that now-dead company. 

The x's, o's, (or more frequently dollar signs and exclamation marks)  appeared a line at a time on the teletype paper until images of Christmas trees, Santa Claus, holly wreaths, etc., took shape.  

The uniqueness of the tree below is the Christmas greeting delivered in nearly 50 languages. 

Over the years I've been sending this, the art has stirred memories for those among the recipients of this weekly missive who once worked in newspaper or broadcast news rooms and recalled watching those creations emerge onto the rolls of teletype paper.

It also served as a reminder of earlier days for those in other industries who once used teletype machines for transmission of information, including one who recalled the occasional flawed keystrokes that occurred when creation of the art followed holiday parties.

 

Since each year brings new names to the list of those receiving Flynn's Harp, there are some who haven't previously seen the art. For that reason, and because fond memories are served by repetition, here is a the annual sharing of this Christmas art.

    

Happy Holidays!
 


                                                +
1                                               "X"                                       
                                              "XXX"
                                            "XXXXX"
                                          "GOD JUL"
                                       "BUON ANNO"
                                        "FELIZ NATAL"
                                      "JOYEUX   NOEL"
                                   "VESELE   VANOCE"
                                  "MELE   KALIKIMAKA"
                                "NODLAG  SONA  DHUIT"
                             "BLWYDDYN  NEWYDD  DDA"
                                """""""BOAS FESTAS"""""""
                                       "FELIZ NAVIDAD"
                                  "MERRY CHRISTMAS"
                                " KALA CHRISTOUGENA"
                                 "VROLIJK  KERSTFEEST"
                   "FROHLICHE WEIHNACHTEN"
                              "BUON  NATALE-GODT NYTAR"
                              "HUAN YING SHENG TAN CHIEH" 
                           "WESOLYCH SWIAT-SRETAN BOZIC" 
                         "MOADIM LESIMHA-LINKSMU KALEDU" 
                        "HAUSKAA JOULUA-AID SAID MOUBARK" 
              """""""'N  PRETTIG  KERSTMIS""""""" 
                              "ONNZLLISTA UUTTA VUOTTA" 
                           "Z ROZHDESTYOM  KHRYSTOVYM" 
                          "NADOLIG LLAWEN-GOTT NYTTSAR" 
                         "FELIC NADAL-GOJAN KRISTNASKON" 
                        "S  NOVYM  GODOM-FELIZ ANO NUEVO" 
                        "GLEDILEG JOL-NOELINIZ KUTLU OLSUM" 
                     "EEN GELUKKIG NIEUWJAAR-SRETAN BOSIC" 
                    "KRIHSTLINDJA GEZUAR-KALA CHRISTOUGENA" 
                     SELAMAT HARI NATAL - LAHNINGU NAJU METU" 
                    """""""SARBATORI FERICITE-BUON  ANNO""""""" 
                          "ZORIONEKO GABON-HRISTOS SE RODI" 
                      "BOLDOG KARACSONNY-VESELE  VIANOCE " 
                     "MERRY CHRISTMAS  AND  HAPPY NEW YEAR" 
                      ROOMSAID JOULU PUHI -KUNG HO SHENG TEN" 
                      FELICES PASUAS -  EIN GLUCKICHES NEUJAHR" 
                  PRIECIGUS ZIEMAN SVETKUS  SARBATORI VESLLE" 
              BONNE  ANNEBLWYDDYN  NEWYDD DDADRFELIZ  NATAL" 
                          """"""""""""""""""""""""""""""""""""""""""""""""" 
                                                    XXXXX 
                                                    XXXXX 
                                                    XXXXX 
                                            XXXXXXXXXXXXX


 

 

  

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Gil Folleher, who built strong business-leader support for JA, remembered for his legacy

Junior Achievement, as an organization focused on enhancing young people's understanding of business and finances, has had a natural appeal to business executives and their companies. But Gil Folleher, who died over the weekend at the Eisenhower Medical Center in Palm Springs at the age of 75, brought business-leader support for JA in the Seattle area to a near-evangelical level over his years guiding JA locally.

folleher
Gil Folleher 
Most importantly, perhaps, in the words of PEMCO CEO Stan McNaughton, he "left a legacy of footprints that will be followed for a long time. He was a king-maker-and the kids were the kings (and queens)."

The JA footprints in Washington state have left larger marks than the organization's impact in other states and that has been due to Folleher guiding involvement by executives at the highest levels of their companies.

In fact, he set a model for other non-profits to aspire to with a pattern from the late '80s through his retirement in 1998 of presidents or CEOs chairing, and being actively involved on, JA's board.

There are many important non-profit causes in this region, ranging from the needs of children or the sick or elderly to arts groups and causes to advance the community. And the most successful ones are blessed to have business executives supporting with time and dollars to help point them in successful directions.

And this is a time of the year when business people and others of means should pause to remember the cause or causes that are fortunate enough to have their attention and even affection.

But few organizations have been more successful over the years than JA in keeping focused on its cause: helping guide the understanding of the free enterprise system among young people and, recently even more vital in the view of many JA supporters, teach the importance of financial literacy.

Folleher, who moved from his Seattle leadership position to a role with the national JA organization in 1998 before retiring to Palm Springs, is being remembered by both active and retired business leaders who were closely involved with JA and who thus knew him best for the value he brought to the economic education of young people.

Folleher's strategy of creating close relationships among his board members included the Puget Sound JA chapter sending the largest delegation each year to the National Business Hall of Fame, an experience that he understood would contribute to the bonding strategy. Thus he made the trips an important part of each year's JA activities.

During his second tenure with JA in Seattle the number of students impacted by JA programs quadrupled to more than 60,000, deficits became surpluses and the annual budget grew to more than $2.4 million.

And in the manner of the best of non-profit executives, he groomed his successor well and thus David Moore, JA President for what has grown to be JA oversight for all of Washington state, says of Folleher, "he was my mentor, friend and inspiration." 

Under Moore, who spent a decade as Folleher's marketing director before succeeding him in 1998, JA programs have grown and come to reach a dramatically expanding number of students around the state each year. 
 
It was through involvement with JA as publisher of Puget Sound Business Journal to create a local Business Hall of Fame in a partnership between the newspaper and his organization that I came to be close friends with Folleher and eventually served as chair of the JA board.

Ken Kirkpatrick, retired president of U.S. Bank of Washington, knew Folleher the longest because it was Kirkpatrick, along with his future wife SaSa, who met Folleher at the airport when he arrived in Seattle in 1972 for for his first stint guiding JA's Seattle operations.

Kirkpatrick recalls that he was only 17 at the time, but was serving as JA's temporary executive director, "along with my janitor job there. He treated me like a king and he gave me my first ever Christmas gift from an employer-a very fancy shoeshine kit that I used just last week."

Woody Howse, then guiding Cable & Howse Ventures and now described as "the grandfather of Seattle's venture-capital community" was incoming board chair when Folleher arrived in 1987, returning to Seattle after serving as JA's Senior Vice President in charge of programs and marketing nationally. 

"Folleher's network through all of JA was unparalleled and as a result we got the benefit in Seattle of a world-class sponger of Best Practices," Howse said.

Lasting friendships was true for me, and this column is an unabashed good-memories reflection on a man who not only became a good friend, but who was responsible for many of my closest friendships formed over the mutual connection to JA and the work we all did together to build and promote the organization and its cause.
 
