Tag: history

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

December 11 is the 345th day of the year (346th in leap years) in the Gregorian calendar. There are 20 days remaining until the end of the year.

On this day in 1946, In the aftermath of World War II, the General Assembly of the United Nations votes to establish the United Nations International Children’s Emergency Fund (UNICEF), an organization to help provide relief and support to children living in countries devastated by the war.

After the food and medical crisis of the late 1940s passed, UNICEF continued its role as a relief organization for the children of troubled nations and during the 1970s grew into a vocal advocate of children’s rights. During the 1980s, UNICEF assisted the U.N. Commission on Human Rights in the drafting of the Convention on the Rights of the Child. After its introduction to the U.N. General Assembly in 1989, the Convention on the Rights of the Child became the most widely ratified human rights treaty in history, and UNICEF played a key role in ensuring its enforcement.

Of the 184 member states of the United Nations, only two countries have failed to ratify the treaty–Somalia and the United States. Somalia does not currently have an internationally recognized government, so ratification is impossible, and the United States, which was one of the original signatories of the convention, has failed to ratify the treaty because of concerns about its potential impact on national sovereignty and the parent-child relationship.

In 1953, UNICEF became a permanent part of the United Nations System and its name was shortened from the original United Nations International Children’s Emergency Fund but it has continued to be known by the popular acronym based on this old name. Headquartered in New York City, UNICEF provides long-term humanitarian and developmental assistance to children and mothers in developing countries.

UNICEF relies on contributions from governments and private donors and UNICEF’s total income for 2006 was $2,781,000,000. Governments contribute two thirds of the organization’s resources; private groups and some 6 million individuals contribute the rest through the National Committees. UNICEF’s programs emphasize developing community-level services to promote the health and well-being of children. UNICEF was awarded the Nobel Peace Prize in 1965 and the Prince of Asturias Award of Concord in 2006.

Most of UNICEF’s work is in the field, with staff in over 190 countries and territories. More than 200 country offices carry out UNICEF’s mission through a program developed with host governments. Seven regional offices provide technical assistance to country offices as needed.

Overall management and administration of the organization takes place at its headquarters in New York. UNICEF’s Supply Division is based in Copenhagen and serves as the primary point of distribution for such essential items as vaccines, antiretroviral medicines for children and mothers with HIV, nutritional supplements, emergency shelters, educational supplies, among others. A 36-member Executive Board establishes policies, approves programs and oversees administrative and financial plans. The Executive Board is made up of government representatives who are elected by the United Nations Economic and Social Council, usually for three-year terms.

Following the reaching of term limits by Executive Director of UNICEF Carol Bellamy, former United States Secretary of Agriculture Ann Veneman became executive director of the organization in May 2005 with an agenda to increase the organization’s focus on the Millennium Development Goals. She was succeeded in May 2010 by Anthony Lake.

UNICEF is an inter-governmental organization and thus is accountable to governments.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

December 10 is the 344th day of the year (345th in leap years) in the Gregorian calendar. There are 21 days remaining until the end of the year.

On this day in 1901, the first Nobel Prizes are awarded in Stockholm, Sweden, in the fields of physics, chemistry, medicine, literature, and peace. The ceremony came on the fifth anniversary of the death of Alfred Nobel, the Swedish inventor of dynamite and other high explosives. In his will, Nobel directed that the bulk of his vast fortune be placed in a fund in which the interest would be “annually distributed in the form of prizes to those who, during the preceding year, shall have conferred the greatest benefit on mankind.” Although Nobel offered no public reason for his creation of the prizes, it is widely believed that he did so out of moral regret over the increasingly lethal uses of his inventions in war.

