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Tuesday, April 11, 2017

LOOK FOR THE SILVER LINING

I have noticed that in all things, drama attracts drama -  which as often confuses as it sheds light. Forty miles east of Coeur de'Alene, Idaho, there is proof of this. Through fissures opened by dramatic continental collisions over a billion years ago, water percolated up through sedimentary rocks. And where it pooled and cooled it left behind veins of silver, lead, and zinc. Then 190 million years ago this shattered wreckage was struck again, theatrically folding forested ridges upward until they broke, then shoving the amputated segments atop their own abandoned limbs, stacking the veins haphazardly through the new mountains. Fifty million years ago erosion found the weak points in the fault lines, opening the land to ambition and greed and human drama.
Burke Canyon Creek, like a hundred other streams in the panhandle of Idaho, divides two of these ridges. To the southeast the 6,000 foot high twin Grouse Peaks are separated by a mile from the 6,000 foot high Tiger Peak to the northwest. Between them, at just 2,500 feet above sea level, snakes the 300 foot wide “Silver Valley”.  Burke Canyon is so narrow, in the winter the bottom receives only two hours of sunlight. Shopkeepers had to close their awnings when the narrow gage trains carried out the ore down the center of the canyon. The dead had to be carried out the same way, since there was no space to bury them in the canyon.
 But by 1891, the 11 mile long, constricted, twisting valley was dotted with one-street towns and the 100 mines they served; The Bunker Hill, The Burke, The Star-Morning, The Standard-Mammoth, the Hercules, The Gem, The Poorman Tigar, The Union, The Sunshine, the Frisco, The Tamarack.and The Hecla were just the biggest.
In less than a hundred years humans would extract from this dramatic landscape $5.5 billion worth of metal, including 37,00 metric tons of silver – half of all silver mined in the United States - 8 million tons of lead, and 3 million tons of zinc These were no paper profits. This was production,  rare metals pried from the earth. But the handful of owners who risked their capital to exploit this bonanza, and the 3,500 hard-rock miners who risked their lives a mile and more beneath this canyon for $3.50 a day, were all digging their own graves.
In the fall of 1891 the railroads which transported the ore once it was out of Burke Canyon, announced they were raising their rates $2 a ton. The Mine Owners Association, which effectively owned the canyon, responded by shutting down production. Three thousand miners were laid off, and untold store clerks, cooks, maids and laundresses lost their incomes as well. The standoff continued until the following April of 1892, when a compromise was reached and the mines announced they would reopen. But because of increased overhead the mines would rehire only 2,000 men, would add six hours to an already six day workweek, and for the 500 hundred unskilled miners, there would be a pay cut of fifty cents a day.
The workers at each mine formed unions, and were unified in their demand - $3.50 a day for all workers, skilled and unskilled. The Owners Association refused, and in June began advertising for replacement workers. Soon, every train which arrived in Wallace, Idaho, at the foot of the canyon, carried miners (“scabs”) from Michigan and Wisconsin. Union miners took to greeting the new arrivals with fists and clubs. The Owners hired Pinkerton “guards” to protect the replacement workers. Tensions increased, threats increased, violence increased. Two of the mines reopened with union miners, and two, the Gem and the Frisco, reopened with non-union miners.
When the sun rose over the narrow canyon on Monday, 11 July, 1892, the hills overlooking the Gem were covered with armed union men. At first light, the shooting began. After several hours of unproductive gunfire, the miners switched to more familiar weapons. A black powder bomb exploded a building (above) housing one of the stamps which broke up the ore before shipment. After a little more shooting the company men surrendered. The human cost was three dead. 
The union men marched their prisoners across the narrow street to saloons in the town of Gem, while company men still on mine property began sniping at them. Women and children ran for their lives, fleeing either up or down the canyon. Fifty more company men arrived and surrounded the saloons where their men were held. Three more men were killed, this time union men, and eventually, the union men surrendered in their turn.
Meanwhile, shooting had also begun at the Frisco mine, and three more company men had been killed. Yet another surrender prevented further loss of life. The sheriff and Federal Marshals escorted these company men down the canyon to Wallace. Pro-union forces now occupied both mines and had captured 2,000 rounds of ammunition, to boot. All of this had isolated the largest mine further up the canyon, the Bunker Hill, in tiny Burke, Idaho.
