MARCH 2020

MARCH   2020
The Lawyers Carve Up the Golden Goose

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Wednesday, January 31, 2018

SOUR MILK

I'm amazed that more people in 1892 did not heed the observation of steel mill owner John Metzlaff. He summed up the entire summer of acrimony and fear mongering over whether English should be the only language used in Wisconsin schools, in a single world - “ridicules”. As impossible as it might have been to believe at the time, this ultra-conservative capitalist asserted that in “10 or 20 years, almost nobody in Milwaukee would even be speaking German”. Republican Secretary of State Jerry Rusk agreed, calling the campaign year a “blundering business”. But the idea that the crises then gripping the state was not really a crises, does not seem to have occurred to many others in authority, which is fairly depressing, if you stop to think about it.  And it all started with this guy, who was absolutely convinced he was absolutely right.
William Dempster Hoard saw the world as his Methodist minister father had seen it, as the minister “Demp” might have become, had he not argued with his instructors over church doctrine. Even as a young man Dempster already “knew what he knew, and was not to be deflected,.” as Robert Nesbit has put it. Instead, "Demp" Hoard built a small newspaper empire in rural Wisconsin, promoting his ideas about politics and agriculture with that religious fervor he might have directed toward religion. In the pages of “Heord's Dairyman” he invented the modern dairy farm, from the alfalfa forage to silos for storage to breeding that produced bountiful milk and sweet cheese. He counseled his farmer congregation to “Speak to a cow as you would to a lady.” Then, at 56, in his 1888 campaign for governor. the Republican “Cow Candidate” preached to the voters his second great secular passion – education. “The child ...has a right to demand of the State”, he said, to be “provided with the ability to read and write the language of this country....I would recommend to require that reading and writing in English be daily taught” Such political theology led to Hoard's victory in 1888, winning with a 21,000 vote majority.
But Wisconsin was no longer the homogenized Anglo-America it had been in Hoard's youth, which contained, he a admitted, “no foreign element but the Irish”. By 1890 over 70% of the million and a-half residents of Wisconsin were either foreign born or first generation Americans. Four out of ten Wisconsinites spoke German in their homes and in their Lutheran and Catholic churches and parochial schools. And they were already having an impact on state politics. Since 1874 it had been legal for Milwaukee factory workers to enjoy a beer with their Sunday meal. But that change tasted sour to the temperance leaning Methodists and Episcopalians across the rolling farm districts that were Governor Hoard's base. It wasn't that the Anglo-Americans descendants were any more bigoted than the the newly arrived German-Americans. But it is human nature to mistrust strangers.
Early in 1890, as Governor Hoard's re-election campaign was just gearing up, he was visited by five Lutheran ministers. The men of the cloth warned Demp not to enforce the objectionable portions of Bennett's Law, or he would be a one term governor. According to his own account, Governor Hoard chose to lecture the petitioners. “If you plant your church across the pathway to human enlightenment,” he warned, “you will lose the respect of the young men in your church.” The offended Lutherans, who believed they WERE on the path to enlightenment, stormed out the Governor's office, determined to do battle. This is what happens when ministers think they are politicians and visa versa.
It was named Bennetts law, after Assemblyman Michael Bennett from the farming village of Dodgeville. But Governor Hoard had written it, and inspired it, and forced it through the legislature with a minimum of debate on 18 April 1889. The bill required daily school attendance for all children between seven and fourteen, and it required that all instruction be in English. To meet the first requirement, the law mandated all schools, public and parochial, report attendance records in the public press. And to insure this, the law levied fines for school officials and parents who failed to ensure their children met both requirements.
Lutherian clergy saw Bennett's Law as over reaching by the government, and an usurpation of parental rights. And, they pointed out, of the 346 Lutheran and Catholic schools in Wisconsin , just 139 did not teach in English. And in those school that taught in German, most of the students also attended public schools. The alliance of Democrats and Church groups was strengthened when the Republican claim of 40,000 to 50,000 children in the state not attending any school at all was shown to be mere hyperbole. However, the proof did not prevent the bogus number from being repeated.
In his stump speech that year, William Hoard proclaimed, “The parents, the pastor, and the church have entered into a conspiracy to darken the understanding of the children, who are denied by cupidity and bigotry the privilege of even the free schools of the state.” He also claimed he possessed “as friendly a feeling towards our German-American population as any man in this country;...I want the little German boy and girl...to have the same chance in life as my children. Without a knowledge of the English language they can not have this chance.”