History

Alfred Nobel was born on 21 October 1833 in Stockholm, Sweden, into a family of engineers. He was a chemist, engineer, and inventor. In 1895 Nobel purchased the Bofors iron and steel mill, which he converted into a major armaments manufacturer. Nobel also invented ballistite, a precursor to many smokeless military explosives, especially cordite, the main British smokeless powder. Nobel was even involved in a patent infringement lawsuit over cordite. Nobel amassed a fortune during his lifetime, most of it from his 355 inventions, of which dynamite is the most famous. In 1888, Alfred had the unpleasant surprise of reading his own obituary, titled ‘The merchant of death is dead’, in a French newspaper. As it was Alfred’s brother Ludvig who had died, the obituary was eight years premature. Alfred was disappointed with what he read and concerned with how he would be remembered. This inspired him to change his will. On 10 December 1896 Alfred Nobel died in his villa in San Remo, Italy, at the age of 63 from a cerebral haemorrhage.

To the wide-spread surprise, Nobel’s last will requested that his fortune be used to create a series of prizes for those who confer the “greatest benefit on mankind” in physics, chemistry, peace, physiology or medicine, and literature. Nobel wrote several wills during his lifetime. The last was written over a year before he died, signed at the Swedish-Norwegian Club in Paris on 27 November 1895. Nobel bequeathed 94% of his total assets, 31 million SEK (c. US$186 million in 2008), to establish the five Nobel Prizes. Because of the level of scepticism surrounding the will, it was not until 26 April 1897 that it was approved by the Storting in Norway. The executors of Nobel’s will, Ragnar Sohlman and Rudolf Lilljequist, formed the Nobel Foundation to take care of Nobel’s fortune and organise the prizes.

Nobel’s instructions named a Norwegian Nobel Committee to award the Peace Prize, the members of whom were appointed shortly after the will was approved in April 1897. Soon thereafter, the other prize-awarding organisations were established: the Karolinska Institutet on 7 June, the Swedish Academy on 9 June, and the Royal Swedish Academy of Sciences on 11 June. The Nobel Foundation reached an agreement on guidelines for how the prizes should be awarded, and in 1900, the Nobel Foundation’s newly-created statutes were promulgated by King Oscar II. In 1905, the Union between Sweden and Norway was dissolved. Thereafter Norway’s Nobel Committee remained responsible for awarding the Nobel Peace Prize and the Swedish institutions retained responsibility for the other prizes.

Our last installment in this series appeared on 201111.  This took us up to about the middle of 1967, and we shall pick up where we stopped.

They had been recording material for what ended up being The Who Sell Out, and some singles from that effort appeared beginning in September.  However, they also did a tour in the US and Canada.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

December 9 is the 343rd day of the year (344th in leap years) in the Gregorian calendar. There are 22 days remaining until the end of the year.

On this day in 1861, The Joint Committee on the Conduct of the War is established by the U.S. Congress.

The Joint Committee on the Conduct of the War was a United States Congressional investigating committee created to handle issues surrounding the American Civil War. It was established on December 9, 1861, following the embarrassing Union defeat at the Battle of Ball’s Bluff, at the instigation of Senator Zachariah T. Chandler of Michigan, and continued until May 1865. Its purpose was to investigate such matters as illicit trade with the Confederate states, medical treatment of wounded soldiers, military contracts, and the causes of Union battle losses. The Committee was also involved in supporting the war effort through various means, including endorsing emancipation, the use of black soldiers, and the appointment of generals who were known to be aggressive fighters. It was chaired throughout by Senator Benjamin Wade of Ohio, and became identified with the Radical Republicans who wanted more aggressive war policies than those of Abraham Lincoln.

History

Union officers often found themselves in an uncomfortable position before the Committee. Since this was a civil war, pitting neighbor against neighbor (and sometimes brother against brother), the loyalty of a soldier to the Union was simple to question. And since Union forces had very poor luck against their Confederate counterparts early in the war, particularly in the Eastern Theater battles that held the attention of the newspapers and Washington politicians, it was easy to accuse an officer of being a traitor after he lost a battle or was slow to engage or pursue the enemy. This politically charged atmosphere was very difficult and distracting for career military officers. Officers who were not known Republicans felt the most pressure before the Committee.