On day two of the “Burke Canyon War”, Federal troops arrived in Cataldo, twenty miles to the west, but the union men threatened to blow up the mines if they moved any closer. That left the company men in the closed Bunker Hill Mine cut off from support, heavily outnumbered and out gunned. The company men walked out without putting up any further fight.  All non-union mines in the Silver Valley were now shut down. It was only a matter of time before all would be forced to sign union contracts. It looked like the Union had won. And then somebody did something really dramatic, and really stupid.
It happened in Cataldo, where the narrow gage railroad met the head of navigation for the Cour d'Alene River. There had once been a Mission nearby, and as daylight began to fade that Tuesday evening, 130 company men from the Gem and Frisco mines were gathered on the dock, waiting for a boat to allow them to escape this insanity. They had already been shot at and some had even been blasted. Then, out of the shadows, men now appeared on horseback and started shooting into the unarmed crowd. Panicked men began running in every direction, some even jumping into the lake. It does not appear that anyone was actually killed in this shadowed fusillade, but it was claimed that 17 were wounded. It was labeled “The Mission Massacre”, and most public sympathy for the union cause died right there.
On Wednesday, 13 July, 1891, Idaho Governor Wiley placed the entire county under martial law. A thousand state militia appeared, followed by a small but vocal army of reporters. Before the week was out 400 union men were under arrest. So backed up would the courts become, that it would be a year before some of prisoners would have their chance to defend themselves. Very few would be found innocent. Many served years in prison. All union men were forced out of the mines, and the Owners Association reigned triumphant. The Wallace Free Press summed up what was lost, when it noted, “Those who live by the sword shall die by the sword, is an old proverb, and labor is not trained in that school.”
Eight years later they all did it again. This time the Bunker Hill mine was blown up. But again the owners won. Six years later the two sides went at it again,  and again the Governor - Frank Steunenburg, this time - called out National Guard troops. This time,  he boasted, “We have taken the monster by the throat, and we are going to choke the life out of it.” Union men responded by blowing up the governor. It took the skills of lawyer Clarence Darrow to keep the union man convicted of the Governor's murder, out of the electric chair . But the tit for tat never really ended, which helped ensure that by 1920 the 5,000 non-union miners in Silver Valley were the highest paid workers in the state.  They had to be, to get them to stay. 
But almost unnoticed at first, the real cost of all this drama began to surface. Around 1900 farmers downstream began complaining that the spring floods on the Coeur d'Alene River had poisoned their fields and killed their livestock. By the 1930's the south fork of the Coeur d'Alene river had become a dead zone. People drinking from the river became sick, even losing their hair. The farmers sued the mine owners, but the courts, already used to crush the union, now crushed the farmers. Still, there was so much lead in the Burke Canyon Creek, the miners began calling it “Lead Creek”. After the World Wars the price of silver began to fall. The mines began to close. And as they did, their political power began to wane.
In May of 1972,  91 miners died in a fire in the Sunshine Mine. And this time the disaster brought in the new Environmental Protection Agency. And what they found, scared them. In  Burke Canyon Creek between Burke and Wallace they could find no fish. By measurement, the water carried 550 pounds of zinc every day into the Coeur d'Alene River – so much that when the stream pooled, the water was yellow . Twenty miles of streams in surrounding areas could support no fish, and 10 miles of tributaries of the Coeur d”Alene River had “virtually no life” in them. In those waters outside of Silver Canyon, lead and zinc levels were fifty times the federal safe water quality standard. How had it spread so far outside the canyon?  
Every day each mine had been dumping between 40 and 60 tons of lead into the air. Rain settled this poison into the  Coeur d'Alene river, and had contaminated Lake Coeur d'Alene, which had contaminated 160 miles of the Spokane River, which flowed out of the lake. Water fowl were dying each year in thousands, 21 bird species were at risk of local extinction. And human children living in the valley had the highest levels of lead in their blood ever seen - in the world.
