Prison Industry Bill Clears Nevada’s Senate Judiciary Committee

Prison Industry Bill Clears Nevada’s Senate Judiciary Committee

Senators move quickly to rein in runaway prison program

By Bob Sloan

On Wednesday a proposed bill amending Nevada’s Prison Industries was debated before the state Senate Judiciary Committee.  The bill, SB 478 was sponsored by the Senate Finance Committee, which is chaired by former Assemblywoman and now Senator Debbie Smith (D-13).  Senator Smith explained the bill to the Committee and why a revision to NRS 209.461 is needed to protect workers, private businesses and taxpayers from being unfairly compromised by prison industry operations.

Attending the hearing in support of the legislation, former U.S. Senator (and Nevada Governor) Richard Bryan outlined a proposal he’d submitted to the Board of Prison Commissioners last month that would help protect Nevada’s businesses and workers.  Proposed revisions to NRS 209 within SB 478 language would serve that purpose.

Sen BryanSuggested language includes requirements that the NDOC provide adequate notice and consult with private businesses and unions prior to entering into new contracts or developing new prison industries.  This would help protect Nevada’s workers from displacement and private businesses from unfair competition arising from the use of prison labor by private companies or state sponsored industry programs.

These requirements are already mandatory and annunciated under federal guidelines controlling prison-made products introduced into interstate commerce.  This is to protect workers and businesses in states receiving such goods.

Senator Bryan explained the reason such policy changes were necessary to first protect Nevada’s business and workers.  He stated that these protections were at the core of the proposal made to the BPC in March.

SB 478 includes a requirement that any private company applying to participate in prison industrial programs be required to provide a guarantee that operational expenses will be paid to the NDOC.  This provision requires the posting of a surety bond or personal guarantee:

“7. Before entering into any contract with a private employer for the employment of offenders pursuant to subsection
1, the Director shall obtain from the private employer:
   (a) A personal guarantee, surety bond in the sum of $1,000,000 made payable to the State of Nevada or security
agreement to secure any debt, obligation or other liability of the private employer under the contract including, without limitation, lease payments, wages earned by offenders and compensation earned by personnel of the Department.”

This clause seemed to draw the most concern and discussion from the Committee as they attempted to ascertain whether such a high bond was necessary.

Danny Thompsonsb 478 hearing conway

Other revisions require the NDOC Director to secure documentation pertaining to the impact upon private industry and labor in Nevada.  Before submitting such projects or new industries to the Interim Finance Committee’s Committee on Industrial Programs for recommendations or Board of Prison Commissioners for approval, these studies must be completed.

Also speaking in support of SB 478’s changes to policy requiring notice and consultation with labor, was Nevada’s AFLCIO Executive Secretary Treasurer, Danny Thompson and Robbie Conway of Ironworkers Local 433.

The Union Representatives spoke on behalf of unemployed union workers being displaced or unable to find employment because of prisoners used by Alpine Steel, LLC.  Alpine has been accused of using cheap prison labor to reduce labor costs and secure bids on projects, reducing the ability of other companies to compete fairly for the same jobs. One of those projects is the high profile construction of the Sky Vue Ferris Wheel on the Las Vegas strip.

SkyVue pic

Thompson raised issues of public safety due to using inmate labor to fabricate steel components used in building a public bridge over I-15 and the Wet ‘N’ Wild theme park in Summerlin. Thompson mentioned he’d made repeated requests for proof of required certification of the prison shop and inmate welders but Alpine and NDOC continues to withhold those documents.

Time for discussion opposing SB 478 was consumed by Alpine Steel owner, Randy Bulloch.  He vehemently opposed any requirement of posting a surety bond or consulting with unions, labor or competing businesses before starting up new prison industries.  He advised his company had been using inmates as a workforce for seven years before the operation was stopped early this year.

His argument was that requiring a bond would be cost prohibitive and “catastrophic” to prison industry operations.  Bulloch also claimed that noticing and consulting with unions and competing businesses and requiring approval of both would be impossible, “they’ll never agree to such projects.”  Presumably Bulloch’s persistent advocacy on behalf of prison industries demonstrates a desire to reopen the prison industry’s metal shop to Alpine Steel and regain access to that less costly workforce.

The proposed revisions do not include a requirement of “approval” by unions or competing businesses.  It only requires notice and an opportunity to participate in any discussion prior to submission of proposed new industries for approval. In addition until Bulloch repays nearly half a million dollars owed to the state it is unlikely authorities will consider allowing his company back onto prison property.

It’s interesting that Mr. Bulloch’s company was at the root of a controversy that ultimately resulted in the necessity of this legislative review of prison industries.  Actions of Bulloch and Alpine Steel placed the entire program in jeopardy by his refusing to pay incurred operational expenses owed to the NDOC.

Rather than open discussions of new industry operations to transparency, Bulloch seems intent upon keeping any new or proposed contracts shrouded in secrecy, and decisions regarding use of inmate labor made outside the view of obviously interested parties.

Alpine ran up a huge bill with the prison industries by failing to pay inmate and NDOC staff wages, utility costs, workers compensation or lease payments for nearly four years, accumulating a debt of $438,000 to the state.  After the story broke in the media is when officials closed Alpine’s operation at High Desert State Prison and forced Bulloch to agree to repay the state over the next four years.  Though Bulloch no longer has any inmates working for him in the prison shop and the facilities are closed to him, he continues to be the lone voice advocating for operating Nevada’s prison industries without any policy changes to ensure other companies are not able to operate with taxpayers footing the bill.

Competing steel companies protested lost business through unfair practices exercised by Alpine to secure contracts due to low-paid prison wages.  They also voiced concern that the state was unfairly subsidizing Alpine’s operations through a sweetheart lease agreement for prison facilities and a failure to collect the debts owed.  Both gave Alpine Steel a substantial advantage over all competitors in the steel industry there in Nevada.

NDOC Director Cox and Deputy Director Connett were present and stated they and the department was “neutral” on the legislation and will be submitting written statements to that effect.  Several former inmates attempted to speak in opposition, but time was short due to Bulloch’s lengthy statements in opposition and their discussion limited.

The following day, the Judiciary Committee voted unanimously to move the bill to the full Senate for discussion and vote.  It is unknown at this time how much support this legislation will get from the Nevada Assembly and full Senate.

Detroit’s Dictatorship…

Detroit’s Dictatorship…

By Dr. Publico – Repost from American tribune

The corporate criminals now ruling Detroit hardly bother disguising their intent any longer. For them it’s open class war and most of the victims are clueless as to the source of their social and political impoverishment.

William-Livingstone-House-0051-300x231

From time to time, as capital-corporatism is confronted with its own Ponzi-like profiteering, these privateers either accept a compromise from their unbridled predatory practice or seek to place the full burden of their theft on the “lower” classes. Today, they’re going for the Full Monte…again.

