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JUNE  2022
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Saturday, November 07, 2020

EXTRAORDINARY TRAITOR James Wilkerson

 

I could tell you a lot of nasty things about General James Wilkerson (above), but let me begin by offering some known positives. His public manners were “accommodating and popular” -  in short he was a politician and ambitious. He was also brilliant. At twenty he was the youngest general in the American Continental Army. He was plump and ruddy faced and usually had a drink close at hand. And he knew how to dress well. He “made a showy appearance, wearing medals and gold buttons on his braided uniform.” And this was at a time when general officers in the Army usually designed their own accoutrement's. “Even in the backwoods, he rode around in gold stirrups and spurs while seated on a leopard skin saddle cloth.” He also fathered six children with two wives, and one of his distant ancestors tried valiantly to defend his reputation. It did not work.
George Washington did not trust James Wilkerson, nor did John Adams or James Madison. General Andrew Jackson called him a “double traitor.” John Randolph, Virginian politician supreme, described him as “…to the very core a villain!” One of his business partners published a book entitled, “Proofs of the corruption of General Wilkerson.” And that was just for the offenses people knew about. What the public suspected but could not prove until the 1850's was that the Spanish gave General James Wilkerson the title of “Agent 13”, and paid him $12,000 and several thousand acres of land to encourage Kentucky to separate from the United States, and he came close to pulling it off. Twice he was forced to resign from the Army. He betrayed every commanding officer he ever served, including Benedict Arnold. That is quite an accomplishment, to have betrayed the most famous traitor in American history. He also betrayed Generals Horatio Gates and George Washington. 
In fact the infamous Aaron Burr conspiracy was invented at least in part by James Wilkerson. And when President Jefferson (above) had Burr arrested for treason, Wilkerson became his chief witness against Burr. But the same Grand Jury that indicted Burr missed indicting Wilkerson by just two votes. And I've always felt that the primary reason Burr was not convicted of treason is that the jury disliked Burr less than they mistrusted Wilkerson.
General James Wilkerson was court martial-ed three times and investigated by Congress four times, and every time he came out smelling like a very well fertilized rose. The reason was simple - like J. Edgar Hoover, Wilkerson knew where all the bodies were buried, occasionally literally. He won the unquestioned backing of President Jefferson after he betrayed Burr, making Jefferson just about Wilkerson's only superior he did not betray. I'm sure that was just an accident. Among those who knew him only by his record, Fredrick Jackson Turner, the historian who closed the book on the American frontier, called Wilkerson “the most consummate artist in treason the nation ever possessed.” Teddy Roosevelt called him “the most disgraceful” commander the U.S. Army ever had. Wilkerson was, according to historian Robert Leckie “a general who never won a battle and never lost a court-martial” He was suspected of several murders, assorted frauds and constant graft.
He even warned the Spanish about the Lewis and Clark expedition, and it was only blind luck that prevented their murders by the Spanish agents sent after them. It was also Wilkerson who was responsible for the U.S. Army's worst peace time disaster. As top general in the American Army he had been dispatched to New Orleans in early 1809, when it looked like war with Britain might break out at any moment. Wilkerson paid more attention to his own land deals than he did to his troops. By April over one quarter of his army, 500 men, were on sick call. Things got so bad that the Secretary of War, penny pincher William Eustis, suggested that the General move his troop to healthier ground north of the city, even as far as Natchez, whatever the cost. 
Instead, Wilkerson moved them down river, into the swamps – to a spot called Terre aux Boeufs. His reason was that he got a kickback from the $630 paid to the land owner for three months rent on the new campground.
The move was completed on 9 June, 1809, just in time for the height of summer. First came the afternoon rains, which matched well with a level of humidity capable of inducing bread growth under the soldiers' armpits. And then came the lousy camp sanitation, because the officers were already learning from their commander. The food supplied to the troops was spoiled, the mosquitoes experienced a population explosion, the water supply was polluted, and the few medicines available were limited by orders from the Secretary of War to no more than $50 for the entire 2,000 man force for the entire year. And, as a topper, the War Department denied any expenditure for fresh fruit for the troops; too expensive.  In January of 1810, after the Secretary specifically ordered the troops back to New Orleans, there were barely 1,000 men fit for duty, with 166 desertions and the rest dead. Of the officers, forty of them had either resigned or died. Lt. Winfield Scott, who would one day command the army himself, suffered through this debacle and publicly described Wilkerson as “a traitor, liar, and a scoundrel.” Wilkerson had him court martial-ed and sentenced to loss of pay and rank for one year. The net effect was to convince everybody that Scott was at least an honest man. It was an accusation never made against General Wilkerson.