A German language newspaper responded, “It is not sufficient for them that we should become Americanized...but they want us to become de-Germanized. And they think that can be accomplished first by destroying German schools.” U. S. Senator, Democrat William Vilas, pandered by asking, “What is the difference if you say 'two and two make four' or 'zwie und zwei machen vier?” And then on 1 April, 1890, the Republican incumbent mayor of Milwaukee was handily defeated by a Democratic newcomer, newspaper man and humorist George Peck.   A month later 100 Republican bigwigs met in Madison to supposedly endorse Bennett's Law, and the best Hoard's people could get from them was a no comment.
At their state convention in August, the Democrats sounded like winners. They nominated Peck to run for Governor, declaring Bennett's law “unwise, unconstitutional, UN-American, and undemocratic.” The Republicans met the same month (and in the same city) and renominated Hoard, while promising to modify the law. They also raised a red flag over their Milwaukee headquarters bearing the image of a one room schoolhouse. The words on the flag read, “Stand by it”.
Hyperbole became the favored language of public discourse. The Chicago Journal called Hoard a “giant armed for the war against...pestilent foreign-ism.” Hoard warned that those who stood in his way were “like cows in front of a locomotive”. The Republican Stevens Point Journal suggested that Governor Hoard would rather die than abandon Bennetts Law. Democrats called Episcopalian clergymen, liars. A Catholic Bishop claimed from the pulpit that Bennetts law had been secretly written by the anti-religious Freemasons. And a Freemason newspaper seemed to confirm this when it trumpeted, “give us ten years under the Bennett Law and we will in each town where English is now spoken, have a lodge...The Bennett Law will be the keystone of a higher civilization.”
It was, in fact, not. On Tuesday, 4 November, 1890 Hoard's cows came home to roost. His 21,000 vote majority in 1888 became a 30,000 vote minority, as he lost 43% to 52% to Peck. The Democrats won every seat in the executive branch, and control by a 2-1 advantage in both houses of the state legislature. Wisconsin's congressional representation went from 7 Republicans and 2 Democrats, to 8 Democrats and 1 lone Republican. That year Wisconsin voted for a Democratic President for the first time since 1852. And everybody blamed William Dumpster Hoard (above, left).
On 3 February. 1891 the new Democratic Wisconsin legislature repealed Bennett's law.  It was replaced a few months later with an almost identical law, but without the English only requirement. But, as John Metzlaff had predicted. just seven years later the Democrats in Wisconsin passed a law requiring English only be used in even parochial schools, and this time there were no mass protests. It seemed as if the citizens of Wisconsin did not so much object to the language requirement, as they did not trust preachers like William Demptser Hoard to make that decision for them. “Demp” might be able to energize his base, but his inability to respect his opponents lead the Republican party to an electoral disaster. 
“Demp” would have done well to remember his own advice, from the pages of “Hoard's Dairyman”. “Happiness”” he observed, “doesn't depend on what we have, but it does depend on how we feel toward what we have.”
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Tuesday, January 30, 2018

DOES YOUR COW POINT NORTH

I am certain that some will think this story is much a moo about nothing. But I think it behooves us to consider the implications of what at first blush seems like a simply grazy observation. Zoologists Sabine Begall and Hynek Burda of the University of Duisburg-Essen in Germany have made the startling discovery that at any given instant on any given day, two out of every three cows standing in fields all over the earth have steered themselves along North-South magnetic lines, as if they were over sized leather covered compass needles. We don’t yet know for certain if they are headed for the North Star or aiming their dairy-airs south, but we now know that those of us with frontal mental lobes, single chambered stomachs and just two teats apiece have been missing the meat of this story for the last 10,000 years.
The word “cow” derives from the Latin word ”caput”, meaning the head, which is the ancient way of counting cows, as in “Me and Tex are driving five hundred head to Abilene”. Clearly it was the head of the living cow that Gandi was thinking of when he wrote, “The cow is a poem of pity…She is the second mother to millions of mankind.” She is also, according to the United Nations Food and Agriculture Organization, the source of 18% of the world’s methane, a powerful greenhouse gas. And almost one third of the world’s oversupply of cow burps (the primary source of methane) comes from India’s 280 million sacred cows. Cows belch so much because they re-chew their cuds, regurgitating and re-digesting the cellulose over and over again. So the first secret of cows is that every cow is bull-limic.
The emotional life of the average Daisy or Bessie has been described as comparable to a potato on sedatives. But complexity was always hidden just beneath the hide. The American Humane Society has taken note that if one herd member is shocked by an electric fence, the entire herd avoids the wire. English linguistic bull artists have noted that cows moo in local dialects and inflections. And it has long been common knowledge that ungulates form their own bovine breakfast clubs. Three or four females establish lifelong bonds, a cow herd within the herd, or a “curd” if you will. Daisy actually enjoys a rich emotional life, nurturing animosities against her fellows, developing friendships and even mulling over the bovine equivalent of the Stephen Sondheim conundrum, “Is this all there is?"