The result was the 21 square mile Bunker Hill Superfund Site. When this cleanup is finally finished (if ever), it could cost taxpayers $1.4 billion – or just about 20% of the value of the ore removed from the “silver canyon” over the last century, to enrich a few mine owners. In 1996, after twenty years of cleanup effort, EPA scientists put healthy trout in water from the Burke Canyon Creek. All were dead in four hours. Today, if you take a drive up Silver Canyon, you will pass the abandoned mine buildings, surrounded by chain link fences. Those fences were erected by the EPA, to protect curious tourists from dying of curiosity.  Far too dramatic for my tastes.
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Monday, April 10, 2017

ADDICTED TO GREED

God... a being whose only definition is that he is beyond man's power to conceive.
Ayn Rand
I think, if you look it up, Sir Francis Bacon is credited with saying, “money is a good servant but a bad master”. Actually, it was an old French proverb, far older even than the Elizabethan politician, and Sir Francis merely quoted it – and in French, “L’argent est un bon serviteur, mais un méchant maître.” His own original observation (in English) about money said the same thing, but was as prosaic as fertilizer. “Money is like muck,” he said, “not good except it be spread.”
The alleged short-cut to knowledge, which is faith, is only a short-circuit destroying the mind
Ayn Rand
You see Sir Francis believed in the biblical warning that “The love of money is the root of all evil” (Timothy 6:10) , and that a buck in your hand is worth a buck, but a dollar spread through the economy is worth several more. You buy a loaf of bread and you employ the baker and the driver who delivers it, and the check-out clerk, etc. Amongst economists this is called the “velocity of money multiplier effect”, or the VMME, and most economists multiply each dollar spent on bread by six.. This is the material logic which – in addition to Judeo-Christian and Islamic morality - justifies food stamps and unemployment insurance.  And yet, today's devotees of Ayan Rand, like Republican Majority Leader Paul Ryan, do not believe in the VMME. They believe wealthy Americans should act only out of self interest while the working poor, aka the middle class, should sacrifice for the good of the nation. Heads the bankers win, tails, the people who borrow, lose.
We will rebuild America’s system on the moral premise...that man is an end in himself.
Ayan Rand Atlas Shrugged
According to Wikipedia, “A bank connects customers that have capital deficits to customers with capital surpluses.” But in the post “Citizens Untied” world, where a Supreme Court majority can believe that corporations have the same rights of free speech as individuals – and enough money to reduce “Free Speech” to an oxymoron - money has become the master. Five American banks now hold – hold - more than $8.5 trillion in assets – 56% of America's $15 trillion economy, while most small businesses cannot buy a loan. These mega-bankers practice zombie capitalism, trading their cash surpluses back and forth between themselves, hedging their equity by shifting the money from this pocket to that, paying themselves a bonus every time their computers shift the funds. At some point reality must intervene in this monetary computer game world, as J.P. Morgan discovered yet again in recent weeks. And when it does, the destructive effect is suffered by the nation as a whole. Sacrifice might be required, but only for those who cannot afford to live in the fantasy world of 21st century mega-bankers.
I will never live for the sake of another man.
Ayan Rand Atlas Shrugged
It brings to mind an observation made by a very angry young man. He wrote, “There have been gambling manias before... (but) the ruling principle of the...the present mania, is... to speculate in speculation...” The angry man was Karl Marx, and he was writing about the swindle of the moment in September of 1856, the collapse of the Royal British Bank. It was a fabulous enterprise which seemed solid as granite at one moment and in the next a cruel fraud and a fantasy. And the most interesting thing about the case, besides the moral lessons the father of Communism saw in it, is that the bankers who perpetrated it actually went to jail, briefly, without bringing down capitalism.
Until and unless you discover that money is the root of all good, you ask for your own destruction.
