Quotulatiousness

April 8, 2021

Fallen Flag — the Duluth, Missabe & Iron Range Railway

Filed under: Business, History, Railways, USA — Tags: , , , , — Nicholas @ 03:00

This month’s Classic Trains fallen flag feature is the Duluth, Missabe & Iron Range Railway (DM&IR) by Steve Glischinski. The DM&IR was formed by the 1937 merger between the Duluth, Missabe and Northern Railway (DMN) and the Spirit Lake Transfer Railway and the 1938 further merger of the combined operation with the Duluth and Iron Range Road (D&IR) and the Interstate Transfer Railway. The D&IR had been founded in 1874 to transport iron ore from Tower, MN to Two Harbors, MN, eventually coming under the ownership of United States Steel Corporation in 1901.

The Merritt family of Minnesota (known as the “Seven Iron Brothers“) discovered a large iron ore deposit in the Mesabi Range and created the largest iron ore mine in the world (as of the 1890s) and tried to persuade the DMN to build a 70-mile rail connection to get their ore to harbour and out to the iron and steel foundries around the Great Lakes. The DMN was unwilling to commit, so the Merritt family borrowed money to build the line from, among other financiers, John D. Rockefeller. The line — called the Duluth, Missabe and Northern — got built and began operations in 1892, but the Merritts expanded too quickly at the wrong moment — the financial panic of 1893 — losing financial control and leaving ownership of both the mine and the railway in Rockefeller’s hands by 1894.

Charlemagne Tower sold the Duluth & Iron Range to Illinois Steel in 1887, which was succeeded by Federal Steel, then U.S. Steel. By 1901, both the D&IR and DM&N were under U.S. Steel control. USS upgraded both railroads with heavy rail and double track, ordered bigger locomotives and larger cars, and built sizeable shops and roundhouses at Proctor and Two Harbors.

In 1915 DM&N leased the Spirit Lake Transfer Railway, a link between DM&N at Adolph, near Proctor, and the Interstate Transfer Railway at Oliver, Wis., across from Steelton, Minn. The Interstate Transfer ran from Oliver to Itasca, in eastern Superior, giving the DM&N connections with large railroads including Northern Pacific, Chicago & North Western’s “Omaha Road”, and three members of the Canadian Pacific family: Minneapolis, St. Paul & Sault Ste. Marie (“Soo Line”); Wisconsin Central; and Duluth, South Shore & Atlantic.

DM&N and D&IR remained separate until January 1, 1930, when the DM&N leased the D&IR and consolidated operations. Then on July 1, 1937, the DM&N merged with the Spirit Lake Transfer to form the Duluth, Missabe & Iron Range Railway. DM&IR then acquired ownership of D&IR and Interstate Transfer, and they became part of the new corporation on March 22, 1938. Reminders of the two big predecessors remained in the DM&IR’s two operating divisions, named Iron Range and Missabe, made up primarily of the predecessors’ tracks.

The Great Depression drastically reduced ore traffic. In 1932, not a single all-ore train was run — the small amount of ore that had to be shipped was carried in mixed freights. World War II reversed the road’s fortunes, of course, and the postwar boom resulted in an even higher demand for ore, with an all-time tonnage record being set in 1953.

Missabe had minimal passenger service. Into the 1950s, handsome Pacifics pulled heavyweight steel RPOs and coaches, two with solarium observation sections. At the end of World War II, the Missabe still provided service between Duluth and Ely (Winton), and Duluth and Hibbing, with the Hibbing train connecting with one from Iron Junction to Virginia.

Duluth, Missabe & Iron Range M-3 locomotive no. 227.
Photo by “GavinTheGazelle” via Wikimedia Commons.

U.S. Steel spun off the DM&IR and its other ore railroads and shipping companies to subsidiary Transtar in 1988, selling majority control to the Blackstone Group. In 2001, DM&IR and other holdings were moved from Transtar to Great Lakes Transportation, fully owned by Blackstone, so for the first time in a century, DM&IR was no longer associated with U.S. Steel. On October 20, 2003, Canadian National announced it would buy Great Lakes Transportation, which also owned Bessemer & Lake Erie, Pittsburgh & Conneaut Dock Co. in Ohio, and Great Lakes Fleet, Inc. The purchase was finalized on May 10, 2004, and the independent Missabe Road vanished.

CN retired all but 10 of the SD40-3s, most of the SD38s, and all the rebuilt SD9s and 18s. Major locomotive work shifted from Proctor to other shops, and train dispatchers moved to Wisconsin, then Illinois. CN invested in new ore cars for the Missabe, gradually replacing those that dated to when steam still ruled the railroad. DM&IR existed on paper until December 31, 2011, when CN merged subsidiaries DM&IR and Duluth, Winnipeg & Pacific into Wisconsin Central.

March 15, 2021

Target is careful to only cite economic reasons for abandoning their downtown Minneapolis headquarters

Filed under: Business, Economics, USA — Tags: , , , — Nicholas @ 03:00

Jon Miltimore explains why the Target corporate headquarters in Minneapolis will be given up — for reasons that go beyond the claimed success of the telecommuting encouraged by the 2020 pandemic lockdowns:

A building burning in Minneapolis following the death of George Floyd.
Photo by Hungryogrephotos via Wikipedia.