The debacle of Terre aux Boeufs forced Wilkerson to resign from the army, but the War of 1812 got him reinstated, not as over all commander this time but at least as a general in command of 12, 000 men. This force was supposed to conquer Montreal...maybe. The new Secretary of War, John Armstrong, could never make up his mind what the objective of the campaign was supposed to be. And until the last moment, he was going to lead it himself, since he did not trust Wilkerson, and since the next in the line of command, General Wade Hampton, refused to work under Wilkerson. Hampton was thus dispatched to command troops on Lake Champlain. 
From day one things did not look promising for the campaign, and then at the last second Secretary Armstrong decided to dump everything into Wilkerson's lap, and head back to Washington. That left the biggest thief in uniform running the campaign, with predictable results. When Hampton got word that Wilkerson was now in command, he carried through his threat, and resigned.
As was to be expected, Wilkerson's army was poorly fed, and poorly supplied. But Wilkerson got rich off the kickbacks.  They had no uniforms or training. Wilkerson led his dispirited troops up the St. Lawrence until they reached a narrowing of the river at a place called Crysler's Farm. Here the Canadians had established an outpost, and Wilkerson called a council of war to decide what to do next. His subordinates were unanimous in wanting to attack. But the next morning, faced with a cold rain and an impending battle, General Wilkerson came down sick, and the actual command fell to a General Boyd. It was 12,000 cold, hungry and disorganized Americans attacking a few thousand Canadian militia. The Canadians beat the pants off the Americans.
In the confused melee,  the Americans maneuvered and the Canadians attacked. The result was 31 Canadian dead, 148 wounded and 13 missing, while General Wilkerson admitted 102 killed, 237 wounded , but he never gave a total for the missing. In fact the Canadians reported the battlefield covered with American dead and captured 120 Americans. The Battle of Crysler's Farm is referred to north of the border as The Battle That Saved Canada.
Wilkerson retreated downstream into winter quarters. As spring of 1814 approached, General Wilkerson got word that the disaster was being blamed on him and he decided to save his reputation by taking a cheap shot at 80 British soldiers at an outpost on the Lacolle River. 
Wilkerson's 4,000 men and artillery, fell on the Canadians on 30 March.  The 80 Canadians had a few Congreve rockets. Once again the Americans maneuvered and the Canadians attacked The Canadians lost 11 killed, the Americans 13. Throughout the engagement, General Wilkerson rode about in full view of the enemy as if he wanted to get shot. Or he was drunk. Or both. But even in that, he failed. By evening the Canadians still held their positions and the Americans retreated. The score was now Canadians two and General Wilkerson nothing. Eleven days later General Wilkerson was relieved from command.
Afterward came the court-martial and another acquittal. And although it would be unfair to pile all of the blame for the debacle of the 1813 Canadian campaign on James Wilkerson, he did not help the situation one little bit. Two years later James Wilkerson published his memoirs, entitled “Memoirs of My Own Times.” It was not a best seller. Ever the schemer, in 1821 he went Mexico City, seeking a land grant in the disputed territory of Texas. And that was where he died, and where he was buried.
But let the last words be James Wilkerson's own. In the first decade of the 19th century, he wrote to the Spanish Governor of New Orleans. He was seeking a job as a secret agent for the Spanish government.  This was his job application as a traitor. “Born and educated in America," he wrote,"I embraced its cause in the last revolution, and remained throughout faithful to its interest, until its triumph over its enemies: This occurrence has now rendered my services useless, discharged me of my pledge, dissolved my obligations, even those of nature, and left me at liberty, after having fought for her happiness, to seek my own; circumstances and the policies of the United States having made it impossible for me to obtain this desired end under its Government, I am resolved to seek it in Spain.”
That ought to have been carved on his tombstone. But, fittingly, he remains buried in Mexico.  Where they read Spanish,
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Friday, November 06, 2020