During the committee’s existence, it held 272 meetings and received testimony in Washington and at other locations, often from military officers. Though the committee met and held hearings in secrecy, the testimony and related exhibits were published at irregular intervals in the numerous committee reports of its investigations. The records include the original manuscripts of certain postwar reports that the committee received from general officers. There are also transcripts of testimony and accounting records regarding the military administration of Alexandria, Virginia.

One of the most colorful series of committee hearings followed the Battle of Gettysburg in 1863, where Union Maj. Gen. Daniel Sickles, a former congressman, accused Maj. Gen. George G. Meade of mismanaging the battle, planning to retreat from Gettysburg prior to his victory there, and failing to pursue and defeat Robert E. Lee‘s army as it retreated. This was mostly a self-serving effort on Sickles’s part because he was trying to deflect criticism from his own disastrous role in the battle. Bill Hyde notes that the committee’s report on Gettysburg was edited by Wade in ways that were unfavorable to Meade, even when that required distorting the evidence. The report was “a powerful propaganda weapon” (p. 381), but the committee’s power had waned by the time the final testimony was taken of William T. Sherman on May 22, 1865.

The war it was investigating completed, the committee ceased to exist after this last testimony, and the final reports were published shortly thereafter. The later Joint Committee on Reconstruction represented a similar attempt to check executive power by the Radical Republicans.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

December 8 is the 342nd day of the year (343rd in leap years) in the Gregorian calendar. There are 23 days remaining until the end of the year.

John and I are in our Dakota kitchen in the middle of the night. Three cats – Sasha, Micha and Charo – are looking up at John, who is making tea for us two.

Sasha is all white, Micha is all black. They are both gorgeous, classy Persian cats. Charo, on the other hand, is a mutt. John used to have a special love for Charo. “You’ve got a funny face, Charo!” he would say, and pat her.

“Yoko, Yoko, you’re supposed to first put the tea bags in, and then the hot water.” John took the role of the tea maker, for being English. So I gave up doing it.

It was nice to be up in the middle of the night, when there was no sound in the house, and sip the tea John would make. One night, however, John said: “I was talking to Aunt Mimi this afternoon and she says you are supposed to put the hot water in first. Then the tea bag. I could swear she taught me to put the tea bag in first, but …”

“So all this time, we were doing it wrong?”

“Yeah …”

We both cracked up. That was in 1980. Neither of us knew that it was to be the last year of our life together.

Click on image to enlarge

This message was sent to all in the US Naval Fleet at 8:00 AM HST by Admiral Husband Kimmel, in charge of Pearl Harbor.

h/t Command Posts

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

December 7 is the 341st day of the year (342nd in leap years) in the Gregorian calendar. There are 24 days remaining until the end of the year.

On this day in 1787, (In) Dover, Delaware, the U.S. Constitution is unanimously ratified by all 30 delegates to the Delaware Constitutional Convention, making Delaware the first state of the modern United States.

Less than four months before, the Constitution was signed by 37 of the original 55 delegates to the Constitutional Convention meeting in Philadelphia. The Constitution was sent to the states for ratification, and, by the terms of the document, the Constitution would become binding once nine of the former 13 colonies had ratified the document. Delaware led the process, and on June 21, 1788, New Hampshire became the ninth state to ratify the Constitution, making federal democracy the law of the land. Government under the U.S. Constitution took effect on March 4, 1789.

Delaware  is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. The state takes its name from Thomas West, 3rd Baron De La Warr, an English nobleman and Virginia’s first colonial governor, after whom (what is now called) Cape Henlopen was originally named.

Delaware is located in the northeastern portion of the Delmarva Peninsula and is the second smallest state in area (after Rhode Island). Estimates in 2007 rank the population of Delaware as 45th in the nation, but 6th in population density, with more than 60% of the population in New Castle County. Delaware is divided into three counties. From north to south, these three counties are New Castle, Kent, and Sussex. While the southern two counties have historically been predominantly agricultural, New Castle County has been more industrialized.

