“The Shade of Trees They’ll Never Sit Under”: Investing for the Lodge and Your Future Brethren - Part 5

by Midnight Freemason Contributor

Phillip Welshans

Part 5: Asset Allocation

This material has been prepared for general and educational purposes only. This material does not provide recommendations concerning investments, investment strategies, or account types. It is not individualized to the needs of any specific investor and is not intended to suggest that any particular investment action is appropriate for you, nor is it intended to serve as the primary basis for investment decision-making. Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material. All investments involve risk, including possible loss of principal.

There are two big questions an investor must answer when thinking about asset allocation: “What kind of stuff do we want to own?” and “How much of this stuff should we own?” We’ll tackle these in order. As we've said a couple times in this series, there are lots of important decisions to be made as you look to set up the investment management framework for your lodge. But the most important is how you want to allocate your lodge's assets. The decisions about where to invest your money are rooted in theoretical considerations, but the results are concrete and will determine whether your lodge is able to meet its intended financial goals.

This topic is divided into two posts. The first will tackle the first question of “What asset classes can we own?” and will talk a bit about a very popular model of endowments use these days for that purpose. The second post will talk about what this means for Masonic lodges and how you may want to think about your asset allocation.

Asset Allocation: A Buffet of Securities

There's almost no limit to what you can invest in these days. Investing can be as simple or as complicated as you want to make it. Think of it like you're going into a Golden Corral3 and at one end of the buffet are your standards: common stock, bonds, government securities like US Treasury bills, mutual funds, and some cash equivalents like CDs or money market funds. In the middle you see some fancier offerings you might be less familiar with but which look appetizing: alternatives1, ETFs covering equities, bonds, and even currencies; REITs2 and other real estate beyond residential (multifamily apartment buildings, commercial real estate, etc.), and precious metals like silver and gold. At the end of the buffet are the items you've only read about and that only Golden Corral Rewards members (the professionals) will deal with regularly: derivatives, esoteric mortgage bonds like MBS4, direct private equity, hedge funds, managed futures, and short selling, among others. Maybe you look over at the dessert table and see stuff you know you shouldn't risk eating but are so tempting like CDS5, cryptocurrency, art, and levered or inverse ETFs6.

So many choices! So many ways to get rich! An equally wide array of ways to go bust! It's all so exciting, yet also daunting. It's a bit like Walter Donovan and Indiana Jones in The Last Crusade when the ancient knight directs them to choose a grail, but to be cautious: "While the true grail will grant you everlasting life, the false grail will take it from you." It's not quite life or death, but certainly, your lodge's financial livelihood hangs in the balance, so making choices based on fact and information is key. Being honest about your and your lodge's risk tolerance, financial knowledge, and goals is paramount. Donovan had no actual historical knowledge about the Grail, and it cost him. Indy, by contrast, was able to use his years of study and factual research to make his best, and ultimately successful, guess.

For the majority of lodges, you'll be perfectly fine sticking with the more vanilla options from the buffet: stocks, bonds, and some alternatives as you define the term. And by and large, you'll be able to get all these through some form of commingled vehicle like a mutual fund. Indeed, if we look at how endowments as a class are invested, most do hold a majority of their assets in stocks and bonds, although the appeal of alternatives has risen dramatically in recent years. The largest endowments have increased their exposure to alternatives from around one-third in 2002 to 57% in 2017, according to one comprehensive study.7 The reason for this is two-fold. First, returns on stocks were markedly lower over that time period than they were for the ~50 years before that. The old rule used to be you could count of stocks to generate about 8% annualized over the long term. However, after the internet bubble burst in 2001, and especially after the financial crisis in 2008, returns on common stocks have been well below that and expected returns (what investors think stocks will return in the future and what they use to allocate to different asset classes) have been equally lackluster. Many endowments have therefore fallen short of meeting their return goals over the last decade or so. As a result, endowments have sought higher returns in other, alternative, asset classes, to make up the difference.

The Yale Model

The second reason for this shift is related to the first. David Swensen8 became head of the Yale University Endowment in 1985 and held that position until his death from cancer in 2021. During his tenure, he and his colleagues in New Haven revolutionized how endowments think about and manage their assets. Swensen, in partnership with colleague Dean Takahashi, developed The Yale Model for endowments. The model calls for a portfolio to be divided into several buckets of asset classes to encourage diversification, which is not really revelatory. However, where Swensen and his colleagues departed from conventional wisdom was in recommending against holding too much in either stocks or fixed income and instead focusing on owning larger allocations of less liquid9 alternative investments like private equity and hedge funds. The idea was these assets tend to be more illiquid than stocks and bonds and so their prices can vary more widely which creates a better opportunity for outsized returns. This assumes, of course, that one owns illiquid assets that appreciate in value! Rather than trying to select those investments themselves, however, Swensen posited that an endowment should spend its time selecting the best managers of those investments, and so the Yale Model is also premised on an endowment spending most of its time and resources on manager selection. Unsurprisingly, the Yale Endowment became notoriously choosy and selective in which managers it would invest with, and having Yale as a client became almost akin to a Michelin star for an investment manager.

The Yale Model was incredibly successful and made Swensen a celebrity within the niche world of investment management. His model was adopted by much of the endowment and foundation landscape to such a degree that The Yale Model is today often just called The Endowment Model. The exception has become the rule. But Swensen and his colleagues were always keen to point out that much of Yale's success could not be replicated. The model could be adopted easily enough, but Swensen and co. enjoyed first-mover advantages10 and as a result had their pick of the choicest private investments before the rest of the world caught on and piled in. Additionally, very few endowment offices could compete with Yale to attract the top talent necessary to pick the best managers successfully and consistently. And the size of Yale's endowment meant that it had a bigger cushion to absorb the inevitable mistakes.

