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Is Free Republic a Fraud? Is it time for Free Republic to go away?
Free Republic | 11/28/01 | Jim Robinson

Posted on 11/28/2001 7:31:29 PM PST by Jim Robinson

Free Republic has had one helluva run over the last five years or so. We helped impeach one president and helped get another into office. We've been active in demonstrations and protests in nearly every city across the nation. We've participated in conventions, petition drives, activism campaigns and projects for dozens of conservative causes.

We've grown from a tiny web site with a few hundred posters and readers from the time of inception in 1996, to one with tens of thousands of participants today. Along the way we've made lots of great friends and, unfortunately, also made lots of bitter enemies.

We've grown from a small web site that I could manage myself on a part-time basis to a huge monster that has totally consumed all of my time and resources plus nearly all of John's time, plus the time and resources of many dedicated FReepers who volunteer or contribute large amounts of their own time and money.

The site is now consuming all of a 10 mbps dedicated line with two servers and we're still growing, and it consumes large amounts of money to keep all this running. In the early years, it only took a few thousand dollars per month to keep Free Republic on the air, but it is now costing over $20,000 per month to cover all expenses.

The major costs include approximately $8,000 per month for bandwidth, 3,000 for systems management and programming services, 7,000 for management, operating and administrative services, plus two or three thousand per month for miscellaneous office expenses, telephone, communications, repairs & maintenance, travel & lodging, postage, rentals, insurance, legal fees, accounting fees, etc., etc.

We anticipate a reduction in bandwidth costs next year as we renegotiate our contract (the market price for bandwidth has fallen recently), however, that will be more than offset by an expected increase in costs of our legal expenses. As most of you know, our pro bono attorney has left us and we've hired a new attorney to continue with our case, plus we have the suit against eschoir to pay for. My projections are that our regular monthly expenses for next year will be running in the neighborhood of $22,000 per month, or approximately $264,000 total for the year. This means we will need to raise approximately $66,000 per quarter.

Talking about making enemies, we've got several ex-FReepers and other detractors who are claiming on their anti-freeper web sites that I am ripping off the donors and that Free Republic is a fraud. Now, Free Republic is what it is, and it is definitely not a fraud. It is a conservative news discussion forum that encourages participation in politics and activism projects. It is not being billed as anything else. We are not selling or promising anything. And I am being up front about our operating costs. The costs of running Free Republic are what I've stated above and they are necessary to keep FR on the air. I do not have the financial wherewithal to operate this site without your help. If the majority of the FReepers feel that these costs are out of line or too much to bear or that Free Republic is no longer wanted or needed, then we will either cut it back or shut it down or do something altogether different.

I've also been criticized about not making our financials public. Well, the reason I do not want to do this is that I have been sued, both personally and as Free Republic, LLC. The people suing us want to bankrupt us and shut us down. They subpoenaed our financial records, but we refused to turn them over. The judge agreed that the plaintiffs have no right to the information, thus I have no intention of making any more of it public than I absolutely have to, until this lawsuit is resolved. You all know the amounts of money we raise if you follow the fundraising threads. It is all above board and out in the open. The totals posted by BadJoe are usually pretty close to the actual cash received and the amounts expended are pretty close to the amounts projected. No one is getting rich here and no one is being ripped off. The funds raised are being used for the purposes stated, and that is keeping this website on the air and that's it. Nothing fraudulent about it. Those who want to help fund us freely do so with nothing expected in return. Those who do not want to contribute do not have to.

There was a thread running this morning where people were making all kinds of accusations about Free Republic "hiding the truth" or whatever. These accusations are being made by Chuck Allan and others and fall along the same line with the accusations being made by some of the earlier banees or AFers including Mojo, Inspector Harry Callahan, Arator, keep U.S. Sovereign, TKEman and others. Some of these people are existing FReepers and some are banned. I am going to reinstate Mojo, Inspector Harry Callahan and Arator's accounts so they can join Chuck Allan, TKEman, K.U.S.S. and whomever else wants to get involved, and I invite them to come onto this thread and make their accusations public. As long as they do not go onto other threads and make a nuisance of themselves, I will let them have their say.

Like I said above, if it is time for Free Republic to go away so be it. Those who want to keep it going speak up. Those who want it to go away, tell us why. But if those who want it to be gone lose out in the debate, then I'd say they should just go away themselves, or, in the very least, shut up and quit whining about it.

Thanks,

Jim


TOPICS: Activism/Chapters; Announcements; Breaking News
KEYWORDS: bushbabeslist; enviralists; hughhewitt; jimroblist; opuslist; usocanteen; zionist
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To: GalFromTheBay
There is no indication that Rush has or has not ever contributed.

We have attempted, in past fundraisers, to get his attention, but whether successful or not, we just don't know.

BADJOE never reveals who contributes other than by state (if it is disclosed). Individual contributors frequently disclose their own contributions on the fundraiser threads.

2,341 posted on 11/30/2001 6:39:12 AM PST by Vermonter
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To: Sam Spade
He is too intimidated to answer me, I guess. It's the downside of being associated with tru/uta/et.al. Typical.