Target Corporation, the eighth largest retailer in the United States, announced in an email to employees on Thursday that it will be leaving the City Center, its primary downtown Minneapolis location.

Company officials cited improved remote work opportunities and less need for space as the drivers for the decision.

“In just one year we’ve proven that we can drive incredible results, together, from our kitchens and basements and living rooms,” said Melissa Kremer, executive vice president and leader of Target’s human resources operations.

Target, the largest employer in Minneapolis with some 8,500 corporate workers, says the 3,500 employees who work at the City Center will still have a “home base,” but it will be at another Minneapolis location or in the nearby suburb of Brooklyn Park.

A Story of Capital Flight?

On one hand, there is little reason to doubt Target’s explanation for abandoning its headquarters. Many anticipated that the pandemic would lead to a normalization of remote work.

“The future of work will be distributed,” Erica Brescia, the chief operating officer of Github, told the BBC last fall. “We’re going to see a big shift from office by default to remote by default.”

Part of that shift, it’s reasonable to assume, would be corporations moving away from high-end corporate real estate. Yet it also shouldn’t be forgotten (or ignored) that Target’s decision comes less than a year after Minneapolis suffered some of the worst riots in US history, prompted by the May 25 death of George Floyd.

The riots — which broke out after a video went viral showing police pinning Floyd, a 46-year-old black man, to the ground for nearly nine minutes before he died — caused an estimated $2 billion in damage.

Though Target made no mention of the riots in its announcement, last summer I noted that an abundance of evidence suggested that the economic damage of the riots would persist long after the wreckage had cleared.

January 23, 2021

How .22LR Ammo is Made

Filed under: Business, USA, Weapons — Tags: , , — Nicholas @ 02:00

Lucky Gunner Ammo
Published 16 Apr 2020

We were offered a rare glimpse into Federal’s rimfire plant in Anoka, MN to watch how .22 LR ammunition is made. We all know the basic components involved — each cartridge consists of a case with primer, propellant, and a bullet. Watching them all come together on a massive scale with a choreographed dance of modern automated machinery is a surprisingly gratifying experience.

Special thanks to our friends at Federal Ammunition and Vista Outdoor for the invitation!

Support our channel. Buy ammo from Lucky Gunner!

September 4, 2020

“They have insurance”

Filed under: Business, Economics, Government, Politics, USA — Tags: , , , — Nicholas @ 03:00

Brad Polumbo debunks the notion that it’s somehow “okay” to loot and vandalize businesses “because they have insurance” and that somehow means that nobody suffers.

A building burning in Minneapolis following the death of George Floyd.
Photo by Hungryogrephotos via Wikipedia.

Since the death of George Floyd in late May, violent riots and looting have broken out in many major cities, eventually overshadowing peaceful protests and calls for criminal justice reform. From Portland to Chicago to Kenosha, rioters have smashed windows, lit fires, attacked government properties, assaulted people in the streets, and looted storefronts.

In Minneapolis alone, vandals have destroyed at least 1,500 properties, many of them minority-owned businesses, and caused billions of dollars in property damage. Many people have been injured or killed during the chaos.

[…]

Even if all the affected property was fully insured — and it wasn’t — rioting has taken a vast human toll as well.

Consider that at least 15 people were killed during the initial riots after Floyd’s death, and that more have died in the unrest since. When arson and looting consume the streets, people inevitably get hurt and caught in the crossfire. That’s why the Minneapolis police found a burnt corpse in a pawn shop days after arsonists had passed through.

Insurance might fund that property’s restoration, but it can’t bring a dead man back to life.

[…]

Big companies like Walmart and Target generally have expensive, premium insurance plans. But many of the mom-and-pop enterprises and small businesses targeted in the riots didn’t have expensive insurance plans. In some cases, their more modest plans don’t cover damage from riots or don’t cover it in full.

“Situations where there’s a lot of devastation like this, a lot of times people find they’re underinsured and don’t have enough coverage,” Illinois Insurance Association Hotline President Janet Patrick told CBS Minnesota. “And so once the damage has been done, it’s too late. You can’t buy more coverage.”

According to Insurance Journal, 75 percent of US businesses are under-insured. And according to the New York Times, about 40 percent of small businesses have no insurance at all.

September 3, 2020

Fallen Flag — The Great Northern Railway

Filed under: Business, Cancon, History, Railways, USA — Tags: , , , , , , , — Nicholas @ 05:00

This month’s Classic Trains featured fallen flag is an American railway that definitely deserved to call itself “great”, James J. Hill’s Great Northern Railway. Hill was noteworthy as the only “Robber Baron” of that era who was scrupulous in avoiding government entanglements (including grants, loans, subsidies, and other forms of money-with-political-strings-attached), building his entire railway system using private funds and rational profit-oriented economic decision-making (the other transcontinental lines often over-built to claim higher subsidies or added money-losing branch lines to please powerful politicians). The result was that when economic hard times hit the railway business, his was the only transcontinental that never needed to declare bankruptcy.