So, while it's important, I think, to understand the Yale Model, what it espouses, and why it became so popular, it's also important to understand its limitations and why, in my opinion, no Masonic lodge should try to emulate it. All the advantages Yale (or any large endowment) enjoyed that made the model work for them, will conspire against almost every other kind of investor. Your lodge probably has far less to invest than an Ivy League university. It probably lacks the financial resources to set up an office staffed with professionals who can consistently pick the best managers (and who need to be paid accordingly). There are also many more players in the alternatives space today than 20-30 years ago; more investors all looking for the same diamond in the rough. The chances of you finding them versus someone like Yale or Harvard's staff of analysts, is I'm sorry to tell you, very low. And when you inevitably make a bad investment, your lodge's smaller fund size means there's less margin for error and the mistake will hurt more.

This is not to say there is no role for alternatives of any kind in a lodge portfolio. Rather, it is to say that the bar for investing in alternatives for your lodge should be very high and carefully considered. And if your lodge is working with a financial adviser to manage your assets, you should be very cautious if they come to you proposing a large allocation to alternatives.

1. A catch-all term that can include anything that's not stocks, bonds, and cash. Everything from commercial real estate to forestry to non-fungible tokens, and so on.
2. Real Estate Investment Trusts, a type of commingled vehicle allowing investors to own shares of companies that manage different types of properties.
3. Some people are big fans of buffets: https://www.goldencorral.com/rewards/
4. Mortgage-Backed Securities. Fixed income securities made up of thousands of individual residential mortgages and resold. One of the big culprits of the Global Financial Crisis in 2008. Also comes in CMBS, or commercial MBS, which are mortgages of office buildings, apartments, and so on.
5. Credit Default Swaps. Essentially derivative contracts valued on the creditworthiness and likelihood of a company or country defaulting on its obligations. Another esoteric financial instrument that contributed to the 2008 crisis.
6. Levered ETFs use leverage to amplify their returns. Great when it works out, but very painful when it doesn't. Inverse ETFs are ETFs that essentially short stocks. Both are highly volatile and completely unsuitable for anyone but professional traders (my opinion, not advice!).
7. Commonfund and the National Association of College and University Business Officers looked at allocations for endowments with at least $1 billion under management and compared 2002 and 2017.
8. Swensen wrote a book about his approach to investment management if you’re really interested. Called Pioneering Portfolio Management: An Unconventional Approach to Institutional Investing.
9. Liquidity refers to how much a security or asset trades and therefore how frequently its price is updated. A stock like Microsoft is extremely liquid, with about 28 million shares traded on average every single day. You can be reasonably sure the price of MSFT stock is very accurate. An office building, however, is very illiquid and its price only gets updated when someone sells it or chooses to revalue it. That doesn’t happen often, so it makes valuing the building tricky and volatile.
10. Typically, the first company or market participant to adopt a successful strategy will benefit from being the first, at least for a while. This is because the market is unexploited and there are no competitors. This advantage doesn't last: the success of the first mover encourages others to get in on the action but in doing so, they reduce or outright eliminate the opportunity and the outsized returns enjoyed by the first mover decline and become eventually pedestrian.

 

~PW

Phillip Welshans is Senior Warden of Palestine Lodge #189 in Catonsville, MD under the Grand Lodge of Maryland A.F. & A.M. He is also a member of the Maryland Masonic Lodge of Research #239, and the Hiram Guild of the Maryland Masonic Academy. As a member of the Ancient and Accepted Scottish Rite, S.J. in the Valley of Baltimore, he has completed the Master Craftsman programs and is a member of the Scottish Rite Research Society. His interests are primarily in Masonic education, particularly the history of the Craft, esotericism, and the philosophy of Masonry.

“The Shade of Trees They’ll Never Sit Under”: Investing for the Lodge and Your Future Brethren - Part 4

by Midnight Freemason Contributor

Phillip Welshans

Part 4: Developing an Investment Policy Statement

This material has been prepared for general and educational purposes only. This material does not provide recommendations concerning investments, investment strategies, or account types. It is not individualized to the needs of any specific investor and is not intended to suggest that any particular investment action is appropriate for you, nor is it intended to serve as the primary basis for investment decision-making. Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material. All investments involve risk, including possible loss of principal.

OK, so you've got the assets for your lodge. You've got a group of brethren interested in helping to manage those assets. They've even all agreed (incredible! More than two Masons agreed on something?!) that managing the assets like an endowment makes sense. 

So…now what?

As I said in an earlier post in this series, arguably the most important decision you can make for managing a pool of assets is how you allocate them across asset classes. Well, the second most important decision is to create a policy document that governs asset allocation and all other aspects of how you're going to manage your money. You can’t make informed decisions about the portfolio if you don’t have a foundational document guiding you. So, let's talk about that first. 

