The anonymous playwright notes that there had formerly been some trouble with the $35.00 submission/reading fee, which is considered high among playwrights, but wasn't bringing in enough dough to keep the Conference solvent.
For a while, the O'Neill Conference organizers proposed eliminating the open admissions policy, allowing only playwrights with an agent to submit, because they wanted to cut down on number of submissions needing to be read to reduce costs. To raise funds, the O'Neill also dreamed up a little idea to demand a percentage of profits from any play accepted into the conference IN PERPETUITY to ensure an ongoing endowment. Whew! That seems steep and a little unfair.
Fortunately, a group of established playwrights thought this was outrageous, and so they circulated a protest letter asking everyone to boycott the O'Neill until the Conference organizers did away with the new proposed policy. These famous folks (Christopher Durang, Marsha Norman) thought that closing the open admission policy would hinder the success of lesser known talents. Ultimately, the boycott worked, and the O'Neill rescinded the exclusionary policy. As noted in this rejection, the O'Neill is starting a fund named after Wendy Wasserstein to keep the project funded without taking money away from struggling playwrights.
It makes it all sound like a supportive cozy club with the famous playwrights helping their own lesser-known comrades. Sounds nice.