Without information (public education and an independent media) class consciousness of corporatist predation is mixed.

Six corporations own and control over 90% of the media. Their overall strategy is eminently successful at convincing and confusing the role between gov’t and business, two entirely different enterprises with vastly different goals. There’s always been systemic tension between democratic and corporate rule.

The fact of such tyranny is nothing new to human relations; alpha-male/sociopathic rule has plagued humankind from the beginning of civilization; it comes with the territory.

What worked for our hominid forebears in primeval conditions is applied today to the privileged role of a ruling elite over the rest of humankind. As Pogo discovered: “We’ve met the enemy and he is us” (assuming of course that by “us” one includes an infected or cancerous appendage).

Republican-Tea-Party-300x206An anthropologist would observe that while class rule has served a survival and socio-technological role in human socio-political development, such relations are increasingly becoming the problem, not the solution.

Heretofore, such systems met their destiny thru either self-destruction in competition with other systems (usually the more predatory one winning), or thru resistance and revolution by those being exploited. Competition having been all but foreclosed by corporate-state power, I’d guess only revolution or our mutual self-destruction remains.

In any event, if fascist-corporatism “wins,” it will destroy the planet thru its own systemic dynamics, there being little left to stop it. As the super-technology of science is being increasingly exploited around the world to privatize war for corporate profit and rule, all that tech comes home to control its own populations.

What’s left of the nation’s neo-liberal leadership still believes that appeasing these sociopaths is a viable strategy (assuming that they’re not simply junior partners). The corporatist strategy remains demand, demand, demand. They know that appeasers will ALWAYS capitulate “a little bit.”

Obama’s history shows that his end-strategy to power-conflict resolution has been to always side with corporate conservatives, assuming the continued support of his own liberal base (figuring: Where else can they go?).19GpOb.SlMa_.911-2-300x238

As a thought experiment, one might wonder what he would do should his opposition demand that he be castrated (which, metaphorically, is the case).

After his initial shock, what would be his position? Negotiate for an inch? Hey, ‘Bam, here’s a pregnant idea: How ’bout just a quarter inch…off the back endThe Boehner might go for that

I recall when Reagan & Company were making demands of the Sandinistas in Nicaragua back in ’89, the revolutionaries agreed. Caught off guard, Reagan then added more demands. The Sandinistas agreed again.

This went on for some time with the Sandinistas always agreeing (in order to end the murderous US Contra-War against their people). Finally, in frustration, when the media asked Reagan’s representative what would they accept, he replied, “They could all go shoot themselves!”

There is no way to appease sociopaths, nor their psychopathic goals. To them, every compromise is simply another step in their strategy. How many more millions must be sacrificed?

Welcome to Detroit, the current front-line in the Class War:

In March of 2013, Governor Rick Snyder (R-MI) appointed corporate lawyer Kevyn Orr as “Emergency Financial Manager” (EFM) to act as overseer for Detroit. Orr was given full dictatorial powers over the entire city, including the elected Mayor and City Council.

Proof (should one need it) that no longer do corporateers intend to allow their “disaster capitalism” to be ameliorated a la FDR or even satiated with neo-liberal “bailouts.” They want it all. Massa has come home to roost

Their counter-revolutionary strategy includes shifting the weight of their Ponzi-like economic schemes to the masses by breaking labor contracts, slashing services, selling off public assets and, should they choose, disincorporatizing the city itself (as prelude to all gov’t).

In other words, they intend to impoverish the mass of population to the level of third-world wage-slavery and privatize every aspect of commerce. Gov’t–after it’s been drowned in their proverbial bathtub–will then only serve corporate edicts.

This is the world they envision, and this is the world they’re well on the way to creating. Detroit is only the latest stage in that quest.

Not to be outdone by the governor, Detroit’s Mayor Bing also appointed Kevyn Orr’s “former” mega-law firm, Jones Day, to represent Detroit in this charade. EFM Orr, needless to point out, controls Bing’s continued salary.

Even Hollywood would find the hypocrisy of this scenario simply too fantastic to use in a script. A corporate governor appoints a corporate lawyer to rule Detroit, while his corporate law firm (which also represents Detroit’s corporate creditors) to be Detroit’s “restructuring counsel.”

Justice...-300x152Of course, all of these profiteers and quislings believe that in the New Detroit the “trains will run on time” and the citizens will behave more profitably under corporatism for its creditors. The demise of its mass of population is simply “the cost of doing business.”

Is money the “measure of all things”? Corporateers and their conservative schutzstaffel (shock-forces; Klan, Tea Party and other Joe Malarkey followers) believe so, albeit, many for racist and other motivations (thus further serving corporatism).

For the moment, Orr & Company are biding their time. Soon enough the Great Property Grab and looting of what remains of the public treasury will commence.

Us natives, relegated to oblivion by a parasitic economic system, will pass quietly into the night…or perhaps not…

(Special thanks to Detroit’s senior activist-attorney Tom Stephens for some of this material. My use of it is of course my own responsibility.)

Dr. Publico

You can Call me AL or ALE…but not “ALEC!”

You can Call me AL or ALE…but not “ALEC!”

From an article published by Nick Surgey at PRWatch: “ALEC Who?” ALEC Has an Identity Crisis

The American Legislative Exchange Council is trying to change their image and in accomplishing that they would rather toss away the acronym “ALEC” – they’ve been known by and operating under for forty years now – than change their activities.  Four decades they have been secretly meeting, writing pro-corporate legislation and disseminating it throughout America and of late, the world.  Their “International Relations Task Force” includes U.S. state lawmakers and eighteen or nineteen foreign elected officials.  This IRTF is responsible for submitting resolutions and proposed model legislation that has subsequently become law in several U.S. states, so they can now proudly add “Interference with International Policy and Procedures” to their corrupt resume.

Journalist Nick Surgey recently joined the Center for Media and Democracy and writes about the attempt made by ALEC to alter their image in this revealing article published today.  We have to now await anxiously for ALEC to “reveal” their entirely new, squeaky clean “corporate personae”…so we can continue to expose their activities and track their corrupt legislative efforts state by state…

Pictures from ALEC’s 2011 meeting in Phoenix and 2012 Spring Summit in Charlotte that drew hundreds of protesters is the image they are trying to leave behind:

Phoenix 1 Phoenix 6 Phoenix 9 Phoenix 10 Phoenix 2DCIM100MEDIA

Watch YouTube video of Phoenix ALEC Protest here

Read the entire PRWatch article here

 

Michigan’s Employer-Sponsored Health Insurance Plummets

The Robert Woods Johnson Foundation just released their report on State-Level Trends in Employer-Sponsored Health Insurance, and it is no surprise that the Great Lakes State is trending in a very bad way.