I figured you'd catch some of this thread. I found it interesting to see that aligyrl's first remarks (or did I miss some?) included mooning TDE. So needy for his attention.

2,342 posted on 11/30/2001 6:50:04 AM PST by unsycophant
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To: Jim Robinson
Bump for later worrying.
2,343 posted on 11/30/2001 6:57:41 AM PST by Rogmonster
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To: Inspector Harry Callahan
How do you feel about the IRS? Seriously.
2,344 posted on 11/30/2001 6:58:42 AM PST by unsycophant
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To: Artist
Thank you for the kind words. As for staying, I look at it this way...

Some months ago, I was invited to participate in a web forum founded by Arator. I hesitated for a while as FR filled most of my 'net time and I didn't really see the need for ANOTHER political news forums. I was on the FR Kool-aid at the time. One evening, while deleting a bunch of email, I came across the original invitation and decided to check out the forum. I was surprised and quite impressed at how user-friendly Delphi forums were and I was also amazed at the quality of conversation in Arator's growing club. So I joined up.

I used my FReeper screen name. This marked the beginning of my downhill slide from Free Republic. I was immediately branded an anti-freeper by the likes of Sinkspur and others, even though in my VERY FIRST post on Delphi I stated that I loved FR and was not there to engage in anti-freeping. As some of you know, anti-freeping went on there from the start, though the AFers were subject to the same rules everyone else was. No profanity, back up your posts with facts, no profane personal attacks, etc.

Time went on and I continued to post at Reunion on a part-time basis, while devoting the bulk of my 'net time to FR. I read a lot of AF material and began to ask questions and read some of the documentation in other AF forums. After a while, Arator's place fell apart. Long story, but suffice it to say that basically two factions left the forum in a huff and EVERYONE was angry with Arator for some reason or another. The Brigadiers founded a club and the AFers founded another. I took a break from it all for a while as I was pretty disgusted with the insanity of the blow-up.

When I started posting on Delphi again, I posted mostly at the club where the AFers had migrated. Soon after I joined back up, an anonymous person broke the story about the Eschoir suit costing so much money. This was around the time a certain member of FR posted an article and made the comment, "My last post. Remember, the last thing out of Pandora's box was Hope. Au revoir!" Well, needless to say, the AF community exploded with activity when this news hit.

I followed the story (still using my FReeper name) and actively asked questions concerning it all. I got very angry about the over-inflated legal bill because I was a monthly donor at the time and got upset about my donated money being used to LAUNCH LAWSUITS against ex-FReepers so frivilously (SP?). Who would be next? Why feed a monster like that? And so forth. Needless to say, I was REALLY branded an AFer after this all happened.

When Radio Free Republic started I missed one of the shows. I politely asked Bob J on one of the Radio threads if he could direct me to an archived version of the show I had missed. (Shows weren't archived at this time). Bob J got really testy with me for no reason when I asked. I fired something back like "why don't we drop the sarcasm and just post the link I asked for". To which Bob replied in a real snotty manner that he would continue speaking to me in such a manner as long as I insisted on posting at sites that call for the demise of FR or somesuch cultish crap as that.

A week later I was banned for life.

In the original article at the beginning of this thread, the owner/founder of Free Republic included my name in with known anti-freepers. Is there any doubt that the Powers-that-be around here think that I'm an anti-freeper? I don't think so. Why? Because I posted on an AF board. There are many others that have done so yet are in good standing around here. Check the AF boards, you'll see.

Anyhoo, regarding sticking around Free Republic: Would you?

2,345 posted on 11/30/2001 7:03:08 AM PST by Inspector Harry Callahan
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To: All
I hope the "all" feature is working again ;0)

The issue I was trying to raise with this question

If it is generally believed that the first amendment protects freedom of speech and the press, then does it necessarily follow that a private individual or company engaged in any speech related activity must provide an outlet for opposing views? If so, then must that individual bear the financial obligation of distributing opposing viewpoints?

is that, although "free speech and "free press" are protected under the Bill of Rights, no individual or organization is obligated to provide a venue for the expressions of another. If that were true, then newspapers would have to provide space for all letters to the editor. Media outlets and internet forums would have to provide equal time for all viewpoints. However, this is not the case. Anyone can diseminate their views by taking on the responsibility (and expense) of self-publishing. The 'market' just makes it easier (or more profitable) for some views to be distributed.

2,346 posted on 11/30/2001 7:08:56 AM PST by Helix
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To: Registered
LOL

Well they have had their time in the spotlight. Anti-Nuts

2,347 posted on 11/30/2001 7:13:37 AM PST by TLBSHOW
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To: keep U.S. Sovereign
So now we have to wade thru last year's quarrel's? Then we must delve into Rush's donations or lack of? For God's sake, I am losing patience with the petulance and carping and egging on by prima donnas who remind me of Clinton. Keeps hanging on and on with no purpose in mind other than getting attention. Mr. Robinson has far more patience than have I. BTW I voted for Buchanan in some of the primaries to send the repubs a msg, they/we tend to get too complacent. Rush can donate to FR in many ways without anybody knowing. Maybe he does/doesn't. Not my business nor anybody elses. I am responsible for what I give. Am I freeloading or doing what I am able to do? Mr. Robinson, you have my sympathy as well as my admiration.
2,348 posted on 11/30/2001 7:19:24 AM PST by mountainfolk
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To: Helix
However, FreeRepublic is not listed as a non-profit, charitable organization (with Guidestar) which must file a form 990 with the IRS (disclosure).