FAMILY TIES - Good Riddance To Saxon England

 

I have been contemplating of late the passing of Saxon England. To tell you the truth, I don't miss it that much. After the Saxons cashed in their chips officially, on the battlefield at Hastings in 1066, I suspect you would have have heard a collective sigh of relief from across the entire length and breadth of England.
Consider Edward, the penultimate Saxon King of England. They called him “the Confessor” but that was more of a twelfth century public relations gambit than an actual description of the real ninth century King. Edward was a pretty ruthless guy. He had his own mother arrested on trumped up charges of adultery just so he could seize her property, if that gives you an idea of his actual family values.
In 1045 Edward married the Saxon, Edith Godwin. He was about forty-five years old at the time and Edith was all of sixteen. The problem here was that Edith’s Saxon father, Leofric Godwin, the powerful Earl of Wessex, had kidnapped Edward’s favorite half brother, Alfred, and handed him over to his Viking enemies. Those not very nice people had blinded Alfred, and he later died from his wounds. As a result Edward was on record as saying that the only way he would forgive the Saxon Godwins is if they brought Alfred back from the dead. So I suspect that Edward’s marriage to Edith Godwin was not exactly a love match.
Leofric owned most of southern England and his wife was Lady Godiva of naked horse riding fame. Did the Lady really ride bare-back through the village of Coventry just to lower the tax burden on the felons, meaning the free people living in the village? I doubt it. In the first place, it would chafe. And, forgiving taxes sure doesn't sound like something the Saxon Leofric would have gone along with.  Although...I am willing to believe the part of the legend about the one curious man named Tom who was struck blind because he just had to take a peek at Lady Cadiva's canter. That made him the original "Peeping Tom".
In addition to Edith, Leofric and Godiva Godwin had produced five Saxon sons, who were, in descending order of seniority and ascending order of brains, Sweyn, Harold, Tostig, Gyrth and Leofwine. And by all accounts they were all trouble. As an example, in 1046 Sweyn Goodwin was creditably accused of seducing the Abbess of the monastery of Leominster.
The modern translation of the Saxon term for “seduction” is more of a “rape”, and King Edward had Sweyn banished for that crime. It was a year before Leofric could bribe Edward into letting the little Saxon monster come home again. But, being a spoiled brat Sweyn forgot that daddy had rescued him and remembered only how long it had taken for daddy to rescue him. In the meantime Edward became determined to get rid of the whole Godwin clan.
In 1051 some of Edward’s French relatives over stayed their welcome in Dover, and the townsfolk staged a riot to drive the freeloaders out of town. Of course it is likely that Edward’s relatives had intended to inspire just such a response, because Edward immediately ordered Leofric to punish the citizens Dover for insulting his family. See, since Dover paid rent to Leofric, he would just be punishing himself. So Leofric refused. And that gave Edward the excuse he needed. He ordered Leofric and the entire Saxon Godwin male clan save one banished from England, and Edward shipped poor Edith off to a nunnery.
In this dispute, one Goodwin, , the youngest boy,  Leofwine Godwin, had sided with Edward. It was the “smart” play for Leofwine since, as the youngest son, he was never going to get rich living off his older brothers’ leavings. Meanwhile the banished elder Leofric and his loyal sons hung out in Ireland and France for a year, gathering their strength.
And when they were ready, the Saxon Godwins came home, which is another way of saying they re-invaded England. After a fight they forced Edward to return all of their seized lands and let poor Edith out of the monastery. And then, of course, Leofric forced his own youngest son, Leofwine, into exile in Scandinavia; after all, turnabout is fair play. And they were all Saxons, which is to say they were a couple of generations removed from being Vikings.
Leofric Godwin died in 1055, not long after the death of his eldest son Sweyn, cause unknown in either case.  Suffice it to say that I'll bet Edward shed not a tear at their funerals. But Harold may have. Harold was now the head of the Godwin family, which made his little brother Tostig, his problem.
Tostig was running Northumbria and had doubled the taxes while boozing it up and stealing from the local gentry. In 1065, while Totsig was out of town, the noblemen of York, Lincoln and Nottingham all rose up and slaughtered Tostig’s sycophants. The rebels then marched on Oxford, the local government center. King Edward saw no reason he should be paying to straighten out yet another of the Goodwin brood fight, and frankly, neither did Harold. So Harold simply turned Northumbria over to the rebel leader, Morkere.
That left Totsig out of a job, and very unhappy with his elder brother. Tostig sailed for Scandinavia and a reunion with his younger brother, Leofwine.
Near the end of 1065 Edward the Confessor fell into a coma and finally died on 5 January, 1066. Harold, never one to waste time, the very next day, 6 January, 1066. got himself crowned as Harold II. Harold the Saxon was the first king ever crowned in Westminster Abby.
And poor Edith, the daughter of Lady Godiva, the girl who had been a queen at 16, a divorcee and a nun at 24, a queen again at 25, was now, at the advanced old age of 26, a widow and a nun again. Her loving brother Harold shipped her off to a brand new abbey at Winchester, where she died in December of 1075, at the age of 36. The Saxons were very hard on their women.
They were almost as hard on their kings. The new King Harold was facing two immediate challenges. From Normandy there was Edward’s cousin William, who claimed that Harold, while hiding out in France, had promised him the throne of England.
And on 8 September 1066, a Viking army under the King of Norway, landed at the mouth of the river Tyne. With the Vikings were the Godwin brothers, Tostig and Leofwine. Who was it who said that family ties were the best of ties, the worst of ties? I think it was me. Anyway....
Harold immediately marched his army north, moving so quickly that just outside of York, at Stamford Bridge, on 25 September, 1066 he caught the Vikings without their armor on. According to legend, Harold met Tostig before the battle and offered him a chance to change sides - again. Tostig asked what Harold could offer the Vikings if they would peacefully go home. Harold replied that he could offer each of them six feet of English soil, or more if they were taller. Making peace and saving lives does not seemed to have interested the Saxons very much.
Harold Goodwin’s army than fell on the Vikings and almost wiped them out. Amongst the piles of dead were both Tostig and Leofwine. And it does not seem that Harold felt any sorrow that so little of the his family was left. It was a great victory, spoiled only when word arrived that William and his Norman army had landed on English soil far to the south on 27 September, 1066.
Harold now marched his exhausted men 240 miles south to meet William’s army at Hastings on 14 October  1066. There, nine hours of more slaughter reduced the vaunted Godwin family to just Edith, sewing away in her nunnery.
William the Norman would be remembered as the “Conqueror”, and Harold II the Saxon King, as the “Conquered”. But really, history must have been glad to see the back side of such a bloodthirsty pack of cannibals as the Godwins, the last ruling Saxons of England. With family like that, you don't need enemies.
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Thursday, November 05, 2020

