| |
Putting Them Out of Business
by Paul Cienfuegos
When I began in 1996 to build a new organization in Humboldt County, CA,
focused entirely on challenging corporate rule, it never occurred to me
that tangible wins were possible to achieve in the first few years. I
assumed that many years of hard work--locally educating, tabling,
speaking, writing, pounding the pavement, etc.--would be required before
anyone could claim definitively that a cultural and legal shift was
actually afoot in America. I was wrong! I proudly present for your reading
pleasure a rare bit of good news in this closing year of the millennium:
six actual examples that We The People of the United States of America are
beginning to awaken from our hundred-year slumber since large corporations
began to overwhelm our democratic institutions in the late 1800s.
1. In May 1998, New York Attorney General Dennis Vacco initiated corporate
charter revocation proceedings against the non-profit Council For Tobacco
Research and the Tobacco Institute Inc., calling them "shills" for tobacco
corporations. Both chartered as educational tax-exempt non-profits, Mr.
Vacco accused both groups of posing as non-profit groups while, at
taxpayer expense, they "fed the public a pack of lies in an underhanded
effort to promote smoking and addict our kids." In October, he won the
revocation of the council's charter, forcing it to close its doors and
forfeit most of its assets, which will be turned over to a NY state
university and a public institute. The other case is still pending.
On November 3, 1998, New York voters unexpectedly removed Mr. Vacco and
replaced him with Eliot Spitzer, who campaigned on a platform unheard of
since the last century:
"When a corporation is convicted of repeated felonies that harm or
endanger the lives of human beings or destroy our environment, the
corporation should be put to death, its corporate existence ended, and its
assets taken and sold at public auction ... During the 1840s and 1850s,
companies lost their charters routinely for committing serious violations
... In the late 19th century, New York State led the way in revoking the
charters of oil, match, sugar, and whiskey trusts when these companies
created criminal acts and exceeded the powers of their charters."
2. In October 1998, the elected Council of the Township of Wayne, PA,
passed into law an ordinance which prohibits corporations from doing
business in Wayne which have a history of consistently violating
regulatory law at the municipal, county, state, or federal level. The
ordinance also prohibits corporations from doing business in Wayne which
have on their board of directors any person who currently sits on the
board of any other corporation which has a history of consistently
violating regulatory law. Regulatory law includes environmental law, labor
law, occupational safety and health law, tax law, consumer law, etc.
When an individual commits three felonies, he or she gets an automatic
life sentence (or is put to death). When a corporation commits a string of
serious violations of regulatory law, they are merely fined over and over
again. There is no cumulative impact of the violations. And their fines
and legal fees are tax-deductible (i.e., we pay a portion of these costs
through our taxes). Many giant corporations have long histories of
violating regulatory law. The people of Wayne have decided to demand that
corporate leaders be fully accountable for the actions of their corporate
entities. (The full text of the law can be found on the Democracy
Unlimited web site: www.monitor.net/democracyunlimited.)
3. In June 1998 in Alabama, circuit court judge William Wynn applied as a
private citizen for a writ of Quo Warranto. Quo Warranto hearings (Latin
for "by what authority") call corporations to account for their harms or
failures, and if found Ultra Vires ("beyond their authority"), their
charters can be amended or revoked. Quo Warranto hearings were commonplace
until the 1890s, but have only rarely been used in this manner in the 20th
century--until the extraordinary case in New York described above. The
Alabama judge's writ was against the same four tobacco corporations that
46 states signed a deal with, demanding that Alabama revoke their charters
to do business in the state. His application cited state child abuse laws
that were broken in targeting "minors ... to use, consume and be affected
by dangerous, addictive and lethal tobacco products." The four
corporations have requested that the hearing be moved to the federal
courts, where they expect they'll get a more favorable response.