Investment Policy Statements: A Second Lodge Charter

A lodge is a number of brethren duly assembled, with a charter or warrant empowering them to work. Similarly, we can think of a lodge endowment as a number of brethren duly assembled with an Investment Policy Statement (IPS) empowering them to invest. An IPS is a foundational document that lays out the parameters for the endowment in as much or as little detail as is needed. Anything and everything is on the table here, from how the investment committee should be structured, to what powers it has, to spending policies, portfolio objectives, and of course permitted asset classes. There is no hard and fast rule with creating an IPS; it can be as detailed or as vague as your lodge feels is appropriate. But you should create it with the goal of making it as easy as possible for a future brother, a man who hasn't even contemplated joining Freemasonry yet, to understand how the portfolio should be managed, and who is responsible for managing it. With that in mind, here are some things that could be in your lodge's IPS:

• Spending policy: We spent the majority of the last post talking about this, so you should probably formalize it. Is it a flat dollar amount? A certain percentage of assets in the portfolio? If the latter, lay out in plain language how the calculation is done so a random person reading it could do it, or know how it's done. Again, be as precise as you think is necessary here. 

• Objective of the portfolio: This is basically the overview of the whole endowment. What is the IPS covering? What is the objective of the portfolio? Is it to preserve the capital while also supplementing the operating budget? Is it capital preservation and growth of the principal? 

• Return objective: This can get more technical than a Masonic lodge may need. However, if your investment committee wants to take a firmer hand in monitoring the portfolio to ensure its meeting its objective, than you'll want to lay out some parameters here. The most typical way this is framed is "achieving X% return, with Y% volatility, over any given Z-year period"1although you can get much more technical than this if you like. But again, for a Masonic lodge, where few brethren will have a technical grasp of Modern Portfolio Theory2 and portfolio management principles, you may not even need to be this specific. Something as general as, "The return objective of the portfolio is to generate a total return that exceeds the annual rate of inflation over the trailing 12-month period, as measured by the Core CPI in the United States." 

• Asset allocation parameters: We'll spend the next post briefly walking through asset allocation, because it's one of the most important parts of thinking about managing your lodge's assets. And so, I would argue that at least laying out some ground rules for asset allocation in the IPS is a must. Again, no need to go into excruciating details, unless it's warranted, but I think you do want to say here what types of instruments and securities the portfolio can own and what it should expressly avoid. For the former: equity securities (US and foreign companies), corporate fixed income, Treasuries and/or other government securities, money markets, mutual funds, and ETFs are a fine start and cover the vast majority of what you'll ever need.3 For the latter, the list could be potentially very long because there are countless securities out there that nobody save for the most experienced traders should ever mess with. But for example, if you don't want future brethren with a day trading streak to toy with derivatives, say that! And you can even specify maximum weights in the portfolio. If you don't feel comfortable owning more than 10% in emerging market stocks4, put that in there!

• Other considerations: Do you want to permit using a financial adviser to manage this for you, or will you keep it all in-house? How often do you want the investment committee or adviser to rebalance the portfolio?5 What is the basic reporting structure? Do you have an investment committee? Will they review the portfolio quarterly? Do they need to send a report to the Worshipful Master? How often? This sounds mundane, but laying out these structures now will ensure information continues to flow after you're gone. The worst outcome is a portfolio that gets neglected for years because the initial investment committee members have died and nobody knows the reporting requirements. How can the IPS be changed? Probably via recommendations from the investment committee submitted to the Worshipful Master, but who knows? Spell it out!

The IPS is your chance to lay the ground rules and establish the precedent that will guide the lodge for years, and ideally decades, to come. Below I've written up a sample IPS for our brothers at the hypothetical Prudence Lodge #101, who we met in the last post(insert link to previous post here). 

Introduction

The brethren of Prudence Lodge #101 A.F.&A.M.  have established the Prudence Lodge Investment Fund ("the Fund") to fund long-term capital projects for the lodge, provide funds for the Prudence Lodge Annual Scholarship program, and to supplement the lodge's annual operating budget. This Investment Policy Statement has been established to provide guidance for the Investment Committee ("the IC"), the officers, Worshipful Master, and any investment managers that may be engaged in the management of the Fund's assets. This document outlines the objectives, methodologies, asset allocation guidelines, and applicable procedures for administering the Fund and its monies. 

Objectives

The objective of the Prudence Lodge Investment Fund is to provide financial support for the activities of Prudence Lodge. The spending policies are designed to balance the short-term operating needs of the lodge with the long-term desire to maintain the principal of the Fund with appropriate growth. This will help the lodge to meet the needs of the membership today as well as into the future. The return objective of the Fund is to generate a real (after inflation) return that preserves the principal of the Fund while providing an income stream that can help meet these financial obligations. The objective is therefore to generate an average real return of at least 4% per year over the long-term, defined here as the trailing five years, while taking on prudent levels of risk commensurate with capital preservation.

Spending Policy

The Fund's spending policy is designed to also strike this balance between providing for the ongoing immediate short-term operating needs of Prudence Lodge, while also not endangering the principal capital and eroding the Fund's purchasing power over time. The Fund's spending policy is therefore to be held constant at 4% of assets under management, defined as the trailing three-year average ending asset level in the portfolio.

Asset Allocation Guidelines

Given the importance of the asset allocation decision in the investment process, guidelines for permissible asset classes, proposed ranges or restrictions, and general guidelines are provided below, subject to change by the IC. Additionally, it is likely that the Fund will be managed on a day-to-day basis by a third-party financial advisor, in which case these guidelines should be communicated to them.

The primary goal is to ensure the Fund will be invested in a broadly diversified range of asset classes to provide a strategic mix of sources of return, while reducing risk to the overall portfolio. While the asset mix may skew towards higher returning equities, other assets can be added in to enhance returns without adding inappropriately to the risk profile of the overall portfolio. The IC should work closely with the financial advisor, should one be engaged, to determine the appropriate risk profile, although it should be biased towards a conservative approach. The IC should review asset allocations and risk profiles at least annually.