Michigan has in-arguably been in a depression for a couple of decades — it’s economy destroyed as its manufacturing base dissolved through private-sector downsizing and outsourcing labor overseas. The state’s urban centers and infrastructure are of third-world status. It’s people are little better off.

In the year 2000, a robust 78.1 percent of Michigan workers had employer-based health insurance. That number has slipped more than any other state — now at a low of 62.9 percent. Although still above the national average of 60 percent, the trend line remains very disturbing. In that time, 1.6 million workers lost employer healthcare, and those that maintained coverage saw their premiums more than double from $6,543 annually to $13,803, with the employee share jumping from 14.6 percent to 23 percent. (Find an interactive data map here.)

Next year, an estimated 745,000 Michigan residents will qualify for subsidies to purchase healthcare under the provisions of the Affordable Care Act. Approximately another 500,000 would be eligible for coverage under an expanded Michigan Medicaid Program, but lawmakers have yet to approve the plan.

Here’s the biggest rub — all of this occurred prior to the enactment of Right-to-Work. Under this union-busting law, Michigan can expect to see even less coverage for its workforce. The state will not be able to attract the best and the brightest talent on this trend line.

Amy Kerr Hardin from Democracy Tree

Michigan House of Represenatives Perfects the Ulitimate Dick-Move

Michigan House of Represenatives Perfects the Ulitimate Dick-Move

The Michigan House of Representatives — A Bunch of Bullies:

On the heels of yesterday’s GOP House threats to drastically cut funding for the Department of Human Services, (a dick-move cold enough to warrant the use of the kelvin scale), the House Appropriations Committee came through today with their previous threats to punish good-faith negotiations and passed an omnibus education bill that is intended to penalize schools and local units of government for legally renegotiating contracts prior to Right-to-Work taking effect on March 28th of this year.

And much like yesterday, the Senate refused to participate in this reckless and childish behavior. Senator Howard Walker (R) told the Detroit Free Press “What folks are doing at the local level, that’s a big issue at the local level and I’m not sure it’s appropriate for our budget”, and another Senate Republican, Sen. John Pappageorge (R), minced no words when he said “I’m not going to punish anybody for something they did legally”.

Although no one reasonably expects the penalties to become part of the final law, the House Appropriations Chair, Rep. Joe Haverman, explained their rationale for withholding funds thusly:

“I’d like to see the language stay, but we understand that we have to negotiate with the other side,…But the main focus should be that local taxpayers, students and parents be aware of what their boards did and if they negotiated a good contract.”

Democracy Tree submits that Rep. Haverman and his colleagues do not fully understand how the democratic process works under home rule in Michigan. Those elected boards that renegotiated the contracts in good faith were chosen by voters, and it is their business alone to determine if the boards acted in the best interest of the communities they serve. The last thing voters want or need is for a bunch of whiny lawmakers going about punishing their schools and communities because a minor loophole was found in a bad law that does not even enjoy popular support.

Enough with their blustering and bullying. Michigan House — Grow up!

Amy Kerr Hardin from Democracy Tree

Bill to repeal North Carolina’s RPS passes House committee

Bill to repeal North Carolina’s RPS passes House committee

NC-Rep-Mike-Hager-214x300

North Carolina Representative Mike Hager, the bill’s chief sponsor, is a member of ALEC, which is attempting to overturn or weaken RPS policies in 19 states

A bill to repeal the US state of North Carolina’s renewable portfolio standard (RPS) has passed a committee of the state’s House of Representatives 11-10. The bill must now pass more committees, the full House and the North Carolina Senate before it can go to the governor to be signed.

House Bill 298, the “Affordable and Reliable Energy Act” was Electricity Freedom Actintroduced by House Majority Whip Mike Hager (R), and three other members of the state’s Republican Party. The bill is one of many state-level efforts to repeal RPS policies that have been advanced by Republicans through a national effort by the American Legislative Exchange Council (ALEC).

“This is simply the wrong move at the wrong time,” said Ivan Urlaub, Executive Director of the NC Sustainable Energy Association (NCSEA). “No good ever comes when you pass laws based on a mistaken premise and the assumption underlying this bill that the REPS law raises electricity rates and costs jobs could not be further from the truth.”

The next step for H298 is the North Carolina House Commerce and Job Development Committee.

State gains 21,200 “job-years” through clean energy policies

NCSEA cites a report by RTI International and La Capra Associates Inc. which shows that North Carolina consumers stand to gain more than USD 173 million in cost savings between 2007 and 2026 due to the state’s clean energy policies, including the RPS.

The same study also showed that North Carolina also gained 21,200 job-years from 2007 to 2012 through these policies.

RPS includes solar thermal, solar carve-out

North Carolina is one of the few utilities to pass an RPS in the US South, a region which is dominated by large utility monopolies, who generally hold regressive stances towards renewable energy.

The state’s Renewable Energy and Energy Efficiency Portfolio Standard mandates that private utilities in the state move to 12.5% renewable energy by 2021. The policy lists solar photovoltaic (PV) and solar thermal technologies including solar water heating as eligible technologies, and mandates a minimum of 0.2% solar by 2018.

Effort to dismantle RPS policies in 19 US states

Chief sponsor Hager and at least six other sponsors of the bill are members of ALEC, a right-wing non-profit that is funded by fossil fuel interests including coal giant Peabody Energy (St. Louis, Missouri, US) and Koch Industries (Wichita, Kansas, US).

ALEC members in states legislatures have brought forward legislation in at least 19 US states to repeal, freeze or weaken RPS policies, based on the “Electricity Freedom Act”, model legislation drafted by ALEC’s Energy, Environment and Agriculture Task Force.

Several of these efforts, such as the one in Kansas, have been defeated. However, bills in Ohio, New Hampshire and Virginia have become law.

Bills inspire SEIA, AWEA to leave ALEC

As RPS policies represent the largest single policy effort to mandate the switch to renewable energy for electricity production in the United States, this effort is firmly aimed at stopping the nation’s limited renewable energy progress.

Following the introduction of this legislation, both the Solar Energy Industries Association (SEIA, Washington DC, US) and the American Wind Energy Association (AWEA, Washington, DC, US) left ALEC. SEIA also cited a lack of support for other legislative efforts.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
This article is posted at http://www.solarserver.com/solar-magazine/solar-news/current/2013/kw15/bill-to-repeal-north-carolinas-rps-passes-house-committee-11-10.html

solarserver_english

 

Michigan GOP Human Services Budget — Welcome to the Gulag

Michigan GOP Human Services Budget — Welcome to the Gulag

The contrast couldn’t be more stark. Michigan Republicans and Democrats are not even in the same book, let alone on the same page, when it comes to what politicians like to refer to as “our most precious resource” — our children.