Scott Harrison, retired president of Barclay-Dean Interiors, who also served a term as JA board chair, praised Folleher for guiding board members to "embrace the vision that Gil and his team had for JA."

And John Fluke, of Fluke Venture Partners (another top executive who took his turn as JA board chair) and the son of the man described as "The Father of JA" in this region, said "I know Gil would want all of us to do our part to advance JA's mission to bring economic and personal financial literacy to all K-12 students."

Rather than merely recall Folleher after his death, friends from around the country were able to be on hand in Palm Springs last January for his 75th birthday celebration where, as Moore recalls with a smile, "we partied for three days."

Now those who were close to Folleher will gather again, despite his insisting there be no service or memorial, for a toast and sharing of memories January 13 at 5:30 p.m. at the Waterfront Marriott.
 
In what amounted to an appropriate summing up, Moore noted: "I have always said we are warming by a fire we did not build since what JA is today is a legacy for Folleher's passion and leadership."'
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National attention in '22 bowl game fed thirst for grid glory at Gonzaga before basketball

As UW and WSU football fans bask in the satisfaction of 2015 bowl-game victories and the college football season comes to a climax with this week's NCAA national championship game, a few students of sports-history trivia may recall when a third team from the State of Washington played in a national-visibility bowl game.

That was back in 1922 when the San Diego East-West Christmas Classic was scheduled to pit Notre Dame against little Gonzaga College from Spokane. It attracted national attention in advance of the game because it was a dream matchup pitting the teams coached by Knute Rockne and Gus Dorais, the two men credited with teaming at Notre Dame to create the forward pass.

But the game wasn't to be as Notre Dame lost its last game of the '22 season to Nebraska and Rockne decided his team didn't deserve a post-season game. So what developed was even more of a David-and-Goliath game, matching Gonzaga against a West Virginia that was undefeated and a victor over the Pittsburgh team that would play in the Rose Bowl a week later on New Year's Day.

Conversation at a recent Christmas-holiday gathering of Gonzaga alums and fans from across the state visiting in advance of the Bulldogs' annual basketball game in Seattle to give Westside fans a chance to see the Zags play turned inevitably, during the climax of football season, to that San Diego bowl game, and the era when Gonzaga played football.

That's a clue that this is a special-interest column from one who grew up in Spokane and graduated from Gonzaga, a column thus likely of interest primarily to fans of Gonzaga athletics or Spokane prominence, but perhaps also for fans of the underdog, in whatever setting or era. Others may wish to move on to more interesting fare.

The fact that there was football at Gonzaga before there was basketball will amuse or intrigue some who have been impressed with Gonzaga's record of 17 consecutive trips to the NCAA basketball tournament.

Basketball has served to satisfy Gonzaga's hunger for national athletic prominence in a way that would have been too far fetched to have even been dreamed of in years past on the Gonzaga campus. But the fact is that the hunger for a "big time" role in sports was first nurtured on the football field, beginning back in the '20s.

For two turbulent decades Gonzaga pursued a dream of gridiron glory, spurred in part by the visibility in gained in that 1922 bowl game, only to become entangled by the late '30s in a morass that threatened financial ruin for the tiny school.

It was a story repeated often across the country, beginning in that splashy era of the 1920s, when all America burned incense to the god of sports and small, private colleges, struggling to compete with their bigger brothers for academic recognition, turned to football as a ticket to prestige and prominence.

Gonzaga was among the first of many small, mostly private, schools to seek football prominence, pursuing an Ozymandian delusion of grandeur that football could be the ticket to a wealthy campus and national renown.

But back to the 1922 game against a West Virginia team competing in its first bowl. Gonzaga was led by a triple-threat back named Houston Stockton, who as a sophomore was writing large on the national football scene as his grandson, John Stockton, would do on the collegiate basketball scene at Gonzaga and in the professional ranks 60 years later.

Stockton had already attracted national attention a year earlier when as a freshman at St. Mary's in California, he gained honorable mention honors on the most prominent All-America team in 1921. But he transferred to Gonzaga and quickly began to make his mark as a Bulldog.

In the home opener in a new $100,000 stadium before an overflow crowd of 5,600, Stockton turned in a stunning single-game performance, scoring six touchdowns and kicking 10 conversions for 46 points as Gonzaga beat Wyoming, 77-0.

The odds against Gonzaga on that Christmas Day were overwhelming and the way the game unfolded bore that out as West Virginia took a 21-0 lead into the fourth quarter. Then Gonzaga found itself. The Bulldogs scored two touchdowns, one by Stockton, in 10 minutes. With two minutes to go, Stockton (who rushed for 110 yards that final quarter) found future Gonzaga coach Mike Pecarovich in the end zone. But he dropped the ball. Final score: West Virginia 21, Gonzaga 13.

The game got an eight-column headline in the New York Times sports pages as Gonzaga won praise from coast to coast, lauded as "the Notre Dame of the West." A Chicago Tribune sports writer enthused that "West Virginia won. But it wasn't a Christmas present. Pulling a bone from an angry bulldog is not like getting a toy drum from Santa Claus."

Dorais and Stockton teamed for two more years, including an undefeated 1924 season. Then Stockton moved on to professional ball with the Frankfort Yellowjackets, predecessor to the Philadelphia Eagles, which he guided to the NFL championship in 1926. Dorais headed for the University of Detroit where he spent most of the rest of his coaching career.

A number of great players followed Stockton as Gonzaga stars. George (Automatic) Karamatic, who won a place on the 1936 All-America team, and Tony Canadeo, known as the "Grey Ghost of Gonzaga" for his prematurely gray hair, went on to stardom in pro ball, setting the Green Bay Packers' single-season rushing record.

Ray Flaherty, a member of the 1924 undefeated team, became an all-NFL end in a decade with the New York Giants. Then he was hired to coach the Washington Redskins and became one of the dominant coaches in the NFL, guiding the Redskins to two NFL titles and five division titles.

His teams always included a cadre of Gonzaga players whom Flaherty routinely drafted, explaining to me in an interview years ago "I'd take too much heat from my Spokane friends if I didn't draft each year's best Gonzaga players. Some never forgave me for letting Canadeo get away."

The outbreak of war in 1941 ended Gonzaga's pursuit of football fame, a quest that was doomed to die at some point, having cost the school the then-dramatic amount of $60,000 in its worst year and providing less than a dime of profit in the best.
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Life Science Discovery Fund prepares for what could be its most important grant

 

The life Sciences Discovery Fund, in a finale made possible by a $2 million error by a legislative leadership intent on ending state funding for the organization whose years of grants have enhanced Washington's life-science competitiveness, is preparing for what could be its most important grant-making decision.
 
The board of LSDF, which was created a decade ago from the state's $1 billion share of tobacco-settlement money to promote the growth of the life-science industry, will soon be reviewing four finalists for what are characterized as "ecosystem" grants. The $2 million will go to one or more organizations that can stimulate momentum toward commercializing life-science innovations.
 
And while details of the four applications will remain under wraps until the LSDF board reviews them late this month and on February 8 announces one or more awards, one application that would pair the commercialization activities of the state's two research universities should attract considerable interest when those details emerge. That teamed application from UW and WSU is intriguingly titled the "Concept-to-Commerce Coalition."
 
