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"How can I change this?" You can't. You can't change Human nature; men naturally want to join winners, organizations that are perceived to be powerful and prestigeous.
Your solution is to aggressivley add members during the open rush periods, and then create the illusion in the minds of the rushees that you have a large and powerful fraternity, like to ones you compete against. Don't try to rush by stressing what you think are the virtues of (comparatively) small chapters. There aren't any. Aspire for your fraternity to be better than it is: grow your numbers and take on the trappings of the fraternities everyone thinks are the best.
Don't try to have a chapter meeting and get everyone to agree with this plan. It won't happen. You have too many members who are happy being small and inconsequential. Just do it. Take control and do it. As your chapter becomes more successful, the rest of the brothers will come around.
I wish I could tell you there was another way, but there isn't. Chapters in a good fraternity system fall into a predictable hierarchy. People's perceptions may be superficial, but they're real to them.
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