The state ranks second in civilian scientists and engineers as a percentage of the workforce and number of patents issued to companies or individuals per 1,000 workers. The history of the state’s economic and industrial development is closely tied to the impact of the Du Pont family, founders and scions of E. I. du Pont de Nemours and Company, one of the world’s largest chemical companies.

Before its coastline was first explored by Europeans in the 16th century, Delaware was inhabited by several groups of Native Americans, including the Lenape in the north and Nanticoke in the south. It was initially colonized by Dutch traders at Zwaanendael, located near the present town of Lewes, in 1631. Delaware was one of the thirteen colonies participating in the American Revolution and on December 7, 1787, became the first state to ratify the Constitution of the United States, thereby becoming known as The First State.

Delaware is the home state of Vice President Joseph Biden

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

December 6 is the 340th day of the year (341st in leap years) in the Gregorian calendar. There are 25 days remaining until the end of the year.

On this day in 1884, the Washington Monument is completed.

In Washington, D.C., workers place a nine-inch aluminum pyramid atop a tower of white marble, completing the construction of an impressive monument to the city’s namesake and the nation’s first president, George Washington.  As early as 1783, the infant U.S. Congress decided that a statue of George Washington, the great Revolutionary War general, should be placed near the site of the new Congressional building, wherever it might be. After then-President Washington asked him to lay out a new federal capital on the Potomac River in 1791, architect Pierre L’Enfant left a place for the statue at the western end of the sweeping National Mall (near the monument’s present location).

The Washington Monument is an obelisk near the west end of the National Mall in Washington, D.C., built to commemorate the first U.S. president, General George Washington. The monument, made of marble, granite, and sandstone, is both the world’s tallest stone structure and the world’s tallest obelisk, standing 555 feet 5 1/8 inches (169.294 m). There are taller monumental columns, but they are neither all stone nor true obelisks. It is also the tallest structure in Washington D.C.. It was designed by Robert Mills, an architect of the 1840s. The actual construction of the monument began in 1848 but was not completed until 1884, almost 30 years after the architect’s death. This hiatus in construction happened because of co-option by the Know Nothing party, a lack of funds, and the intervention of the American Civil War. A difference in shading of the marble, visible approximately 150 feet (46 m or 27%) up, shows where construction was halted for a number of years. The cornerstone was laid on July 4, 1848; the capstone was set on December 6, 1884, and the completed monument was dedicated on February 21, 1885. It officially opened October 9, 1888. Upon completion, it became the world’s tallest structure, a title previously held by the Cologne Cathedral. The monument held this designation until 1889, when the Eiffel Tower was completed in Paris, France. The monument stands due east of the Reflecting Pool and the Lincoln Memorial.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

December 5 is the 339th day of the year (340th in leap years) in the Gregorian calendar. There are 26 days remaining until the end of the year.

On this day in 1933, The 21st Amendment to the U.S. Constitution is ratified, repealing the 18th Amendment and bringing an end to the era of national prohibition of alcohol in America. At 5:32 p.m. EST, Utah became the 36th state to ratify the amendment, achieving the requisite three-fourths majority of states’ approval. Pennsylvania and Ohio had ratified it earlier in the day.

The movement for the prohibition of alcohol began in the early 19th century, when Americans concerned about the adverse effects of drinking began forming temperance societies. By the late 19th century, these groups had become a powerful political force, campaigning on the state level and calling for national liquor abstinence. Several states outlawed the manufacture or sale of alcohol within their own borders. In December 1917, the 18th Amendment, prohibiting the “manufacture, sale, or transportation of intoxicating liquors for beverage purposes,” was passed by Congress and sent to the states for ratification. On January 29, 1919, the 18th Amendment achieved the necessary three-fourths majority of state ratification. Prohibition essentially began in June of that year, but the amendment did not officially take effect until January 29, 1920.