This shared arrogance of our two species matches the obsession of Bessie with a subject familiar to many obsessive humans; sex. Eric Idle has described cows as the “…librarians of the animal world; mild by day, wild by night." And John Webster, a professor of animal husbandry at Bristol University in England, describes cows as “gay nymphomaniacs”. The “curds” constantly cowlick one another. And a single Bessie in “heat” can set off a Daisy chain of cow girls “mounting” herd mates in a riot of bovine dominatrix behavior. Unseen by inattentive humans, a pasture of grazing Gurneys is in reality a seething mass of bored libidos on steroids.Literally  It gives a whole new meaning to the term “pasteurization”.
Few have ever denied that individually cows process a certain personal magnetism. Their sheer bulk demands respect, if not religious devotion. These are not cuddly creatures. The one point three billion cows alive at this moment are ponderous moovers and shakers, and udderly unimpressed with humanities’ crème-de-la-crème, logic. Every dairyman has herd that cattle tend to face uphill, into strong winds or turn their flank steak to the sunny side on a cold morning; and that all seems plausible. But the idea that these cow hides might be sharing some kind of mystical, new-age ferris sensitivity seemed until recently to be an oxymoron. But scientists seeking out the magnetic orientation of hills created by the European ground mole (Talpa europaea), stumbled over the realization that perhaps larger mammals might also be influenced by something other than human magnetism.
German researchers examined Google Earth photographs taken at the same local time of day, observing some 8,510 individual cows in 308 separate herds on five different continents, at essentially the same moment. And the humans stumbled upon this udderly amazing fact; cows got magnetism. Generally, at any given moment, 70 % of the cows in any herd are standing about five degrees off of true North-South orientation. In Oregon State, closer to the North Pole, the deviation of cows is all of 17.5 degrees. In the southern hemisphere (Africa and South America) the alignment was slightly more north-eastern, south-western. Still, adjusted for latitude, 70% of all cows point toward the magnetic pole, and this is much too large a percentage to be a mere homogenized coincidence. The next question is, of course, why have cows got magnetism?
Cows are not migratory, but they once may have been. Cows share a common ancestor with whales, the “Pakictids”, which 53 million years ago had a whale’s ear and a cow’s teeth in a really ugly little dog’s body, sort of a Mexican hairless meth addict with hair. Could this ancient mongrel have been the source of the current magnetic deju moo? It could, if it milked its genes for all they were worth.
So it seems, upon rumination, that we owe cows an apology, that to err might be human but to forgive could be bovine. But stop the stampede for animal rights. My guess is we could be apologizing to Daisy and Bessie “auf die Ewigkeit warten”, as they say in Germany, and it would make no difference because Daisy and Bessie are not particularly interested in our moo-tivations, because cows are just as conceited as we humans are. And in the final rendering the squeaky veal always gets the cud. Holy, cow!
P.S. Photographs are from “The Secret Life of Cows” by Glen Wexler.
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Monday, January 29, 2018

THE BIG UMBER BIRD

I have to tell you a very dull story. It relates no shootouts, no hangings, no burnings at the stake. This story would make a really bad comic book, er, sorry, graphic novel. Heck, it would make an uninspiring regular novel. And as a television series it is just a non-starter. So it must not be important, huh. And because it lacks all of those dramatic threads to string you along, it will never make it on the news networks - which are in fact rarely new. But it really is an important story. And if I try and gin it up a little bit, you may agree. The facts, I assure you, are all accurate.
The central character is a guy named Charles Pollock. He lived in Boston in the 1890’s, a dull town in a dull time. And Charles worked in a bank; dull, dull, dull. But at least he was narcissistic. That made him a little interesting, if only to himself. Then, in 1894, dull dull Charles took a lawsuit all the way to the Supreme Court. It was that case which made Charles the hero of the modern anti-tax movement. And here let me suggest you imagine a really big explosion, a suicide bombing maybe, with piles of innocent people dead and dismembered laying all over the place, because, really, the anti-tax movement is just a loony tunes version of suicide bombing- you blow up yourself and everybody around you.