Michigan House Republicans approved a budget which will slash funding for the Department of Human Services, the agency that serves the most vulnerable among us. The budget proposes to cut 1,000 jobs in that department — 9 percent of its workforce. Under the GOP plan the agency will be severely handicapped in its capacity to handle the core functions of welfare, food assistance and child abuse cases. Worker’s caseloads would increase by 7 percent, adversely impacting foster care and child protective services. Although the state is under a court-ordered mandate to improve conditions in these services, Republicans refuse to adequately fund the programs.

A decline in services for children in need will predictably lead to increased delinquency and incarceration of the state’s poorest children. The GOP is additionally planning on privatizing three juvenile detention centers (Escanaba, Grayling and Whitmore Lake) to save money. As Democracy Tree investigated last year, privatization of prisons is not only a very bad idea, (that doesn’t save money), but it creates a de facto slave labor force.

What we have in the GOP House Human Services budget is effectively an initiative to make “our most precious resource” a lifelong slave labor market for private prisons.

Michigan Democrats also revealed their budget plans. The Associated Press reports that their focus is on K-12 and higher education funding and middle-class tax relief. Democratic House Leader Griemel said:

“Our priorities are tax relief for middle-class families, restoring funding to education and increasing economic security for Michigan families. The governor’s agenda puts corporations before middle-class families”.

It is safe to say that these priorities will not be reflected in the final budget.

The Senate Human Services subcommittee is set to vote this afternoon on their budget. Congress must then hammer-out their differences by the June 1st deadline.

Our most precious resource will surely be the biggest loser.

Amy Kerr Hardin from Democracy Tree

democracy tree-vltp

Michigan GOP: Stupid is as Stupid Does

Michigan GOP: Stupid is as Stupid Does

There he goes again — Gov. Snyder, Michigan’s Great Equivocator, said that he’s “not going to get in the middle of all that” when asked whether former state lawmaker Rep. Dave Agema should resign from his post as Michigan’s representative to the Republican National Committee in the wake of his bigoted homophobic Facebook page post: “Everyone Should Know These Statistics on Homosexuals”. Republican Secretary of State Ruth Johnson similarly declined to offer an opinion and said it’s a decision for Agema to make for himself.

The essay Agema posted was written by Frank Joseph, M.D. who relied on “statistics” of Dr. Edward R. Fields, a non-practicing chiropractor a KKK-affiliated white supremacist, anti-semitic loon-case. The highly offensive piece was clearly not of scientific origin and should be a clarion call for GOP leaders to condemn such bigotry, especially as the party struggles to re-brand itself. But, in Michigan they cower instead.

Not that Democracy Tree is in the business of giving advice to Republicans, but this kind of thing is exactly what Gov. Bobby Jindal meant when he said “we have to stop being the stupid party”.

Stupid is as stupid does…Gov. Snyder.

Amy Kerr Hardin from Democracy Tree
democracy tree-vltp

More Businesses Victimized by Nevada Prison Industries

More Businesses Victimized by Nevada Prison Industries

By Bob Sloan

– Other Business owners complain of unfair competition –

When researching material for the Study of Nevada’s Prison Industry Program (released in January), I discovered that in addition to several steel fabrication companies, several other industries and manufacturers have come forward saying they’ve also been compromised by Nevada’s prison industry.  These businesses include; embroidery (Carson City), truck manufacturing (water trucks for construction use), auto restoration and repairing (classic cars) and companies involved in repackaging and/or resale of returned or refurbished goods.

In addition to those industries being victimized, any Nevadan that registers a motor vehicle, trailer or semi that requires a license plate is also being forced to contribute to the profits of the prison industry.

Under a contract with the Bureau of Motor Vehicles, the prison industry receives $.50 for every license plate “manufactured” and distributed in Nevada.  This fee appears to be in addition to the current contract between the NDOC prison industries and the BMV that sets pricing for the production of license plates.  Wording of AB 473 makes the payment mandatory and the money deposited to a dedicated Prison Industry Fund.  Vehicles requiring two plates (front and back) are charged an additional $1.00 per vehicle per year.

Sounds like small change for each vehicle owner – $.50 or $1.00 but with an estimated 2 million vehicles registered annually in Nevada the prison industries is expecting to receive a continuing windfall from this amended legislation.  When added to debts owed by private companies partnered with prison industries (2012 Accounts Payable and Outstanding were in excess of $600,000) the state owned and controlled “company” Silver State Industries continues to reap benefits from taxpayers.  They claim that SSI is self-sufficient and relies upon no tax dollars or appropriations for their operations, but what’s been discovered refutes that claim.  Could it be the license plate fees paid to the prison industries will be used to offset industry losses – at the expense of taxpayers who register their vehicles?

An unanswered question…since most consider registering their cars and paying for licensing a state “tax” for owning a vehicle, are Nevadans actually paying a $.50 cent tax per plate to the Prison Industries?

History

The story of Alpine Steel, LLC and their partnership contract with Nevada’s NDOC industries – Silver State Industries – has been in the news for months now.  When competing companies discovered Alpine had been using prison labor provided at or below minimum wages, they complained to the Governor and members of Nevada’s legislature about unfair competition.

Alpine had been contracting with the NDOC since 2006 to use inmates as a workforce in fabricating structural steel used in private sector construction jobs performed by the company. Due to the low labor costs, Alpine was able to respond to RFP’s and underbid all others for projects.

As the story evolved other issues began to rise to the surface identifying separate but factual concerns; unpaid wages to inmates and NDOC staff, unpaid utilities, unpaid taxes and unpaid lease payments by Alpine Steel.  In the end it was determined that Alpine owed the state nearly half a million dollars in unpaid operating costs.  Under the contract between NDOC and Alpine, there were no requirements for the posting of a performance bond or personal guarantee of payment should the corporation default.

The additional public admittance by NDOC Deputy Director Brian Connett that Alpine Steel had not been vetted for past financial or business practices prior to or during the contract(s) period brought to light that his prison industry operation had bypassed standard business practices when developing contracts with Alpine.

Hearings were held before Nevada’s Ways and Means Committee and the Board of Prison Commissioners (BPC) on the matter.  NDOC Director Greg Cox and Deputy Director Connett were questioned about the debt owed to the state by Alpine, on entry into the Alpine contract without any approval from the BPC and failures of consulting with private businesses and labor groups prior to initiating the steel industry operation.

Former Nevada U.S. Senator Richard Bryan came to the table at these meetings and proposed changes to protect Nevada’s workers, private businesses and protect inmate workers from further exploitation.

Proposed changes to Prison Industry Statute(s)

Apparently In response to concerns voiced by Governor Sandoval and his BPC and the proposal by Bryan, the Nevada Senate has proposed amending the state’s statute on prison industries through SB 478, filed on March 25th.  A hearing before the Senate Judiciary Committee is scheduled for Wednesday April 10th to discuss the proposed changes to NRS 209.

One important change to the statute would require any company wishing to participate in prison industry work programs post a bond to ensure situations such as that with Alpine do not reoccur with the state owed hundreds of thousands of dollars.

