Friday, February 18, 2022

George V. Hansen: The "Dragon Slayer" Repeatedly Brought Low by Financial Scandals

(Source)


On the morning of October 1, 1985, protestors gathered in Boston to hurl boxes of tea into the city's harbor. Although it clearly called to mind the Boston Tea Party, one of the events that helped kick off the American Revolution, it wasn't a historical reenactment. Rather, it marked the start of a nationwide campaign by a coalition of groups calling for reforms to the Internal Revenue Service.

George Vernon Hansen, a former Republican congressman from Idaho, was part of the effort. He had headed the political consultancy group New Continental Congress since leaving the House of Representatives, and said it planned to run advertisements on IRS abuses in a bid to raise public awareness.

"We came up to kind of kick off the other side of tax reform," said Hansen. "The President has been pushing structural change in the tax system. We're saying you're not going to have real tax reform unless you reform the IRS. They're intimidating and abusing the taxpayer in the process of collecting taxes."

While the protest took place decades before the creation of the Tea Party movement of the early 21st century, it exemplified how Hansen would be a forerunner the vocal conservative movement and what it regarded as government waste or overreach. He would remain a stubborn foe of the IRS for decades, and routinely accuse it and other federal powers of persecuting him for his beliefs.

The protest came as Hansen's political career and influence were waning. He had twice been convicted of skirting financial disclosure and ethics laws, and was fighting jail time related to the most recent charges. He would later say the difficulties he encountered from these run-ins with the law would contribute to his decision to commit another, more serious financial crime.

Early life and early political career

Hansen was born in Tetonia, Idaho, on September 14, 1930. His early life was marked by a tumultuous turnover in educational, career, and military experiences. He managed a grain elevator beginning in 1950, and would return to this work briefly in 1954. He served in the U.S. Air Force between 1951 and 1954; his military experience would also include graduation from the Army Language school and time as an officer in the U.S. Naval Reserve between 1964 and 1970.

Graduating from Ricks College in 1956, Hansen completed graduate work at Idaho State University between 1956 and 1957 as well as 1962 to 1963. He also earned a degree from Grimms Business College in 1958.

Hansen balanced some of this educational work with a stint as a junior high school teacher, undertaking this profession between 1956 and 1958. He worked in the life insurance business from 1958 to 1965.

One of Hansen's children would later recall that his father entered politics for a simple reason: his community of Alameda didn't have sidewalks like the neighboring city of Pocatello. This motivation helped launch a successful campaign for the mayor of Alameda, with Hansen holding the job from 1961 to 1962. When Alameda was consolidated with Pocatello, he became a city commissioner between 1962 and 1965. He also served as the director of the Idaho Municipal League from 1961 to 1963.

Early congressional bids

After an unsuccessful bid for the Senate in 1962, Hansen turned his attention to the House of Representatives in the 1964 race. Although it was a strong year for the Democrats, who won the White House and made gains in Congress, Hansen's grassroots campaign was able to unseat incumbent Ralph Harding with 52 percent of the vote. 

Hansen distinguished himself by his strong disdain for the federal government, including opposition to President Lyndon B. Johnson's civil rights and social welfare programs. He took a hawkish stance on the turmoil in Southeast Asia, saying that Johnson's "lackadaisical prosecution" of the Vietnam War was emboldening the Communists. When the spy ship USS Pueblo was captured by North Korea in January 1968, Hansen declared it an "act of war" and called for a swift response to recover the vessel and its crew, though he also said the situation should not be handled in a way that would lead to the United States being involved in two simultaneous conflicts in the region.

While he was re-elected in 1966, he was less successful when he again tried to capture a seat in the Senate two years later. Frank Church, the Democratic incumbent, comfortably kept the position with 60 percent of the vote.

With the Republicans retaking the White House in 1968, Hansen remained in the nation's capital from 1969 to 1971 after he was appointed the deputy administrator for the Agricultural Stabilization and Conservation Service. He would also serve as vice president of the Department of Agriculture's Commodity Credit Corporation.  

Returning to Pocatello, Hansen resumed his work in life insurance and opened a printing and copying company, the Pocatello Copycat, with his wife Connie. He again launched a Senate campaign in 1972, but failed to earn the Republican nomination. 

In 1974, Hansen mounted another House campaign against the similarly named but unrelated incumbent Orval Hansen. Orval had filled George's seat after his unsuccessful Senate bid, and had distinguished himself as a popular moderate. Yet in an upset result, George retook the Republican nomination and went on to defeat the Democratic candidate, Max Hanson. 

"Stupid but not evil"

Hansen took office under a cloud, having become embroiled in a scandal over his financial disclosures. He admitted that he had engaged in a "freewheeling" campaign and hadn't been especially careful in tracking how money was coming in or being spent. Charged with violating a 1971 law regulating campaign financing, he pleaded guilty on February 19, 1975 to two misdemeanor counts of filing late and incomplete reports, failing to disclose $16,150 in contributions.

The charges initially resulted in a sentence of one year in jail with all but two months suspended, which would make Hansen the first congressman to be put behind bars in 19 years. However, he denied that the omissions on his disclosures were intentional. He attributed them to bookkeeping deficiencies made in error by his staff, and apologized for the trouble that had resulted.

This explanation was enough to persuade Judge George L. Hart Jr., who on April 25, 1975, opted to reconsider the punishment. "I assumed when I sentenced him to jail he was evil," said Hart. "Now, I am not so sure. Stupid, surely." He waived the prison sentence, instead imposing a $40,000 fine on the congressman.

The judge's mercy would have a mixed effect. While his statement was a rephrasing of Hansen's lawyer, who argued that the congressman was "stupid, but he wasn't evil," it was a backhanded compliment that provided easy fodder for Hansen's critics. He would later say that some of his subsequent financial woes were attributed to efforts to rehabilitate his reputation as the "stupid but not evil" moniker stuck.

The conviction prompted calls for Hansen to resign from some Democrats and Republicans in the House, but the Idaho Republican State Central Committee offered a vote of confidence. The committee chairman accused the Justice Department and House Government Operations Committee of "selective reprisal," saying that Hansen was the only person charged out of some 7,000 complaints. He also alleged that Orval Hansen had leveraged the issue for political purposes during the primary season by referring the matter to the Justice Department while he served on the committee.

Second stint in Congress

Hansen went on to win re-election four times. He would distinguish himself by his opposition to most major federal agencies and programs, though his ire was concentrated most strongly against the IRS. He asserted that the agency was planning armed raids in Idaho, and in 1985 would accuse it of singling out taxpayers for audit based on their religious or political affiliations. 

Part of this consternation likely stemmed from Hansen's own repeated run-ins with the IRS. He was reportedly late filing his taxes in every year between 1962 and 1975, although this tardiness never resulted in any legal action. In 1980, Hansen published a book entitled To Harass Our People: The IRS and Government Abuse of Power and would claim that a million copies had gone into print.

Hansen also accused the Immigration and Naturalization Service of being involved in a conspiracy to shuttle illegal immigrants across the border and then arrest the farmers who hired them. After a constituent refused to let inspectors from the Occupational Safety and Health Administration enter his electrical contracting business, Hansen launched a nationwide campaign to field complaints against the agency.

Admirers saw Hansen as someone willing to take on big government and fight for the common man, giving him the nickname "George the Dragon Slayer." Detractors suggested that Judge Hart's moniker was more appropriate, portraying Hansen as a buffoon who was more interested in grandstanding than passing meaningful legislation.

Hansen became one of the most vocal critics of the Panama Canal treaties. These agreements, signed by President Jimmy Carter and Panamanian leader Omar Torrijos Herrera at the end of 1977, provided that the American-controlled canal would become a neutral passageway open to all vessels, be jointly administered by the U.S. and Panama, and be transferred to Panamanian ownership in the year 2000.



While Congress debated whether to ratify the treaties, Hansen launched a mail campaign to try to convince American citizens in the Panama Canal Zone to oppose the treaties. He also commissioned a stunt where friends in Idaho loaded up a flatbed truck with two-by-fours made to look like bars of gold and drove it to Washington, D.C. as a visual representation of the money he felt was being squandered through the agreements.

As Hansen calculated, the treaties would forfeit property worth $20 billion, incur $4 billion in transfer costs and $2 billion in contingency costs, and result in an annual expense of $200 million to taxpayers after Panama took control of the canal. A report from the House Committee on Foreign Affairs dedicated an appendix to these figures, asserting that Hansen's estimates were "enormously exaggerated."

The "big American cowboy" abroad

Hansen would spend a considerable amount of time traveling in 1978 and 1979, embarking on quixotic one-man diplomatic trips aimed at improving foreign relations. In January 1978, he traveled to Taiwan and assured the Chinese republic that they would receive the equipment they needed to pursue a nuclear program, despite Carter's opposition to such an effort. In July of that year, he visited President Anastasio Somoza in Nicaragua, praised the country as a "peaceful and pastoral private enterprise nation," and assured Somoza that he had American support; Somoza was overthrown by Sandinista rebels two weeks later.

Hansen's most notable mission came in November 1979, after the U.S. embassy in Tehran was taken over by student militants and dozens of American citizens were held hostage. Flying to Iran in an effort to "build some bridges and open some doors," Hansen was permitted to visit some of the captives on November 24 and reported that they were being held "in relatively comfortable circumstances." He was the first American allowed into the embassy since its fall.