The Fund should be predominantly invested in low-cost mutual funds and other commingled vehicles (e.g., ETFs) as determined as appropriate, in order to minimize expenses to the Fund and Prudence Lodge, and to maximize net of fees returns. 

Ed. Note: Here you might insert proposed ranges to be held in certain asset classes. For example, between 20% and 40% in global (US & international) stocks, between 5% and 15% in cash or fixed income, and so on. Not a requirement, certainly, but if you want to specify maximums in certain areas, this is the time to do it. Ranges can be helpful in determining how often you rebalance your portfolio (see below)

Rebalancing

The portfolio should be rebalanced on a regular basis, with an eye towards minimizing costs for the lodge in doing so. The Fund should be rebalanced at least annually to ensure compliance with the stated asset allocation objectives of the IC. However, portfolio weights should be monitored by the IC and reviewed on a quarterly basis to ensure those weights remain reasonable. Short term fluctuations in asset weights is to be expected, however persistent dislocations should be avoided via intra-year rebalancing as deemed appropriate by the IC in consultation with the financial advisor. 

Reporting

The IC should meet quarterly to review the latest statements and reports from the financial advisor (should one be engaged), or to review the portfolio weights, performance, and other appropriate metrics. The IC should also meet annually to review the asset allocation ranges in the portfolio to make any changes for the coming year. The IC should provide regular reports to the Worshipful Master, Treasurer, and brethren as deemed appropriate and at a minimum via:

• Written report from the IC to the Worshipful Master detailing the performance of the Fund, beginning and ending market values, asset weights, and any notable issues discussed at the IC meeting such as additions or eliminations from the portfolio, etc. This could be provided to the Treasurer as well for his records.

• A semi-annual summary report provided to the brethren, either in open lodge or via writing, detailing performance and beginning and ending market values. 

1 We haven't talked about this to a great deal, but volatility is almost as important as return in measuring success in investing. Volatility is the amount an asset's return will vary over any given time period. All else equal, the greater the volatility, the more risk you're taking on that the asset will at some point go to zero. There are a lot of ways to measure volatility, but one common proxy is standard deviation. Standard deviation is a statistical measurement that can tell you how often a stock's return is within a certain range over a time period. Stocks tend to have higher volatility than bonds, and bonds have higher volatility than cash. Generally, for higher volatility assets, you want to be compensated with higher expected

returns. 

2 MPT is a body of financial theory developed in the mid-20th century and pioneered by Harry Markowitz, a professor of finance and Nobel Laureate. Very simplistically, MPT says an investor should try to always maximize their return (minimize the risk) for any given level of risk (return), as determined by their risk tolerance. MPT also posits that the best way to do this is through a broadly diversified portfolio that also reflects an investor's assumptions for expected returns, because forecasting asset returns is hard and a portfolio must be viewed as a whole, not as a group of isolated and uncorrelated assets.

3 We will talk about some other asset classes you might be tempted to invest in, and why you may want to think twice about that, in the next post.

4 "Emerging Markets" is a vague term and means different things to different people at any given time. Generally, emerging markets are outside the developed economies (North America, Europe, Japan, and Australia/New Zealand) where growth rates tend to be higher, economies are less developed, and volatility is higher due to political and financial risks being higher. This is not always the case though. For example, South Korea and Taiwan are still considered emerging markets, but in reality, excellent cases can be made that both should be considered developed economies. There are also "frontier markets" as well, which are countries where financial and political institutions are even less well developed, making them riskier areas in which to invest. Pakistan is a good example of a frontier market. For more on these definitions and which markets fall into which bucket, check out: www.msci.com. MSCI maintains the definitive market benchmarks for emerging and frontier markets.

5 Portfolios become unbalanced over time as market movements cause asset weights to deviate from their intended ranges. Rebalancing is simply buying and selling on a regular basis (typically annually or semi-annually is fine, so as to minimize trading costs, which reduce portfolio returns) to maintain proper ranges. For example, let's say Prudence Lodge's portfolio was $1,000 with 60% in stocks and 40% in bonds. That year, stocks returned +15% while bonds returned -15%. At the end of the year, the portfolio weights would have shifted to 67% stocks, 33% bonds. That's a very different portfolio, and far riskier, than what the lodge said it wants to maintain. In that case, Prudence's investment committee might seek to rebalance the portfolio by selling enough stocks and buying enough bonds to get back to the original 60/40 allocation it's comfortable with. 

~PW

Phillip Welshans is Senior Warden of Palestine Lodge #189 in Catonsville, MD under the Grand Lodge of Maryland A.F. & A.M. He is also a member of the Maryland Masonic Lodge of Research #239, and the Hiram Guild of the Maryland Masonic Academy. As a member of the Ancient and Accepted Scottish Rite, S.J. in the Valley of Baltimore, he has completed the Master Craftsman programs and is a member of the Scottish Rite Research Society. His interests are primarily in Masonic education, particularly the history of the Craft, esotericism, and the philosophy of Masonry.

Far Out

by Midnight Freemason Guest Contributor

Ken JP Stuczynski

It was the first time he seriously looked at the Charter. Written on what looked like actual paper, it was dated "6169 A.L." The eldest Past Master proudly pointed out it was dated exactly 100 Earth-years after Tranquility Lodge’s first communication of any Lodge, not on Earth. Apparently, it still exists. It was naturally chartered under the Grand Lodge of Texas, thanks to a document brought with Brother "Buzz" Aldrin on Humankind's first landing on its solitary moon. Not altogether coincidental, that was exactly another hundred years previous.