Ayn Rand Atlas Shrugged
The Royal British Bank, created in 1849, was innovative. Previously, banking had been a rich man's game. Those with money had banded together to lend to those who could afford to borrow it. But the fortunes created by the industrial revolution were not exclusively blue blooded, and both blue blood and non-blue blooded advanced thinkers in Scotland invented the publicly owned bank, in which small investors with some extra cash could combine their money, and once they had sold L50,000 in stock, could open their doors and begin accepting accounts and lending money to make a profit. In this case the idea belonged to Londoner John Menzies, who suggested the idea to his lawyer, Edward Mullins. They printed up a prospectus, and went looking for investors. But as England was in the middle of a recession (its fourth “Panic” since 1817) they found little money around, until they approached John McGregor, a Liberal Party politician representing Glasgow, Scotland. For the price of ten shares – at L10 per share –McGregor achieved a seat on the board of the bank. He immediately suggested the board hire an old friend of his who had knowledge of the “Scottish style” of banking, fellow MP Hugh Innes Cameron.
If any civilization is to survive, it is the morality of altruism that men have to reject.
Ayn Rand Atlas Shrugged
Cameron was offered the position of Managing Director of the Royal British Bank. And with McGregor's help, Mr. Cameron obtained a seven year contract which would impress any modern equity or hedge fund manager. The first year Cameron would be paid L1250 (equivalent to $2 million today) , rising to L2,000 a year ($4.5 million today), with an annual housing allowance of L200 (about a hundred thousand dollars today). Within a few months he had squeezed out Mr. Menzies, buying out the bank's founder with L400 of investors' money. Now there was nobody looking over his shoulder.
If you ask me to name the proudest distinction of Americans...they were the people who created the phrase "to make money”.
Ayan Rand Atlas Shrugged
From that moment, the bank never stood a chance of surviving. Instead of the L50,000 the law required and appeared on it's books, at its opening the Royal British Bank actually had no more than L18,000 in its vault. Over the next six years, while the 6,000 depositors supplied the salaries, advances and loans never repaid to the officers and directors of the bank, each of those men became involved in enumerable kickbacks, scams and frauds which siphoned off even more customer's funds. It was later figured the accounts were looted to the sum of L130,000, (equivalent today to $247 million today). The whole thing collapsed in the summer of 1856, producing, yet another nation wide “Panic”.
The question isn't who is going to let me; it's who is going to stop me.
Ayn Rand Atlas Shrugged
John McGregor had left the bank two years earlier, but was still forced to escape his creditors by sailing to Boulogne, France. He died deeply in debt in April of 1857. In February of 1859 the seven surviving board members were finally tried on seven counts of fraud. The jury convicted them of six. At sentencing the judge, Lord Cameron, could have been speaking directly to Jamie Dimon, the present day CEO of J.P. Morgan whose firm recently lost between $2 billion and $7 billion in a yet another derivative gamble. “It would be a disgrace to the laws of any country” said the judge 150 years ago, “if this were not a crime to be punished. It is not a mere breach of contract with the shareholders and the customers of the bank., but it is a criminal conspiracy to do what must inevitably lead to a great public mischief, in the ruin of families and the reduction of widows and orphans from affluence to destitution; I regret to say that in mitigation of your offense it was said to be common practice. Unfortunately a laxity has been introduced into certain commercial dealings...and practices have been adopted without bringing in a consciousness of shame...”
When I die, I hope to go to Heaven, whatever the Hell that is. And I want to be able to afford the price of admission
Ayn Rand
Because it was his first conviction, Hugh Innes Cameron could only be sentenced to a year in jail. All the other board members received lesser sentences, and one was only fined a single shilling. The scandal sold a few newspapers, and produced a marvelous pamphlet, “The Curious and Remarkable History of the Royal British Bank showing how We Got it Up and How it went down.” But judging by recent history, no one learned a thing from the affair, or any of the other enumerable “Panics” which have stricken capitalist economies once or twice every decade since. I think we learn nothing because greed makes you stupid, and the mega-bankers and their political apologists are purveyors and advocates of greed and thus they are selling and buying stupidity . And we have known how that philosophy plays out since bibllical days. To acknowledge this reality and yet not deal with it is to acknowledge you are a zombie, addicted to greed, and without hope of ever learning a better future.
You can avoid reality, but you cannot avoid the consequences of avoiding reality.