Despite the virulent anti-American sentiment that had developed in Tehran, Hansen reported that he had received a surprisingly warm welcome from the militants. One, impressed by the congressman's height and bravado, dubbed him a "big American cowboy."

While many of Hansen's Republican colleagues in Congress said he was courageous for making the trip, few considered it a wise endeavor. Millicent Fenwick, a Republican from New Jersey, denounced it as "dangerous" and "irresponsible." One Democratic lawmaker described Hansen as "the last guy in the world to send on a diplomatic mission."

The trip also incensed the Carter administration, with White House officials saying it could generate confusion, inhibit official negotiations, and prolong the situation. However, at least some of irritation may have stemmed from the fact that Hansen had managed to gain access to the hostages when the presidential envoy had not been allowed such a visit. 

Hansen was unrepentant about the mission, and even threatened to introduce an impeachment resolution against Carter over his handling of the crisis. He made another trip to Tehran a month later, but made little progress in resolving the situation. The hostages would be held for 444 days before their release.

Ethics violation

The foreign travel, made at his own expense, did little to improve Hansen's financial standing. His assets had also been dinged by legal battles and campaigns seeking to defend his reputation. He also voiced a complaint commonly uttered by congressmen: maintaining residences in D.C. and in their home district was too challenging on a representative's salary, which amounted to $57,500 in 1977.

In this year, Hansen asked the Federal Election Commission if he could solicit contributions from his supporters to pay down his personal debts. While the FEC said this would be legal, the House Ethics Committee informed him that it would violate the chamber's rules.

In response, Hansen divided his assets with his wife, who also worked as his office manager. Under this arrangement, Connie would be left with the debts and could ask for contributions. She promptly established the Connie Hansen Fund and pleaded for hundreds of thousands of dollars to pay these liabilities and "save my family from financial disaster."

The syndicated newspaper columnist Jack Anderson mocked the effort, nicknaming the congressman's wife Tin Can Connie. Even supporters of the Hansens offered only tepid support. While a 1979 article reported that Connie had raised over $50,000, the couple still owed some $300,000 to nine banks two years later.

This financial shell game ultimately ran afoul of the 1978 Ethics in Government Act, which had been set up after the Watergate scandal. This legislation sought to improve the transparency of official dealings by requiring major government officials to disclose their financial holdings, transactions, and liabilities. Hansen was indicted in 1983 on four charges of violating the law.

The charges stated that Hansen had failed to disclose a total of $333,978 in personal loans and other transactions. One of the largest unreported loans, for $135,000, had come from three men, including one accused of bank fraud. Other undisclosed loans were made to Connie by billionaire Nelson Bunker Hunt, and Hansen had failed to make note of $87,475 in profits his wife had made on silver investments.

Hansen angrily denounced the charges as "selective and bogus prosecution," again saying he was being targeted due to his "opposition to federal intrusion into all our lives." He claimed that he had simply filled out the form incorrectly and that the issue was being blown out of proportion.

The defense took a similar tack when the matter went to trial, focusing on the Hansens' separation of accounts and saying that the congressman's attorneys had advised him that he didn't have to report the transactions due to the arrangement. They also suggested that the $135,000 loan did not need to be reported because it did not go directly to Hansen but rather to an advocacy group he had formed, the Association of Concerned Taxpayers. Prosecutors countered that Hansen had essentially been using Connie's account as a front to conceal transactions.

In April 1984, Hansen was found guilty on all counts. He was the first congressman convicted under the 1978 ethics law and the first congressman since Thomas J. Lane, nearly three decades earlier, to be convicted on a felony charge. On June 15, he was sentenced to serve between five and 15 months in prison and pay a $40,000 fine.


Hansen with wife Connie after being sentenced in 1984 (Source)

The House of Representatives also addressed the issue on July 31, taking up the question of whether to reprimand Hansen. This was the mildest form of punishment available, falling short of a censure or expulsion. Those in favor of the action said Hansen's actions to conceal his transactions were intentional, and that a reprimand was necessary to demonstrate that the House would hold its members accountable for wrongdoing. Hansen's supporters backed his contention that he was being singled out, arguing that there were numerous examples of government officials making errors on their disclosure forms and needing to rectify them.

Speaking before the chamber, Hansen brought up several examples of current officials who faced controversy over their financial disclosures, including Democratic vice presidential candidate Geraldine Ferraro, Attorney General William French Smith, and Attorney General-designate Edwin Meese III. At one point, Hansen quipped that he should have robbed a bank since it would have yielded more money and a smaller penalty than the ethics violation. He warned that financial disclosure violations were common enough that other members would "become the victims of a similar nightmare" if the voted to punish him. The final vote was 354-52 in favor of a reprimand.

Despite the conviction, Hansen had won the Republican nomination for his office. He confidently declared that he would win re-election despite the conviction, saying his constituents would "vote for me if I were chained in the Bastille." Yet on Election Day, Hansen was bested by Democratic challenger Richard Stallings, though it was by a margin of just 170 votes out of more than 200,000 cast.

Hansen appealed his conviction, saying that his offenses should have subjected him to a civil penalty rather than a criminal one. This argument gained more traction among his colleagues, with 122 House members lending their support. However, his conviction was unanimous upheld by a three-judge appellate panel on Aug. 30, 1985. The panel, which included future Supreme Court justices Antonin Scalia and Ruth Bader Ginsburg, noted how the financial disclosure forms explicitly said that violators could be subject to either a civil or criminal penalty.

After exhausting further appeals, Hansen began his sentence in June 1986. At one point, he launched a hunger strike in protest of prison conditions, while also claiming that he usually ate as little as possible because he believed his food was tainted with urine and nasal mucus. Connie sought the Republican nomination to challenge Stallings in the 1986 election, but came in second in a five-way contest; Stallings would ultimately retain Hansen's former seat until 1992.

Hansen was paroled after six months, and released shortly before Christmas.

Short-lived freedom

After leaving Congress, Hansen had turned his attention to political lobbying. He became the chairman of the New Continental Congress, a D.C. consulting firm assisting people with complaints against the federal government. After he completed his prison term, he returned to this work.

However, Hansen predicted that his new career would likely send him back behind bars. His parole terms included stipulations that he not travel outside of Virginia without permission, complete monthly financial reports, and not associate with other ex-felons. Hansen complained that these terms would prevent him from running the firm, since he traveled frequently and worked with people who had earned criminal convictions from tax protests. He said the financial reporting requirement would also be impossible, since he received money from people who didn't want their names turned over to the federal government.

Hansen resumed his tax protests and gave speeches around the country. These activities quickly resulted in a charge of violating his parole. On April 15, 1987, he was arrested at the Omaha airport while awaiting a flight back home. Agents brought him back to Virginia in shackles aboard a chartered flight.

The conditions of the arrest won Hansen sympathy from conservatives as well as many liberals, as it was seen as an excessive response to a nonviolent offense. Critics also charged that the chartered jet was a waste of money, since Hansen had already purchased a plane ticket and could have easily been detained at his destination.

Hansen served another six months in prison. At one point, he called a press conference where he dubbed himself a political prisoner, railed against prison bureaucracy, vowed to sue the Attorney General, and denounced prison conditions, suggesting that every judge and congressman should spend some time behind bars to see what it was like. He also used the prison's pay phone to coordinate a campaign demanding presidential pardon.

Check kiting scheme

Beginning in the late 1980s, Hansen began soliciting loans from individuals to support his political advocacy efforts. He was joined in the endeavor by John Scoresby, a business associate and former regional chairman of the Idaho Republican Party. The duo used a business named Ideal Consultants to oversee the transactions.

Individuals were typically promised a high return on investment and told their money would support organizations with names like the Congressional Accountability Project and Free America Revolution. A typical promise held that investors would be repaid within 30 days at an interest rate of 10 to 20 percent, and could earn a finder's fee of 5 to 10 percent for referring Hansen and Scoresby to other people willing to invest. The duo sometimes offered $1,000 to exchange checks.

It was all an elaborate check kiting scheme, where the passing of worthless checks between individuals allowed Hansen and Scoresby to build up false bank balances and establish lines of credit. A federal indictment would charge that it had involved more than 300 checks and drawn about $29 million from five Idaho banks. 

On Oct. 31, 1990, Hansen filed for bankruptcy for Ideal Consultants as well as the Pocatello Copycat. By this point, the Ideal Consultants account at the Bank of Commerce in Idaho Falls was overdrawn by $2.1 million. Investors who had been duped by the scheme lost $18 million. On March 24, 1992, Hansen and Scoresby were charged with 49 counts of bank fraud.

Not surprisingly, Hansen again argued that the charges were part of a broad vendetta by federal officials. However, his justifications for the fraud were slim. He argued that he had not actually defrauded any of the investors because they had willingly given him money in support of his anti-government efforts. He also contended that he had been motivated by the financial struggles brought on by his previous troubles, and that he would have been able to repay the money if the operation hadn't been discovered and shut down.

Both Hansen and Scoresby were found guilty of 45 of the counts against them on December 12. Surprisingly, Hansen won considerable support among those he had swindled, bolstering his argument that he hadn't truly victimized anyone. About half of the people who had lost money in the scheme filed affidavits with the court urging leniency.