RAILROADING The RAILSPLITTER - Fraud in America

I have come to the conclusion that no one should be handed a high school diploma without being provided with an understanding of the history of fraud in America. We have buried this knowledge, as if afraid of teaching citizens how to cheat, despite there being clear evidence that no such primer is required. The energetic, the ambitious and the greedy have always found a way to profit by cheating. And the mantra of deregulation is yet another proof that a good education in cheating might at least warn the suckers. For example, did you know that one of the men who did the most to advance the 19th century's greatest fraud upon the American people was “Honest” Abe Lincoln?
Lincoln’s break through case as a lawyer involved the 6 May 1856 destruction of the “Government Bridge”. The bridge was actually owned by the Mississippi and Missouri Railroad, but by calling it "Government Bridge" the railroad attracted more investors. It was first the bridge over the lower Mississippi River, between Rock Island, Illinois and Davenport, Iowa. Just two weeks after the bridge was opened to trains a steamboat, the old and leaky “Effie Afton”, ran into one of the bridge's piers which caused a fire that destroyed the boat and one span of the bridge. The owners of the Effie sued the owners of the bridge, claiming that bridges were a navigational hazard to river commerce.  It was an argument that promised to enrich the steamboat owners, and cripple the growing railroad industry.
The mercurial Charles Durant, one of the railroad’s officers, hired Lincoln to defend the bridge. In lieu of payment, Lincoln accepted $3,000 in railroad stock (the equivalent of about $66,000 today). After winning the case (he got a hung jury) Lincoln traveled all the way to Kansas to inspect the intended route of the future transcontinental railroad, which would be built by corporations that Durant ran and manipulated. And then, one of the first bills signed into law by President Lincoln was “The Pacific Railroad Act of 1862” which officially authorized the Central Pacific Railroad corporation to build east from California and the Union Pacific (whose vice president was Charles Durant) to build west from Council Bluffs, Iowa. This meant that Lincoln now owned some very valuable stock.
To pay for the construction across all those hundreds of empty miles, the railroad company was to be re-reimbursed for the total cost of building the line.  They were expected to make their profits from selling land they were awarded on either side of the rails. The completed railroad would make that land accessible, which would make it valuable. But the fact that Lincoln traveled all the way to Kansas to see the route and the property with his own eyes, showed that Lincoln knew enough not to trust the word of Charles Durant. And yet he had just turned this rapacious wolf loose upon the American taxpayers. Well, Lincoln had an excuse; he was a little distracted by the outbreak of the Civil War.
Doctor Charles Durant (Medicine had been his formal training), immediately showed his true genius by first buying out Union Pacific stockholder Herbert Hoxie for $10,000. This, in addition to stock he had already owned, gave Durant majority control of the railroad, even though the “Railroad Act” had limited individual stock ownership to avoid just the kind of manipulation Durant had in mind. Then Durant bought stock in competing railroads (on margin, of course, meaning borrowed money), and spread rumors that they would soon be joined to the Union Pacific line, thus giving them a piece of the projected profits from the transcontinental trade.
When those railroad stocks then went up, Durant sold them out. Eventually the suckers realized there would be no joining, and the stocks fell to below their original value. With the Civil War raging Durant had just cleared $5 million profit (the equivalent of about $100 million today), and he had yet to lay an inch of rail.
Durant was hot tempered, erratic and prone to manic depression. But he had a genius at making money by cheating. And what he had done so far was just the prologue. Doctor Durant now came up with an idea he had learned from the French construction of the Suez Canal.
In early 1864 the good Doctor Durant sent his director of publicity, George Francis Train, on a search for just the right corporate vehicle. Train found what he was looking for in the Pennsylvania Fiscal Agency, one of the innumerable stock schemes chartered by the states to fund "The American people’s railroad to the Western Sea.” None of these shell companies ever laid a single length of rail, but this one still had an effective charter and it was for sale, cheap. Train bought the company and renamed it Credit Mobilier, a name vague enough to leave you unsure just what they did. Then he sold shares in this new company for nominal amounts (often even on credit) to the principle stockholders of the Union Pacific Railroad - the majority going, of course, to Doctor Durant.  In other words, it was a shell company.