And your point is?

2,349 posted on 11/30/2001 7:24:56 AM PST by Z2
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Comment #2,350 Removed by Moderator

To: GalFromTheBay
Priceless.
2,351 posted on 11/30/2001 7:47:10 AM PST by Inspector Harry Callahan
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Comment #2,352 Removed by Moderator

To: X-USAF
Thanks, X-USAF. I was glad to meet you in here, too, and many other fine FReepers. FR has definitely been a vital resource, especially since 9/11.

I pledged a small monthly contribution earlier this month, so I feel the same way.

Cheers,

constable_tom (rumored to have a small amount of brain damage)

2,353 posted on 11/30/2001 7:56:28 AM PST by constable tom
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The final say, Per Jim Robinson.........

And now for the rest of the story.... Free Republic is here to stay!
Activism/Chapters
Source: Free Republic
Published: 12/29/01 Author: Jim Robinson
Posted on 11/30/01 2:32 AM Central by Jim Robinson

Very sorry if the thread I posted yesterday entitled "Is Free Republic a Fraud? Is it time for Free Republic to go away?" startled some of you. The thread was posted simply to allow the people who are criticizing Free Republic and accusing us of fraud to have a place to post their charges, and also to allow those who support FR a place to voice their opinions on whether we should continue or fold up. The anti-FReepers have long held that if only the FReepers knew the truth about me and the fraud of FR, then they would all go away. Well, time will tell if many people have been swayed by their tales of horror, but no one can say that I did not give them a chance to get it all out into the open.

Now I'm happy to say that I have absolutely no intent of ever shutting down Free Republic. The only reason that was in my title was because of the AFers claim. I have stated on many occasions that Free Republic will be on the air as long as the FReepers feel it is needed and viable. If the WP/LAT is successful in bankrupting me or the corporation, then we will find another way to keep our discussion site running. There is absolutely no way that they can shutdown our right to assemble on the internet and voice our opinions and criticisms of the government and or of the so-called free press. In that, we will persevere, I guarantee you! {end snip}

2,354 posted on 11/30/2001 7:56:59 AM PST by deport
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To: Jim Robinson
Well, well...

I know you don't have time to respond to all of this...heck, I don't know how any working adult could find time to READ it all, and still sleep...hehehe..

But, if you do happen to read this...

You have my highest respect; for the sacrifices you have made on behalf of the conservative movement and our free republic.

Like any collection of people, the Movement is often split by pettiness, selfishness, and personality conflicts. This should surprise no one. People will be people.

But it's all worth it...and everyone will see that someday soon when the Lord passes out His 'well dones'.

But in the meantime, 'the price of Liberty is (still) Eternal Vigilance'.

You are to be commended for being willing to pay that price.

Regards...EV

2,355 posted on 11/30/2001 7:58:59 AM PST by EternalVigilance
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To: GalFromTheBay
I stand corrected. I don't ever remember BADJOE making that statement on a fundraising thread.
2,356 posted on 11/30/2001 8:03:35 AM PST by Vermonter
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To: deport
I just have one question. If one donates to FR, of their own free will (like a magazine subscription) just WHERE does one get off questioning the editor (JR) about what he does with the funds?

Gee, maybe I should grill Bill Buckley about where my National Review subscription money goes and how much he pays himself.

No one is twisting anyone's arm, and FR is still free for the FReeploaders. If JR wants to pay himself a salary, buy a Jacuzzi or take a lien out on a MegaMansion in Fresno - More Power To Him!

Capitalism rules! It would be a real thing for someone to make a success story out of the Net.

Proud FReeper since 1998. TRS.

2,357 posted on 11/30/2001 8:08:14 AM PST by The Right Stuff
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Comment #2,358 Removed by Moderator

To: Z2
That in order to be subject to disclosure and other regulations you've mentioned, FR would have to be set up to receive tax-exempt or deductible contributions. There is a statement on the home page that contributions are not tax deductible. Also, partners in an LLC are not liable for the debts of the LLC (www.irs.gov). Here is relevent info excerpted from California's web site(http://www.ftb.ca.gov/forms/misc/3556.htm):

LLCs not classified as corporations generally determine their California income, deductions and credits under the Personal Income Tax Law.

(IMHO)This means they do not have to disclose tax info to the public.

2,359 posted on 11/30/2001 8:10:08 AM PST by Helix
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To: keep U.S. Sovereign
Well said, kUSS! Aviator was one of the most beautiful souls I've ever had the pleasure to get to know here on FR. Her treatment by the FR management was simply abominable. She certainly did nothing at all to deserve such treatment. Her only "crime": She was a passionate supporter of Pat Buchanan and dared to express same on FR.

Aviator, if you are out there, we miss you.

2,360 posted on 11/30/2001 8:13:45 AM PST by Arator
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