Ayn Rand
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Sunday, April 09, 2017

REPETITION

I've heard a rumor that history repeats itself. So, why don't you see if you find anything familiar in what happened after the James Franklin tied up in her home port of Bridgeport, Connecticut on Thursday, 12  July, 1873.  The single masted schooner was a half century old already, 51 feet long and 18 feet wide, and built it seems to put the lie to the romance of the age of sail. She was a working ship, a hard lifetime of utilitarian cargo recorded in her thirty tons of chipped paint, rusted cleats, and patched gunwales. Her master (they dare not call him a captain) was the meager 23 year old Frank E. Bassett, a short young man whose alcohol tanned life was stretched taut over the forty miles between the docks of New York's treacherous East River, through the Hellsgate, up Long Island Sound to the mouth of the Pequonnock River, and back again - and again and again. The Franklin and her master and her crew were of value only so long as they were less expensive than a steam ship, and the owners invested in them accordingly.
Once the cargo had been unloaded and the crew paid their meager $40 for the month's work, Bassett invited crewman “Stuttering Jack” Rufus,  “a well-meaning fellow”,  to share a drink with him and his regular passenger, his common law wife, Lorena Alexander- a hard faced woman in her forties. And as the three comrades walked to Lorena's rooms at William and East Washington Avenues, in Bridgeport's East Side neighborhood, Jack was probably expecting little more than enough whiskey to dull his misery.  He got that, certainly. But after clambering through the broken fence surrounding the abandoned Brewster carriage factory, he also received something far more mercenary.
Two months later Frank Bassett was arrested for the theft of a wallet containing $65 dollars in cash ($1,400 today). Desperate to make bail, Frank sold all the furniture from the Brewster factory apartment.  A week later when Lorena returned from a trip and found her home stripped, she was infuriated. And being a woman driven by her passions, she was determined to get even. She told the police she knew something about Frank Barrett which would “put him where he belonged.” She said Frank had killed a poor simpleton named Stuttering Jack, for the cash to be made selling his corpse.
Lorena said that on the night of the 12th, she was in the bedroom “attending to some sewing” when Frank ordered her to come out. Stuttering Jack was passed out on the sofa and Frank ordered her to fetch a bottle of chloroform from the mantle. She says she cried out, “Oh Frank, what are you going to do with that? What are you about?” He replied, "Shut up, you act cowardly and child-like.” Lorena said she tried to run, but the domineering Frank Bassett ordered her to stay and help clean up the mess.
To validate her story Lorena lead them to the roads north of Shelton, Connecticut, and to a ravine near the new Ousatonic Water Company canal. In its shadowed recesses they found a barrel containing Stuttering Jack's body. They then traveled 8 miles to New Haven and spoke to Dr. Leonard Sanford, Professor of Anatomy and Physiology at the Yale College of Medicine. He confirmed that on Friday the 13th Lorena had offered him a body for sale.  Dr. Sanford explained he required a valid death certificate, and Lorena responded by pleading, cursing and even wailing, begging for at least $5 to cover the cost of renting a horse and wagon -  until finally the doctor had her escorted off the premises.  But he did not call the police. And then, finally, the police confronted Frank Bassett with Lorena's story. And Frank told his own.
Frank said that on the night of 12 July, 1878, he was in a room alone reading the newspaper when Lorena entered and announced "she had got him fixed. And I says, "What?"  She says, "I have chloroformed him." She called me out of the room, and I told her she had done wrong. She said, "Never mind, Frank. We can get $25 for the body." Then she got the barrel, and I helped put him in." Frank admitted, "In the morning I hired a team and we both went to New Haven to see Dr. Sanford. After we got there  the Doctor would not receive the body and we started for home." And, Frank added, "On the way we dumped the barrel in the woods where it was found." And to validate his version of events, Frank would lead the police to the chicken coup behind the Brewster factory, beneath which  he had buried the dead man's coat and shoes.