And in the completion in this little of slight-of-hand, the Union Pacific signed an exclusive “no bid” contract with Credit Moblier (meaning themselves) to supply the Union Pacific with all labor, grading, rails, ties, spikes, bridges, abutments, rolling stock and engines needed to actually build and run the railroad; let the fleecing begin. The owners of the Union Pacific had just agreed to pay Credit Moblier (themselves) whatever it cost to build the railroad, the bill, of  course, to be paid by the American tax payers, and the patriotic rubes who invested in the Union Pacific. 
The original engineer of the Union Pacific had calculated that the first 100 miles of track would cost $30,000 per mile to build. But Credit Moblier billed the railroad $60,000 per mile, which was taken directly from the pocket of the federal government. The route also began to meander across the landscape, like a drunken sparrow in flight. Each twist and turn added miles to the bill presented to the Federal government. By the end of construction in 1869, the profit from this padding of the construction bills produced a profit for the stockholders of Credit Mobilier of $50 million (equal to about $800 million today). Remember this was not the side of the equation that was supposed to provide a profit for the builders, the sale of farmland on either side of the tracks was supposed to justify the entire project.
Better yet, for the principle investor, the Union Pacific Railroad was something new on the American scene, a “limited liability corporation”. Under the old rules stockholders were liable for any debts the company ran up. A bankrupt company meant bankrupt investors. But investors in the Union Pacific Railroad Limited, including Doctor Durant, Mr. Train and several members of Congress who had been given Credit Moblier stock (because they would control any investigations into Credit Moblier) were liable only for the amount they had invested in the U.P.  And in many cases that was literally nothing.  And what little they did have invested, they sold out before the public found out what shoddy work was being done.
When the golden spike completed the “the people’s railroad to the western Sea” in 1869,  the Union Pacific Railroad Company was bankrupt. It had been looted by Credit Mobilier. The U.P. stock wasn’t worth the paper it was printed on. And, of course, by then, the very rich investors in Credit Mobilier were off looking for other railroads to loot.
Only after literally thousands of more scams just like this one would congress close the loophole in this particular invitation to fraud, making shell companies like Credit Mobilier largely illegal. But not completely., These laws allow for the seizure of all profits made from them, and assessing fines for even setting them up. This is called regulation. And by regulating the stock market the government attempts to limit the profits made on Wall Street to the actual profits from the real companies the suckers think they are investing in.
It’s enough to make you realize that if Lincoln had not been murdered in 1865, his reputation might have been more closely tied to that of Doctor Durant than it is today. When ever the  truly powerful in this nation have been caught red handed, they hide behind limited liability. They are still doing it. Without limited liability the bank executives called before Congress in 2008 to explain how they profited from creating the mortgage bubble, would never have had the guts to blame working class citizens for taking on home loans they could not afford.  In the area of economic crime, experience and history makes me want to blame the people with college degrees in finance and business who drew up thousands of those contracts, long before I blame the engineering graduates and high school graduates who signed just one of them. And if you don’t agree, you just don’t know your American history like you should. And you don't understand just how rich America could have been without all the graft and corruption which has been tolerated since the Yahoo land scams of the 1770's (see Georgia Peaches) through the Credit Moblier in the 1860's, all the way down to the big pharma scams of the 2010's. 

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