By Mark Ames, AlterNet
Posted on October 24, 2009, Printed on October 25, 2009
http://www.alternet.org/story/143485/Editor's Note: The shocking transfer of public wealth to Wall Street's pockets is illustrated vividly in Mark Ames' article below, which covers some very disturbing recent events in Alabama, where billionaires and banks are squeezing the locals so hard that they're literally going bankrupt just for flushing their toilets, where violence and the threat of violence are reaching a boiling point and where even the Posse Comitatus Act is under threat. "We have to tolerate the inequality as a way to achieve greater prosperity and opportunity for all," said one Goldman Sachs vice-chairman recently. Well, here's a tale of the kind of inequality the finance industry expects citizens to tolerate.
One of this year's more disturbing stories that were ignored was the illegal Army occupation of Samson, Alab., in March following a shooting spree that raged across two towns by a disgruntled worker, leaving 11 people dead.
As I wrote at the time, Michael McLendon, 27, went on a killing rampage following years of relentless corporate exploitation and harassment against him, his mother (whom he mercy-killed), and the entire rural Alabama region, which suffered like so many parts of rural America at the hands of billionaire goons like chicken oligarch Bo Pilgrim of Pilgrim's Pride notoriety.
One of the creepiest details to emerge in the shooting rampage were reports that troops from nearby Fort Rucker were brought into Samson and other surrounding areas to patrol the streets. This is a clear violation of the Posse Comitatus Act, every freedom-loving American's worst nightmare.
And now, finally, the Army officially agrees that its occupation of the Alabama streets was illegal, according to an internal report the Associated Press got a hold of, following a Freedom of Information Act filing:
An Army investigation found that soldiers should not have been sent to man traffic stops in a small Alabama town after 11 people were killed in March during a shooting spree.
An Army report released to the Associated Press on Monday in response to a Freedom of Information Act request said the decision to dispatch military police to Samson from nearby Fort Rucker broke the law. But an Army spokesman said no charges have been filed following the Aug. 10 report.
The report from the Department of Army Inspector General found the use of military personnel in Samson violated the Posse Comitatus Act, which prohibits federal troops from performing law-enforcement actions. The names of those involved were redacted from the report.
According to the report, the officer's "intent was to be a good Army neighbor and help local civilian authorities facing a difficult, unique tragedy affecting the local community. There were no apparent adverse collateral effects to the support provided."
Indeed. For a lot of Americans, the sight of troops occupying their towns is their worst nightmare come true -- part of the reason that America came into existence was to create a country where this sort of thing would never happen, even if the Army's sole intent was to be a good neighbor and help old ladies cross the streets.
Strangely enough, there was almost no media coverage of the occupation -- you had to rely on various right-wing outlets like CNSNews.com, whose article I blogged at the time, or the left-wing Democratic Underground.
But what even the right-wing anti-government people won't report is the true reason why the Army was called out in the first place, something that goes right back to the cause of the shooting rampage: billionaire exploitation of the local Alabamans, not just by the chicken oligarch, but from higher up the predator food chain -- Wall Street banking behemoth JP Morgan Chase.
You see, thanks to a combination of corporate-tax holidays (which reduce local revenues), billionaire greed like the sort that bankrupted Pilgrim's Pride, and Wall Street investment-banking scams on places like Alabama that result in corrupted local officials and bankrupted municipalities, counties and states -- now, there's no money left to fund local police forces, as the U.S. Army report reveals:
The soldiers arrived in the hours after the shootings, which stretched the town's tiny police force and county officers to the limit with several different crime scenes. The report said troops were dispatched after the Geneva County Sheriff's Office and Samson Police requested assistance from Fort Rucker to relieve law enforcement at traffic checkpoints around the crime-scene area.
As I wrote earlier this year, Pilgrim's Pride hooked up with Wall Street to leverage itself into bankruptcy while enriching the executives' family and a handful of insiders at the expense of tens of thousands of Americans workers:
In 2006, Pilgrim's Pride, then the second-largest chicken processor in the world, made a huge gamble that will seem familiar to anyone who's been following the financial crash: the company borrowed hundreds of millions of dollars, leveraging itself well beyond its means, in order to acquire a rival company and become the nation's No. 1 chicken processor, slaughtering 45 million chickens per week.
That might have given the executives a nice, big hard-on, but it also meant they would have to come up with more money to pay for all that debt. So the company did do what every post-Reagan company has done and gotten away with: it made the workforce pay for the executives' bonuses.
That meant squeezing lower-middle-class workers for more work for less pay, or in Pilgrim's case, more work for no pay: In August 2007, the U.S. Department of Labor filed a lawsuit against Pilgrim's Pride accusing it of grossly undercompensating its employees. That same year, 10,000 Pilgrim's Pride employees launched a class-action lawsuit demanding compensation for their work.
