By Robert Edwin Field
The Intelligencer Journal New Era article “Dispute over direction, control of PAM leads 9 trustees to resign” was well written, good intentioned, direct in story line, and entertaining reading. However, readers would be mislead to place the full blame for the financial debacle of the Pennsylvania Academy of Music on co-founders Michael J. Jamanis and his wife Fran Veri, rather than perceiving what went amiss holistically.
Fran Veri is quoted as saying “The academy has got to be driven by its mission. I realize the business world will say it’s driven by its finances. But the business plan must support the mission. The mission must not be modified to support the business plan.” On the surface, this appears to be utter nonsense. But this is the way most artists see the world! Should we expect them to think like bankers, manufacturers, lawyers or merchants?
As NewsLanc mentioned in its coverage, cultural institutions must have a working relationship between business leadership and artistic leadership. Veri’s quote may seem irresponsible to most readers, but to someone long associate with the production of motion pictures, we simply read it with a smile.
So where was the board of trustees who had the responsibility for making the business decisions for the Academy?
The article goes on to say “The new trustees also persuaded the Ferree Fondation of Lancaster, which had partially guaranteed the mortgage, to support the plan. This was a done by signing over other PAM assets to the Foundation. (Ferree is led by former PAM chairman Paul Ware, who pushed in vain to close PAM at a June board meeting, then resigned the next day, Veri said.)” Suffice it to say Ware had significant taxation reasons to go along whether or not he received the assets Ferree demanded.
Ware, son and heir of a congressman who was very successful in business, is to be admired for his philanthropy. But his business acumen is subject to question, since he was the chair of the board of trustees when the decision was made to move ahead with the building and, in fact, made it possible by personally guaranteeing a major portion of the borrowings! He was also in charge when costs of construction soared. It was Ware as chair who was privy to and approved projections for operations that proved totally unrealistic. Ware was as gung ho for moving ahead as Veri and Jamanis!
It should also be noted that Robert Falk, MD, who resigned as chair over the weekend, was also chair of the board before Ware took over.
Nor should too much credit be given to the business committee that was formed last year to try to rescue PAM’s finances, despite the abilities of the members, their hard work and good intentions. Perhaps it could not be avoided short of filing for Chapter 11 bankruptcy which would have bought time for reorganization and reduced debt, but the outcome was uncertain. But once the building was given over to United National Community Bank on the basis of a short term lease and no plan put in place to move the school, whatever opportunity PAM had for survival at its current location was slight.
This entire drama played out against a background of friendships among the participants and major donors often from childhood through advanced age. As so often is the underlying reason for error in Lancaster affairs, acquiescence to establishment figures and the desire to get along socially undermines critical judgment and discourages leadership.
In summary, there never was effective business leadership at PAM, from start to finish. Until almost the very end, direction was given over or seized by the artists. Those who allowed such a situation to occur are at least as much to blame as are Veri and Jamanis.