George Hansen in front of a federal courthouse in March 1993 (Source)

While prosecutors sought a 16-year prison sentence for Hansen, the affidavits persuaded Judge Edward Lodge to impose a much lighter term. At sentencing on March 16, 1993, he ordered Hansen to spend four years behind bars and pay a $12,500 fine. Scoresby was sentenced to 21 months in prison and a $6,000 fine.

During the sentencing, Lodge marveled at how many people still supported Hansen even after they were duped out of considerable sums of money.

"I've never seen people who are owed hundreds of thousands of dollars, who don't know how much they are owed, who are willing to eat those losses," he declared. "I've never seen that kind of blind allegiance. The victims are offended that the court would take them as victims."

Later life

Hansen appealed the conviction, arguing that the banks had knowingly participated in his transactions and thus were not deceived. The argument was rejected by a federal court in 1994.

While serving this latest prison sentence, Hansen received some good news. He had been continuously fighting his 1984 ethics conviction, and an obscure Supreme Court ruling in 1995 delivered a belated victory on this front. In Hubbard v. U.S., the court ruled that the 1978 ethics law applied only to members of the executive branch. This vacated Hansen's conviction, restored his federal pension, and resulted in the return of the $40,000 fine he had paid.

After 40 months, Hansen was paroled. He made some headlines in 1997, renewing his criticism of the IRS and calling for its abolition in favor of states collecting the income tax and passing it on to the federal government. He maintained that the agency had engaged in retaliatory behavior against him, including launching an audit after he fielded complaints from his constituents about their federal reimbursements following the Teton Dam disaster in 1976.

Hansen also headed the Utah-based US. Citizens Human Rights Commission, which sought an investigation into the death of federal prisoner Kenneth Trentadue in 1995. Trentadue's death was officially ruled a suicide, but there were allegations that he had been mistaken for a suspect in the Oklahoma City bombing and beaten during his interrogation, with the assault either causing his death or instigating his suicide.

Hansen was still struggling financially at this point. He discounted the idea that he would return to politics, in part because of Connie's opposition and in part because he considered politics to be "for the rich." 

Shortly after his conviction, Hansen was ordered to repay Ann and James Meyers the $299,350 he had taken as part of the check kiting scheme. A default judgement was ordered against him, but Hansen would claim that he did not remember being served in the civil suit and was unaware of the judgement until 2007. He also said he did not have the money to pay this settlement.

The issue persisted until 2009, when the Idaho Supreme Court ruled that he was still obligated to repay the couple. By this point, the interest collecting on the unpaid debt over 16 years had ballooned the sum to $723,927.

Following cardiac problems, Hansen died in Pocatello on Aug. 14, 2014. His obituary sought the last word in establishing his legacy, declaring him a "dedicated champion in fighting for the good people of Idaho and taxpayers all across the country who were subject to abusive federal agencies" whose efforts resulted in him "being on the receiving end of having to defend his good name against the retribution of federal agencies in which he waged the good fight for his constituents."

Sources

Biographical Directory of the United States Congress, "George V. Hansen 1930-2014" at Legacy.com, "Representative Hansen Pleads Guilty to Violation of Election Campaign Act" in the New York Times on Feb. 20 1975, "Judge Saves Hansen From Jail, Terms Representative 'Stupid'" in the New York Times on Apr. 26 1975, "Rep. Hansen Gets Vote of Confidence From Idaho GOP" in the New York Times on Apr. 28 1975, "Hansen's Tehran Trip Fits His Style" in the Washington Post on Nov. 24 1979, "Unorthodox Idaho Congressman" in the New York Times on Nov. 27 1979, "Rep. Hansen Came Here to Battle and Does - Defending Himself" in the Washington Post on Jan. 4 1983, "George Hansen is Found Guilty in Ethics Trial" in the Washington Post on Apr. 3 1984, "Hansen Gets Prison Term for Ethics Act Violation" in the New York Times on Jun. 16 1984, "Hansen Punished by House" in the Washington Post on Aug. 1 1984, "IRS Uses Religion-Politics to Single Out Audit Candidates, Hansen Says" on UPI on Jan. 29 1985, "Ex-Rep. Hansen's Conviction of Ethics Breaches Upheld" in the Washington Post on Aug. 31 1985, "Boston Tea Party Reenacted to Protest IRS" on UPI on Oct. 2 1985, "Ex-Rep. Hansen to Be Paroled" in the South Florida Sun Sentinel on Dec. 20 1986, "Jailed Former Congressman Continues Hunger Strike Over Treatment" in the Associated Press on Apr. 22 1987, "Hanson Parole Revoked" on UPI on May 12 1987, "Hansen Unchained" in the Washington Post on Dec. 13 1987, "Ex-Idaho Congressman Files for Chapter 11" in Deseret News on Nov. 26 1990, "Congressman Who Left in '85 Accused of Fraud" in the Buffalo News on Mar. 25 1992, "Former Congressman is Found Guilty" in the New York Times on Dec. 13 1992, "Hansen to Serve Four Years in Prison for Check-Kiting" in the Deseret News on Mar. 17 1993, "IRS Hasn't Forsaken Ugly Tactics, Former Idaho Congressman Says" in the Deseret News on Nov. 30 1997, "Free and Fired Up, George Hansen Back in a Scrap, Leading Group Probing Inmate's Death" in the Spokesman-Review on Dec. 7 1997, "Former Congressman George Hansen Loses Idaho Supreme Court Appeal" in the Spokesman-Review on Nov. 30 2009, "An Idaho Political Story Extraordinaire" in the Spokesman-Review on Dec. 1 2009, "Former U.S. Rep Hansen Dies" in the Idaho State Journal on Aug. 15 2014, "'George the Dragon Slayer' Dies at 83" in the Lewiston Tribune on Aug. 16 2014, "Idaho Congressman Sentenced to Federal Prison, Dies at 83" in the Washington Post on Aug. 17 2014, "George Hansen, Idaho Congressman and Convicted Swindler, Dies at 83" in the New York Times on Aug. 20 2014, Congressional Record Vol. 114 Part 1, Panama Canal Implementing Legislation, Joint Report of the Task Force to Investigate Certain Allegations Concerning the Holding of American Hostages by Iran in 1980, United States v. George v. Hansen and John F. Scoresby

Thursday, November 11, 2021

William Blount: The First Test of the Senate's Impeachment Powers

Source


William Blount's early biography suggests a man destined for a renowned role in the early history of the United States. Born into privilege, he served in the Revolutionary War, was one of 39 men to sign the U.S. Constitution, and became one of Tennessee's first two Senators.

At the same time, Blount was dogged with serious financial troubles that caused him to make a unwise decision during his time in office. The result was the destruction of his career in the federal government, the creation of the sergeant-at-arms position in the Senate, and the chamber's first test of the nascent nation's impeachment processes.

Early life

Blount was born near Windsor, North Carolina, on March 26, 1749. He was part of a wealthy colonial family of merchants and planters with extensive property holdings along the Pamlico River. This status enabled him to pursue preparatory studies through private tutors and become active in the family's mercantile business.

Anticipating that the colonies would expand beyond the Appalachian Mountains, Blount began purchasing land in the region. He would ultimately acquire more than a million acres of western properties.

In 1771, a populist movement of settlers in the western part of North Carolina began agitating for better economic parity with eastern residents. Blount joined a militia to counter a group of 2,000 of these "Regulators." While the group was largely unarmed and the confrontation was bloodless, the movement's leaders were subsequently executed (although many of their proposed reforms were later adopted).

During the Revolutionary War, Blount became a purchasing agent. He soon became a paymaster for the Continental troops, serving in this capacity until 1780 and seeing active service at the Battle of Camden in South Carolina on August 16, 1780.

Role in early U.S. government

From 1780 to 1784, Blount was a member of the North Carolina state house of commons. He also served as a member of the Continental Congress in 1782 and 1783. He was briefly out of service in 1785, although he became a special agent for North Carolina at the Hopewell Treaty. Returning to the Continental Congress in 1786 and 1787, he became a delegate to the Federal Constitutional Convention in Philadelphia in 1787 and was one of the signatories of the U.S. Constitution. Blount returned to North Carolina to serve in the state senate between 1788 and 1790. 

President George Washington then appointed Blount governor of the Territory South of the Ohio River. The territory comprised lands west of North Carolina, including all of present day Tennessee. Blount held this role through 1796, with the associated title of Superintendent of Indian Affairs. He oversaw the Treaty of Holston, signed in July 1791, which resolved a dispute over the boundary Cherokee lands (although militant members of tribe continued to launch attacks on territory).


A depiction of the Treaty of Holston (Source)

There were rumors that Blount misappropriated funds while in his official position, but a formal investigation turned up no evidence supporting the allegations. In 1796, he chaired the convention which framed the first state constitution of Tennessee. The process essentially circumvented the usual routine of requesting statehood from Congress, which had opted not to take up the issue due to the belief that the state would oppose the Federalist candidate in the upcoming election. 

Tennessee was admitted as a state in June 1796. Blount was elected to one of the two new Senate seats, beginning his term on August 2.