The proponents of Prohibition had believed that banning alcoholic beverages would reduce or even eliminate many social problems, particularly drunkenness, crime, mental illness, and poverty, and would eventually lead to reductions in taxes. However, during Prohibition, people continued to produce and drink alcohol, and bootlegging helped foster a massive industry completely under the control of organized crime. Prohibitionists argued that Prohibition would be more effective if enforcement were increased. However, increased efforts to enforce Prohibition simply resulted in the government spending more money, rather than less. Journalist H.L. Mencken asserted in 1925 that respect for law diminished rather than increased during Prohibition, and drunkenness, crime, insanity, and resentment towards the federal government had all increased.

During this period, support for Prohibition diminished among voters and politicians. John D. Rockefeller Jr., a lifelong nondrinker who had contributed much money to the Prohibitionist Anti-Saloon League, eventually announced his support for repeal because of the widespread problems he believed Prohibition had caused. Influential leaders, such as the du Pont brothers, led the Association Against the Prohibition Amendment, whose name clearly asserted its intentions.

Women as a bloc of voters and activists became pivotal in the effort to repeal, as many concluded that the effects of Prohibition were morally corrupting families, women, and children. (By then, women had become even more politically powerful due to ratification of the Constitutional amendment for women’s suffrage.) Activist Pauline Sabin argued that repeal would protect families from the corruption, violent crime, and underground drinking that resulted from Prohibition. In 1929 Sabin founded the Women’s Organization for National Prohibition Reform (WONPR), which came to be partly composed of and supported by former Prohibitionists; its membership was estimated at 1.5 million by 1931.

The number of repeal organizations and demand for repeal both increased. In 1932, the Democratic Party’s platform included a plank for the repeal of Prohibition, and Democrat Franklin Roosevelt ran for President of the United States promising repeal of federal laws of Prohibition.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

December 4 is the 338th day of the year (339th in leap years) in the Gregorian calendar. There are 27 days remaining until the end of the year

On this day in 1783, future President George Washington, then commanding general of the Continental Army, summons his military officers to Fraunces Tavern in New York City to inform them that he will be resigning his commission and returning to civilian life.

Washington had led the army through six long years of war against the British before the American forces finally prevailed at the Battle of Yorktown in 1781. There, Washington received the formal surrender of British General Lord Charles Cornwallis, effectively ending the Revolutionary War, although it took almost two more years to conclude a peace treaty and slightly longer for all British troops to leave New York.

Fraunces Tavern is a tavern, restaurant and museum housed in a conjectural reconstruction of a building that played a prominent role in pre-Revolution and Revolution history. The building, located at 54 Pearl Street at the corner of Broad Street, has been owned by Sons of the Revolution in the State of New York Inc. since 1904, which claims it is Manhattan’s oldest surviving building. The building is a tourist site and a part of the American Whiskey Trail and the New York Freedom Trail.

Revolution history

In August 1775, Americans took possession of cannons from the artillery battery at the southern point of Manhattan and fired on the HMS Asia. The British ship retaliated by firing a 32-gun broadside on the city, sending a cannonball through the roof of the building.

When the war was all but won, the building was the site of “British-American Board of Inquiry” meetings, which negotiated to ensure to American leaders that no “American property” (meaning former slaves who were emancipated by the British for their military service) be allowed to leave with British troops. Board members reviewed the evidence and testimonies that were given by freed slaves every Wednesday from April to November 1783, and British representatives were successful in ensuring that almost all of the loyalist blacks of New York maintained their liberty.

After British troops evacuated New York, the tavern hosted an elaborate “turtle feast” dinner on December 4, 1783 in the building’s Long Room for U.S. Gen. George Washington where he bade farewell to his officers of the Continental Army by saying “[w]ith a heart full of love and gratitude, I now take leave of you. I most devoutly wish that your latter days may be as prosperous and happy as your former ones have been glorious and honorable.”