The word "legacy" is one that has begun to be used by those who lament the decision by lawmakers to defund LSDF and who believe that what Executive Director John DesRosier dubbed "ecosystem 2016" grants could serve to create a follow-on to LSDF's decade-long role of funding life-science innovation.

 
  
But DesRosier, who has guided LSDF since it came into existence in 2005, insists "we're not using the term 'wind down' since we want to keep our options open," although he is retiring in April.

And the fact the organization must remain in existence over the next two years to manage the 46 grants already awarded from the fund means LSDF can't just go away. And that leaves some supporters buoyed by the possibility that a new role could emerge for LSDF, possibly with an administrative role managing another type of health-related activity.

"LSDF is in a transition as a model that we know has to change in response to current circumstances, said board member Roger Woodworth, chief strategy officer for Spokane-based Avista Corp.

"It has been a wonderful asset for the state that has been remarkable in terms of attracting, administering and validating a variety of exceptional ideas," Woodworth added. "It is in transition but that doesn't mean we throw it away or shut it down."

The unanticipated opportunity for the "ecosystem 2016" grants came about when the lawmakers, primarily the Republican majority that was never invested in the value of LSDF, specified that while the funds LSDF needed to manage the existing grants would remain in its account, its remaining operating funds would shift back to the general fund.
 
Except that when the lawmakers spelled out the operating-funds total of $11 million, there was unexplainably almost $2 million left in the LSDF account, unallocated and not ordered sent to the general fund. So it remained under LSDF control.

DesRosier notes that the "ecosystem" grant competition will be different from individual grants LSDF has made to for-profit or non-profit life-science entities that have received pieces of the $106 million in grants made since 2007.

"This grant-making won't be about trying to perpetuate ourselves but rather be a key step to support the life-science ecosystem with funding support for one or more organizations that either already exist or would come to existence to stimulate momentum in commercialization," DesRosier said.

"The opportunity for the life-science sector in Washington is a huge one and that's why, when this fund was first created a decade ago, it was a smart way to begin to capture the enormous intellectual capital that existed in this state," says Carol Dahl, LSDF board chair.

 

Dahl, who is executive director of the Lemelson Foundation that supports what are called "impact inventions," points to the fact that almost 70 percent of the $1.5 billion in federal funds that flow into Washington each year is for life science.

 

But Dahl is among the many observers who seek ways to address the dilemma that while this state has developed one of the nation's most impressive life sciences non-profit sectors, it trails many other regions in the development of a for-profit sector. The Seattle area's biotech cluster, for example, is dramatically exceeded by the industry size in The Bay Area/Silicon Valley and San Diego, as well as places like Boston and North Carolina's Research Triangle.

As one national ranking of biotech clusters characterized it, the industry in the Seattle area is "being anchored more to academic and independent research institutions than local companies."

In other words, this state is experiencing a gap between early stage ideas and things that investors can be convinced to embrace.

"I believe in the future of the state's life science community, but there needs to be a change in people's willingness to invest in it," she said. "They need to develop a confidence about being part of the commercialization of what those federal dollars are producing in what has become one of the nation's most impressive life sciences non-profit sectors."

In fact, it was because of LSDF grants that a number of the emerging life science companies that are growing, creating jobs and carving out key roles in their industry were able to bridge what's famously known as "the valley of death" between concept and the time when investors can be lured to be involved.

Enhancing commercialization is what each of the four of the ecosystem grant applicants seeks to foster, including the team-grant proposal put together by UW and WSU.

Anson Fatland, the associate vice president for economic development and external affairs for Washington State University, explained how teaming with his UW counterpart came about after both universities had submitted initial proposals back in September when the plan for the life science eco-system grants was first unveiled by LSDF.

Fatland noted that once he and Patrick Shelby, who directs the New Ventures group at the UW Center for Commercialization, were both invited to submit full proposals, "we decided to sit down and talk about what we were trying to do."

"We realized we had a truly unique opportunity for innovation activities across the state, allowing the industry to really talk about a legacy grant," Fatland said.

The other applicants are Accelerator Corp., which is seeking money for a commercialization funding program; the Washington Biotech and Biomedical Association, and what's called the Southsound Research Coalition, which also involves UW along with Madigan Army Medical Center and Multicare Healthcare Systems.
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Montana's 'angel' investor sees changing values boosting state's investor appeal

Those who have watched or experienced Liz Marchi's commitment to provide funding for Montana entrepreneurs and startups for a decade might suggest that the term "angel investor" was coined specifically to describe her.

Liz Marchi
Liz Marchi 
It was 2003 that Marchi, who had arrived in Montana with three daughters and her then husband and settled in the Flathead Valley, decided to create the state's first angel fund, Frontier Angel Fund I. The fund closed in 2006 at $1.7 million, $300,000 more than she had hoped.   
     
She eventually guided the Kalispell-based fund, which had attracted investors from around the country who were either fans of or summer residents in the Big Sky Country, to lead three deals and gather a total of 12 active investments and was soon also overseeing angel groups that had sprung up in Missoula and Bozeman.

Because she successfully syndicated her deals with a number of other angel groups outside the state, she jokes that she has become "the grandmother of crowd funding." She's not referring to the formal definition of crowd funding but rather the syndication efforts she initiated that attracted a crowd of angels from numerous groups making small investments.

Now Marchi, who grew up near Jackson Hole, WY, but who had never been to Montana when she arrived here in 2000, says she is looking forward to making the investor-leader handoff to Will Price, whose roots in the state brought him back from Silicon Valley to create Next Frontier Capital, at $20 million the largest venture fund ever raised in the state.

Price, on the board of or a key executive with a number of Bay Area tech companies, did his due diligence on the attitudes of national venture and mergers & acquisitions firms toward Montana before making the move to Bozeman.

Price's fund, which closed last April a year following his decision to bring his family to the state where his father, Kent Price, is well known as Montana's first Rhodes Scholar and University of Montana board member, has already made two investments.

I've kidded Liz and her husband, Jon, who in 1978 founded Glacier Venture fund as the first venture fund in Montana and presided over it for 29 years, about being "Mr. and Mrs. Montana Money." To which she once responded: "We are more like Mr. and Mrs. Montana risk capital since we share a very high risk tolerance...and often share the consequences."

Although Marchi talks about making a handoff to Price, as well as "the next generation of angels, including some members of Fund II in their '30s, who slay me in terms of their abilities," she was completing the formation in August of $2.7 million Frontier Fund II, which has already invested $900,000 with syndication adding $300,000 for a total of $1.2 million already invested.

"We have 48 investors in 10 states and meet physically in Bozeman and the Flathead, alternating with a WebEx option," Marchi said, noting that investors met in Bozeman today, with investors from two continents and four states, including Montana investors from Bozeman and Kalispell to review three Bozeman companies.

That sounds less like "handing off" for the 62-year-old Marchi than welcoming the potential follow-on investment opportunity that venture capital can represent for angel. And she hopes Price's fund will provide.

She says she does have an agreement with Fund II to be the key administrator only for the next two years, but could opt to remain longer. And she is down to business cards representing her current five involvements.