I don't like paying taxes. I never have, I never will. There are some things my taxes have helped pay for that I don't approve of; a couple of wars, subsidies to a few domestic monopolies and some foreign dictators, to name just a few. But the sin of those pales in comparison to the sin of not having a state to protect me and you.  And, call them libertarians or anarchists, those who oppose the power of the state to tax its citizens resemble, to borrow a description from Tom Wolf, “…the logician who flies higher and higher in ever-decreasing circles until, with one last, utterly inevitable induction, he disappears up his own fundamental aperture and emerges in the fourth dimension as a needle-thin umber bird.” (“From Bauhaus to Our House”) To whit:
The U.S. government has been taxing income since 1861, as permitted in the Constitution under Article 1, Section 2 ("Representatives and direct Taxes shall be apportioned among the several states…") and Article 1, Section 8 ("The Congress shall have Power To lay and collect Taxes,…"). But in 1862 Supreme Court Chief Justice Roger Taney, the author of the Dredd Scott decision which had helped to bring on the Civil War, became incensed that money was actually being taken out of his paycheck to help pay for the Civil War. Taney was a very strong believer in slavery and in being treated as somebody special.
And Taney’s objections to paying taxes for the Civil War also struck a cord with those who might not like slavery but who thought they were also special and did not deserve to be paying taxes. We're talking about rich people here, very rich people, who had no compunction about buying politicians to get what they wanted. Buying politicians is what is currently known as free speech, if your logic can somehow equate "buying" with "free" in the same thought without your head disappearing up your s own fundamental aperture.
Anyway, in 1872 the rich people had the income tax laws repealed. Unfortunately for Taney he was already dead and he wasn't getting his money back. Or his slaves. For that he would have to wait until the "Inheritance Tax" could be redefined as the "Death Tax". But I'm getting ahead of myself..
For the next twenty years the Federal government struggled along supported by import duties alone, which amounted to less than 2% of the nation’s gross domestic product.  And yes, that is how we funded government before 1861. But before 1861 we were primarily an agricultural economy, where farm workers do not require much education, where populations were scattered and where all health problems were local, because transportation was by foot and horse. After 1861 we were a growing industrial economy, where transportation was mostly by railroads. Factory workers required a high school education (or better). They were concentrated in population centers, and railroads were making  public health a regional problem. In other words, economic conditions had changed.
Now, besides being unable to support an effective government, import duties (taxes on imports), raised the price of all consumer goods, imported and domestic. In fact, during the 1880's import duties added as much as 48% to the final price consumers paid, for milk, for steel, and for everything in between. This protected domestic companies and allowed them to keep their prices high enough to ensure high profits. Are your eyes glazing over, yet? Picture this; you walk into your local 'speak easy ' and discover that overnight the price of a beer has gone up 50%. You ask the owner what gives. He tells you that he has new suppliers, and the cost of beer from them is 50% higher than it was from the old suppliers. You ask why he switched suppliers, and he explains, "They made me an offer I couldn't refuse."
Congressman William Jennings Bryant of Nebraska labeled high tariffs “socialism for the rich”. “They weep more because fifteen millions are to be collected from the rich than they do at the collection of three hundred millions upon the goods which the poor consume.” And that was true, And it was unfair, But it ain't like they did it in secret.
Between 1871 and 1891 sixty separate bills were introduced in congress to reestablish an income tax. That's right, people were actually voting and fighting for the right to pay taxes. The Republicans, the party in power at the time, beat all of those efforts back. And then in 1893 a new tariff reform bill was introduced by Democratic Rep. William Wilson of West Virginia. Wilson's bill was primarily intended to lower the import duties on foreign iron ore, coal, lumber, wool and sugar.  But the bill also included a minor amendment, introduced by Rep. Benton McMillan from Tennessee, which read, “That from and after the 1st day of January, 1895, there shall be levied, collected, and paid annually upon the gains, profits, and income of every person residing in the United States, derived from any kind of property, rents, interest, dividends, or salaries…a tax of 2 per cent on the amount so derived over and above $4,000” during any five year period  Thanks to inflation, today, that amount, would be equal to almost $90,000, over any five year period -  not likely to create a hardship for many,  and a modest amount by any measure, except of course to those being asked to cough it up.  And, maybe it will seem odd to you, but those most able to pay this tax, screamed the loudest.
The pundits paid little attention to Mr. McMillan’s amendment because so many income tax measures had been introduced so many times before, and none of them ever came to anything. This was because the rich and powerful had a secret weapon, sort of a human Tommy gun, a Homo sapian Chicago typewriter, if you will.
His name was Senator Arthur Gorman of Maryland, and he was a tool of the rich and  powerful. Gorman helped the opponents of the Wilson bill attach more than 600 amendments which reinstated almost all of the import duties the bill had attempted to lower. It was a legislative St. Valentine's Day Massacre on the floor of United States Capital building, right in front of God and everybody, as my father used to say.