In an earlier post, Dane Stuhlsatz summarized the GN’s engineering:

Hill’s line […] was methodically surveyed and built, on the shortest routes possible, with the least gradient possible, and using the best steel and other materials on the market at the time. Rather than political largess, Hill made his decisions based on profit and loss. But, for all the efficiency that Hill built into his line — he was able to transport across the country faster, cheaper, and with less maintenance costs than could the UP and CP — arguably the most important aspect for the viability of his business was the freedom to conduct business untethered by the strings that accompanied government subsidies.

Route map of the Great Northern Railway, circa 1920. Red lines are Great Northern trackage; dotted lines are other railroads.
Map by Elkman via Wikimedia Commons.

George Drury outlines the origins of the railway:

In 1857, the Minnesota & Pacific Railroad was chartered to build a line from Stillwater, Minnesota, on the St. Croix River, through St. Paul and St. Cloud to St. Vincent, in the northwest corner of the state. The company defaulted after completing a roadbed between St. Paul and St. Cloud, Minnesota, and its charter was taken over by the St. Paul & Pacific Railroad, which ran its first train between St. Paul and St. Anthony (now Minneapolis) in 1862.

For financial reasons the railroads were reorganized as the First Division of the St. Paul & Pacific. Both StP&P companies were soon in receivership, and Northern Pacific, with which the StP&P was allied, went bankrupt in the Panic of 1873.

Canadian-born “Robber Baron” James J. Hill (1838-1916) in 1914.

In 1878 James J. Hill and an associate, George Stephen, acquired the two St. Paul & Pacific companies and reorganized them as the St. Paul, Minneapolis & Manitoba Railway (“the Manitoba”). By 1885 the company had 1,470 miles of railroad and extended west to Devils Lake, North Dakota. In 1886 Hill organized the Montana Central Railway to build from Great Falls, Montana, through Helena to Butte, and in 1888 the line was opened, creating in conjunction with the StPM&M a railroad from St. Paul to Butte.

In 1881 Hill took over the 1856 charter of the Minneapolis & St. Cloud Railroad. He first used its franchises to build the Eastern Railway of Minnesota from Hinckley, Minnesota, to Superior, Wisconsin, and Duluth. Its charter was liberal enough that he chose it as the vehicle for his line to the Pacific. He renamed the road the Great Northern Railway; it then leased the Manitoba and assumed its operation.

[…]

Even before completion of the route from St. Paul, the Great Northern opened a line along the shore of Puget Sound between Seattle and Vancouver, British Columbia, in 1891. In the years that followed, Hill pushed a number of lines north across the international boundary into the mining area of southern British Columbia in a running battle with Canadian Pacific. In 1912 GN traded its line along the Fraser River east of Vancouver to Canadian Northern for trackage rights into Winnipeg.

Great Northern gradually withdrew from British Columbia after Hill’s death. In 1909 the Manitoba Great Northern Railway purchased most of the property of the Midland Railway of Manitoba (lines from the U.S. border to Portage la Prairie and to Morden), leaving the Midland, which was jointly controlled by GN and NP, with terminal properties in Winnipeg. The Manitoba Great Northern disposed of its rail lines in 1927. They were later abandoned.

Postcard photo of the Great Northern Railway’s “Empire Builder” streamliner between Everett and Seattle, Washington, circa 1963.
Great Northern Railway postcard via Wikimedia Commons.

The Great Northern and Northern Pacific lines agreed to a merger in 1901 (both lines were controlled by Hill) but the plan was vetoed by the Interstate Commerce Commission. A second attempt in the 1920s after Hill’s death was again turned down by the regulator unless the combined company divested ownership of the Chicago, Burlington & Quincy which was both railways’ connection from Minneapolis to Chicago. It was only on the final attempt in 1970 that the deal gained the government’s grudging approval and the Great Northern, Northern Pacific, and CB&Q merged to form the Burlington Northern.

August 30, 2020

Andrew Sullivan – “… let’s be frank about this and call this by its name: this is very Weimar. The center has collapsed.”

Filed under: Government, History, Media, Politics, USA — Tags: , , , , , , — Nicholas @ 03:00

In the latest Weekly Dish, Andrew Sullivan finds himself in agreement with Marcus Aurelius: “The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane.”

A building burning in Minneapolis following the death of George Floyd.
Photo by Hungryogrephotos via Wikipedia.

I don’t think I’m the only one, as even the Democrats seem now to realize. And this massive blindspot is not hard to understand. When a political party finds itself so wedded to a new and potent ideology it cannot call out violence when it sees it, then it is walking straight into a trap. When the discourse on the left has become one in which scholars and editors and Tweeters vie with one another to up the ante on how inherently evil America has always been, redescribe it as a slaveocracy, and endorse racist books that foment the most egregious stereotypes about “whiteness”, most ordinary people, who love their country and are mostly proud of its past, will rightly balk. One of the most devastating lines in president Trump’s convention speech last night was this: “Tonight, I ask you a very simple question: How can the Democrat Party ask to lead our country when it spends so much time tearing down our country?” A cheap shot, yes. But in the current context, a political bullseye.