But Marchi is genuinely pleased at the implications of the arrival in Montana of Price, who did his homework before deciding a venture fund could work in Montana.
Price shared with me the research he did with and his thoughts about how "changing values" will benefit Montana's ability to attract capital.

Montana was often dismissed as a "fly-over" state, meaning that the most viable potential investors on the east and west coasts usually just fly over on their way to the other coast.

But Price's SurveyMonkey sampling of both venture and merger & acquisitions firms and found that the appeal of the big sky to many increasingly disenchanted with urban challenges was strong but that direct air access is a challenge Montana must come to grips with.

Fully 70 percent of responding M&A firms said they would consider buying a company in Montana, even though 80 percent said they had never been to the state. And a third of the venture firms said they would consider doing a deal in Montana, although 47 percent said they had never been there.

The import of improved air access to a state that has no direct flights currently to the major markets was dramatically indicated with the response of M&A firms, 90 percent of whom said it was "important" or "Moderately important" to have direct air access to the market of their investment.

"That's something the state is going to have to address," Price said. "But I think it will be addressed."

Among venture firms, almost two thirds sad the quality of the local syndicate partner would determine their involvement.

Although Marchi herself has attracted investors from around the country, she observes that "Being away from the noise of the coasts keeps us grounded in an important way.

"The entire conversation and perception needs to move about rural America, what is going on here and its role in making our economy and our country work better," she said, expressing the principle that has guided her commitment to Montana entrepreneurs.
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Deanna Oppenheimer, Bruce Kennedy and Ivar Haglund Hall of Fame laureates for 2016

The Seattle banker who became one of the world's most influential women in banking, the man who set Alaska Airlines on the road to national leadership in its industry and Seattle's clown king of fish and chips have been selected as 2016 laureates of the Puget Sound Business Hall of Fame.

Deanna Oppenheimer, who built her reputation at Washington Mutual then became a key executive at Barclay's Bank, guiding its U.K. operations, is still active as founder of CameoWorks and a member of several international boards. Both Bruce Kennedy, who turned Alaska Airlines from a struggling small carrier to a national leader in its industry, and Ivar Haglund, who founded and guided the growth of Ivar's seafood restaurants, are both deceased.
 
All three will be honored April 21 at the annual Hall of Fame induction banquet at the Waterfront Marriott as the three will join 115 other icons of regional business as laureates selected since the Business Hall of Fame was created in 1987 by Junior Achievement and the Puget Sound Business Journal.

Oppenheimer joined Washington Mutual's marketing department in 1985 five years after her graduation from University of Puget Sound and, from the time Kerry Killinger became CEO in 1990 and over the next 15 years, she was a key executive helping guide major acquisition decisions and the dramatic expansion of WAMU.

But she was watching from afar as she saw the Seattle bank that she helped grow during her two decades there disappear in the 2008 financial meltdown while she was steering Barclay's, the respected old British bank, successfully through the global crisis.

She returned home to Seattle in 2011 after five years at Barclay's transforming the global retail and business-banking divisions of the staid 350-year-old institution and founded Cameoworks LLC, a global retail and financial-services advisory firm.

In October 2010 was voted American Banker magazine's Second Most Powerful Woman in Banking.
Bruce Kennedy, who served as Alaska's chairman and CEO between 1979 and 1991, a period of dramatic growth in revenue and route expansion that set the airline on the road to being the dominant force in the airline industry that it has become today.

Kennedy was an Anchorage businessman whose real estate firm bought an Alaska airlines that was near bankruptcy in 1972 and the firm steadied the carrier financially, setting the stage for Kennedy to assume the top post.

Over Kennedy's 12 years at the helm, Alaska's revenue grew more than six-fold to $1.1 billion by the time he retired to focus his attention on humanitarian work, traveling to China to teach English, sheltering refugees in his home and serving as chairman of Quest Aircraft, which made aircraft for dangerous and remote locations.

It was under his leadership that Alaska developed routes to Southern California, Russia and launched the Mexico connection that has become a vital segment of Alaska's business today and that Alaska acquired Horizon Air, a Northwest regional carrier that has grown to be the nation's eighth largest regional airline.

Kennedy died in 2007 when his small plane crashed on Wenatchee as he was en route to visit his grandchildren. He was 68.

Ivar Haglund was a Seattle folk singer and restaurateur who came to be referred to as "King," of Seattle's waterfront And the "flounder" of Ivar's. In 1938 he established Seattle's first aquarium on Pier 54 along with the fish and chips stand as he presided over a growing restaurant chain guiding a belief that quirky fun is important. That conviction included erecting underwater billboards, seeking a permit for a facility to grow marijuana for his special chowder.

In 1965 he launched the annual fireworks display over Elliott Ba every "Fourth of Jul-Ivar." By then he had become a legend as rdstaurateur, radio personalityhe began lofting fireworks over Elliott Bay every "Fourth of Jul-Ivar," he was a legend. He became a radio personality and  Puget Sound's principal champion of regional folk music.

Bob Donegan, whose 15 years at the helm of Ivar's have brought a doubling of revenue as Ivar's clebrated its 75th aniverary last August.

Donegan notes that Ivar set up one of the first pension and healthcare programs and that "Ivar hired people, kept them for decades and treated them well, setting the stage for the company's philosophy that employees come first."

This is the 29th anniversary of the launch of the Puget Sound Business Hall of Fame, although the local event was superseded in 1993 when the JA's National Business Hall of Fame was held in Seattle and Steve Jobs was among the newly inducted laureates on hand to accept his award.

David Moore, JA president for Washington, announced that Seattle Mariner President Kevin Mather would be the chair of the 2016 event.
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Panel with two prominent local TV execs about challenges keys discussion of media accuracy

No time could be more logical for a conversation about accuracy in media than political season and presidential debates.

So this column is by way of sharing such a conversation between a couple of old-media "believers" about increasingly common challenges to old convictions, like how important is media accuracy? What does "accuracy" mean? Accurate to whom? Is it losing its importance? And what is media anyway?

Except the conversation in question was generated not by the political season, but by a panel discussion earlier that day in which I got to question two of Seattle's most respected television executives at the Columbia Tower Club's "Q and A with a CEO" series about the state of television now and challenges to come.

Pam Pearson, vice president and general manager of Tribune-Broadcasting owned KCPQ13, and Rob Dunlop, president and CEO of KCTS9, the local public-television station, both expressed conviction about the importance of local news and information to their stations.

Pearson, who was an executive at Tribune stations in Los Angeles and Chicago before arriving in Seattle in 1999, and Dunlop, who brought 20 years as a top executive with Seattle's Fisher Broadcasting when he arrived in fall of 2013 to guide Seattle's public-television station, have led with their actions rather than their words on this issue.

Pearson, who got her start in news as a reporter for Ted Turner's CNN in Atlanta, has added 10 hours a Day of local news programming to her station's offerings while Dunlop has acquired the on-line news journal Crosscut.com and emerging local website What's Good 206, which presents a millennial perspective on local issues.

Both Pearson and Dunlop have set a premium on quality journalism for their stations, even though news and information are only a portion of their offerings.

The discussion with Pearson and Dunlop ranged well beyond their news commitment since both are leaders in a medium that is challenged as never before by audience segments that can now find their content anywhere, and in fact create content themselves.