The "Blount Conspiracy"

Blount's term in the Senate began at about the same time that he was facing serious financial difficulties due to his land speculation. He was far from the only who who had thought the lands would be valuable, but instead it proved to be a real estate bubble that prompted the Panic of 1796-1797 when it collapsed. While a 1795 treaty between the United States and Spain had guaranteed Americans free navigation of the Mississippi River, and Great Britain had agreed to the same condition after the Revolution, demand for western lands plummeted due to concerns that France would offer no such guarantee. 

Creditors began to bring suits against Blount. Only his protected status as a U.S. senator protected him from arrest.

Meanwhile, Knoxville tavern keeper John Chisholm had developed a questionable scheme to keep southeastern territories in friendlier hands. He hoped to convince Britain to provide Creek and Cherokee Indians with weapons to establish a force that, when united with white frontiersmen, would be able to launch attacks on Florida. In return, Britain would award him the post of superintendent of Indian affairs and keep Pensacola as an open port. 

The plan was presented to both the British ambassador to the United States and to the British government. While both rejected it, Blount became involved in the plot and expanded its scope to include an attack on New Orleans, which Blount vowed to personally lead. By transferring the city and Florida to Britain, free navigation of the Mississippi would be guaranteed and the value of western lands would likely rise.

On April 1, 1797, Blount made the ill-advised decision to send a letter, which "thinly disguised his desire to arouse the Creek and Cherokee Indians," to Indian interpreter James Carey. The communication included an instruction to read the letter three times before burning it. Instead, the letter wound up in the hands of David Henley, an Indian agent and rival of Blount's.


David Henley (Source)

Henley shared the letter with President John Adams, who recognized that the proposed scheme would violate the U.S. treaty with Spain and could easily lead to war with both that nation and France. On July 3, Adams sent the letter to Congress along with a message informing lawmakers that Attorney General Charles Lee had given the opinion that Blount had committed a crime and was liable to impeachment. As such, Blount's action would be the first test of the impeachment powers granted to Congress in the Constitution.

Each chamber convened special committees to examine the "Blount Conspiracy." On July 6, the Senate committee voted in favor of expelling Blount, saying his conduct was "entirely inconsistent with his public trust." Blount, who had been absent from Congress during this time, reappeared soon after but refused to answer questions on the matter, instead retaining counsel.

One day after the Senate committee's decision, the House of Representatives voted 41-30 along party lines that a senator was an impeachable figure. They informed the Senate that they planned to draft articles of impeachment against Blount, and asked that he be suspended from his seat in the interim but present to answer the charges.

The Senate opted for a harsher action. On July 8, after two of Blount's colleagues testified that the letter was in his handwriting and Blount's defense counsel made his presentation, the Senate voted 25-1 to expel Blount. Six senators, including Blount, didn't vote on the matter, and the only vote against expulsion was due to technical reasons.

Blount sought to return home to Tennessee after posting a $20,000 bond, but instead diverted to North Carolina to tend to his wife after she was injured in a carriage accident. He was nevertheless ordered on July 10 to appear before Congress to answer to the House's impeachment charges, a demand Blount ignored. The Tennessee legislature named Joseph Inslee Anderson, a federal judge, to serve the remainder of Blount's term.

The issue dragged into the new year. On January 14, 1798, the House voted five impeachment articles against Blount. With the embattled ex-senator still refusing to answer the charges, the Senate voted on February 5 to create the position of sergeant-at-arms for the express purpose of compelling Blount's return. The newly established official was still unsuccessful after arriving in Tennessee, in part because they realized that no one in Knoxville was willing to join the posse to bring Blount back to Washington.

In January 1799, Blount was tried in absentia. The debate largely focused on whether the Senate had the authority to prosecute a senator who had already been expelled. Members narrowly defeated a resolution asserting that Blount was an impeachable officer, leaving it unclear whether senators could not be impeached or if Blount specifically couldn't be impeached because he was no longer in office.

On January 14, the Senate voted 14-11 that it lacked jurisdiction and the case against Blount was dismissed.

Later life

The scandal did little to dent Blount's reputation in Tennessee. In fact, it made him more popular since the state's residents regarded him as fighting for the state's economic interests in the face of a disinterested federal government. During the Senate trial, he was elected to the the Tennessee state senate and chosen as its speaker after fellow state senator James White resigned in order for Blount to step into the role.


The Blount Mansion in Knoxville (Source)

Blount managed to resolve his financial troubles by transferring his assets (including the handsome Blount Mansion, a 200-acre farm, 27 slaves, and all of his land investments) to his half-brother. The transfer enabled him to declare himself bankrupt with no personal assets, thus escaping his creditors. While this ruined Blount's credit, his half-brother was able to retain most of the holdings for Blount's children to inherit.

Blount died in Knoxville on March 21, 1800.

The Blount family remained politically active. Blount's son, William Grainger Blount, served as a Tennessee congressman from 1815 to 1819, while his brother Thomas Blount intermittently served as a North Carolina representative. 

Curiously, another member of the Blount family would also take an active role in military operations that sought to accomplish a similar goal to the "Blount Conspiracy." Willie Blount, one of Blount's half-brothers, served as governor of 1809 to 1816. During the War of 1812, he was called on to organize an expedition against West Florida and muster a garrison under Andrew Jackson to defend New Orleans.


Sources: Biographical Directory of the United States Congress, Tennessee Bar Association, William Blount Mansion, NCPEdia, "Expulsion Case of William Blount of Tennessee" at Senate.gov, Soldier-Statesmen of the Constitution by Robert K. Wright Jr. and Morris J. MacGregor Jr., The Creek War by Richard Blackmon

Thursday, November 5, 2020

Thomas J. Lane: Jailhouse Incumbent Overcomes Tax Evasion Conviction

(Source)

Thomas Joseph Lane spent more than two decades in the House of Representatives, but failed to make much of a mark on the history of the chamber. Little information remains about Lane's work, and he wasn't one to generate headlines - with one glaring exception. In 1956, CQ Almanac would refer to Lane as only the second known person to be elected to Congress after serving a prison sentence.

Lane was born in Lawrence, Massachusetts, on July 6, 1898. Following his graduation from high school, he worked as a retail clerk until he was accepted at Suffolk Law School in Boston in 1921. After earning his law degree from this school in 1925, he opened a private practice and later served in the U.S. Army.

Lane's political career began in 1927, when he was elected as a Democrat to the Massachusetts house of representatives. He served in this chamber for a decade, then became a member of the state senate in 1939. He left state politics at the end of 1941 after winning a special election called due to the death of Representative Lawrence J. Connery. 

Lane would win the next nine general elections to the House as well. Representing an economically distressed textile manufacturing region, Lane was known as a labor supporter and New Deal backer who worked to secure federal economic assistance for his district.

On March 5, 1956, Lane was indicted on charges that he had evaded his income taxes between 1949 and 1951. The indictment charged that the congressman had seriously underreported his income in returns filed jointly with his wife, who was not charged. In 1949, the couple's joint income was $57,497 but Lane only reported $14,311, resulting in an income tax of $2,673 instead of $21,206. He reported income of $20,991.03 in 1950 instead of the actual figure of $43,198, resulting in a tax of $4,708 instead of $14,193. The couple earned $50,470 in 1951 but Lane said they had only taken in $30,956.43, giving them a tax bill of $9,515 instead of $20,039. All told, he had skipped out on $38,542 in taxes.

After indictment, Judge Charles E. Wyanski Jr. warned the press that he didn't want a "repetition of what happened in United States versus Delaney." It was a reference to the case of Denis J. Delaney, a former Massachusetts collector of internal revenue who happened to be a cousin of Lane's. Delany's first trial on charges of  bribery and falsifying tax liens in 1951 was scrapped due to unfavorable publicity before trial, though he later pleaded guilty at a second trial.

Lane tried unsuccessfully to change his plea to nolo contendere before pleading guilty on April 30. In a tearful plea for leniency, he declared that "deep down in my heart I know there has never been a willful evading of the tax law." He was sentenced to four months in prison and a $10,000 fine.

He was still behind bars on July 20 when he filed his nomination papers to run for re-election to the House. After being released on September 4, he received twice as many votes as his nearest challenger, state senator Andrew P. Quigley, in the Democratic primary. He defeated his GOP challenger, Robert T. Breed, by a similar margin in the general election.

After being defeated in the 1962 election, Lane returned to private practice. He served as a member of the Governor's Council for the Commonwealth of Massachusetts from 1965 to 1970, was an active member of the American Legion, and a vocal advocate for veterans' rights and benefits.

Lane died on June 14, 1994, in Lawrence.


Sources

Biographical Directory of U.S. Congress, Suffolk University Early Law School Student Profiles, "Lane is Indicted on Tax Evasions" in the New York Times on March 6 1956, "Legislator Gets Jail in Tax Case" in the New York Times on May 1 1956, "85th Congress Potpourri" in the CQ Almanac 1956The Almanac of Political Corruption, Scandals, and Dirty Politics by Kim Long

Tuesday, August 11, 2020

Charles L. Robinson: The First U.S. Governor Impeached


In the years leading up to the Civil War, the Kansas Territory quickly earned a reputation as a violent and dangerous place where pro-slavery and anti-slavery factions frequently came to blows. While Charles Lawrence Robinson was first attracted to Kansas by its agricultural opportunities, he was also an avowed abolitionist committed to seeing the territory enter the Union as a free state. He was also no stranger to violence, having suffered it and meted it out during a brief residency in California.