Freemasonry clearly traced back to before any forays into space. Maybe that's why the ritual seemed so odd. It wasn't just the archaic language--difficult to comprehend at times. Both "moon" and "sun" were used in the singular, while he lived his whole life on a world with two of one and three of the other. And why divide the 24-inch gauge into three parts instead of six when there are two full sleep periods between sunsets? His brain caught up with his thoughts and recalled days on Grandmother Earth are roughly half as short. Or... were his twice as long? And what if he lived on the innermost planet of his system, which is tidally locked? There is no sunrise or sunset there at all.

By the time he had been a Mason a full year, or what his world considered a year, he realized nothing in the ritual was arbitrary. The roles of a lonely Sun and lonely Moon filled some special place in Humankind's psyche. He could either resign himself to unrelatability, or let it take him back to an earlier time, one where such things were much more physical realities than vague symbols.

Here was a chance to hold the sort of tools that were used centuries ago, by countless hands over an eon or more. He could recreate their use in his mind as if he were working with actual stones, building a grand edifice by sheer will and skill rather than artificial calculation and the strength of machines. If not for ritual, he would never have contemplated the rawness ⁠⁠– or rather a purity ⁠– of such Geometric knowledge. He couldn't express it in spiritual terms, but it felt like an immortal marrow to the bones of all mortal technological advancements.

Most Lodge meetings were "Personal Observance", meaning that except for Labor to Refreshment and collation, there was no presence at a distance of any kind, be it audio, video, or holographic. It was like the days of yore when people, out of necessity, gathered together face to face or not at all. There was something so... human about it, something he didn't even know he had been missing. And he discovered the custom of the physical handshake was perpetuated or even revived on some worlds simply because it was preserved by Masonic tradition. Taken for granted by the masses, it tied Humanity together across space and time.

There were a lot of other meanings to all this, or so he started to understand. But to experience a tradition so rooted in early human existence took him to a place where he sat among ancient brethren who freely breathed natural air at all times, bare feet touching Terra Firma. The stories and objects in the degree lessons were not so far removed from everyday existence but were visible, accessible in a palpable way.

He couldn't expect them to look forward to a distant future and see all that has happened since. They might have doubted their Craft would survive after building with stone was replaced with other materials and processes. They may have wondered if Humankind would destroy itself, if not suffer a geologic or cosmic disaster before escaping the solitary tenancy bounded by Earth's gravity.

But perhaps they did look up at the firmament and wondered if some descendant among the stars would someday return the gesture with a shared contemplative spirit.

And he wondered how much Masons back on Grandmother Earth take for granted the configurations of their Masonic Work. Surely they must realize its perpetual testament to Humankind's nature and place within creation at his original home. Or perhaps they don't.

~JP

Bro. Ken JP Stuczynski is a member of West Seneca Lodge No.1111 and recently served as Master of Ken-Ton Lodge No.1186. As webmaster for NYMasons.Org, he is on the Communications and Technology Committees for the Grand Lodge of the State of New York. He is also a Royal Arch Mason and 32nd Degree Scottish Rite Mason, serving his second term as Sovereign Prince of Palmoni Council in the Valley of Buffalo, NMJ. He also coordinates a Downtown Square Club monthly lunch in Buffalo, NY. He and his wife served as Patron and Matron of Pond Chapter No.853 Order of the Eastern Star and considered himself a "Masonic Feminist".

As a masonic speaker throughout New York State, he has also given presentations at town hall meetings regarding the use of technology in the Craft. His numerous Empire State Mason articles have been republished in Arizona and New Jersey. To aid in his outreach on these topics, he authored "Webmastering the Craft: Fraternity in a Digital World", available worldwide in softcover and eBook.

Something I Probably Shoulda Wrote in My Journal

by Midnight Freemason Contributor

Robert H. Johnson

All I can think about right now is what is to come. I'm stunned. I'm dumbfounded at the world around me. Yeah, COVID-19--that's old news. We had a wild election. We had people breaking into the Capitol Building. Now, the vaccine is here, so I guess I'll be getting that as soon as I can. My kids are in school virtually with plans to return to a hybrid learning environment in the coming weeks. I just got back from the Mayo Clinic, and I am still undiagnosed. Oh, and my production computer took a crap. All this stuff...not all of it bad, not all good--but it's like life itself boxed me around, and I'm standing there, stunned, looking at the stars circling my head.

Am I thinking about these things? Only as much as they might be words floating around in my head. They're like objects getting in the way of a daydream. I see this future where I'm back at an amusement park on a hot summer day. The world spinning around me, my kids running to the next ride, and my wife is smiling. Everything about the moment is perfect, even the smells. The funnel cakes, the cotton candy, even the garbage cans.

Flash to another one. The backlot behind lodge standing around with my Brothers. It's too damn hot for tuxes, and we've all lost our ties. There's laughing, and talking and the stars in the sky are clear to see--a rarity for a summer night around my neck of the woods. Driving home, with the windows open and listening to good music.

Flashing to another one. Driving home from the office. The sun is starting to go down, and it's blinding the hell out of me. But I can't stop smiling. The golden light is just baking my left arm. 

All these things are gone right now. No amusement parks, no Lodge, no office. Someone asked me recently what the first thing I would do when this was over. I said, "Go to the movies with my kids and eat too much popcorn and a tray of those pretzels and cheese." That sounds to me, like a slice of heaven right now.