And Dunlop shared that his Channel 9 audience that includes about a quarter who are in the 4-to-11 age range. And even that audience is already straying to get their entertainment from devices other than the television screen.

What they are both aware of as they consider what the future holds is that commitment and quality don't carry any guarantee of success in a world where virtually anyone can be a content provider in the internet era, and that as it relates to news, the quest for accuracy is not necessarily pervasive.

As Pearson noted, "There are so few actual barriers to entry into the digital world by content providers...and it is very difficult to know what's credible."

And that question of credibility in news keyed the later conversation with a friend of mine, Pat Scanlon, who is responsible for the existence of this weekly email column because he pressed me six years ago, after my retirement from Puget Sound Business Journal, with "you should have a blog and I'll show you how."

Scanlon has since become what could be described as "the guru of all things digital on behalf of old-line media companies" and is thus versed in emergence of an array of digital content, having built a digital network of perhaps 200 small daily newspapers for the Pittsburgh Post-Gazette and later USA Today's national high school content.

The conventional media issue of "fact check" in debates or political discussion is a noble effort but one that makes few friends since there is a sense that "most people don't want to read the truth or the unbiased facts, they want to read things that support or reinforce their conclusion,"as one media observer put it.

"When all is said and done, only the local TV station or newspaper, of whatever size, has the tools that make them the perfect brands to hold authority accountable - journalistic standards combined with brand equity in their communities," Scanlon said. "But their window of opportunity to capitalize on this positioning is closing, and slowly some online-only outlets are making ground on the credibility required to perform this function and take this position."

I shared with him that I am less concerned about new-media content-creators and bloggers for whom credibility based on accuracy is the goal but rather on bloggers and other content providers who seek to acquire credibility without being forced to be accurate.

An example that constantly comes to mind for me is bloggers who provide paid content, meaning they are paid by the subjects of their blogs, without readers being made aware of that key fact.

Since I think that is a broader problem then people may realize, I once suggested to a newspaper publisher that he could cement a relationship with the social-media audience by regularly running a well-researched page about what blogs readers can trust and those that are questionable. That type of editorial service would obviously incense those new-media types who demand "who are you to decide what's accurate?"

The rise of Fox News has created its own divisive role as it relates to what politically disagreeing individuals view as "facts."

Thus the emergence of conversations that refer to what "your news media" says vs. what "my media" says in terms of delivering all the facts or in how the facts are portrayed.

In summing up the point about accuracy, Scanlon said: "altruistically, the truth is the truth. But realistically, accuracy means verification from multiple sources."

"And as to media accuracy, I feel it is more important than ever, but harder to attain," Scanlon said. "Currently, there seems to be a sense that whatever 'my' truth is makes it 'accurate.'"
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Remembering Vietnam's 'defining battle' 50 years ago part of this Veterans Day

As Americans mark the day that honors veterans, those who fought in what history suggests was the defining battle of the Vietnam War are preparing to share memories of that Ia Drang Valley battle where U.S. forces and North Vietnamese regulars clashed for the first time 50 years ago Saturday.
It was the service and sacrifice of those who fought in this generation's wars in the Middle East that were mostly on the minds of those using this as a day to remember. Afterall, the Vietnam War had been over for almost a decade before the oldest millennials were even born. So for most, it's the stuff of history books.
 
 
But Ia Drang is the focus of this column, in part because my friend Joe Galloway has been, for the past nearly two years, a key player in the effort to say thank you, 40 years on, to the Vietnam veterans who got only disdain when they first returned home. And because of his visit to Seattle earlier this year as part of his role of interviewing Vietnam veterans, this area was a key participant in the national, Congressionally mandated, focus on Vietnam.
 
 
An additional and important Seattle-area tie to Ia Drang is that Bruce Crandall, a Kitsap County resident, was a hero of the battle as one of two helicopter pilots who flew nearly two dozen times into the heat of the battle to ferry in supplies and take out the wounded. Both Crandall and his now-deceased fellow copter pilot Ed "Too Tall" Freeman were awarded the Medal of Honor for their heroism and were heroes of both Galloway's book and the movie made from it.
I've written previously about Galloway, a one-time colleague at United Press International, and his war correspondent role for UPI that led to his book, We Were Soldiers Once...and Young, and the movie made from it, We Were Soldiers, that brought the Battle of Ia Drang to an historical high point. And having turned in his camera for a weapon as the battle swirled around him, he was awarded the Silver Star for his battlefield rescue under fire of a wounded soldier.
Both Galloway and I have special memories of UPI, the uniquely beloved wire service where most of us would have worked for free (and during union contract negotiations, it was frequently suggested to the company that we almost did). Add to that the mutual friends who shared those memories, including Tracy Wood now a writer in Orange County, one of a cadre of talented female correspondents UPI was forward thinking enough to send to the Vietnam war zone, and Bob Page, the boss of all of us as UPI's second in command, who now owns publications in San Diego.
With the help of Q13 Fox television and its general manager, Pam Pearson, Galloway was able to conduct more than a dozen interviews with Vietnam Veterans, including Crandall, during his week here. And I got to interview him twice, at Seattle Rotary and the Columbia Tower Club, during that week and this column is an occasion for an exclamation mark on Galloway's role here with the Pentagon's effort to preserve the recollections of those Vietnam Veterans.

As Galloway has written: "What happened there, in the Ia Drang Valley, 17 miles from the nearest red-dirt road at Plei Me and 37 miles from the provincial capital of Pleiku, sounded alarm bells in the Johnson White House and the Pentagon as they tallied the American losses. It was a stunning butcher's bill of 234 men killed and more than 250 wounded in just four days and nights, November 14-17, in two adjacent clearings dubbed Landing Zones X-ray and Albany. Another 71 Americans had been killed in earlier, smaller skirmishes that led up to the Ia Drang battles."

"The North Vietnamese regulars, young men who had been drafted into the military much as the young American men had been, had paid a much higher price to test the newcomers to an old fight: an estimated 3,561 of them had been killed, and thousands more wounded, in the Ia Drang campaign," Galloway recalled.

Galloway, and historians after him, described the battle of the Ia Drang Valley as defining, even though the war dragged on for another eight years before the end of U.S. involvement, and 10 years until the actual fall of Saigon.

It was defining, Galloway wrote, because it "convinced Ho(Chi Minh), (General) Giap and (Defense Secretary Robert S.) McNamara the U.S. could never win." The realization of both sides was that the American citizenry would not accept for a long period the pace of casualties that the companion battles in the Ia Drang Valley produced.

Although President Johnson, having listened to McNamara's sense that we couldn't win in Viet Nam, no matter how many men we sent there, huddled with his key Advisors and they determined: "send the soldiers anyway."

In fact the current issue of Stars and Stripes devotes a special section dedicated to "Vietnam at 50," and headlined "Ia Drang Valley: Where the U.S. truly went to war."