Other changes tighten the requirements for consulting private businesses that would be impacted by proposed industry products or services – and for consulting with unions and labor that may be adversely impacted by the labor of inmates. Costs associated with these consultations are borne by the company and not paid for with tax dollars and all new proposed industry or products will vetted by the Interim Finance Committee on Prison Industrial Programs.  Once that committee makes a recommendation, the proposed project is sent to the BPC where the Governor, Attorney General and Secretary of State will make the final decision.

Necessity for these changes

Thomson Water TruckIn addition to the Alpine prison operation, investigation revealed that a previous industry run in partnership between SSI and a private company resulted in the closure of at least one competing private manufacturer.  This was a project involving Thomson Equipment Company and SSI.  Thomson imported tanks and pumping equipment from foreign manufacturers and brought the materials to their prison industry facility where inmates assembled the Water Trucks.

Everyone has seen these trucks along highways and large construction sites where they’re used to spray water to keep dust down during construction.  A company that built the same trucks there in Nevada was forced to close those operations in 2006 due to the Thomson products being distributed through auctions and other outlets for as much as 30% less than the competing company’s pricing.  Workers were laid off and the company closed the division that manufactured the same products Thomson had begun selling for less.

“I either had to pay my workers much less or stop my operation to be competitive,” the company owner told me during an interview.  “I chose to close the operation down and not make any more water trucks.  With so many Thomson products dumped on the markets, I could ill afford to pay prevailing wages to my employees and continue to be competitive.

“I had no idea that those Thomson products were made using inmate labor.  I heard they were importing components from Asia and attributed the lower pricing to that.  If I had known at that time that I was forced to close and lay off good workers because prisoners paid minimum wages were used to undercut my pricing, I would have protested to state authorities.  I don’t know if protesting would have stopped it because from what I’ve read in the paper, the state is promoting prison industries.”

According to minutes of the Prison Industry Finance Committee, Thomson was bought out by a foreign conglomerate out of New Zealand and Australia.  They changed the name of the company to Silver Line Industries and began to import a huge number of tanks and other equipment from Hong Kong and elsewhere which the inmates of Nevada would transform into new truck products.  They stopped the prison operation a few years ago, but not before that operation caused the closure of competing Nevada businesses and put several workers on unemployment.  While the company put out of business by the prison industry paid prevailing wages to their workers, Thomson/Silver Line paid inmates minimum wage.

Shelby AmericanI interviewed owners of several car restoration companies in Nevada over the past couple of months.  They advised they were basically unaware of the car restoration industry run by SSI and had no idea they were competing against prisoners doing the same work on privately owned vehicles.  When I asked them about Shelby American’s use of inmate labor on the Shelby Mustang products, none of those interviewed had any inkling inmates were involved in that operation.  One said he had several acquaintances working for Shelby out by the race track in Las Vegas who assembled the Shelby line – and thought they were also manufacturing the parts used in the production.  A 2000 CNN article on Shelby American and a Wall Street Journal article about the restoration of a number of cars owned by private collectors was shown to one restorer.  The Shelby article revealed:

“Shelby American, manufacturer of the Shelby Cobra sports cars, pays Deere and a dozen other inmates at the facility an hourly wage to build every part of the car except the engine. Other workers at the Indian Springs penitentiary work for other private companies or the state restoring cars, beveling and staining glass windows, upholstering chairs and making bed mattresses.

”After five years of loyal service to his employer, the 63-year-old Deere earns less than $8,000 a year in his full-time job, gets no vacation or sick pay and is unlikely to ever be promoted.”

The WSJ story contained this information:

“The cases in question are cars—very cool vintage cars. They come in rough and battered, and inmates restore them to their original glory. It may be the penal system’s most unusual workshop…

“The auto shop’s present inventory includes 32 cars in some stage of restoration. Among them: two 1960s-era Corvettes, two 1960s Mustangs, a 1959 Thunderbird, a 1965 Malibu, a 1935 Chevy pickup and two 1969 GTOs.

“All kinds of customers bring their cars in. Barry Becker, a Las Vegas realtor, has had nearly a dozen cars restored by prisoners.

‘I just keep buying stuff I don’t need,’ he says. Among his prison-rescued treasures are a 1937 Dodge sedan convertible, a 1937 Dodge “Woody” wagon, a 1956 Nash Metropolitan and a 1941 Plymouth pickup truck

“A Las Vegas couple recently agreed to pay the prison $19,000 for a re-do of a 1973 Datsun 240Z, with a V8 engine installed. “Mom’s going to go to the store really fast,” says the shop’s director, Carl Korsgaard.

“Inmates, including a few murderers and lifers, have been trained to do everything from sanding steel bodies down to sewing upholstery. One upholsterer was born in Cuba, where Mr. Korsgaard believes he absorbed his countrymen’s talent for keeping vintage U.S. vehicles on the road.”

Corvette restored by SSIThe business owner exclaimed, “How can the state openly promote a program such as that?  By using inmates to restore or repair privately owned vehicles, they are taking work away from hard working business owners and our employees.  I haven’t committed a crime…my workers aren’t criminals and we need work to put food on the table and pay our bills, raise our kids.  How can the state justify doing something like this that they know hurts business owners like me and dozens of others trying to make a living restoring cars?”

I couldn’t honestly answer his questions.

In 2011 the owner of Billow’s Embroidery in Carson City, Nevada began protesting to the NDOC, SSI and ultimately to Governor Sandoval that his company was losing business due to direct competition with a prison industry doing embroidery.  His complaints included the fact that he had to pay fair wages, benefits and provide insurance for his workers, while the prison industry paid no benefits, insurance and only paid minimum wage.  This made their products and service pricing substantially less than Mr. Billow was able to compete against.

Mr. Billow was invited out to the SSI Embroidery operation and given a tour of the prison industries located at the prison.  He was asked to stop complaining about unfair competition as training of prisoners was important and necessary.

During the tour Mr. Billow described as a “dog and pony show” he was shown the prison’s printing industry shop.  Mr. Billow observed that inmates were being trained on and using antiquated AB Dick offset printing equipment.  He stated, “I learned printing while in school on that equipment decades ago.  I couldn’t understand how training inmates on such old equipment would prepare them for employment in the printing industry upon release, when they would know nothing about the digital and advanced printing machinery used in the private sector.”

Mr. Billow felt that the “tour” he was given was conducted as a way of demonstrating that he was up against a huge industry run by the state and that to continue to complain would be useless.  He said he felt that it was an effort into intimidating him into silence.

Jacobs Trading Company

bigjacobsAn ongoing industry run at the women’s prison facility operated by SSI, is a partnership with Jacobs Trading Company.  Jacobs is a national company that specializes in buying, refurbishing and repackaging returned or damaged products from retailer such as Wal-Mart and Best Buy.  Female prisoners are paid minimum wage for their labor.