The key theme of the RNC was reminding people of the American narrative that once was. Yes, it was unbelievably vulgar. Yes, it looked like a cross between a sophisticated CGI video-game and a crude car dealer ad with a dollop of Leni Riefenstahl. But it was extremely effective. To see that, you have to remove your frontal cortex and put it in a jar, accept that it’s all going to be a series of lies so massive they stupefy us into stutters, and then cop the feels. Pence gave us a vision of America that was a souped up Disney special from the early 1960s — from Fort McHenry no less. And look at the icons Trump invoked: Wyatt Earp, Annie Oakley, Davy Crockett, and Buffalo Bill. You can mock. But in the midst of a culture being redescribed by the left as a form of foul and relentless “white supremacy”, and in a moment of arson and rioting, it felt like a kind of balm.

All this reassurance played out against a backdrop of Kenosha, which was burning, and Minneapolis, where a suicide led to a bout of opportunistic looting, and Washington DC, where mobs of wokesters went through the city chanting obscenities, invading others’ spaces, demanding bystanders raise fists in solidarity, with occasional spasms of violence. These despicable fanatics, like it or not, are now in part the face of the Democrats: a snarling bunch of self-righteous, entitled bigots, chanting slogans rooted in pseudo-Marxist claptrap, erecting guillotines — guillotines! — in the streets as emblems of their agenda. They are not arguing; they are attempting to coerce. And liberals, from the Biden campaign to the New York Times, are too cowardly and intimidated to call out these bullies and expel them from the ranks.

[…]

And let’s be frank about this and call this by its name: this is very Weimar. The center has collapsed. Armed street gangs of far right and far left are at war on the streets. Tribalism is intensifying in every nook and cranny of the culture. The establishment right and mainstream left tolerate their respective extremes because they hate each other so much.

The pattern is textbook, if you learn anything from history: an economic crisis resulting in mass unemployment; the pent-up psychological disorders a long period of lockdown can and will unleash; a failure of nerve on the part of liberals to defend the values and institutions of liberal democracy, and of conservatives to keep their own ranks free of raw demagogues and bigots. But critically: a growing sense of disorder and violence and rioting as simply the background noise; and a sense that authorities do not have the strength or the stomach to restore order. What most people want in that kind of nerve-wracking instability is a figure who will come in and stamp it out. In Trump, we have someone who would happily trample any liberal democratic norm to do it. And the left seems to be all but begging him to do it — if only to prove them right.

A long time ago, I was mocked for saying that I believed that the election of Donald Trump was an extinction-level event for liberal democracy. But this is where we are. There is no place for liberal debate or dissent, just competing mobs deploying propaganda, intimidation and mutual racial hatred. Norms are trashed, from the shameful cooptation of national monuments for partisan purposes, to violating the privacy and peace of ordinary citizens because they are not in the ranks of agitators. Liberals are now illiberal; conservatives are revolutionaries. The Republican convention we are witnessing makes no pretense of even publishing a platform — all to demonstrate total and unfailing fealty to the leader whose own family is now assumed to succeed him. What about this pattern of events do we not already understand?

June 9, 2020

How we are supposed to view the rioting protests in major US cities

Filed under: Media, Politics, USA — Tags: , , , , , — Nicholas @ 03:00

David Thompson shares the essential parts of a Vice article, telling us insufficiently woke dullards how to think about the ongoing civil unrest in many American cities after the death of a man at the hands (well, technically the knees) of Minneapolis police:

A building burning in Minneapolis following the death of George Floyd.
Photo by Hungryogrephotos via Wikipedia.

In the pages of Vice, a moral lecture, delivered from on high:

    How to Talk to Relatives Who Care More About Looting Than Black Lives.

As an exercise in question-begging and dense, self-satisfied presumption, it’s quite a thing, that headline. It’s very now.

Among those of us deemed insufficiently woke and therefore suspect, questions may arise. For instance, in what way will those “black lives” be improved by the destruction of local infrastructure, local businesses, and the subsequent, perhaps dramatic, reduction in trust and goodwill? And what if the stores and homes in question — the ones being smashed, stripped of their contents and set ablaze — are owned by people who happen to be black, as has often been the case? What if the places being looted and vandalised with abandon, indeed exultation, are depended on by people who also happen to be black, whether as customers or employees? Given the levels of material, social and economic destruction, should these people be content, indeed pleased, to be former employees? Unemployed people who now have no local grocer, or garage, or pharmacy?

Alas, such considerations appear to have eluded the keen mental processes of the article’s author, Ms Rachel Miller, a young woman who dutifully declares her pronouns and boasts of being a “Buzzfeed alum.”

    If you’re not Black but want to support BLM, having fraught conversations with your kinda (or definitely) racist loved ones will likely not be fun, but it’s a very worthy undertaking.

Right from the off we’re informed, firmly, that any perceptible reservations about looting and rioting, or reservations about the Black Lives Matter movement — say, regarding its demented far-left agenda, its racial tribalism, and the stated goal of abolishing capitalism, prisons and the police — must be taken as an indicator of being “kinda (or definitely) racist.” Wokeness is not, it seems, a recipe for cognitive subtlety. “Some people,” we’re told, “appear to be far more worried about the fate of a Nordstrom or Target store than that of the actual human lives of protesters.” Again, one might deduce that only those protesting with, shall we say, physical enthusiasm have “actual human lives,” unlike their victims, whose hopes and livelihoods can be gleefully destroyed as an act of righteous liberation. From local amenities.