The newspapers were electrified. The New York World insisted “nothing like it ever happened here before or elsewhere...” The Hartford Courant headlined, “A Horrible Murder Discovered”, and the Boston Globe called it “A Shocking Example of Human Depravity”. The coroners' jury investigation garnered so much press coverage that Bridgeport brought in State's Attorney James Harvey Olmstead. His family name was engraved on the “Founders Monument” in Hartford, and he was a powerful member of the Democratic party. In fact his cousin, George F. Olmstead, was one of the owners of the James Franklin. James Harvey Olmstead proved his worth when he decided to charge both Bassett and Alexander with murder, but to try them separately. It meant their “he said, she said” defenses would work for the prosecution
As usual, as the trial approached the story got more complicated. It was revealed that the victim's name was not actually “Stuttering Jack”, or even John Rufus, although he answered to either. Legally he was Jack Weinbecker, and well known as a “simpleton”, who “belonged to a low, miserable, drunken class”, and he had a police record as a thief.  But then, so did Frank Bassett.. Frank's mother explained to one reporter (as she would testify under oath) that little Frank – he weighed only 125 pounds – was also an alcoholic and “slow”.  Frank had also been been arrested several times, once for assault on Lorena.  But it was upon Lorena that the press focused most of their vitriol..
Lorena had been raised in Manhattan's Bowery, a lower east side neighborhood filled with brothels, opium dens, gay and lesbian bars, “German beer gardens, pawn shops and flophouse”. Still, she claimed she was a pious Christian, until “Men... turned her away from the Lord.” As usual the press was fascinated with her attire, describing her black silk dress accented with a flower pattern and a crown like hat of black velvet, editorializing “The woman’s personal appearance suggests natural shrewdness.” According to the New York Times, “ In 1872 she was living in East Houston-street...as Lena E. Coyne, and was employed at Harry Hill's (as a barmaid)...Among her effects is the outfit of a fortune-teller and astrologer.” Lorena admitted having been married three times, but the press uncovered at least three other co-habitations. She had a daughter who was only a few months younger than her co-defendant Frank Bassett, and during Frank's trial, one reporter noted, she was more engrossed in her two year old daughter playing on her lap, than in the testimony .
Frank's defense was described by the New York Times as, “he was so completely under the influence of Mrs. Alexander that she controlled him about as she pleased.” The jailer, the aptly named Wakeman W. Wells, told the jury, “"I was particular to ask him who chloroformed the man, and he said that Mrs. Alexander did ". Then the paper added, "The father of the prisoner, George Bassett, a man with straight hair, copper-colored complexion, and the features of an Indian, testified that his son...had never been very bright since an attack of scarlet fever when he was 4 years old” This defense was only a partially successful. Frank Bassett was convicted of murder in the second degree, and sentenced to life. At her trial in October, Lorena claimed Frank had conceived the entire plot, and had robbed Jack's body of $5.75. The jury did not believe her, and she received an identical sentence to his.
Both prisoners were sent to separate wings of Wethersfield Prison, just south of Hartford. On entering the prison their heads were shaved before they were confined to individual 3 ½ by seven foot cells, which were unheated, and had no water or toilets. The inmates were required to work six days a week, marching in lockstep each way to and from the work yard.  But no prisoner was allowed to speak at any time, except if being questioned by a guard. Suicides were common, usually by hanging, but there are records during this time of numerous prisoners cutting their own throats, and at least one man who lay on his bed, emptied his kerosene lamp on himself, and set himself on fire. Lorena endured this hellhole for six years, before being transferred to the State Insane Asylum at Middletown, where she died early November of 1884. No cause of death was given, nor is it explained what happened to her body. But it was also common for the bodies of prisoners to be provided to the Yale School of Medicine for dissection. Surely Lorena's demise was more horrible than Stuttering Jack's.
Frank did not die in prison, physically. According to the Hartford Courant, “At first Bassett was employed in the prison shop. When his mind began to slip from him, he was given employment as a runner and as a sweeper.” But, according to the story published on the fiftieth anniversary of the murder, “Friendless and feeble, the old prisoner spent the day in idleness, an inmate of the insane ward of the institution....playing in far-off lands and imagining strange journeyings which he describes to whoever will listen.”
The Courant also recorded Frank's death in 1937. -The longest prison confinement in the state's history ended Friday when Frank Bassett, 82, died at Norwich State Hospital.... He is believed not to have any relatives. Years ago a woman in Chicago made arrangements with an undertaker...to care for his body.”
And if you can't find a similar story in today's headlines, I don't think you are paying attention.
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