The Great Recession was a boon for Jacobs Trading Co., the liquidation company in Hopkins MN. that bears the name of Irwin Jacobs, one of the state’s best-known businessmen. The company deals in overstocks, scratch-and-dents and returned merchandise and saw operating income rocket to $14 million in 2009 from $5 million in 2008.  Jacobs relies heavily upon prison labor for their repackaging operations.

Inmate workers receive the materials and repair if necessary and then remove all labeling, advertising and UPC coding that identifies the original manufacturer or retailer.  They then repackage and ship the refurbished products all over the country.  Recently Jacobs demanded SSI provide the money to expand their prison operation at the women’s prison.  Jacobs said they need another loading dock in order to put on a third shift and employ another eighteen female prisoners.

Rather than “request” the NDOC or SSI provide the new construction, Jacobs demanded that they do so, and threatened to reduce their operation to a single shift and lay off inmate workers if the state run department did not meet their demands.  Some refer to this as sharp negotiating others would call it a form of extortion.

Research revealed that Jacobs Trading Company has created an “empire” within the repackaging industry in the U.S.  Currently they operate in prison industry operations in at least six states.  Consider the following discussion that occurred fifteen years ago in reference to Jacobs Trading’s operation in Minneapolis – and legislation proposed to favor Jacobs’ use of inmate labor:

“Corrections officials are quick to cite a statewide labor shortage to justify deals such as the Jacobs bill. Employersare having trouble finding people to work, they point out.

But Neuenfeldt shoots back: “If Jacobs wants to bring 50 jobs to Wisconsin, it would be good to open up an operation in central-city Milwaukee or somewhere else in the state where we have high unemployment.

“And I would think that the business community, especially small business, would have some concern over businesses set up using prison labor, because if this guy pays a dollar an hour it’s pretty hard to compete with that,” he adds.

If the Jacobs legislation passes as currently written, Jacobs will indeed pay inmates $1 per hour, skirting a federal interstate commerce law that requires that prisoners working for commercial ventures be paid prevailing wage.

Federal law only applies to the production or manufacturing of a product,” says Steve Kronzer, director of Badger State Industries. “If they started repairing then it would be considered manufacturing, and then it would come under the federal law.”[1]

The Jacobs plan demonstrates the enthusiasm with which the Department of Corrections is expanding into the private sector–even at the expense of profits. “The whole reason for doing this thing is so the state gets money back to cover its losses for boarding these people,” says Neuenfeldt.

But, the labor rep says, some basic math shows that the savings would be minimal, possibly nonexistent.

The 50 inmates involved would be paid $1 per hour for 1,950 hours. This would cost Jacobs $97,500 a year in wages. Thus, each inmate would be paid about $2,000 a year. Fifteen percent of that would go to the corrections system, and another 5% would go to the victim-restitution fund. The state’s 15% comes to $14,625, plus an estimated $8,000 savings from wages the state would no longer pay the inmates who would otherwise be employed in other ventures. So the state gain would be around $27,525.

But the state would also have to pay for a supervisor, which the AFL-CIO estimates will cost $17,800. This brings the state’s take down to $9,725. Subtract the costs of facility adjustments and security measures, and “the Jacobs bill could even be a money-losing proposition,” says Neuenfeldt.

So why do it?

“You have to understand the mentality that goes on within the prison industries itself,” says Nick George, director of government relations for Wisconsin Manufacturers and Commerce. George served on a prison industries advisory committee that discussed the governor’s budget proposals.

“In prison industries, there is a mentality, and this is not unique to Wisconsin, of wanting to see their industries grow,” he explains. “They have a number of advantages over private industry, and a lot of the individuals who run these prison industries have an empire-building attitude.”

Several of these operations are identified as participating in the federal Prison Industries Enhancement Certification Program (PIE Program).  This program allows companies to use inmate labor to manufacture products sold and shipped across state lines – but only where the company pays prevailing wages to the inmates, consults with private companies performing the same manufacturing or services and with labor unions, prior to start-up of the industry.

While the Jacobs operation in Nevada is listed as a PIE Program participant, the inmates are not paid comparable wages.  They receive minimum wage or less for all job descriptions, regardless of years of experience or skill.

In other states Jacobs has failed to register these operations as PIE though the products received at those facilities cross state lines and finished products are shipped back across state lines.  Here is a listing of some of those current or former Jacobs operations:

  1. Nevada – Southern Nevada Correctional Center.

  2. Oklahoma – Eddie Warrior Correctional Center (not listed as PIE).

  3. Idaho

  4. North Dakota

  5. Indiana –  Bunker Hill,  and Rockville, Indiana

  6. Minnesota

Currently Nevada is the only “PIE” operation listed for Jacobs…yet as shown, they are operating in Oklahoma without listing it as a PIE industry.  In each of the foregoing states inmates are used as the sole workforce for Jacobs’ repackaging operations.  Jacobs does not use non-inmate labor in their repackaging operations.  Looking at the map of distribution centers operated by Jacobs, one finds that they are placed in areas where the prison industries are operating.  In a couple of those industry operations, Jacobs has acquired exclusive contracts with Corrections Corporation of America to use inmate labor and facilities under control of this private prison company.

Jacobs Trading and its owner, Irwin Jacobs have been in the news in a similar manner to Alpine Steel and owner Randy Bulloch over questionable business practices.  In 1997 Jacobs retail operations were sold to Petters Group Worldwide.  After failing to make payments for their purchase, the stores were ultimately shut down.

(It is interesting to note that Tom Petters, whose company had purchased the retail operations from Jacobs Trading, was recently convicted of multiple felony counts as part of a $3.65 Billion Ponzi scheme.)

In 2010 Irwin Jacobs came under intense scrutiny over investments made in a top boat company, Genmar.  It appears Jacobs urged investors to put money into Genmar before the company wound up in bankruptcy.  In the two years preceding that collapse, Jacobs and some of his investors received substantial “dividends” from Genmar as it was financially foundering.

Once the bankruptcy was final, Jacobs and one of his investor friends began buying Genmar back for pennies on the dollar, vowing to make it one of Jacob’s “best acquisitions ever.”

Corruption in Prison Industries

I mention Jacobs and the appearance of manipulating businesses and use of inmate labor, because a means of capitalizing off cheap labor permeates all the companies involved in prison industries.  Alpine Steel revealed that aspect to Nevadans recently.  Previously I wrote about U.S. Technologies that was formed for the specific purpose of using inmate labor in the PIE Program to provide a labor advantage to numerous companies acquired by U.S. Technologies.

Like Jacobs, UST formed exclusive contracts with CCA and/or Geo Group to allow them to operate at all facilities owned or managed by these private prison companies that have prison industry operations.