December 10, 2018

Minneapolis abolishes residential zoning to combat racist segregation

Filed under: Law, Liberty, USA — Tags: , , , , — Nicholas @ 03:00

I’ve never actually been to Minnesota (despite being a lifetime fan of the Minnesota Vikings), so I didn’t realize that Minneapolis — and presumably other Minnesota cities historically instituted residential zoning to enforce racial segregation:

Minneapolis will become the first major U.S. city to end single-family home zoning, a policy that has done as much as any to entrench segregation, high housing costs, and sprawl as the American urban paradigm over the past century.

On Friday, the City Council passed Minneapolis 2040, a comprehensive plan to permit three-family homes in the city’s residential neighborhoods, abolish parking minimums for all new construction, and allow high-density buildings along transit corridors.

“Large swaths of our city are exclusively zoned for single-family homes, so unless you have the ability to build a very large home on a very large lot, you can’t live in the neighborhood,” Minneapolis Mayor Jacob Frey told me this week. Single-family home zoning was devised as a legal way to keep black Americans and other minorities from moving into certain neighborhoods, and it still functions as an effective barrier today. Abolishing restrictive zoning, the mayor said, was part of a general consensus that the city ought to begin to mend the damage wrought in pursuit of segregation. Human diversity — which nearly everyone in this staunchly liberal city would say is a good thing — only goes as far as the housing stock.

It may be as long as a year before Minneapolis zoning regulations and building codes reflect what’s outlined in the 481-page plan, which was crafted by city planners. Still, its passage makes the 422,000-person city, part of the Twin Cities region, one of the rare U.S. metropolises to publicly confront the racist roots of single-family zoning—and try to address the issue.

“A lot of research has been done on the history that’s led us to this point,” said Cam Gordon, a city councilman who represents the Second Ward, which includes the University of Minnesota’s flagship campus. “That history helped people realize that the way the city is set up right now is based on this government-endorsed and sanctioned racist system.” Easing the plan’s path to approval, he said, was the fact that modest single-family homes in appreciating neighborhoods were already making way for McMansions. Why not allow someone to build three units in the same-size building? (Requirements on height, yard space, and permeable surface remain unchanged in those areas.)

November 20, 2018

Gordon Lightfoot’s “Wreck of the Edmund Fitzgerald“

Filed under: Cancon, History, Media, USA — Tags: , , , , — Nicholas @ 03:00

Mark Steyn devotes a column to the work of Canadian singer/songwriter Gordon Lightfoot, particularly his very well-known ballad on the loss of the Edmund Fitzgerald on Lake Superior in 1975:

Edmund Fitzgerald, 1971
Detail of a photo from Wikimedia Commons

When it comes to trains and boats and planes, Gordon Lightfoot has hymned all three, but it’s the middle mode of transportation that produced the song he’s proudest of:

    The ship was the pride Of the American side
    Coming back from some mill in Wisconsin
    As the big freighters go
    It was bigger than most
    With a crew and good captain well seasoned…

In November 1975 Lightfoot chanced to be reading Newsweek‘s account of the sinking of a Great Lakes freighter in Canadian waters. He’s a slow and painstaking writer, which is one reason he’s given up songwriting – because it takes too much time away from his grandkids. But that day forty-three years ago the story literally struck a chord, and he found himself scribbling away, very quickly:

    The legend lives on From the Chippewa on down
    Of the big lake they called Gitche Gumee
    The lake, it is said Never gives up her dead
    When the skies of November turn gloomy…

“Gitche gumee” is Ojibwe for “great sea” – ie, Lake Superior – as you’ll know if you’ve read your Longfellow, which I’m not sure anyone does these days. Evidently Hiawatha was on the curriculum back east across Lake Huron in young Gordy’s Orillia schoolhouse. The Gitche Gumee reference may be why, when I first heard “The Wreck of the Edmund Fitzgerald“, I assumed its subject had sunk long before the song was written. In fact, it sank on November 10th 1975 – just a few days before Lightfoot wrote the number. When she’d launched in 1958, the Edmund Fitzgerald was the largest ship on the Great Lakes, and, when she passed through the Soo Locks between Lakes Superior and Huron, her size always drew a crowd and her captain was always happy to entertain them with a running commentary over the loudspeakers about her history and many voyages. For seventeen years she ferried taconite ore from Minnesota to the iron works of Detroit, Toledo and the other Great Lakes ports …until one November evening of severe winds and 35-feet waves:

    The wind in the wires
    Made a tattle-tale sound
    And a wave broke over the railin’
    And every man knew
    As the captain did too
    ‘Twas the witch of November come stealin’…

And about seventeen miles from Whitefish Bay the Edmund Fitzgerald sank, with the loss of all 29 lives. It remains the largest ship ever wrecked on the Great Lakes, launched in 1958 to take advantage of the new St Lawrence Seaway (to be opened by the Queen and President Eisenhower on an inaugural voyage by the Royal Yacht Britannia the following year) and specifically constructed to be only a foot less than the maximum length permitted. Edmund Fitzgerald was the then chairman of Northwestern Mutual Life Insurance of Milwaukee, and, as far as I’m aware, the only insurance company executive to be immortalized in a song title. Fifteen thousand people showed up for the ship’s launch at River Rouge, Michigan. It took Mrs Fitzgerald three attempts to shatter the champers against the bow, and then there was a further half-hour’s delay as the shipyard workers tried to loosen the keel blocks. After which the ship flopped into the water, crashed against a pier, and sent up a huge wave to douse the crowd. One spectator promptly had a heart attack and died.