Freemasonry teaches a lot of things. One of those things is Hope. We use it in a pretty singular way in Masonry, "Hope for a future life." Or something to the effect. I sure do hope for the future. I'm not really concerned about my own "future existence", but I do hope that the future has some surprises for us that don't seem to knock us on our asses again. Make no doubt about it. We'll pull through, and we'll be stronger for it. 

For the first time in months, I've seen some kind of light at the end of the tunnel. Reflecting on what this time has been like, spending it with close family, and really experiencing people I interact with--it's changed me. Hell, it's changed you too, I'm willing to bet. We needed this. When this is all over, maybe I'll see you at the amusement park, or at the movies. Until then, I'll be daydreaming on occasion.

Keep working hard. Keep hoping. We'll get there sooner than later.

"If you can't suffer joyously, suffer patiently."

Marcus Aurelius, Meditations

~RHJ

RWB Johnson is a Co-Managing Editor of the Midnight Freemasons blog. He is a Freemason out of the 2nd N.E. District of Illinois. He currently serves as the Secretary of Spes Novum Lodge No. 1183. He is a Past Master of Waukegan Lodge 78 and a Past District Deputy Grand Master for the 1st N.E. District of Illinois. Brother Johnson currently produces and hosts weekly Podcasts (internet radio programs) Whence Came You? & Masonic Radio Theatre, which focuses on topics relating to Freemasonry. He is also a co-host of The Masonic Roundtable, a Masonic talk show. He is a husband and father of four, works full time in the executive medical industry. He is the co-author of "It's Business Time - Adapting a Corporate Path for Freemasonry" and author of "How to Charter a Lodge: A No-Nonsense, Unsanctioned Guide. More books are on the way.

Motoring into the Future

by Senior Midnight Freemason Contributor

WB Gregory J. Knott

 Harley-Davidson Concept Bike – Source Harley-Davidson Facebook Page 

I was surfing Facebook on a Friday night while awaiting snowmagedon to come through east-central Illinois when I saw an advertisement for Harley-Davidson. I have long admired Harley-Davidson (HD) for their innovative products and capturing what I consider the true spirit of an American company.

This ad caught my attention because the bike that HD was promoting was vastly different than anything I had seen before. Generally, when you think of HD motorcycles, what comes to my mind is the big bikes that are often customized by their riders. These have been the backbone of HD’s business for decades.

But this new bike was not anything like the traditional HD products. The FB post said, “Although we’re still committed to staying a leader in heavyweight touring and cruisers, we’re working to develop new ways to reach even more riders, like our lightweight electric concepts.”

As younger generations have come of age, they are not buying as many HD’s as their parents and grandparents did. HD has had four straight yearsof declining sales. In 2017 they had a 10% drop in sales of motorcycles. Numbers like this are simply not sustainable if the company is to survive.

Recognizing their problems, HD has decided to develop and enter into the electric motorcycle market. HD has a goal of adding two million new riders in the US over the coming decade. In many ways this is a company returning to their historical roots. HD as a company evolved out of the bicycle market when William S. Harley and Walter Davison put an engine on a bike in 1903.

The Facebook comments were harsh and critical of HD by many of the “traditional” HD riders. As in typical social media fashion, most of the comments were without fact and mostly based on farfetched non-sense. Many didn’t want anything to change and felt that HD was losing their mind my trying to do something different.

HD is facing reality head on. They are balancing new ventures while staying true to their more recent traditional markets of the bigger bikes. Company leaders know if they do not change and adapt to the current market conditions, they will be out of business. Period. Simply trying to hang onto their legacy, will not be the means to a bright future.

Sound familiar?

~GJK

WB Gregory J. Knott is the Worshipful Master of Ogden Lodge No. 754 in Ogden (IL) and a plural member of St. Joseph Lodge No. 970 (IL), Homer Lodge No. 199 (IL) and Naval Lodge No. 4 in Washington, DC.

10 Years as a Freemason

by Senior Midnight Freemason Contributor

WB Gregory J. Knott

This week I received a card from the Grand Lodge of Illinois congratulating me on the 10th anniversary of being a Freemason. It caused me to think back over these past 10 years, so I thought I would share a few of those thoughts with you.

I was raised in Ogden Lodge No. 754 along with two of my childhood friends. We went through all three degrees together and it was a special experience to share with these lifetime friends. After becoming a Master Mason, I don’t think I fully comprehended what I just went through or what was still to come.

Ogden is a strong lodge that has been in the community since 1877. Shortly after I was raised, Ogden celebrated our 130th celebration with a lodge rededication ceremony conducted by the Grand Lodge officers. It was impressive and was a nice compliment to the degrees I had just been through.

I started attending meetings regularly and we did the usual paying the bills, reading the minutes and other business. At the time, I really didn’t know the difference and just thought this was what we did. I started attending the pancake breakfasts and we did a roadside trash pick-up. We seemed to be an active lodge.

A few months later, I decided to become a plural member with St. Joseph Lodge No. 970, which is in my hometown. St. Joseph Lodge was on the verge of closure. It was having problems making a quorum and the members that did come were worn out and about to throw the towel in. There were conversations about merging with Ogden (which are five miles apart in distance). But another new brother had also joined St. Joseph lodge and together we had a lot of enthusiasm to make some changes. So, we started brainstorming ideas on how we could grow and improve the lodge. The existing members were very supportive and basically gave us the green light to try anything.

We did numerous things, which I have written about before if you search this blog, and we were able to turn the lodge around. In 2011, we were the first lodge in Illinois to receive the Mark Twain Award from the Masonic Service Association. Additionally, we have won the Grand Masters Award of Excellence on several occasions in the past few years. St. Joseph lodge still has new members coming in and is a very strong lodge. I am very proud we strengthened this lodge and saved it from closing.