Board members of UST included many top names of the politically and financially powerful in Washington; George J. Mitchell, William Webster, General Alexander J. Haig Jr., etc.  In 2006 UST went belly up after the Chairman was indicted for embezzling over $20 million in investor funds.  The SEC devalued UST stock and the high profile Board members ran from any connectivity to UST as quickly as possible.

In Florida the prison industry corporation PRIDE came under fire for creating nine spin-off corporations to take advantage of the PIE Program and turn huge profits.  The entire executive staff was forced to retire once the scandal broke but that didn’t save four private companies that had been taken over entirely by PRIDE, putting the legal business owners into bankruptcy.

Beyond the cheap low cost labor, is the ability to secure equally cheap leases on state owned manufacturing facilities and as in Nevada, avoid paying the Modified Business Tax on employees.  Alpine secured a lease of 20,000 square feet of manufacturing space from the NDOC.  The contract charged Alpine $.26 cents per square foot for that property.  The average cost per square foot for comparable space in the private sector is $.68 cents a square foot.  Which means Alpine enjoyed a savings of $95,000 in operational expenses every year.

This “savings” to Alpine Steel reduced the potential revenue stream to taxpayers – for the lease of public owned facilities – to the tune of that same $95,000.  When we calculate savings realized by Alpine over the past 7 years that this contract with SSI existed, we easily determine that taxpayers lost more than $665,000 in potential revenue.  Between this loss of potential income and the actual amount owed to the state by Alpine Steel in unpaid debt and unpaid taxes, Nevada is out more than $1 million dollars.  Over the next four years Alpine’s owner has agreed to repay $438,000 owed in the unpaid debt without additional penalties or interest…but the income lost under the leases is gone and there is no provision for Alpine to repay the additional $38,000 owed to the Dept of Revenue for unpaid state taxes.

That $1 million dollars represents a huge loss to a state with high unemployment rates, a declining tax base and increasing government costs.  Nevada in effect subsidized one company’s operations to the tune of a million dollars over half a decade while the competing companies lost income and the ability to hire new workers due to that subsidization.  To me this is beyond unfair, it borders on the very definition of corruption.

Additionally, Jacobs Trading, JT Wholesale, the Embroidery industry and other companies that have left SSI; Shelby American, Thomson Equipment, etc. all have/had similar sweetheart leases on publicly owned facility spaces and inmate wage rates.  How much more in revenue was denied to Nevada’s taxpayers from these leases?  How many more Nevada workers were not hired because inmates were used instead?

So there is a lot of incentive for companies to partner with state run prison industries.  The temptation to realize huge savings off cheap labor, low cost leases, tax breaks, and no requirement to pay worker benefits is too attractive to companies already looking desperately for an “edge” in their respective markets.

When government administrators “help” by increasing the incentives for companies to bring their manufacturing and labor needs to prison industries, it further depresses the normal employment and sales markets.  Leases to the likes of Alpine Steel were made without approval or even review by the Legislature or the Executive branch of government.  The wage rates paid to inmates are likewise without review or question…all leading to the current situation in Nevada.

When we realize the numbers of industries, businesses and unemployed workers who continue to be harmed because of prison industry operation we begin to understand why Nevada jobs are becoming scarce, why private business sales are suffering and why new businesses are finding it more difficult to compete against a captive workforce supported by state subsidized operations.

The Senate Judiciary Committee is scheduled to discuss the proposed changes to Nevada’s prison industries this coming Wednesday.  I would encourage those who think they are or may be adversely affected by competition in your industry by prison labor, to attend and use this opportunity to voice your opinion.



[1] This is the loophole that Senator Bryan’s proposal to Governor Sandoval would close.  This would protect Nevada employers and workers before protecting workers and businesses in other states.  When SSI’s prison made goods are sold in Nevada, there is no protection to business or workers, requirements to consult with labor or competitors.  Only when SSI products leave the state, are workers and businesses in receiving states getting protection by requiring the inmates are paid comparable wages and consultation with labor was fulfilled.

Deja Vu – Repeat of Teapot Dome

Deja Vu – Repeat of Teapot Dome

We need to learn a lesson from history when it comes to natural resources.  Money, labor, privatization, and politicians operate the same.

Some things never change.

At the time of Presidents Harding and Coolidge, the oil companies, particularly Sinclair Oil was given our nation’s oil resources for a sweetheart deal – no bidding necessary. The oil was in reserve for the Navy in case of war – the Republicans in charge arranged for it to go to oil corporations for profit.

Some things never change.

In our day, international mining corporations are allowed to enter Nevada and stake claims for very small fees . The current Governor of Nevada most recently worked at Jones Vargas – the firm hired to mining lobby. Elected officials on all levels take campaign donations from mining. Mining pays barely anything for billions of dollars in gold and other minerals.

It is estimated that one trillion dollars worth of gold is in the center of the state.
________________.:.__________________

Taken from Coolidge, by Amity Shales, page 239-240

Out west, one of the navy properties was a great oil field that lay under a butte, officially Naval Petroleum Reserve No 3 but known as Teapot Dome for the butte’s funny shape. Some engineers were arguing that the surrounding private companies were tapping the oil out from under the Dome. The best thing to do might be to grant a concession to drill there; that would both allow commerce to take over the business there and reduce the United States’ dependence on oil drilling in Mexico …. Granting oil concessions to private companies was like granting a great company the right to operate Muscle Shoals, the dam that had been constructed to produce nitrates during the war. It was important to do this now, Harding and Coolidge believed. If they did not then these sectors might forever stay in public hands.

Some things never change.

Resource Land: international mining corporations are staking claims all over Nevada in a mighty land grab. They are allowed by fee simple to patent the land converting public land into private property. At least at teapot dome, there was a lease and they had to pay something. They are not paying anything to tie up the land.

Resource Water: The ancient water is dumped by mining into the the desert while Vegas fights with the North and other states over water rights.

Resource Clean Environment. British Petroleum owns the superfund site in Yerington. The radioactive site will cost billions to clean up. Water has to be brought in from outside for the people living close by to drink. Mercury is polluting the water, fish are not edible, and the EPA is fining the mining industry. Thousands of holes are dug all over the state and abandoned.

Corporations are costing the government and the tax payers billions in Nevada; corporations are reaping only benefits and profits.
_______________________.:.________________

Taken from Coolidge, by Amity Shales, page 240

Albert Fall, intended to lease the valuable Naval Petroleum Reserve No 3 without putting the project out for bids. The transfer to Interior from Navy had already taken place with the seeming endorsement of all, including the navy secretary and the navy assistant secretary, Theodore Roosevelt, the president’s son and Alice’s half brother …. The Wyoming reserves, some 200 million barrels of high-grade oil, would be leased to Mammouth Oil Co., a company created by Sinclair Oil, the company of a Harding campaign donor, Harry Sinclair

Some things never change.