The building housed some offices of the Confederation Congress as the nation struggled under the Articles of Confederation. With the establishment of the U.S. Constitution and the inauguration of Washington as president in 1789, the departments of Foreign Affairs, Treasury and War located offices at the building. The offices were vacated when the location of the U.S. capital moved on December 6, 1790 from New York to Philadelphia.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

December 3 is the 337th day of the year (338th in leap years) in the Gregorian calendar. There are 28 days remaining until the end of the year.

On this day in 1947,A Streetcar Named Desire opened on Broadway.

Marlon Brando‘s famous cry of “STELLA!” first booms across a Broadway stage, electrifying the audience at the Ethel Barrymore Theatre during the first-ever performance of Tennessee Williams‘ play A Streetcar Named Desire.

The 23-year-old Brando played the rough, working-class Polish-American Stanley Kowalski, whose violent clash with Blanche DuBois (played on Broadway by Jessica Tandy), a Southern belle with a dark past, is at the center of Williams’ famous drama. Blanche comes to stay with her sister Stella (Kim Hunter), Stanley’s wife, at their home in the French Quarter of New Orleans; she and Stanley immediately despise each other. In the climactic scene, Stanley rapes Blanche, causing her to lose her fragile grip on sanity; the play ends with her being led away in a straitjacket.

Widely considered a landmark play, A Streetcar Named Desire deals with a culture clash between two iconic characters, Blanche DuBois, a fading relic of the Old South, and Stanley Kowalski, a rising member of the industrial, urban working class.

The play presents Blanche DuBois, a fading but still-attractive Southern belle whose pretensions to virtue and culture only thinly mask alcoholism and delusions of grandeur. Her poise is an illusion she presents to shield others (but most of all, herself) from her reality, and an attempt to make herself still attractive to new male suitors. Blanche arrives at the apartment of her sister Stella Kowalski in the French Quarter of New Orleans, on Elysian Fields Avenue; the local transportation she takes to arrive there includes a streetcar route named “Desire.” The steamy, urban ambiance is a shock to Blanche’s nerves. Blanche is welcomed with some trepidation by Stella, who fears the reaction of her husband Stanley. As Blanche explains that their ancestral southern plantation, Belle Reve in Laurel, Mississippi, has been “lost” due to the “epic fornications” of their ancestors, her veneer of self-possession begins to slip drastically. Here “epic fornications” may be interpreted as the debauchery of her ancestors which in turn caused them financial losses. Blanche tells Stella that her supervisor allowed her to take time off from her job as an English teacher because of her upset nerves, when in fact, she has been fired for having an affair with a 17-year-old student. This turns out not to be the only seduction she has engaged in-and, along with other problems, has led her to escape Laurel. A brief marriage marred by the discovery that her spouse, Allan Grey, was having a homosexual affair and his subsequent suicide has led Blanche to withdraw into a world in which fantasies and illusions blend seamlessly with reality.

In contrast to both the self-effacing and deferential Stella and the pretentious refinement of Blanche, Stella’s husband, Stanley Kowalski, is a force of nature: primal, rough-hewn, brutish and sensual. He dominates Stella in every way and is physically and emotionally abusive. Stella tolerates his primal behaviour as this is part of what attracted her in the first place; their love and relationship are heavily based on powerful-even animalistic-sexual chemistry, something that Blanche finds impossible to understand.

The arrival of Blanche upsets her sister and brother-in-law’s system of mutual dependence. Stella’s concern for her sister’s well-being emboldens Blanche to hold court in the Kowalski apartment, infuriating Stanley and leading to conflict in his relationship with his wife. Blanche and Stanley are on a collision course, and Stanley’s friend and Blanche’s would-be suitor Mitch, will get trampled in their path. Stanley discovers Blanche’s past through a co-worker who travels to Laurel frequently, and he confronts her with the things she has been trying to put behind her, partly out of concern that her character flaws may be damaging to the lives of those in her new home, just as they were in Laurel, and partly out of a distaste for pretense in general. However, his attempts to “unmask” her are predictably cruel and violent. In their final confrontation, Stanley rapes Blanche, which results in her nervous breakdown. Stanley has her committed to a mental institution, and in the closing moments, Blanche utters her signature line to the kindly doctor who leads her away: “Whoever you are, I have always depended on the kindness of strangers.”