Just because I needed more to do, I also joined Homer Lodge No. 199. Homer was also having a problem making quorums and about to close the doors and turn the lights out. Several of the brethren from Ogden lodge also became plural members at Homer and we began the work to turn things around there. Again, we have written about Homer lodge many times here on this blog and you can search for the stories, but this lodge has also stabilized and is growing again.

Two significant changes have happened in the last 10 years that I think are influencing masonry in a positive manner, social media and masonic education.

Masonic education had virtually disappeared from meetings over the last 75 years and the purpose of Masonry had essentially become degree work and boring business meetings. But by the beginning of the 21st century, numerous brothers were asking if there wasn’t more to Masonry than what was being practiced. In 2004 the Knights of the North published Laudable Pursuit, which laid out a framework of how Freemasonry could return to its roots. This work and Chris Hodapp’s book Freemasons for Dummies were a strong influence on shaping my knowledge of what Freemasonry is and should be. My research quickly told me that Freemasonry was much more than I was experiencing.

The other change is social media. Facebook, Twitter, blogs all have become part of daily life this past decade. These social networks became a way to keep me connected to not only the brethren I met in blue lodge, but also the Scottish Rite, York Rite and more. Then I met brothers from all over the country who gave me ideas on how to improve the lodge and encouraged me to keep working towards change. One common theme was repeated over and over and that was Masonic education.

I quickly became a convert in that Masonic education was the key to the future of blue lodge success. Reading numerous online website, listening to podcasts, reading books and masonic discussion groups, I expanded my knowledge and developed a much deeper understanding of Freemasonry. The task was to bring this education back to the blue lodges.

Fortunately, I wasn’t the only one who sought to improve the Masonic experience. Two brothers have had a large influence in helping me gain a greater understanding of what is possible with Masonic education, Todd Creason and Robert Johnson.

Todd, I have known for years, even prior to becoming a Freemason. He was on my investigation committee and is a fellow member of Ogden Lodge and Homer Lodge. We began having conversations of how we could improve our meetings and we kept coming back to education. I was his first guest contributor here on the Midnight Freemasons and am proud to be a part of this amazing group of Masonic brothers who write here.

Robert was someone I got to know through social media. He soon also joined the Midnight Freemasons and eventually becoming the editor. I began listening to his podcast, Whence Came You, which I find is one the finest masonic resources available today. Robert’s continued focus on education, developing a deeper understanding of the craft and applying these principals in the blue lodge, I think is spot on for what Freemasonry needs to thrive.

There have been countless other brothers that I have meet along this journey that I now count among my closest friends. To each of them I owe something for helping make me a better person. Thank you.

Freemasonry, like numerous other organizations is going through change right now, but I firmly believe it is being strengthened as we work towards returning to our roots. It’s been a great 10 years and I look forward to the years ahead. I hope to meet you along the way.

~GJK

WB Gregory J. Knott is the Past Master of St. Joseph Lodge No. 970 in St. Joseph (IL) and a plural member of Ogden Lodge No. 754 (IL), Homer Lodge No. 199 (IL) and Naval Lodge No. 4 in Washington, DC.

The Consultant

by Midnight Freemason Contributor

Steven L. Harrison, 33°, FMLR

Congratulations to Very Much Most Worshipful Brother John Henry Doe, who has just been elected the Grand-Grand Master of all of Freemasonry.  This is an opportunity he has long sought.  He's been griping for years about the problems facing the Brotherhood and now he, and he alone, has the power to turn things around.  So, now what?

VMMWB Doe: Well, first, I put on my gold jewel, gold apron, gold crown, grasp my gold baton of authority and sit in my gold chair in the East.  

Then what?

VMMWB Doe: Oh, you mean that isn't enough?  Well,  talk, as you know, is cheap.  So all the griping I've been doing has pretty much been hot air.  If I have real responsibilities here, I guess I'd better hire a consultant who has a track record of turning organizations around… someone from outside the fraternity who can take an objective look at Freemasonry and make recommendations in the unlikely event we're doing something wrong.

Accordingly, VMMWB Doe, after much consideration, hires the best business consultant around, Edsel P. Highpower III, MBA, to analyze the Craft and recommend actions for improvement.  Highpower studies the fraternity and reports back to VMMWB Doe.

VMMWB Doe: Well, Highpower, what do you think?

Highpower: I think you're nuts.

VMMWB Doe: Excuse me?

Highpower: Everyone says you have a membership problem.  Membership has been declining for decades and continues to decrease.  I understand you don't just want anyone to join, but, still, you really do have a membership issue.  YET YOU EXCLUDE HALF THE WORLD FROM BECOMING MEMBERS!

VMMWB Doe: Are you suggesting we should admit women?  You just don't understand us.  I can assure you we will never admit women.  What other bright ideas do you have?

Highpower: You lack strong consistent leadership.  Throughout the world Freemasonry is a conglomeration of separate Grand Lodges loosely connected, each making up its own rules.  It's even worse in the US — Fifty or so separate Grand Lodges sharing territories with fifty or so other Grand Lodges, some not recognizing others for whatever reason; and, frankly, a couple of Grand Lodges going completely off the rails.  

VMMWB Doe: You just don't understand us.  Freemasonry is a grass-roots organization.  We will never have a universal central leadership.  All they would ever do is raise our per-capita.

Highpower: You missed the point. Where is your single voice for Freemasonry?