Nevada is a leading producer of high quality gold. A cash cow for the billion dollar mining industry. Barely a soul spoke against their monopolies hidden out in the desert for decades. Campaign donations were hefty for many Nevada politicians.

Mining does employ a few mostly transient workers and adds some benefit to the immediate communities. It is by no means comparable to the benefit the corporations receive.

Nevada has become a place for out-of-state profiteers.

While leadership is asleep at the switch.

Nevada also has its own “Keystone Pipeline”. This huge natural gas line crosses Nevada leaving a huge scar on the old ground. Yes, we had temporary jobs and a short term boost in the economy. That boost is history. The federal government smoothly permitted the 48″ gas line. Nevada politicians can be proud that Nevada got the burden of the pipeline but not the benefit of buying one gallon of natural gas. North Dakota is not the only state that is covered with pipeline. If you really want to generate and sell electricity, cheap natural gas is the way to do it. Ask California – they got the gas.
_______________.:.______________

Taken from Coolidge, by Amity Shales, page 240

Senator Robert La Follette of Wisconsin was moving with alacrity to spotlight the transaction and demanded an investigation of the teapot Dome concession …. Coolidge watched from the Senate president’s seat.

Tax issues — the rich did not want to pay.

Some things never change.

The people of Nevada have to take the matter into their own hands because the politicians would not. SJR15 is before the Nevada Legislature. This would remove a cap placed in the Nevada Constitution by miners in ancient times. We hope this will be placed on the ballot and the people will vote — doing the job that our elected officials should have done.

Why has it taken Nevada so long? Mining law from 1872? These laws need to change.
_________________.:.____________

Taken from Coolidge, by Amity Shales, page 241

In June, the administration won a key case against violent strikers: United Mine Workers v Coronado Coal affirmed that strikers were liable for the damage they inflicted on companies property. On July 1, 300,000 rail workers walked out, shutting down commerce. The strikes halted the upward trend of business; the strike was taking the recovery hostage. The administration had begun to appoint conservative judges who would be a help in the endless battles between companies and unions.

Some things never change.

Under conditions of austerity, labor is taking to the streets, protesting, and becoming unsettled. Activists are activating. Organizers are organizing. Regular people are asking: Why are we giving resources away while we are experiencing severe financial crisis? Vegas experiencing the recession in many ways worse than the rest of the nation. Highest foreclosure. Highest unemployment.

Union busting was and is the primary goal. Profit margins widen as the rich take advantage of the work of people’s hands. In a right to work state, unions stand between working people and oblivion.

Resources are allowed to be siphoned away.
________________________.:._____________________

Taken from Coolidge, by Amity Shales, page 281

It was becoming clear now that the interior secretary had accepted cash via an intermediary. “Not in my time has the country been so startled by the act of a public servant as it has been by the disclosure that Secretary Fall actually took money in a satchel, ” wrote Morrow….

Some things never change.

Closed door legislative meetings. Decisions made at the last minute. Horse trading. Mining lobbyists boldly meeting in the middle of the legislative building as if they owned the place. Some people getting richer and the disadvantaged not part of the discussion.
____________________.:._____________

Taken from Coolidge, by Amity Shales, page 281

Longworth’s compromise was worse than the White House feared. Republicans teamed up with Democrats, 408-8, to pass a bill that diverged sharply from the Mellon Plan.

Some things never change.

In a move that surprised everyone this Nevada Legislative session a few Republicans are leading the charge to do something about remedying the taxation of Nevada Mining. They are questioning and standing up to the lobbyists.

Where are the democrats?
___________________.:._______________

Taken from Coolidge, by Amity Shales, page 281

But there again, despite the special prosecutors and the recent resignation of Navy Secretary Denby, the shadow of Teapot Dome was still long. If leasing Teapot Dome to Harry Sinclair had been a corrupt mockery of privatization, then was not the sale of Muscle Shoals to Ford the same? Governor Gifford Pinchot, who had negotiated the coal situation the prior autumn, opposed the sale. Progressives in the Senate found endless reasons to block it.

Some things never change.

In Nevada the progressives are activating around the mining issues. Sheila Leslie and Representative Steven Horsford worked on SJR15. US Representative Steven Horsford participates in the Mining Accountability and Oversight Committee, MOAC.

But the situation is progressing slowly, with the Nevada Governor appointing MOAC auditors and inspectors of the billion dollar mining industries – who do not attend the meetings. It’s lip service to oversight but it is not meaningful.

This reminds me of the Anderson Firm auditing Enron.
__________________.:._______________

Taken from Coolidge, by Amity Shales, page 295

The Teapot Dome investigations continued: the federal grand jury indicted Albert Fall, Sinclair, and Doheny.

________________.:._________________

Taken from Coolidge, by Amity Shales, page 296

“We are often told that we are a rich country, and we are,” Coolidge told the crowd. But as in the Gospel of Luke, “where more is given, more is required.” The President laid down the law for those departments that would not cut. “I regret that there are still some officials who apparently feel that the estimates transmitted to the Bureau of the Budget are the estimates which they are authorized to advocate before the Committees.” The only lawful estimates were the president’s Finally Coolidge again stressed his theme: “I am for economy. After that I am for more economy. At this time, and under present circumstances, that is my conception of serving the people.”

Some things never change.

Governor Sandoval is a leader in a state full of gold. The billionaires are allowed to hide, hoard, and stash the wealth. While the Governor cut 5,000 jobs his first months in office. Schools, hospitals, social services, mental health, are all cut cut cut. This definitely serves a few people – it is not serving THE people.
___________________.:. ______________

Taken from Coolidge, by Amity Shales, page 305

La Follete and Davis might be able to use Teapot Dome to bring Republicans down.

Some things never change.

Scandal will bring politicians down. Careful politicos – ethical consideration and disciplinary rules may bite you.
___________________.:.________________

Taken from Coolidge, by Amity Shales, page 321

The big question in the Veterans Bureau and Teapot Dome scandals was how much information Coolidge himself had picked up in the cabinet meetings. When Dawes made a show of avoiding the meetings, he raised the question of whether Coolidge had been compromised by attending. The alternative was that Coolidge had been ignorant of what had gone on among men he saw at the White House …. That surmise kept Coolidge’s name clear but also suggested that he was a simpleton.

Some things never change.

The people involved in Nevada Mining issues and allowing the corporations to take American resources like this are either not paying attention or not understanding?
___________________.:.________________

Taken from Coolidge, by Amity Shales, page 391

Charles Forbes, Harding’s original Veterans Bureau chief, was still in Leavenworth Prison for the fraud he had committed with federal moneys. All over Washington could be found the detritus of war-related scandal, such as the Teapot Dome decision relating to naval reserves.

Some things never change.

Enough is enough. We need to use our Nevada resources wisely and be responsible stewards.

This post was written by Angie Sullivan