Robinson had been active in the Squatter's Association, which advocated for the rights of newcomers to the California Territory who had been drawn there by the discovery of gold in 1849. The influx of fortune seekers led to conflicts with earlier settlers who held claims to land in the area, who in turn enlisted local government officials to aid them. After several months of tensions, including the destruction of squatters' homes and the jailing of squatter leader James McClatchy, two days of riots erupted in Sacramento in August 1850.

Mayor Hardin Bigelow arranged an armed posse after fearing that a squatters' march intended to free McClatchy from a prison ship. When the groups clashed, three squatters and a city assessor were killed; Bigelow was seriously wounded, and later had to have his arm amputated. On the second day of riots, Sheriff Joseph McKinney and several others were killed.

Accounts on Robinson's actions during this violence differ, though it's generally agreed that he was shot in the chest and narrowly avoided a fatal wound. One story holds that he subsequently managed to beat his assailant to death with an iron bar. Another version suggests that he was able to return fire and fatally wound the man who shot him.

Despite this willingness to partake in violence, Robinson was regarded as a more moderating force in Kansas who helped defuse situations that might otherwise have erupted into bloodshed. He would later get him elected governor of the state, though an ongoing feud with a more notorious anti-slavery figure and a questionable war bonds arrangement resulted in an impeachment hearing against him and other state officials.

Early life

Charles Lawrence Robinson was born on July 21, 1818, in Hardwick, Massachusetts. He found his career path while attending Amherst College, where vision troubles interfered with his studies. He decided to walk on foot to Keene, New Hampshire, to visit a celebrated physician named Dr. Twichell for help. Robinson was so impressed with Twichell's work that he decided to leave Amherst to pursue a medical career.

After studying as a student of Twichell's for awhile, Robinson returned to Amherst to work for another doctor. He earned a medical degree from Berkshire Medical School in 1843 and began practicing in Belchertown. He later moved to Springfield, where he opened a hospital, and then to Fitchburg.

Robinson joined the 1849 gold rush to California, though this decision was motivated at least in part by a breakdown in his health. Believing a change in climate would be beneficial, he headed west. Passing through Kansas along the way, he was struck by the fertile prairie soil. The observation would stay with him, helping to motivate a more permanent relocation within a few years.

Although he tried his hand at panning gold, Robinson gave up the effort after a couple of weeks. He instead opened a boarding house and restaurant in Sacramento, which proved successful until it was destroyed by a flood. Robinson continued to practice medicine, and also introduced and edited a newspaper called the Settler's and Miner's Tribune. He was vocal in his criticism in how local officials and land speculators treated the new arrivals to California, and also expressed his disdain for the proposal to split California into two states - one slave, one free.

Following his involvement in the squatter's riot, Robinson was arrested and charged with murder, assault, and conspiracy. While recuperating on a prison ship, he issued a manifesto blaming local speculators for the deaths caused by the riots. After 10 weeks behind bars, Robinson was tried and acquitted. His reputation elevated by his advocacy for Californian settlers, and Robinson was elected to a single term in the California house of representatives in 1850.

During his time in California, Robinson became a strong advocate of John C. Fremont and supported him as a pick for U.S. Senator - a position then named by the legislature. Fremont later returned the favor when Robinson was governor of Kansas, kicking off his 1856 presidential campaign with an open letter to Robinson published in the Free State newspaper in Kansas. "As you stood by me firmly and generously, when we were defeated by the Nullifiers in California, I have every disposition to stand by you in the same way in your battle with them in Kansas," Fremont declared.

Settlement in Kansas

Robinson decided to return to Massachusetts in 1851. He experienced some adventure on the way, when his ship wrecked on the Mexican coast about 80 miles from San Francisco. Robinson helped guard the cargo of gold dust until the crew and passengers were rescued a couple of weeks later.

Showing some reluctance to return to the medical field, Robinson became the editor of the Fitchburg News. However, he soon became concerned that the Kansas-Nebraska Act could lead to Kansas being admitted as a slave state. In 1854, he joined the New England Emigrant Aid Company as a financial agent and accompanied it as it established its first colony in the territory. While the organization ostensibly aimed to capitalize on the financial opportunities available in Kansas, it also made no secret of the fact that it sought to bring Kansas into the Union as a free state.

By the time he arrived in Kansas, Robinson's passion for the medical field had cooled completely. Though his friends still referred to him as "Doctor," he focused his efforts on farming and serving as an agent for the New England Emigrant Aid Company. He later worked as a real estate promoter.

Robinson, along with other members of the New England Emigrant Aid Company, took an active role in establishing the free settlement of Lawrence and bolstering its defenses.  He was among those expressing opposition to the Kansas Territorial Legislature, which was named after elections on March 30, 1855. Pro-slavery forces led by former U.S. Senator David R. Atchison crossed into Kansas from Missouri to take part in the territory's elections and pack the legislature with pro-slavery candidates. The fraud was obvious enough that in some places the vote tally exceeded the entire voting populace, but the legislature was still recognized by the federal government.

Free staters denounced the body as the "Bogus Legislature" and sought to establish their own governing bodies. Robinson became a founder and leader of the Free State Party, and later in 1855 served as a delegate to the Topeka Constitutional Convention, which created a state constitution prohibiting slavery and named Robinson governor. This constitution, along with the convention's petition to be granted statehood, was rejected by Congress.

The year came to a tumultuous end with the Wakarusa War in December. Following the murder of free state settler Charles Dow in Douglas County due to a land dispute, the proslavery sheriff ordered the arrest Jacob Branson, of the land owner who had recovered Dow's body, but not the proslavery man who had killed him. Outraged free staters formed a posse to rescue Branson from prison and bring him to Lawrence, prompting the sheriff to request Governor Wilson Shannon to bring out a militia. The result was an enormous group of pro-slavery men, swelled by volunteers from Missouri, who stood ready to raze Lawrence.

Following several days of tensions, the conflict was peacefully resolved. Robinson and James Lane signed the peace treaty for the free staters, and each man had kind words for the other. Robinson praised Lane for "the thorough discipline of our forces and the complete and extensive preparations for defense," while Lane in turn describes Robinson as a "clear-headed, cool and trustworthy commander." This friendly state of affairs between the two would prove temporary.

On May 10, 1856, Robinson was indicted for treason and usurpation, the charges stemming from the fact that he was the head of a government counter to the pro-slavery one that had been recognized by the federal government. Later in the month, he was arrested, along with other free state advocates, while attempting to travel east to seek aid from anti-slavery governors and other sympathizers. Robinson's wife continued in his stead, and the couple's house in Kansas was burned to the ground.

A depiction of Charles Robinson's arrest. (Source)

Robinson's incarceration wasn't too burdensome. One story suggested that he was held by a cordial judge who, when a pair of men arrived trying to stir up a lynch mob, offered to turn an equally armed Robinson into the street, at which point the duo fled. By chance, his arrest also ensured that he would be incarcerated during some of the most notorious acts of violence during the "Bleeding Kansas" time period, namely the Pottawatomie Massacre led by John Brown and the sack of Lawrence.

In September, Robinson was acquitted after a jury concluded that since Kansas was not a state, he could not have actually usurped power. Though his mission had been delayed by several months, Robinson nevertheless traveled to New York City to pursue the business of the New England Emigrant Aid Company. He resigned his claim to the Kansas governorship in October due to his absence.

After returning to Kansas, Robinson became active in the establishment of the Republican Party in the territory. He also took part in efforts to create a port at the settlement of Quindaro, although this initiative was ultimately unsuccessful.

Free staters had generally boycotted the territorial legislature elections, considering them corrupt and illegitimate, but in October 1857 they mustered their forces and elected the first ever free state majority. They returned to their usual abstinence when a constitutional convention, which had been recessed until after the election, met at Lecompton and decided that the only question that would be sent to voters would be whether the constitution would be accepted with or without slavery. Since free staters considered that a vote for "without" would still allow Kansas residents to retain existing slaves, they refused to participate. The "with" option won handily, 6,226 to 569, in a vote on December 21.

Free staters called their own constitutional convention in Leavenworth in March 1858, though their work demonstrated how those opposed to the extension of slavery weren't always in favor of equal rights for black citizens. Many delegates wanted to limit voting rights to white men only, and the final Leavenworth constitution called for the exclusion of free blacks from Kansas.

The ratification of the Lecompton Constitution also prompted a rancorous debate over the document's legitimacy in Washington. President James Buchanan urged Congress to approve the Lecompton Constitution, which would admit Kansas as a slave state. A majority of the Senate concurred, but the House preferred to resubmit the constitution for a popular vote. A compromise between the two chambers agreed that if the Lecompton Constitution was approved in a fair up-or-down vote, Kansas would be a slave state. On August 2, the constitution was overwhelmingly defeated in an 11,812 to 1,926 result.