And then came seventeen happy years. Even in the twenty-first century, there is something especially awful and sobering about death at sea: it is in a certain sense a reminder of the fragility of security and modernity. Whenever I’m in, for example, St Pierre et Miquelon, the last remaining territory of French North America, I stop by the monument aux marins disparus, sculpted in 1964 and to which many names have been added in the years since – because a ship put out, and somewhere on the horizon the great primal forces rose up from the depths and snapped it in two like a matchstick.

January 31, 2018

How the Vikings plundered Minnesota

Filed under: Economics, Football, Government, USA — Tags: , , , , — Nicholas @ 03:00

By all accounts, the Minnesota Vikings’ new stadium in Minneapolis is a wonderful structure and fans have been very happy with the amenities provided. However, as Steven Malanga explains, the non-fan taxpayers in the city and the state have a right to feel plundered by the Vikings:

Fans of the New England Patriots and Philadelphia Eagles will travel to the frigid northern city this week because the NFL granted a Super Bowl to Minnesota as a reward for stepping up with more than half a billion dollars in subsidies for the home-state Vikings’ U.S. Bank Stadium, which opened in 2016. For a city whose mayor recently described it as a “shining beacon of progressive light and accomplishment,” this is some feat, and a reminder that the NFL, whatever its troubles, maintains a firm hold on the taxpayer’s purse in many places.

Vikings owner Zygi Wilf, a New Jersey real estate developer, began pushing for a new stadium soon after purchasing the team in 2005. His supplications became more earnest after the roof of the Vikings’ old home, the Metrodome, collapsed in December 2010. Wilf originally proposed contributing just one quarter of the new stadium’s $1 billion cost, a spectacularly low-ball offer in an era when backlash against stadium subsidies for professional teams increasingly force owners to pony up a bigger share of construction costs. Wilf claimed that he couldn’t afford more, but he wouldn’t release the financial details of his real estate empire. A Minnesota state investigation, undertaken after a New Jersey judge ruled that the Wilf family had defrauded real estate partners in a local project and had to pay them $84.5 million, determined that the family could afford to pay up to $500 million for the stadium.

Even after Wilf upped his offer, the road to the stadium deal was paved with controversy. Minnesota financed a portion of its share of the costs by introducing a state-licensed electronic-gambling game to generate construction revenues, but the game proved a clunker with local residents; to fill the financing hole, Minnesota drew on revenues from its tobacco tax and increased corporate taxes. Then Wilf announced that he’d help finance his part of the deal by charging season ticketholders a seat license fee — prompting a threat from Minnesota governor Mark Dayton to pull government financing. Dayton soon changed his tune, explaining that sports financing has its own ineffable logic. “I’m not one to defend the economics of professional sports,” he said. “Any deal you make in that world doesn’t make sense from the way the rest of us look at it.”

Though it lent its balance sheet to the deal, the city of Minneapolis, according to critics — including one former city councilman — has been “hosed” by the Vikings. The city officially contributed $150 million to stadium construction, but these observers contend that that figure doesn’t include expensive infrastructure improvements that Minneapolis was forced to make. As part of the stadium package, Minneapolis also agreed to send $7.5 million a year in operating subsidies to the authority running the facility, which amounts to $225 million over the course of the deal. City taxpayers also apparently remain on the hook for any shortfalls in the revenues that back the bonds used to build the surrounding infrastructure. Residents understand little of this financing because, as the Minneapolis Star Tribune noted, the stadium deal “was as transparent as the Berlin wall.”

I’m a (very) long-term fan of the team, but that doesn’t mean I approve of the taxpayers being robbed blind so local fans of the team get to watch the game in a corporate welfare palace. Reason has posted several videos exposing the crony capitalist roots of stadium financing, including most recently this one. I first heard of “seat licenses” in 2014 and they sounded like a bad idea to me then. Back in 2012, when the public support was announced, I was not happy about it.

July 2, 2017

Minneapolis is going Seattle one better … and the results will be even worse

Filed under: Business, Economics, USA — Tags: , , , — Nicholas @ 05:00

Tim Worstall explains why, despite all the pious hopes that significant increases in the minimum wage won’t negatively impact employment or take-home pay, Minneapolis will have measurably worse outcomes:

Minneapolis has just passed an ordinance making the minimum wage in that fine city $15 an hour at some point in the near future — the effects of this will be worse than the effects of the similar Seattle ordinance raising the minimum wage there to $15 an hour. I agree that this is an unpopular prediction but it’s one that I’ll still stick with for the interesting bit is that I predicted the effect of the Seattle rise correctly. I even managed to get right why it would go bad. This is not, sadly, because I have a crystal ball, nor am endowed with super-powers, it’s just that I understand the basic economics of the minimum wage.

The details of which are that modest rises in the minimum wage don’t have much effect. They don’t have much effect on wages and thus they don’t have much effect upon employment. Changes which are at best “Meh, marginal” have effects which are at best “Meh, marginal.” The problem with Seattle’s minimum wage rise was that it wasn’t marginal, the problem with that in Minneapolis is that it is even less so.