So I exchanged Veterans Day emails with Galloway on the forthcoming 50th gathering.
"On Friday I mark my 74th birthday; at the time back then I never figured I would live to see my 25th birthday," he said. "On Saturday I gather with my Ia Drang brothers at an anniversary dinner hosted by the 1st Cavalry Division Association."
"The memories always begin flooding in around early November each year, but this year, the 50th anniversary of the battles is even more intense," he wrote.
"I have received stories and emails sent to me by Trudie Olson, widow of PFC Jimmy Nakayama, whom I carried out of the napalm fire at Landing Zone X-Ray, and from Camille Geoghegan Olson, daughter of Lt. Jack Geoghegan who was killed in action when he got out of his foxhole and ran to rescue one of his troopers, PFC Willie Godbolt. Geoghegan and Godbolt's names are side by side on Panel 3-East at the VN Veterans Memorial in DC. Together in death as they were in life."
"So many memories from a long-ago war," Galloway mused. A phrase likely echoed in some way by veterans of all the wars on this day to honor their contributions.
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A rural economic development strategy focused on entrepreneurs

 

If Global Entrepreneurship Week, the annual worldwide celebration of innovators and job creators, had been a competition among nations, states and regions, Washington State could have laid claim to being the hands-down winner. And that would be appropriate recognition for the man who has guided much of this state's effort to advance entrepreneurship, particularly in rural areas and particularly with young people, for 25 years.

 

 

 

 

Maury Forman, senior manager for the Washington State Department of Commerce, is proud of the fact that in this state, GEW 2015 was actually Global Entrepreneurship Month and extended to every corner of the state with activities in all 39 counties. Four years ago, when Forman plugged the state into GEW activities, three counties participated.Forman says "we are changing the way communities look at economic development." That's an outgrowth of his effort, over much of his quarter century overseeing key economic-development sectors, to develop a culture of entrepreneurism in rural areas.

Global Entrepreneurship week was founded in 2008 by the Kauffman Foundation, the Kansas City-based 501c3 that is the nation's pre-eminent entrepreneur-focused organization, to create an annual celebration of innovators and job creators who launch the start-ups that drive economic growth.

 

Forman, who joined what was then the Department of Trade and Economic Development in 1991 in a career transition from healthcare at the age of 40, says "No other state can claim that every part of the state had at least one event that celebrated entrepreneurship."

 

 

"One of the exciting aspects of this year's celebration of entrepreneurship was the number of high school programs being held throughout the state," Forman said. "In many cases, college isn't the natural next step it was once for high school students so these programs expose them to the idea of starting their own business once they graduate. Or if they do go on to college, they can focus their education on skills that will allow them to start a business in the years to come."

 

 

Forman says he has kept his primary focus on rural economies because "they need the assistance much more than urban communities," as well as because he has become convinced that the strategies for growth of many rural areas that has been focused on recruiting companies from out of state is outdated.

 

 

"That has to change if rural communities are to survive," Forman said. "Communities have to be shingle ready and not just shovel ready."  

 

 

In a recent article in Governing, a national magazine covering state and local government news, Forman wrote about Washington's three-year-old program called Startup Washington that focuses on building local economies "organically" by serving the needs of local startups and entrepreneurs.  

 

 

Forman is likely among the national leaders in the conviction that programs to enhance local economic development "must nurture the belief that young people who grow up in rural communities can be guided to start businesses in their own community rather than moving to urban centers."

 

 

"Just as young people are looking at new ways to enter the work force other than working for someone else, so too are communities looking for ways other than recruitment of businesses from elsewhere to grow their economies," Forman said.

 

 

One of the ways he is seeking to do that "is by matching those students that are serious about being entrepreneurs with mentors, especially in rural communities."

 

 

Indeed matching students who hope to be entrepreneurs with mentors is becoming the model for successful communities, particularly rural ones, to pursue.

 

 

Some communities have long been employing that model, as chronicled in the oft-quoted book written by Jack Schultz, founder and CEO of Agracel, a firm based in Effingham, IL, that specializes in industrial development in small towns.

 

 

It was in pondering why some small towns succeed where others fail that Schultz set out on the backroads to rural America to find out as he became the nation's guru of rural economic development and wrote of his travels in Boomtown USA: the 7 ½ keys to Big Success in Small Towns.

 

 

I emailed Schultz about entrepreneurism's role in small town success and a possibly emerging role for mentor programs.

 

 

"Embracing entrepreneurism in communities has been a key factor that differentiated great communities from also-rans," he emailed back. "Increasingly, we are seeing those great communities taking it a step up by tying their local entrepreneurs up with their young people, educating them on both entrepreneurship and also the great things happening in the private sector of their towns."

 

 

Schultz' successes in believing in small-town entrepreneurs and small-business lending is partly responsible for the fact the Effingham-based bank he helped found and now chairs the board, has grown eight fold to $2.9 billion in assets and gone public.

 

 

"At Midland States Bank, we have very much focused on small business lending and it has been a major factor in our growth over the last several years," Schultz said.

 

 

In an unusual and innovative commitment to the dozens of communities it serves, the bank has funded a not-for-profit institute to expand an entrepreneurship class that was started in Effingham eight years ago and has now expanded to 27 other towns.

 

 

Forman seemed intrigued by the details Schultz provided:  The class meets each day during the school year from 7:30 to 9 am; meets in local businesses; is totally funded by local businesses with a maximum contribution of $1,000 per business or individual.  Each class has a business and each student must also start a business.  

 

 

Meanwhile, Forman approaches his 25th anniversary with the department on January 1 having collected numerous regional and national awards for his work and successes. Those include last year winning the international Economic Development Leadership Award and recognitionby the Teens in Public Service Foundation with the Unsung Hero Award for his work with at risk kids.   

 

 

He has authored 14 books related to economic development, and has also designed and developed creative "game show' learning tools, including Economic Development Jeopardy, Economic Development Feud and two board games for the profession.

 

 

Forman credits the directors who have guided the department over his time there for allowing him "to be intrapreneurial," meaning behaving like an entrepreneur while working in a large organization, noting "not many government agencies allow the freedom to take risks in an effort to solve a given problem."

 

 

 

 

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Reflections: Brexit, out-of-touch High Court ruling, talk of 28th Amendment

It was well over a year ago that my brother, a retired Spokane small-business owner, began telling me, in support of the Donald Trump phenomenon, “Mike, you don’t understand, the silent majority is roaring.” My response was always, “I hear the roar, but it’s a minority made up of those unsettled by the murky mix of terrorism and immigration policies and angered by their lack of influence, or even contact, with the establishment.”

Then came last week’s Brexit vote, where the English version of folks I described turned out to be the majority, leaving establishment leaders of both major parties in this country to ponder whether what’s at stake is a desire to throw out the system rather than merely overturn particular politicians or policies. And what that means come November.

Or for the future. Thus perhaps an appropriate time to ponder questions as Independence Day approaches

Now a week following the blow to the U.K. comes a decision by the U.S. Supreme Court almost certain to fuel anger at the established order, the court making it harder to prosecute public officials for corruption by basically saying it’s ok for “the system” to include paying elected officials to influence their decisions.

At issue was the case of former Virginia governor Bob McDonnell, who was convicted by a lower court of using his office to help a businessman who had provided McDonnell and his wife with luxury products, loans and vacations worth more than $175,000 when Mr. McDonnell was governor.

Chief Justice John G. Roberts Jr., writing for the court, narrowed the definition of what sort of conduct can serve as the basis of a corruption prosecution. He wrote that “routine political courtesies like arranging meetings or urging underlings to consider a matter generally, even when the people seeking those favors give the public officials gifts or money,” do not represent corruption.