Free staters had ratified the Leavenworth constitution in May, but serious efforts to pursue it ended after the Lecompton Constitution was defeated. Yet another convention, held in Wyandotte in July 1859, prohibited slavery and granted citizenship rights, but not voting rights, to blacks. Robinson backed some more radical elements, including women's suffrage, that failed to make the final document. On October 4, 1859, Kansas citizens approved the Wyandotte Constitution in a 10,421 to 5,530 vote.

Kansas governor and conflict with Lane

In the gubernatorial election held in December 1860, Robinson was named the Republican candidate and faced off against Samuel Medary, the incumbent Democratic territorial governor. Despite efforts by Democrats to frame Robinson and the Republicans as radicals in the mold of John Brown, who had led the Pottawatomie Massacre before heading east and raiding Harper's Ferry in October 1859, Robinson won the race with 7,908 votes to Medary's 5,395.

Kansas was formally admitted to the Union as a free state on January 29, 1861. By this time, six Southern states had already seceded in response to Abraham Lincoln's election as President. When Robinson took office on February 9, Texas had joined the list of seceders. Two months after he began his duties, the attack on Fort Sumter prompted the departure of four more states and kicked off the Civil War.

Robinson oversaw efforts to establish the new state government and judicial system, as well as a relocation of the state capital to Topeka, but the conflict quickly became his primary focus. Although Missouri remained in the Union fold, tensions between slave state and the newly admitted free Kansas remained; Robinson had to dedicate considerable attention to the frequent raids and counter-raids across the state line. Although Kansas was not included when Lincoln called for 75,000 volunteers to help put down the rebellion, Robinson organized a state militia to aid the cause. When a second call for volunteers allotted a quota of 5,006 to Kansas, the state sent more than twice that number.

Meanwhile, the relationship between Robinson and Lane had deteriorated considerably. Despite the praise the men had for each other after the Wakarusa War, they had fundamentally different backgrounds and temperaments. Lane, a former Democratic congressman, was hot-tempered, vulgar, and militaristic; since he had supported pro-slavery legislation in the past, he was also seen as something of an opportunist. Robinson was generally regarded as more levelheaded and ambitious.


James Lane, who became a fierce rival of Robinson. (Source)

One of the earlier conflicts between Robinson and Lane occurred on October 5, 1857, when Lane called for a military movement against pro-slavery settlers and the destruction of the legislature. While this proposal was rejected, he did manage to create a military board at a meeting of the legislature on January 4, 1858, and have himself appointed to lead it, whereupon he continued to advocate for violence against pro-slavery camps. When Robinson was called before the board, he effectively undercut it by saying the entity had no authority to summon him.

Lane, who was active in mustering Kansas troops, lobbed a variety of accusations at Robinson during the war. He went so far as to accuse the governor of treason, and of willfully depriving him of necessary artillery. Late in 1861, Lane and his allies in the legislature tried to oust Robinson on a technicality, claiming that his term ended in January 1862, not 1863. They staged an election that named George A. Crawford as Robinson's successor, but the result was declared illegitimate by the state supreme court.

Lane would finally land a disabling blow against Robinson with a fairly obscure issue: whether state bond sales had been carried out correctly.

Impeachment

As part of their effort to fund and sustain a militia, as well as get the state institutions up and running, the Kansas legislature authorized the issuance of $150,000 in state bonds. Under previously established guidelines, the bonds were to be sold at no less than 70 cents on the dollar.

John W. Robinson, Robinson's unrelated secretary of state, and George S. Hillyer, the state auditor, didn't abide by this stipulation when they set up an agreement with bond agent Robert Stevens. The two men promised to effectively deliver bonds at 60 cents on the dollar, since Stevens would purchase $50,000 at 40 cents on the dollar and $37,000 at 70 cents on the dollar. Governor Robinson claimed that while he thought it was good state policy to sell the bonds at a lower rate if they were unable to get a better one, he recognized the problem with doing so and declined to sign a paper authorizing the transaction. However, he had given his secretary of state and state auditor approval to make the bond arrangements, and they ultimately finalized the agreement and attached his name without his approval.

Although it wasn't ideal, the arrangement wasn't necessarily corrupt. None of the officials involved benefitted personally from selling the bonds at a lower return, and there was also the risk that refusing to sell to Stevens would result in no bond sale and thus no proceeds at all. Still, selling the bonds below the stipulated amount was a violation of state legislation, and therefore a violation of the law.

Lane's allies in the legislature pounced on the opportunity to take down Robinson, and the house of representatives authorized an investigation at the end of January 1862. Lane was one of the people deposed, and alleged that the money from the bond sales was being sought "for use against my friends and myself in Kansas, and that it would not go into the State Treasury." On February 15, the state house of representatives approved five impeachment charges against Robinson, as well as eight charges against John W. Robinson and seven against Hillyer. Robinson was the first U.S. governor to be impeached.

After a lengthy debate over how to proceed, the trial went forward in June. John W. Robinson's impeachment trial was the most comprehensive, and resulted in his removal from office following conviction on a single count of the "high misdemeanor" of selling bonds below the rate set by the legislature. The state senate immediately began the proceedings against Hillyer, with the agreement that the evidence introduced in John W. Robinson's trial (with the exception of Hillyer's own testimony) would be applicable to the new trial. Hillyer was also convicted of the same charge.

Governor Robinson's charge was perfunctory, starting and concluding on June 16. The testimony suggested that the governor was not directly involved in the bond sale, since he was in Kansas while John W. Robinson and Hillyer sought to make the transaction in Washington, D.C. General J.C. Stone, quartermaster general, testified that he had told Robinson several times that he thought the bonds could be disposed of for 100 cents on the dollar, but also realized that the governor had no control over the bonds. John W. Robinson and Hillyer also took the stand, saying there had been no real arrangement with Robinson on how the bonds would be disposed of.

Wilson Shannon, arguing for the defense, proclaimed that the prosecution had advanced no evidence showing that the governor was complicit in the bond sales. The state treasurer had the duty to issue them, while the governor and auditor could only sign them. The mere signing of the bonds, he noted, had not been upheld as a high misdemeanor in Hillyer's trial.

Davies Wilson, leading the prosecution, praised Robinson's character and lamented that he was facing removal from office, but said it was nevertheless the duty of the state senate to carry out their duty. "Precious may be our tried friends and trusted leaders, yet more precious should be purity and integrity," he declared. "And when, in these venal days, it is given us the privilege of proving our allegiance to virtue, and honor and truth, even at so great a price, let us be bold to set an illustrious example, and declare that here at least there are none so exalted, none so protected from process of law, none so powerful as to do wrong, yet fear no penalty."

Robinson was acquitted on all five counts. There were only three votes to convict scattered across two charges, and on three articles the vote to clear him was unanimous.

Although the result was a rather decisive exoneration, the impeachment proved crippling to Robinson's political career. At the Republican state convention on September 17, he lost the gubernatorial nomination to Thomas Carney, who subsequently succeeded him in office. Robinson left office on January 12, 1863, having completed a single term.

Later life

Robinson followed a variety of pursuit after his time as governor. In addition to maintaining his farm, he was a regent at the University of Kansas for several years as well as director of the Leavenworth, Lawrence & Galveston Railroad Company. He also served as the president of the Kansas Historical Society from 1879 to 1880 and superintendent of the Haskell Institute at Lawrence from 1887 to 1889.

Robinson didn't abandon politics entirely. Starting in 1873, he served eight years as an independent in the Kansas state senate. He also ran unsuccessfully for the U.S. House of Representatives in 1886 and governor of Kansas in 1890. Becoming estranged from the Republican Party, he left it in 1886 and worked with both Democrats and Populists, helping back fusion candidate of Lorenzo D. Lewelling as governor of Kansas in 1892.

Contemporary accounts have credited Robinson with being a moderating force that helped to keep the antebellum violence in Kansas from spiraling out of control. He wrote about these prewar tensions in 1891 in a book entitled The Kansas Conflict.

Robinson died in Lawrence on August 17, 1894.

Sources: Kansas Historical Society, Lecompton Historical Society, National Governors Association, Territorial Kansas Online, The Kansas City Public Library, Dickinson College's "House Divided" Search Engine, The United States Biographical Dictionary: Kansas VolumeThe Twentieth Century Biographical Dictionary of Notable AmericansThe California Gold Rush and the Coming Civil War by Leonard L. Richards, The Pursuit of Public Power: Political Culture in Ohio 1787-1861 edited by Jeffrey P. Brown and Andrew R.L. Clayton, Kansas's War: The Civil War in Documents edited by Pearl T. Ponce, Man of Douglas, Man of Lincoln: The Political Odyssey of James Henry Lane by Ian Michael Spurgeon, The Life of Charles Robinson: The First Governor of Kansas by Frank Wilson Blackmar, Proceedings in the Cases of the Impeachment of Charles Robinson, Governor; John W. Robinson, Secretary of State; George S. Hillyer, Auditor of State, of Kansas

Tuesday, November 26, 2019

William A. Clark: A "Copper King" fails to buy a Senate seat


As the mining ventures in the West gained steam, the businesses of three Butte men grew powerful enough that they were popularly dubbed Montana's "Copper Kings." One, F. Augustus Heinze, had been born into wealth and managed to establish the multi-million dollar United Copper Company. The other two - Marcus Daly and William A. Clark - shared a similar background: hardscrabble beginnings followed by success in the mining industry that allowed them to establish a foundation for their empires.