4. In September 1998, 30 organizations, including our local Democracy
Unlimited, joined together (under the leadership of the CA chapter of the
National Lawyers Guild) to petition the Attorney General of California,
then Dan Lundgren, to initiate charter revocation proceedings against
Unocal corporation (Union Oil of California). Mr. Lundgren refused to do
his legal duty. The new attorney general will soon be handed the 129-page
petition. (A copy is available for perusal at our office, and via our web
site listed below.) The petition identifies ten counts of significant
harms caused by Unocal, including: environmental devastation in California
and Southeast Asia; complicity in crimes against humanity--and cultural
genocide--in Afghanistan, Burma, and Canada; illegal labor practices in
California; usurpation of political power in Burma, Afghanistan, and the
US; and deception of the courts, shareholders and the public.
5. Until the turn of the century, it was common for state constitutions to
contain specific corporate rules and prohibitions, such as: no corporation
may own another corporation; no corporation may make a financial
contribution to a candidate for office or a charitable or civic
organization; all corporate directors and stockholders are to be held
personally liable for all harms and debts; etc. In California, most of
these rules were removed from our state constitution in 1930 and 1972. In
the Midwest, citizens are beginning to reverse this trend.
In many Midwestern states, farmers have been organizing for the past
twenty years to prohibit corporations and other limited liability entities
from engaging in farming and the ownership of farmland. Nine states (North
Dakota, Iowa, Kansas, Minnesota, Missouri, Nebraska, Oklahoma, South
Dakota, and Wisconsin) now have such prohibitions under law. All of the
state's laws are found in statutes, except for Nebraska.
In the state of Nebraska in 1982, citizens collected enough signatures on
an initiative petition to place on the ballot a proposed Constitutional
Amendment banning "non-family farm corporations and syndicates" from
owning farmland or engaging in farming or ranching. The proposed amendment
received over 56% of the vote, and is now a part of the state's
constitution (Article XII, Section 8). It has been challenged in both
state and federal courts and both times the law's legality has been
upheld. On November 3, 1998, the people of South Dakota went to the polls
attempting to pass a similar Constitutional Amendment. (I don't yet know
the outcome of the vote.)
6. It is only appropriate that I conclude this survey by mentioning
Measure F: the Arcata (CA) Advisory Measure on Democracy and Corporations,
which won almost 61% of the vote last November. It was organized by
Citizens Concerned About Corporations (CCAC), a spin-off project of
Democracy Unlimited of Humboldt County, CA. For the first time in the
history of our country, citizens are asking their elected city council to
assist them in launching a city-wide discussion on the proper role of
corporations in our society.
By the time you read this, the City Council will have created a Task Force
to organize town hall meetings. The Measure F Steering Committee will
continue to meet to ensure that this extraordinary hidden American history
is made widely available to all Arcatans via house-party study sessions, a
city-wide educational mailing, and much more. Both town hall meetings will
take place from 10 AM to 3 PM on two Saturdays (April 10 and May 1), at
the Arcata High School.
In all of the examples I have listed, the central goal is the same, and
can be summed up with a single question: "In our democracy, who's in
charge: citizens or corporations?"
Our nation's founders were quite clear about the answer. We The People
were to have sovereign authority over all of our institutions, be they
government or corporate. The work of Democracy Unlimited (and its spin-off
project, CCAC) is educating and organizing to reclaim citizen authority
over our corporate creations. We invite you to become active wherever you
live as we continue the essential work of reclaiming our democracy from
giant absentee corporations.
May next year's news be as sweet.
For more information about Democracy Unlimited or its spin-off project,
Citizens Concerned About Corporations, please send at least $2 to us at
P.O. Box 27, Arcata, CA 95518, or check out our new web site at
http://www.monitor.net/democracyunlimited. Or better yet, join Democracy
Unlimited for a mere $25 ($15 low income) and receive four newsletters,
and discounts on a plethora of articles, books, and audio tapes.
Paul is the founding director of Democracy Unlimited of Humboldt County,
based in Arcata, CA. He can be reached at 707-822-2242 or
cienfuegos@igc.org. Currently a Seattle group is forming to propose a
resolution similar to Arcata's. To get in touch with the Seattle group,
contact Paul at his phone number or e-mail address listed above.
|