The alternative to the new limits, Roberts wrote, would be to criminalize routine political behavior. “Conscientious public officials arrange meetings for constituents, contact other officials on their behalf and include them in events all the time,” he wrote. All the time! Isn’t that the problem?

By now readers of this column have likely concluded that the usual focus on people, companies and issues that relate the Northwest is being upstaged to Harp about some personal thoughts on an issue that impacts us in this region, but that transcends us.

Fodder for thought following Brexit, for those who care to think, is offered by The Los Angeles Times‘ Vincent Bevins: “Since the 1980s the elites in rich countries have overplayed their hand, taking all the gains for themselves and just covering their ears when anyone else talks, and now they are watching in horror as voters revolt.”

It has to be hoped that the revolt is aimed at reconstructing rather than destructing the Democratic process. But that may not be certain.

A quote from author and MSNBC commentator Chris Hayes is getting attention on social media in the wake of the Brexit vote.

“The mechanism that western citizens are expected to use to express and rectify dissatisfaction – elections – has largely ceased to serve any correction function. When Democracy is preserved only in form, structured to change little to nothing about power distribution, people naturally seek alternatives for the redress of their grievances, particularly when they suffer.”

Coincident with the post-Brexit analysis have come a couple of group emails in which I was included, both suggesting that the idea of change by the ballot isn’t being totally abandoned. Both related to a focus on the 28th amendment to the U.S. constitution and both widely popular but not yet widely promoted.

The first relates to ongoing discussion about an amendment to overturn Citizens United, the U.S. Supreme Court decision that held political expenditures by corporations could not be limited.

Polls show the efforts for a 28th Amendment to overturn Citizens United is supported by more than 75 percent of Republicans, Democrats, and Independents and sixteen states have enacted 28th Amendment resolutions.

The other idea gathering support as a proposed 28th amendment: "Congress shall make no law that applies to the citizens of the United States that does not apply equally to the Senators and/or Representatives; and, Congress shall make no law that applies to the Senators and/or Representatives that does not apply equally to the citizens of the United States."

It strikes me that this idea could generate some positive action from voters by, between now and the November General Election, insisting every member of Congress on the ballot, as well as every state legislator, commit to voting in favor of the constitutional change next year. Or bite the bullet as voters and vote for the opponent, regardless of ideological compatability.

There are examples of the manner in which a fed-up public can bring a positive focus to their anger and bring about beneficial change within the system.

 

One such example was actually the result of an idea of someone from inside “the system,” then-Washington congressman Brian Baird, who during the last three of his six terms as the representative from the state’s third district sought to gather support in Congress for what he called the “Stock Act.”

 

Baird sought to prevent members of Congress from doing stock transactions in areas they regulate, in essence, prohibiting their investing in a manner that those in the real world call Insider Trading.

 

I wrote about it in a November, 2011, column after a program on CBS’ “60 Minutes” brought national attention to Baird’s idea with a program titled “Honest graft.”

 

For ordinary citizens, reaction to Baird's proposal would be a laughable "well, of course." But in a place whose mantra is "the rules we make for you don't apply to us," seeking to force action by the lawmakers on one small, self-imposed ethical constraint could become a rallying point for a fed-up public.

 

The thrust of the CBS segment was that lawmakers often made stock purchases and trades in the very fields they regulate. While ordinary citizens could be jailed for engaging in the kind of investment shenanigans that those in Congress involve themselves in, there's wasn’t even an ethical concern among lawmakers.

 

Reporter Steve Croft questioned then-House Speaker John Boehner and former Speaker Nancy Pelosi at their respective news conferences. And the ineptitude with which both Boehner and Pelosi tried to answer Croft's questions about whether their investment practices were at least conflicts of interest, the thought that had to occur was "Who elects these people?" The answer, unfortunately, is people like us elect them. And both have continued to be elected. Shame on us. And so maybe a revolt wouldn’t be that bad.

 

As a result of the outcry following the program and You Tube pieces on the congressional leaders’ confused responses, the Stock Act was passed overwhelmingly in the spring of 2012 with what observers described as “vulnerable congressmen” at the forefront of supporters. So now Members of Congress and employees of Congress are prohibited from using private information derived from their official positions for personal benefit, and for other purposes.

 

Baird had already retired by then, having decided not to seek a seventh term, thus exemplifying one of the concerns about the future of the Democracy as currently operating: The Nancy Pelosis remain in office and the Brian Bairds decide to leave.

 

 



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Oregon ballot measure would dramatically boost business taxes

Just as the races for state and national offices in the November General Election may demonstrate that anger can trump reason, voters in Oregon will be faced with deciding a ballot measure that will test whether anger at big business over things like soaring executive compensation exceeds logic.

At issue is IP28 (Initiative Petition), which targets Oregon's biggest corporations — roughly 1,000 by the state's estimates, or about 4 percent of businesses. Those with $25 million in Oregon sales would pay a minimum $30,000 tax, plus 2.5 percent on anything above that threshold.

In essence, it would be a tax on gross receipts, like Washington’s business & occupation tax, generating an estimated $6 billion in new revenue. Except in Oregon it would be in addition to the tax on personal and corporate income and would boost corporate tax collections more than five-fold.

As my friend Don Brunell put it in his latest column, which alerted me to the fact the measure had been cleared for the November ballot by collecting the required 130,000 signatures, “Washington’s next economic development plan may be written by Oregon voters next November.”

His point was that “Oregon voters need to remember that Washington and California have heavy concentrations of large businesses and stand to benefit from passage of IP28 and that while all parts of Washington would gain, the corridor between Vancouver and Longview could be the biggest winner.”

Brunell, retired president of Association of Washington Business, in his more than a quarter century at the helm of the state’s largest business association saw all the off-the-wall ideas for taxing business. But it’s as a longtime observer that he shakes his head at this proposal, noting the tax scheme “would transform Oregon from one of the nation’s lowest business-tax-burden states to one of the nation’s highest.”

Organizations that purchase products and services from those major businesses would undoubtedly see their costs increase and thus would need to increase their price for items resold to Oregon consumers. In response to this, businesses purchasing goods in Oregon may opt to leave the state or relocate some or all of their facilities to avoid the increased cost of doing business in that state.

IP28 is sponsored by Better Oregon, a labor union coalition led by the Oregon Education Association, and targets “big business”.  Proponents claim it would tap a tiny portion of Oregon businesses while bringing a huge revenue boost to cash-strapped public education, health care and senior services.

The non-partisan Legislative Revenue Office, in evaluating similar proposals to IP28, has forecast job losses should a gross receipt tax pass.

Former Washington Gov. Mike Lowry, who despite being perhaps Washington’s most liberal governor carried an understanding of the importance of nurturing big businesses as the creators of better-paying jobs, offered his classic belly laugh when I called him for his thoughts on the initiative.

“We always looked to Oregon for progressive ideas but this would represent the total opposite,” Lowry said. “The gross-receipts tax is about the worst tax there is.”

Amusingly, Lowry understood how to use the tax as a whip. In his first year in office he sought to have the Democrat-controlled legislature extend Washington’s sales tax to service businesses like law and accounting firms, which used their lobbying clout to beat back the effort.

But they paid a price by having the lawmakers impose the highest b&o tax rate on services, a payback in the form of a 2.5 percent rate, which though now reduced to 1.5 percent remains the state’s highest rate, reserved for service businesses and professional gambling.