The two men also despised each other. It's unclear what sparked the feud between Daly and Clark, though several theories have been advanced. The most likely story seems to be that Clark interfered with the business of the Anaconda Company, Daly's business, by buying up the water rights Daly needed to operate a copper smelter. It was also suggested that Clark had offended Daly by making a racist remark about his Turkish-American business partner, James Ben Ali Haggin.

Regardless of what started the fight, the two titans would find themselves pitted against each other on a number of state political issues. One pitched battle occurred after Montana gained statehood in 1889. As the state government was organized, Daly sought to have the capital located in Anaconda, a community he founded; Clark was a vociferous advocate of Helena for the state capital. Clark would later estimate that more than $1 million had been poured into the capital fight, and that his spending had accounted for about $100,000.

The unchecked spending in the matter spurred the state legislature to try to reign in campaign finances. A newly minted law held that a candidate couldn't give more than $1,000 to any committee in one county, or pay more than $1,000 out of their pocket for any lawful campaign purposes.

About a decade later, Clark would be accused of blatantly disregarding this law in an attempt to win a seat in the U.S. Senate.

Early life

Clark was born near Connellsville, Pennsylvania, on January 8, 1839. He attended the common schools, as well as the Laurel Hill Academy, and demonstrated his entrepreneurial qualities at a young age. Toting farm produce from Connellsville to the community of New Haven in the west, he bargained with customers in an effort to secure the highest prices.

In 1856, Clark moved with his parents to Van Buren County, Iowa, after his father sold the struggling family farm. He studied law at Iowa Wesleyan University at Mount Pleasant, but never practiced. He also taught school, moving to Missouri to do so between 1859 and 1860. Some accounts suggest that he briefly joined the Confederate military during the Civil War, though these claims appear dubious.

Clark first got into the mining business in 1862, when he drove a team to Central City, Colorado, and stayed to work in the quartz mines near this town. A year later, he purchased and drove another team with three companions and wound up in Bannack, Montana, where he found work in the gold placer mines.

In one of his early successful enterprises, Clark found that he could realize more success in supplying the mining operations rather than working in them. He started by traveling to Salt Lake City, returning to Montana loaded up with groceries and supplies such as tobacco that he could sell at a profit. In 1869, on a trip east to establish additional supply lines, he stopped off in Pennslyvania and ended up marrying childhood friend Kate Stauffer.

An empire grows

By 1872, most of the easily accessible gold in the Butte region has been mined. What was left of the precious material was locked up in quartz ore. Clark responded by purchasing a foreclosed mill, with which he was able to reap significant profits processing the quartz. He then purchased four mining claims at a deep discount. These actions formed the nucleus of what would become a vast fortune.

Clark followed numerous mercantile pursuits in Blackfoot and Helena. His name would ultimately be associated with 28 companies, none of which were publicly traded. A glowing biographical sketch declared that this arrangement left his businesses "entirely untrammeled by boards of directors, stockholders with their numerous interests and constant liability to produce embarrassing situations, and of all stock market conditions." He purchased copper, coal, and silver mines in Arizona, Colorado, Montana, and Utah. As his mining interests grew, he was said to be the largest individual owner of copper mines and smelters in the world.

As he became more invested in this business, Clark studied at the Columbia School of Mines. One of his more profitable mines was the United Verde copper deposit in Jerome, Arizona. He acquired 70 percent of the stock after the Phelps Dodge Corporation concluded the claim was too remote to yield much revenue. Just a few years later, Clark had reaped $60 million from it.

The empire forged by Clark went well beyond mineral wealth, though. He secured a mail contract between Missoula and Walla Walla, Washington. He opened a newspaper and bank in Butte, worked with two partners in wholesale and retail merchandising, bought up gold dust from panners to sell to banks on the East Coast, and acted as the purchasing agent for several Helena merchants by extending loans with 2 percent interest. Clark's holdings would eventually spread nationwide, including a blasting powder plant in Pennsylvania, a wire plant in New Jersey, and a beet sugar plantation near Los Angeles.

A contentious Senate race

Clark's first became involved in politics in 1884, when he served as president of a state constitutional convention. He supported the Democratic Party's desire for lower tariffs, and in 1888 the party chose him as their nominee for Montana's territorial delegate seat in Congress.

The feud between Clark and Daly was already underway at this point, with both men using newspapers they owned to lash each other in editorial broadsides. Daly was credited with sabotaging Clark's bid by having his own employees oppose the candidate, even if they agreed with his positions. The secret ballot was not yet in place in Montana, so it was a simple matter for the shift bosses at the Anaconda Company to inspect the ballots and make sure the workers had complied with Daly's wishes. In the final tally, Clark earned 17,360 votes to the 22,486 that went to his Daly-backed challenger, Republican candidate Thomas Henry Carter.

Marcus Daly (Source)

Clark didn't have to wait long for a larger prize to be available. While Congress had rejected Montana's attempt at statehood in 1884, it accepted it five years later after another constitutional convention that Clark again presided over. The Montana legislature at the time was firmly divided between Democrats and Republicans. The split was so bad that the house of representatives effectively broke into two separate chambers, with the parties meeting and acting separately. The state senate failed to pass any of the laws submitted by either half of the house, effectively preventing the state legislature from accomplishing any business in its first session.

This deadlock didn't bode well for the legislative responsibility of appointing two U.S. senators. Each party named its two picks and sent them to Congress in 1890 for the Senate to sort out; the partisan divide was just as pronounced in the nation's capital, and the Senate kept the Republican nominees while sending the Democratic ones (Clark included) back home.

Both Daly and Clark ran for the Senate in 1893, but neither was able to get the necessary majority support in the legislature. As a result, Montana simply didn't name a senator that year.

Again running for the Senate in 1899, Clark was finally appointed to a seat with his six-year term set to begin in March of that year. Fifty-four legislators voted for him, while 39 voted against. However, accusations of bribery quickly emerged. One of the most dramatic examples came when state senator Fred Whiteside brought $30,000 in cash into the legislature, announcing that the sum had been advanced to him and three others to win their support for Clark. Whiteside declared, "I know that the course I have pursued will not be popular, but so long as I live, I propose to fight the men who have placed the withering curse of bribery upon this state."

Fred Whiteside (Source)

Clark launched a vicious offensive against Whiteside, saying the accusation was part of an attempt by Daly and his cohorts to undermine his appointment to the Senate. He and his allies than challenged Whiteside's own close election to the legislature, managing to invalidate it by having any ballots where an X was marked after his name instead of before it thrown out.

Before departing, Whiteside delivered a speech which included a sarcastic toast to crime. The Senate matter, he said, reminded him of "a horde of hungry, skinny, long-tailed rats around a big cheese." He invited the legislators who had switched their votes to support Clark to stand up and explain why they had done so. However, he suggested it would be "much more clear and to the point if they would just get up and tell us the price and sit down."

"I never bought a man..."


When Clark arrived in Washington and presented his credentials, he was seated in the Senate without delay. However, his opponents filed a petition on the same day accusing him of winning the election though outright bribery. Clark, they said, had also far exceeded the $2,000 cap on campaign spending set by the 1895 state law in Montana.

The matter was referred to the Committee on Privileges and Elections, which held hearings on the issue between January and April of 1900. Ninety-six witnesses would be heard, including Clark, Daly, Whiteside, and Montana state legislators who had voted in favor of Clark's appointment to the Senate.

The investigation uncovered a scheme, overseen by Clark's son, to funnel bribes of between $240 and $100,000 to support Clark's election bid. A committee had been set up with the understanding that Clark would provide them with unlimited sums of money to be used to sway legislators to his side. In some cases, the bribes had been subtle measures, such as paying mortgages and debts or purchasing land from a legislator at a vastly inflated price. Other bribes had been more straightforward, including instances where a recipient was simply handed an envelope full of cash. The larger bribes were usually paid in $1,000 bills.

It was estimated that Clark has spent about $431,000 to nail down 47 votes in the legislature, including 11 crucial Republican ones. Clark himself admitted to only paying $139,000 toward his campaign, though of course this vastly exceeded the state cap. He reportedly quipped, in private, "I never bought a man who wasn't for sale." He didn't help his case before the Senate committee when he admitted that he had destroyed all records of his campaign finances, raising doubts as to the honesty of his Senate run.

The testimony of Whiteside and three other legislators who directly accused Clark of attempted bribery proved damning. The committee ultimately determined that their testimony could only be false if they had entered into a lengthy "conspiracy of the basest character, to be followed up by perjury of the worst sort," with the sole purpose of depriving Clark of his seat in the Senate.

On April 10, the committee unanimously concluded that Clark was not entitled to sit in the Senate. It declared his election null and void due to "briberies, attempted briberies, and corrupt practices by his agents," as well as violations of Montana state law. The committee noted how Congress had previously refused to seat elected members in cases of bribery even if the beneficiary was unaware of these efforts. It cited a similar case from 1873, when the Senate had reviewed the elections of Samuel C. Pomeroy and Alexander Caldwell in Kansas. In the Pomeroy case, the Senate had concluded that a candidate should not be seated if they had clearly participated in any one bribe or attempted bribe, even if it didn't change the result of the election.