The damage extended well beyond Pilgrim's Pride's plants. With bankruptcy came huge unpaid local tax bills, leading to further layoffs and reduced services for the already-beleaguered locals:
Suwannee County could be out about $2 million if Pilgrim's Pride doesn't pay its property-tax bill, according to property appraiser Lamar Jenkins.
The biggest taxpayer in the county filed for bankruptcy protection Dec. 1. Now it's not clear when -- or if -- the bill will be paid.
"It's certainly going to put a hurt on the budget of the county," Jenkins told the
Democrat by phone Thursday. Jenkins said the unpaid bill represents 7.4 percent of the money local schools get from property taxes; 5.3 percent of county funds from that source; and 8 percent of the money the Suwannee River Water Management District receives from local property-tax revenues.
A spokesman for Pilgrim's did not respond to a request for comment.
Bo Pilgrim, the head of Pilgrim's Pride, once told his Texas church that he was worth over $1 billion before the market crash, and he's still worth hundreds of millions. His rapacity was boundless, and in the end it was the undoing of Pilgrim's Pride -- not the Pilgrim family, mind you, which is still filthy disgusting rich, but the company is through.
Last month, 64 percent of Pilgrim's Pride was sold to JBS, a Brazilian beef giant, making it the largest meat company in the world, topping America's Tyson. The American cattle industry tried to block the deal, which it says could result in the destruction of the American beef industry, but the Justice Department already approved JBS' takeover.
In the billionaires' Third World model for America, it makes awful sense that a Brazilian meat company would take control of a bankrupt, corrupt American chicken company. For Wall Street and the billionaires, the more they destroy in America, the richer they get, consequences be damned. And anyway, it's not like Pilgrim's Pride was a model of corporate responsibility while under American ownership; just read some of the comments on this recent Reuters article:
Gilmer, Texas, Sep. 8, 2009 -- working as a supervisor in mt pleasant plant use to be injoyable, but lately they expect you to work 50/70 hours for no extra pay. pilgrims pride does not care about family life just their money. Everyone is afraid to say anything, because upper management may let you go with no warnning because you voiced your oppion
robert, Carrollton, Ga. -- i work carrollton,ga former goldkist plant we were goldkist 1 plant now we fill like we in pure hell working for pilgrim pride these people want you to kiss there ass and work three times hard for same money no rasied in two years old chicken farmer
Doddridge, Ark. -- While I was raising chickens for Pilgrim's Pride, I became friends with many lower management employees of the company. The manner in which they were terminated was just simply unmerciful. While the growers had the brunt of the financial devastion, many that were nearing retirement were left with no prospects of employment in the near future. I know some that have had to uproot their families and settle for a considerable more modest lifestyle with their retirement benefits in doubt after a number of years of employment. It is just a shame that Bo Pilgrim has pocketed the money of many hard working people. I still believe Bo needs to be in the jail cell next to Bernie Madoff.
The comments section is where you'll find the real, unvarnished, ungrammatical rage among America's cheated majority, because for the most part, people are too desperate and afraid to complain in public.
But here's the rub: Selling Pilgrim's Pride to a Brazilian meat monopoly doesn't mean things will get better for Alabamans. Just weeks after the buyout was announced, Pilgrim's Pride closed another plant, this one in northern Alabama. According to the AP:
A chicken-processing plant owned by Pilgrim's Pride Corp. is shutting down this week after almost six decades, putting more than 600 people out of work and creating ripples that will be felt all over town.
The city of almost 20,000 is preparing for the end of a relationship that began in 1952 when James Beasley founded Sweet Sue Poultry, which originally ran the plant. Owners included Beatrice Foods and ConAgra before Pilgrim's Pride purchased the business in 2003.
Which looks a lot like an even more depressing Pilgrim's Pride story from a few months earlier, this from rural Arkansas. The town of Clinton filed a lawsuit in June against Pilgrim's Pride, accusing it of turning the town into a "ghost town":
"With its largest and sole remaining employer, Pilgrim's, now evacuated, the city faces a crisis of revenue, bond payments and economic devastation, and as a result of the Pilgrim's evacuation is threatened with becoming a modern-day ghost town," the lawsuit filed by the city said. "This serious economic situation is, however, a direct consequence of Pilgrim's illegal purpose in shuttering the Clinton plant and operations."
This story is repeated all over the rural South. So guess who put together the deal that bankrupted Pilgrim's Pride? Lehman Bros., the king of bankruptcy.
continued>>>
http://www.alternet.org/workplace/143485/after_the_billionaires_plundered_alabama_town%2C_troops_were_called_in_..._illegally
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