With the “Tariff reduction” bill thus bullet ridden and bleeding on the floor, no one believed that President Grover Cleveland, who had campaigned on a lower tariff platform, would ever tolerate such a misbegotten bill. Surely he would veto it. But he didn’t. He signed the bill,It didn't cost him anything. At least the tariffs had been marginally lowered. At least he could claim that he had done everything he could to lower prices for working class Americans, while, at the same time, not having to actually do anything to openly offend his rich campaign donors.
But imagine the mobster's shock the next morning to discover that Al Capone had beat the rap for murdering the Bugs Moran's gang, but he was going to jail anyway for income tax evasion. That was the shock felt among the rich and powerful. America had returned to a national income tax. And the response was just what you would expect it would be from the rich and powerful. They sued.
The fine print of the accidental income tax law required that all stock companies pay the income tax for individuals before distributing any dividends to them. Dividends were income. And when he received his notice from the Farmers' Loan and Trust Company (because he owned all of ten shares of stock in Farmers’ Loan and Trust) Mr. Charles Pollock was very angry. He was angry enough to hire high priced Wall Street top gun lawyer named Joseph Choate, who filed a lawsuit against the bank claiming any income tax was unconstitutional.
The Massachusetts courts disagreed, as did the Federal courts. They both upheld the law. But somehow Charles Pollock found the money to appeal his lawsuit all the way to the United States Supreme Court, which, to everyone’s surprise, agreed to hear the case immediately.
On 8 April, 1895 the court ruled 5-4, in favor of Mr. Pollock. That slim majority was saying in essence that the source of income mattered; salary could be taxed, but income derived from property – rent, interest on savings or dividends paid on stock - were not “apportioned” by population, and thus the government was denied the power to tax it. It was like splitting hairs on a bald man.
The dissenting opinions were intellectually devastating. Justice Brown wrote that “This decision involves nothing less than the surrender of the taxing power to the moneyed class…Even the specter of socialism is conjured up to frighten Congress from laying taxes upon the people in proportion to their ability to pay them.”
And Justice Harlan argued that the court's majority opinion, “…declares that our government has been so framed that,...those who have incomes derived from...bonds, stocks and investments...have privileges that cannot be accorded to those having incomes derived from the labor of their hands, or the exercise of their skill, or the use of their brains.” These were both powerful arguments. But then the greedy have always been willing to lose the intellectual arguments, as long as they get to keep the money.
Middle class Americans however were outraged. They were infuriated. They were fighting mad. And it would still take 11 years before the will of the people could overcome the power of the “moneyed classes”.
In 1909 President Howard Taft proposed a Constitutional Amendment (in part because he thought it would never pass) to allow a Federal Income Tax. On 12 July, 1909 the 16th amendment passed the Congress and was submitted to the states, in part because the congress never thought the states would pass it. The amendment was brutally blunt and short. It reads in total, “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.” Period. End of Amendment. There ain't no loop hole, rocky.
Alabama took less than a month to vote for the 16th amendment. Kentucky, South Carolina, Illinois, Mississippi, Oklahoma, Maryland, Georgia and Texas all passed it in 1910. Twenty-three more states followed in 1911, three more in 1912, and six more in 1913.
It was with the vote of the New Mexico legislature, on February 3, 1913, that made the 16th amendment the law of the land. Six states either rejected the amendment or never took it up, but that did not matter. The Constitution only requires that two-thirds of the states approve of an amendment to make it the law.
And so, when some lunatic or confidence man or woman tries to seduce you with a magical scheme to avoid paying taxes, you can now explain to them that, by placing the source of support for the government in the people’s hands, income taxes places the power there as well.
The relevancy of this tale of narcissism to your life may become clearer when you realize that on June 1, 1929 the Farmers Loan and Trust Company involved in the lawsuit which inspired the 16th amendment,  changed their name to City Bank Farmers Trust. And then in 1976 they changed their name again. This time they shortened it to Citibank.
This is the same Citibank that in 2009 swallowed some $320 billion of taxpayer (meaning your) bailout dollars. Oh, and as of 1894, Charles Pollock was an employee of Farmers Loan and Trust in their Boston branch. And it seems likely to me that he sued his own employer with their connivance. Looking at history it seems to me that the limits to which the rich will go to avoid paying their fair share of government remains endless, spinning arguments to confuse, obfuscate and always to deny, so that their wealth, safe and untouchable, emerges from the process like a big umber bird.  These people just think they are top of the world, ma!
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