[…]

But why isn’t it all going to be wondrous? If we just insist that poor people should be paid higher wages then why won’t it all become copacetic? Well, this was tried in Seattle. And the results weren’t that way. We have the actual academic study of why and it’s just as conventional economics predicts. Modest rises in the minimum wage have modest effects, immodest rises have immodest. Which leaves us with trying to define immodest.

As I’ve been saying for some yeare now that definition of immodest seems to be 45 to 50 % of median wage in that labour market. We don’t usually have median wages by city, only by a rather larger economic unit. But Seattle’s area median is higher than that of Minneapolis. When we look at the cities, the mean is higher in Seattle than in Minneapolis.

We already know that $15 an hour is too high a minimum wage for Seattle, it leads to lower incomes for low wage workers. The Minneapolis $15 an hour minimum wage is higher compared to local wages–the effects will be worse.

June 24, 2017

The murder of Philando Castile

Filed under: Law, USA — Tags: , , , , — Nicholas @ 03:00

Thomas Knapp on what he calls “The Castile Doctrine” … the police being held to far lower standards than ordinary citizens:

On June 16, a jury acquitted St. Anthony, Minnesota police officer Jeronimo Yanez of all charges in the 2016 killing of motorist Philando Castile. That acquittal was, in a sense, also a death sentence — not for Yanez, but for future motorists unfortunate enough to encounter cops like him.

No, this is not a “bad cop” story. It’s a sad tale and I actually feel sorry for Yanez. But the facts are what they are.

Yanez killed Castile. The killing was caught on video and neither Yanez nor his attorneys denied it.

His defense (that he feared for his life) was based on ridiculous grounds relating to the smell of cannabis and the presence of a child (“I thought, I was gonna die, and I thought if he’s, if he has the, the guts and the audacity to smoke marijuana in front of the five year old girl and risk her lungs and risk her life by giving her secondhand smoke and the front seat passenger doing the same thing, then what, what care does he give about me?”).

I find his justification to be astonishing … how can a man who thinks like this have ever been trusted with a gun and a badge?

Castile had informed Yanez that he possessed a concealed weapon and a permit for it, and was following Yanez’s orders to produce the permit when Yanez panicked and fired.

Key word: Panicked. His fear wasn’t justified. It wasn’t reasonable. It was unthinking and irrational. That made him culpably negligent in the killing.

[…]

The jury, in relieving him of the consequences of that failure, continued a sad tradition of holding law enforcement officers to a lesser standard of conduct than ordinary Americans. In doing so, they made the world a safer place for cops who shouldn’t be cops — and a more dangerous place for the rest of us.

US law generally holds civilian gun owners to much higher standards in cases like this than they ever seem to expect their own law enforcement officers to meet. A civilian who shot a driver in a similar situation would be lucky to only be facing manslaughter charges, but might well be convicted of first degree murder. A cop? Every extenuating circumstance is given full weight by both judge and jury. A person with no formal training is expected (and required) to be cool, calm, and collected under unexpected extreme stress, while a trained officer is given a pass for “panic” and irresponsible gunplay. Where’s the justice?

Update, 27 June: Even more puzzling is the virtual silence of the National Rifle Association (NRA) over this judicial killing:

These are gruesomely interesting times in the American gun debate. The footage of Minnesota police officer Jeronimo Yanez killing motorist Philando Castile wasn’t enough to convict him in a court of law, but it’s no less damning for that. The more these videos pile up, the harder it gets to rationalize American police forces’ objectively insane collective death count.

The circumstances of Castile’s death are particularly enraging for gun rights activists — or, rather, they ought to be. Castile calmly informed Yanez he was legally armed, just as he should have; Yanez freaked out and, seconds later, pumped seven bullets into the car. By rights, many have observed, the NRA should be leading marches through the Twin Cities. Instead it’s saying and doing bugger all. Not a good look.

On the other side of the great divide, the gun control movement is almost in hibernation — and understandably so. Theirs is a tough climb at the best of times; with a Republican House and Senate it’s a sheer cliff.

November 30, 2016

Minnesota’s generous (hidden) gift to six government-appointed MFSA officials

Filed under: Football, Government, Sports, USA — Tags: , , , , , — Nicholas @ 04:00

Minnesota taxpayers contributed nearly half of the costs to build the new stadium that the Minnesota Vikings call home (“one of the largest public subsidies ever given to a sports facility”). The state government appointed a six-person board to negotiate the state’s share of the costs. Now, it comes to light that those six people get free luxury suite tickets to not only Viking home games, but every event held at the stadium:

Six government appointees, including the son of a vice president, who negotiated how much public money would be spent building the Minnesota Vikings’ new football stadium get free access to luxury boxes for all events in the stadium.

Which, you know, might call into question how hard they really negotiated for the taxpayers on that one.

The Minneapolis Star-Tribune reports that the six members of the Minnesota Sports Facilities Authority (MSFA), the quasi-government agency created in 2012 to oversee the public subsidies for the building of U.S. Bank Stadium, get free tickets to two lower-level luxury suites for all events held there. Even though taxpayers covered more than half of the cost of the $1.1 billion stadium, which opened earlier this year, the public is being kept in the dark about who occupies those 36 seats and the adjoining luxury suites during Vikings home games and other events.