VMMWB Doe: What about me? I am, after all, the Grand-Grand Master.

Highpower: You know very well this is a fictional piece.  Let's move on to the next issue.  This is not your father's world; this is not your father's Freemasonry.  We live in a world steeped in promotion and advertising.  It's everywhere.  Google isn't just a search engine, FaceBook isn't just a social network; their very essence is all about advertising.  Freemasonry does little to promote itself in a world that increasingly only responds to hype.  The public usually only sees stuff from places like the History Channel with overtones suggesting creepy things are going on behind Lodge doors.  You need to consistently, regularly get the word out about your real purpose and activities.  You need to do it in a classy way and not come off like a bunch of snake-oil salesmen.  To put it succinctly, you need a public relations program, and it goes back to needing that single voice for the Fraternity.

VMMWB Doe: Highpower, you really don't understand us.  Some of the stuff on TV and the Internet is such drivel it's not worth our response.  And we certainly don't like people who blow their own horn.  Advertising or, as you call it, promotion, is beneath us.  You won't see that around here.  Didn't you find anything I can use?

Highpower: I found this — most of your Lodge meetings are boring.

VMMWB Doe: How would you know? You're not a Mason and you're not allowed to attend our meetings.

Highpower: YOUR OWN MEMBERS SAY THEY ARE BORING.

VMMWB Doe: If our own members thought the meetings were boring attendance would be really low.

Highpower: I rest my case.

VMMWB Doe: Highpower, you're fired.  I don't need you.  I can come up with my own ideas to turn this Fraternity around.  In fact, I'm planning to introduce one that will be great.  I'm going to call it "Every Member Get A Member."

Epilog: After implementing his innovative "Every Member Get A Member" program, Very Much Most Worshipful Brother Doe continued to see membership decline, but at a slightly slower pace.  He counts that as his greatest achievement as the Grand-Grand Master of all of Freemasonry.

~SLH

Bro. Steve Harrison, 33° is Past Master of Liberty Lodge #31, Liberty, Missouri. He is the editor of the Missouri Freemason magazine, author of the book Freemasonry Crosses the Mississippi, a Fellow of the Missouri Lodge of Research and also its Worshipful Master. He is a dual member of Kearney Lodge #311, St. Joseph Missouri Valley of the Scottish Rite, Liberty York Rite, Moila Shrine and a member and Past Dean of the DeMolay Legion of Honor. Brother Harrison is a regular contributor to the Midnight Freemasons blog as well as several other Masonic publications. His latest book, Freemasons: Tales From the Craft & Freemasons at Oak Island. Both are available on amazon.com.

The Meeting

by Midnight Freemason Contributor

Steven L. Harrison, 33°, FMLR

The Lodge room looked better than I had ever seen it. Magnificent, actually. The officers' chairs were solid walnut with gold filigree inlaid designs of the working tools. An Italian marble podium sat in front of each of the warden's chairs with an intricate swirling design that matched marble insets on the walls around the room. New deep blue wall-to-wall carpeting covered the floor. A crystal chandelier illuminated the altar and an ornate Letter G hung above the Master's chair in the east.

I was encouraged by the size of the crowd at the meeting — probably over 100 Brothers. I couldn't help but think how great it was that the Grand Lodge had voted to change things to allow lodges to make every use of the technology available, a move I was certain had everything to do with the large number in attendance.

I saw Joe, an old friend, across the room and went over to greet him. "Wow," I said, "I haven't seen you in years. When did you get back in town?"

"I didn't, Brother Steve." he replied.

"Me, either," I said and we chuckled at our little exchange.

The Master called the meeting to order and we all took our seats. Some things change and some don't. After the opening ceremonies the Secretary read the minutes and the Treasurer gave his report. During the business part of the meeting we discussed the sad state of our Lodge furniture, something which seemed inconsistent with the gorgeous view I had of my surroundings. Based on the Treasurer's report we decided we didn't have the funds to do anything about it now, but with participation up under the new rules, maybe we could do something next year.

The reason I go to meetings these days is the Masonic education, and that meeting did not disappoint. We took a walking-tour of the Loge des Neuf Sœurs as it appeared during the time Ben Franklin was a member. Then, the main speaker, Brother George Washington, spoke on his thoughts about the fraternity, a presentation based on his writings and experiences during his lifetime.

The Master closed the Lodge and I greeted several more old friends before leaving. Conversing with them after the meeting we agreed it had been an inspirational evening and would look forward to more of this kind in the future.

A great evening at an end, I popped the Virtual Reality contact lenses out of my eyes, and re-acclimated myself as I looked around the bare VR room surrounding me. "I'd really like to go back home and visit that Lodge," I said to myself, "Gosh, I don't think I've been back there since about 2025." Then, I leaned on my walker and slowly made my way back to my room at my retirement home in Florida.

~SLH

Bro. Steve Harrison, 33° is Past Master of Liberty Lodge #31, Liberty, Missouri. He is the editor of the Missouri Freemason magazine, author of the book Freemasonry Crosses the Mississippi, a Fellow of the Missouri Lodge of Research and also its Worshipful Master. He is a dual member of Kearney Lodge #311, St. Joseph Missouri Valley of the Scottish Rite, Liberty York Rite, Moila Shrine and a member and Past Dean of the DeMolay Legion of Honor. Brother Harrison is a regular contributor to the Midnight Freemasons blog as well as several other Masonic publications. His latest book, Freemasons: Tales From the Craft & Freemasons at Oak Island. Both are available on amazon.com.