During the time of colonial expansion in the 17th century, the true progenitors of the modern corporation emerged as the chartered company. the British East India Company would come to symbolize the dazzlingly rich potential of the corporation, as well as new methods of business that could be both brutal and exploitative. On 31 December 1600, the English monarchy granted the company a 15-year monopoly on trade to and from the East Indies and Africa. By 1611, shareholders in the East India Company were earning an almost 150% return on their investment every year. The East India Company traded mainly in cotton, silk, indigo dye, salt, saltpetre, tea and opium. Shares of the company were owned by wealthy merchants and aristocrats. The Boston Tea Party (referred to in its time simply as the destruction of the tea or by other informal names and so named until half a century later was a political protest by the Sons of Liberty in Boston, a city in the British colony of Massachusetts, against the tax policy of the British government and the East India Company that controlled all the tea imported into the colonies. In other words the Tea Party was striking out against the collusion between the Government and rich Corporations. On December 16, 1773, after officials in Boston refused to return three shiploads of taxed tea to Britain, a group of colonists boarded the ships and destroyed the tea by throwing it into Boston Harbor. The incident remains an iconic event of American history, and other political protests often refer to it. One of the reasons Corporations made money in those times, BESIDES their use of extreme power to extract items from the colonies, was the simple fact that unlike people, corporations live forever, corporations are unconcerned with right or wrong, corporations are singled minded (profit, profit, profit—now called “the Bottom Line”) and there is no liability for those who OWN the corporation for the wrongdoing that may be done to make profits, and, finally, unlike people, corporations are not punished or executed for their wrongs. Corporations had a profound impact on America. We always hear about the “Boston Tea Party” as a reaction to unfair government action—What was that action that was so unfair? 1. No selling of tea from anyone but “The British East India Company” –this kept American businessmen from buying and selling other tea to make money. 2. No shipping of anything on any vessel other than “British Owned”—meaning ships owned by British Corporations. 3. In addition, there were other complaints about the actions of British Corporations in the American Colonies—the practice of “indentured servants”, many of which did not survive their period of indenture. 4. Regulations and rules being created by the Leaders of the Colonies—Corporations that funded the starting of the colony—when the Leaders of the Colonies were in England and didn’t know the conditions in the US. 5. The large tracts of land owned by the local leaders of the colonies—many were children of aristocrats. 6. The prohibition of the growing of American Industry and American Business which might either compete with British Corporations, or they had a NEW idea for making money that the British Corporation MIGHT want to exploit. Look on the internet even today searching for the “benefits of incorporation” and you will find the following: Advantages of incorporating – 1. Tax Advantages—the corporation is allowed MANY tax advantages that are NOT AVAILABLE to individuals or businesses that are not incorporated 2. Liability—depending on WHERE you are incorporated there may be MORE liability protections—but EVERYWHERE—the owners of a corporation are NOT LIABLE for the acts of the corporation they own 3. Raise money by selling stock—individuals cannot raise money this way 4. Corporations start fresh in terms of credit—even if ALL the owners have terrible credit, the corporation is able to borrow money—because it has a fresh start in obtaining credit. 5. Influencing legislation—corporations are allowed to campaign for, donate money to, and influence legislators—while individuals can do the same thing, the corporation has less limits on campaigning, donating, and influencing while protecting the identity of the owners of the corporation—a way to hide what the owners of the corporation are doing, and a way to get special treatment in the law and special treatment from the powerful—BECAUSE IT IS VERY HARD TO FIND OUT WHO IS INFLUENCING YOUR GOVERNMENT. In our initial founding as a nation—corporations were SEVERLY restricted in their actions and were closely monitored by state governments—which REQUIRED that Corporations “operate for the PUBLIC GOOD” instead of solely for profit. An example of how Corporations were viewed at the tile—read the words of the “Founding Fathers” “Were the talents and virtues which heaven has bestowed on men given merely to make them more obedient drudges, to be sacrificed to the ambition of a few? Or, were not the noble gifts so equally dispensed with a divine purpose and law, that they should as nearly as possible be equally exerted, and the blessings of Providence be equally enjoyed by all?”--Samuel Adams “I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country.”--Thomas Jefferson “He that is of the opinion money will do everything may well be suspected of doing everything for money.”--Benjamin Franklin “Few men have virtue to withstand the highest bidder.”--George Washington “Commercial shackles are generally unjust, oppressive, and impolitic.”--James Madison Those opinions about corporations have been rephrased by other American Leaders “It is to be regretted that the rich and powerful too often bend the acts of government to their own selfish purposes.”--Andrew Jackson “These capitalists generally act harmoniously and in concert, to fleece the people.”--Abraham Lincoln “The freest government if it could exist would not be accepted if the tendency of the laws was to create a rapid accumulation of property in a few hands and to render the great mass of the people dependent.”-- Daniel Webster “The death-knell of the republic had rung as soon as the active power became lodged in the hands of those who sought, not to do justice to all citizens, rich and poor alike, but to stand for one special class and for its interests as opposed to the interests of others.”--Theodore Roosevelt As we view the achievements of aggregated capital, we discover the existence of trusts, combinations, and monopolies, while the citizen is struggling far in the rear, or is trampled beneath an iron heel. Corporations, which should be the carefully restrained creatures of the law and the servants of the people, are fast becoming the peoples masters .--President Grover Cleveland “The first truth is that the liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is Fascism—ownership of Government by an individual, by a group, or by any other controlling private power.”—Franklin Delano Roosevelt “Selfishness and greed, individual or national, cause most of our troubles.” Harry S Truman But in this era the Republican party believes-- According to Milton Friedman--The corporate executive “is to conduct the business in accordance with their desires,(of the corporate owners) which generally will be to MAKE AS MUCH MONEY AS POSSIBLE…” Ayn Rand—the Guru of the conservative Republicans believed A PERSON SHOULD NOT BE CONCERNED WITH ALTRUISM (Altruism or selflessness is the principle or practice of concern for the welfare of others. It is a traditional virtue in many cultures and a core aspect of various religious traditions-- Altruism is the opposite of selfishness).
Posted on: Tue, 25 Mar 2014 00:19:14 +0000
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