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

December 2 is the 336th day of the year (337th in leap years) in the Gregorian calendar. There are 29 days remaining until the end of the year.

On this day in 2001, Enron filed for Chapter 11 bankruptcy protection in a New York court, sparking one of the largest corporate scandals in U.S. history.

An energy-trading company based in Houston, Texas, Enron was formed in 1985 as the merger of two gas companies, Houston Natural Gas and Internorth. Under chairman and CEO Kenneth Lay, Enron rose as high as number seven on Fortune magazine’s list of the top 500 U.S. companies. In 2000, the company employed 21,000 people and posted revenue of $111 billion. Over the next year, however, Enron’s stock price began a dramatic slide, dropping from $90.75 in August 2000 to $0.26 by closing on November 30, 2001.

As prices fell, Lay sold large amounts of his Enron stock, while simultaneously encouraging Enron employees to buy more shares and assuring them that the company was on the rebound. Employees saw their retirement savings accounts wiped out as Enron’s stock price continued to plummet. After another energy company, Dynegy, canceled a planned $8.4 billion buy-out in late November, Enron filed for bankruptcy. By the end of the year, Enron’s collapse had cost investors billions of dollars, wiped out some 5,600 jobs and liquidated almost $2.1 billion in pension plans.

Accounting practices

Enron had created offshore entities, units which may be used for planning and avoidance of taxes, raising the profitability of a business. This provided ownership and management with full freedom of currency movement and the anonymity that allowed the company to hide losses. These entities made Enron look more profitable than it actually was, and created a dangerous spiral, in which each quarter, corporate officers would have to perform more and more contorted financial deception to create the illusion of billions in profits while the company was actually losing money. This practice drove up their stock price to new levels, at which point the executives began to work on insider information and trade millions of dollars worth of Enron stock. The executives and insiders at Enron knew about the offshore accounts that were hiding losses for the company; however, the investors knew nothing of this. Chief Financial Officer Andrew Fastow led the team which created the off-books companies, and manipulated the deals to provide himself, his family, and his friends with hundreds of millions of dollars in guaranteed revenue, at the expense of the corporation for which he worked and its stockholders.

In 1999, Enron launched EnronOnline, an Internet-based trading operation, which was used by virtually every energy company in the United States. Enron president and chief operating officer Jeffrey Skilling began advocating a novel idea: the company didn’t really need any “assets.” By pushing the company’s aggressive investment strategy, he helped make Enron the biggest wholesaler of gas and electricity, trading over $27 billion per quarter. The firm’s figures, however, had to be accepted at face value. Under Skilling, Enron adopted mark to market accounting, in which anticipated future profits from any deal were tabulated as if real today. Thus, Enron could record gains from what over time might turn out to be losses, as the company’s fiscal health became secondary to manipulating its stock price on Wall Street during the Tech boom. But when a company’s success is measured by agreeable financial statements emerging from a black box, a term Skilling himself admitted, actual balance sheets prove inconvenient. Indeed, Enron’s unscrupulous actions were often gambles to keep the deception going and so push up the stock price, which was posted daily in the company elevator. An advancing number meant a continued infusion of investor capital on which debt-ridden Enron in large part subsisted. Its fall would collapse the house of cards. Under pressure to maintain the illusion, Skilling verbally attacked Wall Street Analyst Richard Grubman, who questioned Enron’s unusual accounting practice during a recorded conference call. When Grubman complained that Enron was the only company that could not release a balance sheet along with its earnings statements, Skilling replied “Well, thank you very much, we appreciate that . . . asshole.” Though the comment was met with dismay and astonishment by press and public, it became an inside joke among many Enron employees, mocking Grubman for his perceived meddling rather than Skilling’s lack of tact. When asked during his trial, Skilling wholeheartedly admitted that industrial dominance and abuse was a global problem: “Oh yes, yes sure, it is.”