3 December, 1888, US President Grover Cleveland comments on Government’s increasing support of “Corporate Rights.”

Santa Clara County v. Southern Pacific Railroad Company, 118 U.S. 394 (1886) was a United States Supreme Court case dealing with taxation of railroad properties. The case is most notable for what it did not hold, but was later misunderstood to have held–namely, that juristic persons are entitled to protection under the Fourteenth Amendment. This misinterpretation was the beginning of the end of government for, by, and of the people in the United States of America and the sitting president, Grover Cleveland knew it then when he said in his 1888 state of the Union address:

“As we view the achievements of aggregated capital, we discover the existence of trusts, combinations, and monopolies, while the citizen is struggling far in the rear or is trampled to death beneath an iron heel.

Corporations, which should be the carefully restrained creatures of law and the servants of the people, are fast becoming the people’s masters.”


–Grover Cleveland, 22nd and 24th President of the United States of America

3 December, 1888

Found this interesting quote in Grover Cleveland’s 1888 ‘annual address to Congress:’

(given in a joint session of Congress)…(following the 1886 Santa Clara County Court Decision, which paved the way for Corporations enjoying 14th Amendment Protection and “corporate personhood.”)

Congress moves to force KBR and other defense contractors to stop using off-shore shell companies to avoid paying billions in payroll taxes owed to the US government…the contractors say they are “patriotically” passing on savings in the war effort by listing their US employees as being employed in foreign countries.

The following is an opinion piece published in the New York Times yesterday:

“Congress is finally moving to shut one of the more egregious forms of Iraq war profiteering: defense contractors using offshore shell companies to avoid paying their fair share of payroll taxes. The practice is widespread and Congressional investigators have been dispatched to one of the prime tax refuges, the Cayman Islands, to seek a firsthand estimate of how much the Treasury is being shorted.

No one will be surprised to hear that one of the suspected prime offenders is KBR, the Texas-based defense contractor, formerly a part of the Halliburton conglomerate allied with Vice President Dick Cheney. According to a report in The Boston Globe, KBR, which has landed billions in Iraq contracts, has used two Cayman shell companies to avoid paying hundreds of millions in payroll, Medicare and unemployment taxes.

Unfortunately right now there is nothing illegal about this. The House has approved legislation to plug the dodge by treating foreign subsidiaries of defense contractors as what they are — American employers required to pay taxes. The Senate must quickly follow suit and not buy the contractors’ line that listing American workers at offshore companies is a cost saving passed on patriotically to the war effort. No less insulting, the Cayman dodge has been blocking Americans from the protection of labor and anti-discrimination laws.

The House has taken on another shamefully common abuse: voting to deny future government contracts to any company that fails to pay its corporate taxes, including an estimated 25,000 defense contractors keeping billions due the Treasury. The Senate should approve that legislation as well.

Companies enriched by taxpayers in the war boom should not be able to compound their profits by not paying their fair share of taxes. Congress must do far more to bring them to a full accounting.”