The team claims that the suites are used for “marketing purposes,” but the Star-Tribune‘s investigation found that family and friends of the board members are usually in attendance too.

Maybe the best part of the story is the moment when two members of the MSFA board (chairwoman Michele Kelm-Helgen and executive director Ted Mondale) try to justify their sweet, free, and secret perk by arguing that they “work long hours on game days and spent long nights negotiating on behalf of taxpayers during construction of the building, so having friends and family there is reasonable.”

[…]

For anyone who isn’t part of this special cadre of insiders getting special access to the suites for free would have to shell out more than $20,000 for season tickets in similar suites at the stadium. Since the six members of the MSFA board also have access to the suites for all other events at the stadium, the actual value of their seats is in excess of that figure.

The whole thing raises ethical questions since public officials in Minnesota are not allowed to receive gifts, including special privileges or access not otherwise available to the general public. That gift ban has a loophole allowing public officials to accept such special freebies if it’s part of their official duties.

As I wrote back in 2012:

As you’ll know if you’ve read the blog for any length of time, I’m a big fan of the Minnesota Vikings, despite never having lived there or even visited the state. I’d be very upset if they became the L.A. Vikings. But I also totally sympathize with Minnesotans who don’t want their taxes being used to give corporate welfare to the billionaire owner of the football club. Pouring money into facilities for professional sports teams is one of the very worst ways to use tax dollars, as the lads at Reason.tv explain:

August 22, 2016

For newspapers, paywalls are (not) the answer

Filed under: Business, Football, Media — Tags: , , — Nicholas @ 03:00

At Techdirt, Mike Masnick uses small, easily understood words to explain why your local newspaper is cutting its own financial throat by implementing a paywall:

For many years, while some journalists (and newspaper execs) have been insisting that a paywall is “the answer” for the declining news business, we’ve been pointing out how fundamentally stupid paywalls are for the news. Without going into all of the arguments again, the short version is this: the business of newspapers has never really been “the news business” (no matter how much they insist otherwise). It’s always been the community and attention business. And in the past they were able to command such attention and build a community around news because they didn’t have much competition. But the competitive landscape for community and attention has changed (massively) thanks to the internet. And putting up a paywall makes it worse. In most cases, it’s limiting the ability of these newspapers to build communities or get attention, and actively pushing people away.

And, yes, sure, people will point to the NY Times, the Wall Street Journal and the Financial Times as proof that “paywalls work.” But earth to basically every other publication: you’re not one of those publications. The paywalls there only work because of the unique content they have, and even then they don’t work as well as most people think.

Not surprisingly, more and more newspapers that bet on paywalls are discovering that they don’t really work that well and were a waste of time and effort — and may have driven away even more readers.

In my case, I look at various newspapers for links to share with my tiny audience of regular readers. Once upon a time, I’d frequently link to the two big Minnesota newspapers, the Minneapolis Star Tribune and the St. Paul Pioneer Press, mostly because I was reading their sports pages for information about my favourite football team, but fairly often when they carried other news of interest, I’d share the link with my readers. When the Star Tribune implemented a paywall, I pretty much stopped going there (they allow 10 free articles per month, and even if I only read the odd Jim Souhan column, I’d already be beyond my limit). Given the thriving fan community for the Vikings, I barely miss the mainstream coverage (but I suspect they miss me and the thousands of other out-of-state visitors they used to get in the pre-paywall days).

October 24, 2015

“Is it just me? Or are Minnesotans total assholes?”

Filed under: Randomness, USA — Tags: — Nicholas @ 03:00

Swap out “the Twin Cities/Minnesotans” for “Toronto/Canadians” and this article could run in any of Toronto’s alternative newspapers:

The Twin Cities has never been the sort of place where hordes of starry-eyed young people move for fame and fortune. But as it climbs the ranks of every “top 10” list for quality of life, it’s becoming a harder pitch to ignore.

What those lists don’t mention is the frequent insecurity these transplants know well, whispered with confessional despair in wood-panel dive bars after months of missed connections: “Is it just me? Or are Minnesotans total assholes?”

The second-guessing is a common trait. Small-town settlers wonder if they’re just misreading urban chic for frigidity. Transplants alighting from megalopolises like Buenos Aires and Berlin chalk it up to small-city small-mindedness. Folks from the South are quick to blame the isolating cold of northern winters, but that doesn’t explain how those hailing from other Midwest cities have a hard time cracking the icy Nordic shells of native Minnesotans too.

Those born and bred here don’t always see it, but to newcomers we’re not very friendly, at least in a deep friendship way.

It took Jade Ross of Colman, South Dakota, no more than one college party to catch on that “Minnesota Nice” is a trademark best used sarcastically. At 18, when she reported for school at St. Cloud State, everybody talked up the Minnesota Nice phenomena ad nauseum, she says. “I’d never heard of that before, and I didn’t understand why you needed to talk about it,” Ross says. “In South Dakota, we were just nice, and we didn’t need to brag about it.”

At parties she’d describe home as a small farming town of 500. She got responses like, “So do you have … Internet? Do you ride a buffalo to go to school?”

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