Two committee members agreed with the conclusion, but sought to blunt the seriousness of the matter. They noted that Daly had also violated Montana's state law by channeling unlimited amounts of his own cash into the race to oppose Clark. Daly had even spent about $40,000 in lawyer's fees and other expenses to assist in the prosecution of the case before the Senate. The committee report acknowledged Daly's machinations, but said there was no evidence to support Clark's charge that Daly had concocted a conspiracy against him.

On May 15, on the eve of a vote before the full Senate, Clark rose to deliver a speech listing his grievances. He criticized the committee procedures, charging that the Senate had not granted him the presumption of innocence and had withheld certain evidence. He also said the committee had not proved any bribery sufficient to alter the results of the legislature's appointment and denounced Daly, saying his rival ruled the town of Anaconda like a despot and wasn't above trying to control politics on a larger stage.

But Clark said he was aware that he likely didn't have the support to keep his seat and thus resigned on the spot. In a letter to the governor of Montana, he said he was convinced his supporters did not result to corrupt means to secure his election. Nevertheless, he was "unwilling to occupy a seat in the Senate of the United States under credentials which its Committee has declared rest for their authority upon the action of a legislature which was not free and voluntary in its choice of a senator."

As it happened, both the governor and lieutenant governor of Montana were not in the state at the time of Clark's resignation. In a bizarre illustration of the state's divided loyalties, Lieutenant Governor Archibald E. Spriggs traveled 800 miles to get back within state lines and name Clark to fill the vacancy created by his own resignation. Governor Robert B. Smith, a Daly supporter, returned to Montana three days later. Outraged by Spriggs' action, he telegraphed the Senate to tell them that he would be naming Martin Maginnis, a former territorial delegate, to the Senate.

The Senate was presented with the credentials for both men. Exhausted, they tabled both of them and left one of Montana's seats unfilled. The sordid affair would be just one more piece of evidence reformers would use to argue that U.S. senators should be chosen by popular vote instead of legislators; this change would finally come about with the ratification of the Seventeenth Amendment in 1913.

Senate and sex scandals

Clark could easily fall back on his burgeoning business empire. By 1900, his fortune was estimated at about $50 million and he was considered one of the richest men in the world.

The Montana legislature convened again in January 1901, and again were tasked with choosing a senator. Clark had financially supported the campaigns of many of the legislators to help improve his goodwill in the body. He had won the support of the miners' union for promising to support an eight-hour day as well as legislation allowing miners to sue the company for damages caused by a coworker's negligence and to shop freely instead of being obligated to purchase goods at overpriced company stores. Perhaps more importantly, a major roadblock to his political ambition had been removed: Daly had died in November of the previous year.

The legislature again named Clark to the Senate, and this time he was seated without issue. His six-year term was unremarkable. He favor the construction of a canal through Nicaragua instead of Panama. He also supported a policy allowing mining companies to cut timber on federal lands without reimbursing the government; Clark and others used this policy to enrich themselves through logging as well as mining.

The famous humorist Mark Twain was none too impressed with Clark. In a 1907 essay, he declared, "He is as rotten a human being as can be found...he is a shame to the American nation, and no one has helped to send him to the Senate who did not know that his proper place was the penitentiary, with a ball and chain on his legs." He added, "By his example he has so excused and so sweetened corruption that in Montana it no longer has an offensive smell."

Clark's romantic life also gained attention during his Senate term. He had maintained a distant relationship with his wife and children; since 1878, they had been living in Europe and Clark had traveled to visit them every winter. Katherine had died in 1893. Clark later started a relationship with a young actress named Anna Eugenia La Chapelle; he had sent her from Montana to France when she was 16 years old to study music. Anna became pregnant in 1901 and again in 1903.

Anna Eugenia La Chapelle (Source)

The Anaconda Standard, a paper that Daly had owned, gleefully exposed this relationship with an article headlined "They're Married and Have a Baby" on July 12, 1904. Clark claimed that he and Anna had secretly been married on May 25, 1901. It was a dubious claim, since it conveniently put Clark in France at the same time as Anna and more than nine months before the birth of her daughter, Louise Amelia Andree Clark. No newspapers in Europe had mentioned a wedding, despite extensive coverage of Clark's trip; his itinerary also failed to mention such an event. The "secret" wedding was widely regarded as a flimsy excuse to try to sidestep any scandal.

Throughout 1904, Clark would be buffeted with charges that he was fond of seducing young women. Hattie Rose Laube, a noted campaign speaker, claimed that Clark had promised to marry her while the two traveled in Europe. There were questions over Clark's "sponsorship" of Kathlyn Williams, a Butte woman 40 years his junior whom he had sent to New York City to study opera; Clark had also supported her decision to switch to acting, where she became a well-known star. A woman named Mary McNellis sued him for $150,000, claiming that Clark had seduced and impregnated her and falsely promised her marriage; a judge later ruled against her, though the matter also included a questionable transaction where McNellis's lawyer sold his interest in a Canadian mine to Clark.

After serving one term, Clark retired from the Senate.

Later years

Clark's business ventures had continued apace while he was in the government. One of the more prominent accomplishments was the 1,100-mile San Pedro, Los Angeles and Salt Lake Rail Line. He had financed the construction of this line, although its construction was largely overseen by younger brother J. Ross Clark. The railroad, completed in 1905 and now part of the Southern Pacific Railroad, is credited as the only railroad to be built with funding from a single person rather than a corporation.

One unintended consequence of this railroad was the creation of Las Vegas. Clark purchased and subdivided a ranch in the Nevada desert to create a community where the trains could be serviced and his employees could live. The small settlement eventually grew into the modern day gambling mecca, while Clark County was named in the tycoon's honor.

Meanwhile, Clark has been working to establish an opulent mansion on Fifth Avenue in New York City. The home itself would not be completed until 1911, following 14 years of construction and planning. The rambling 121-room residence included four art galleries as well as an underground railroad line to bring in coal for heating. As part of the construction, Clark has purchased a quarry in New Hampshire to supply stone and a bronze foundry to cast its fittings.

Clark's mansion on Fifth Avenue in New York City (Source)

Clark would live the rest of his life in the mansion. Despite his diminutive political career, he had made numerous charitable donations supporting organizations such as the YMCA and First Presbyterian Church. He helped establish a Girl Scout camp in New York and numerous organizations in Butte, including an orphanage, homeless shelter, and a 68-acre amusement park called Columbia Gardens. Clark also established an electric trolley line to this site, which children were permitted to ride for free on Thursdays.

On March 2, 1925, Clark died of pneumonia. His children received assets worth about $200 million, all of which has been sold off by 1935. La Chapelle received $2.5 million. Clark's vast art collection was donated to the Corcoran Gallery in Washington, D.C., after the original recipient, the Metropolitan Museum of Art, balked at the requirement that exclusive galleries be maintained in perpetuity for the works. The paintings were transferred to the National Gallery of Art after the Corcoran dissolved in 2014.

The immense New York City mansion briefly remained as a monument to Clark's wealth while struggling to find someone willing to buy it. Finally, in 1927, it was purchased and quickly demolished to make way for luxury apartments. His comparably modest 34-room residence in Butte survives today as a bed and breakfast called the Copper King Mansion.

Some of Clark's children also earned recognition. William Andrews Clark Jr. was a notable philanthropist who founded the Los Angeles Philharmonic in 1919. A daughter, Huguette Clark, was a reclusive heiress who preferred to live the last 20 years of her life under assumed names in hospital rooms despite owning a palatial 42-room apartment on Fifth Avenue. She also owned mansions in California, Connecticut, and New York which she kept in good repair but never visited.

Huguette died in 2011 at the age of 104, leaving behind an estate worth $300 million. Her will quickly became the subject of a prolonged court battle. Despite the stipulation that her relatives wouldn't receive a cent, her heirs were eventually granted $34.5 million. One of the main results of the probate process was the establishment of the Bellosguardo Foundation, which is located within Hugette's former estate in California and aims to be an arts and cultural destination.

Sources

Biographical Directory of the United States Congress, The National Mining Hall of Fame and Museum, Museum of the City of New York, Online Nevada Encyclopedia, The William Andrews Clark Memorial Library at UCLA, The Copper King Mansion Bed & Breakfast, "The Right and Title of William A. Clark to a Seat as Senator from the State of Montana" report from The Committee on Elections and Privileges, "The Election Case of William A. Clark of Montana" at Senate.gov, "William Andrews Clark" in the Las Vegas Review Journal on Feb. 7 1999, "Daughter of Connellsville's Controversial Billionaire Dies" in the Tribune-Review on May 28 2011, "Huguette Clark's $300 Million Copper Fortune Is Divided Up" on CNBC on Sep. 24 2013, "A Familiar Scandal: Teenage Girls, A U.S. Senate Hopeful and a Century-Old Montana Story" in the Billings Gazette on Nov. 16 2017, McClure's Magazine Vol. 28The Battle for Butte: Mining and Politics on the Northern Frontier 1864-1906 by Michael P. Malone, Fire and Brimstone: The North Butte Mining Disaster of 1917 by Michael Punke, Copper for America: The United States Copper Industry from Colonial Times to the 1990s by Charles K. Hyde, The Cyclopaedia of American Biography Vol. VIII,