Most gross receipts tax rates around the country are relatively low when compared with the Oregon proposal’s 2.5 percent rate. In Washington, it ranges from 0.138 percent to the aforementioned 1.5 percent. Thus if the measure were to pass, the tax burden of operating in Oregon would increase dramatically when compared with other states.

Proponents argue that “IP28 would modestly raise the effective tax rate of large corporations and use the added revenue to fund Oregon's crippled public school system, provide services to seniors, and extend health care coverage to 18,000-plus children.”

Problem is if it comes to be marketed to voters as “the big-business tax,” the result could be that anger overrides common sense for voters, among whom would be many that would face loss of their jobs if the analysis of business reaction proves true.

The ballot proposal comes as raising taxes on wealthy individuals and large corporations is at the forefront of a national debate — especially among Democratic progressives, including much of Oregon's electorate— about how to close the gap of economic disparities between rich and poor in the post-Great Recession era.

And if there is a doubt that anger at big business underlies the measure, and leaves concern about the logic voters will bring when they mark their ballots, supporters point to the current difference between growth in corporate profits vs. growth in family income in Oregon. They say it’s time big business takes on its fair share of the tax burden to help pay for education and social services.

Business people in Southwest Washington are not only looking to gain business if the measure is approved, they are having some amusement thinking about it.

When I talked with longtime Vancouver businessman Michael Worthy about it, he chuckled and offered that the two-state effort to agree on financing a new I-5 bridge across the Columbia could be solved by letting firms that would want to move operations out of Oregon might want to pay for improved transportation they’d need.

And when I asked Brunell why he thinks intelligent voters would go for a tax that would likely impact them, and perhaps their jobs, he replied: “I suspect, knowing Oregon a little better by living down here in Vancouver, there is a reason for the bumper sticker: ‘Keep Portland Weird.’” 

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Arrival of federal crowdfunding gives start-up companies options

Almost four years overdue, federal crowdfunding rules went into effect last week to fulfill a 2012 Congressional mandate to "democratize" the process by which entrepreneurs and small businesses can raise start-up capital from "the crowd" of investors of average means.

Some cynics might view as "Democracy in action" the fact that it took almost four years for the Securities and Exchange Commission to come up with the rules that Congress originally gave it 180 days to enact so the legislation known as the Jumpstarts Our Business Startups (JOBS) Act could go into effect.

But the upside of the years of delay was that almost half of the states, including Washington, were spurred to seize the opportunity to come up with intrastate versions of the crowdfunding concept. As a result entrepreneurs in most states have the choice of federal or state regulations to use in seeking start-up capital from average investors, a choice that would likely not have come to pass without the SEC's foot dragging.

And in fact, the act's regulatory debut of 17 federal filings the first day was characterized as "pretty impressive" by Faith Anderson, the respected Registration and General Counsel Program Manager in the Securities Division of the state Department of Financial Institutions (DFI).

How the individual states have fared in the responses to their crowdfunding legislation has depended on a number of factors. Oregon, for example, because it has a non-profit dedicated to helping entrepreneurs through the process, has had good reviews.

Montana, on the other hand, has an unusual constraint that requires that half of a startups' business must be done in Montana.

"Makes it a pretty small prospective market," quipped Liz Marchi, the Kalispell-based leader of three Montana angel funds.

Before its crowdfunding legislation was approved last year, Montana was already rated the top state in the nation for start-up businesses on the Kauffman Index, the annual state ranking of startups by the Kauffman Foundation, largest entrepreneurship-focused non-profit in the country.

Marchi, who is finding enough entrepreneurs already emerging in the Big Sky Country, is not a big fan of crowdfunding for entrepreneurs, saying "I plan to stay away until all the unintended consequences have been worked out."

Meanwhile, Oregon's non-profit called Hatch Oregon, which travels around the state vetting startups it works with, is getting positive attention from startups there for what amounts to an incubator that seeks to guide entrepreneurs past the financial rocks and shoals of the crowdfunding game.

Hatch, whose platform hosts 10 of the 11 offerings filed in Oregon so far, offers no guarantee to the companies it works with. The incubator also produced a video called "Let's Be Frank" that tries to outline the risks in plain language.

Washington has no such entity to inexpensively help entrepreneurs along the road toward fundraising. But regulators have sought to put in place a program that helps guide startups to produce a document that ensures they are in compliance with securities laws, that investors are protected and entrepreneurs themselves are steered away from possible future liabilities.

The intent is an entrepreneur could be helped through the process without having to necessarily incur the expense of an attorney.

But the fact not all startups want to be so carefully guided is evident by the fact that one of two companies filing under the crowdfunding law got considerable media attention by lamenting that its efforts to get the paperwork done and get to fundraising was being hung up in red tape.

The sense is that what the filing firm viewed as "red tape" was insistence by state regulators that all the requirements be met, and one of the challenges for startup hopefuls is that not all attorneys understand the law and its regulatory requirements at this point.

One nagging aspect of the SEC rules in place that govern the crowdfunding laws of all the states is something known as Rule 147, referred to as the "intrastate offering" exemption, which has strict requirements that intrastate offerings be contained within the boundaries of a single state. In other words, an entrepreneur filing under the Washington State law not only can't take money from the resident of another state, but the resident of another state isn't even to see the offering.

So far, the SEC has been firm in the view that if someone in another state sees the information on the offering, it is no longer intrastate, which would basically nullify the fund-raising effort.

Anderson, chair of the Small Business/Limited Offerings Project Group of the National Securities Administrators Association, produced a report some months ago for the securities departments of all 50 states that was critical of Rule 147 and its impact on entrepreneurs.

The SEC has apparently gotten enough push back from the states on that constraint that, as Michelle Webster, financial legal examiner for DFI, explained, the SEC has several proposals, which are currently merely proposals it will consider that would amend the JOBS Act rules. One that would address that almost universal Rule 147 irritant would allow intrastate visibility for an offering as long as only residents of the filing company's state were permitted to invest.

But the fact is there is no timeline for the SEC to actually act on proposed amendments to rule 147. And some suggest the agency might never act since they do not have a Congressional push to do so.

Joe Wallin, a Seattle attorney with Carney Badley Spellman, who basically wrote the state legislation that created the crowdfunding law in this state, has been critical of the fact that those assisting entrepreneurs to raise funds cannot legally charge a fee representing a percentage of dollars raised unless licensed as a broker-dealer.

That's a federal restriction and Wallin is convinced an easing of that rule would find a lot of individuals and groups stepping forward to provide fee-based assistance based on a percentage of the dollars raised rather high hourly fees.

Washington' Securities Administrator, Bill Beatty, suggested that from now forward, with both federal and state options open to would-be crowdfunders, to be determined is: "will the federal model, which requires the use of licensed portals, or the typical state model, which allows issuers to conduct the offering, be more attractive?"

The sense has been that the cost of using a licensed portal could be a substantial slice of the $1 million that a crowdfunding startup would be permitted to raise the first year. But Beatty said he has gotten the sense of more reasonable pricing from some portal operators.

"If the costs prove to be reasonable, I think federal crowdfunding has a much better chance of gaining traction and being a useful tool for some small businesses," he said.

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