Convertino case: Judge orders Free Press to name sources

By Joel Thurtell

Former assistant US attorney Rick Convertino’s lawsuit against the US Justice Department is still alive, despite a federal judge’s decision to let a Detroit Free Press reporter, now retired, off the hook as a witness in the ex-prosecutor’s federal whistle blower lawsuit.

Convertino is suing the Justice Department and Justice officials under the federal Privacy Act for disclosing to the Free Press secret grand jury information that he says destroyed his career.

Because US District Judge Robert Cleland allowed then Free Press reporter David Ashenfelter to invoke the Constitution’s Fifth Amendment protection against incriminating himself by naming names, Ashenfelter is a dead end as far as discovering who the sources were. Cleland on January 15, 2013 ordered the Free Press to turn over to Convertino Ashenfelter’s notes, including e-mails and electronic files, and to make further effort to find other current and former Free Press staffers who may know who Ashenfelter’s sources were.

On June 22, 2012, a Washington, D.C. appeals court panel ruled that Convertino is entitled to pursue discovery in his Privacy Act lawsuit against the Department of Justice.

US District Judge Robert Cleland on January 15, 2013 ordered the Free Press to produce documents related to the Free Press sources and to provide a company witness to testify about Ashenfelter’s sources.

As a consequence of the judge’s order, the newspaper offered free legal services to four current and six former staffers who, the newspaper contends, may know who the reporter’s unnamed sources were.

In a January 28, 2013 e-mail memo, Free Press publisher Paul Anger asked the current and former Free Press editors if they knew the source or sources for then Free Press reporter David Ashenfelter’s January 17, 2004 Free Press story, “Terror Case Prosecutor is Probed on Conduct: Outcome of Investigation Could Give The Defendants a New Trial.”

The “terror case prosecutor” in the paper’s headline was Convertino, who had earlier filed a whistle blower lawsuit against the government. The civil suit was put on hold after the US Justice Department charged Convertino with obstruction of justice. A jury took four hours to acquit Convertino on October 31, 2007, whereupon he revived his civil lawsuit against the government.

The Obama Justice Department is prosecuting other government leakers aggressively. For example, a CIA leaker has been sentenced to prison. Lewis “Scooter” Libby was convicted in the Valery Plame leak case. For some reason, Obama’s minions aren’t breathing down the necks of Ashenfelter’s leakers.

In a December 8, 2008 column, I quoted from the Free Press policy on confidential sources in effect in January, 2004: “If a demand for absolute confidentiality is made as a condition for obtaining the story, that situation needs to be discussed with a department head or higher editor before a commitment is made.”

In that column, gave this advice to Richard Convertino:

Dave Ashenfelter wasn’t the only one at the Free Press who knew the names of his federal sources. Why don’t you subpoena the people who edited his story?

I had some advice for Dave Ashenfelter, too:

It’s not too late, Dave — get a second legal opinion.

If Dave had sought other advice, he might not have had to invoke the Fifth Amendment to avoid incriminating himself.

A key question now is whether any of the 10 present and former Free Press staffers Anger queried was “a department head or higher editor” when the Free Press published Ashenfelter’s story.

The January 28 memo from Paul Anger is titled  “Court Order to Reveal Source(s).” It states:

As you may know, the plaintiff in Convertino v. United States Department of Justice, et. al, a civil case pending in federal court in the District of Columbia, is suing the Justice Department because he claims it violated the Privacy Act when it allegedly disclosed information about him to the Free Press. As part of his litigation, Convertino needs to find the person who gave secret grand jury information to the Free Press. The Free Press is not party to the litigation.

As part of the litigation, Convertino subpoenaed the Free Press, demanding information concerning the identity of a confidential source(s) for a January 17, 2004 article in the Free Press headlined “Terror Case Prosecutor is Probed on Conduct: Outcome of Investigation Could Give The Defendants a New Trial. The article is attached.”

“We opposed the subpoena but were recently ordered by Judge Robert H. Cleland to designate a corporate representative who can testify with regard to whether there is a current or former employee who knows the source’s identity.”

“In July 2006, you received a memorandum from the Gannett Law Department asking whether you knew the identity of the person(s) who provided, commented on, or confirmed the information attributed to ‘Just Department officials” in the article. You were instructed to contact a Gannett Law Department representative if you had such knowledge. You did not respond and the newspaper consequently concluded that you had no knowledge of the source’s identity.”

“In light of Judge Cleland’s recent order, I am responsible once again to inquire whether you have that information, i.e. whether you know that names of sources of information about Mr. Convertino in the article that appeared in the January 17, 2004 edition of the Free Press, and what information each such source provided to the newspaper.

If you have such information, especially considering the lengthy history of this litigation and the personal interests at stake, you may want to consult with a personal attorney who can advise you in this matter. In that respect, the Free Press has engaged Lee Levine, Esq. to be available personally to advise you (or any current or former employees) who wishes personal legal advice in this matter. Mr. Levine is copied on this message.

“The newspaper will pay for legal services rendered to you by Mr. Levine.

“If you do not know the name of the confidential source for the January 17 article or the information he or she provided, please confirm that fact in a reply email.

“If you do know that information, please send me a reply e-mail stating ‘yes.’ If you do that, we will follow up with you for more detail.

“Finally, because of a Court-imposed deadline, please respond to this message or contact Mr. Levine no later than 5 pm on January 28, 2013.”

JOTR note: the time on the Anger memo was 3 PM — two hours before the deadline. As a result, the deadline was extended to January 31.

On February 15, Paul Anger was deposed by Convertino’s attorney. Learn what the top manager of the Detroit Free Press said about use of confidential sources at the Free Press in a forthcoming JOTR column.

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Texas may ban CABs

By Joel Thurtell

In spite of all the uproar about high-interest Capital Appreciation Bonds and 1000-percent interest rates in California schools, the California Legislature has not outlawed these taxpayer ripoffs and may only limit their use.

In Texas, meanwhile, a bill has been introduced into the Legislature to ban CABs outright.

It seems that in Texas, as in California, schools are borrowing at 1000-percent interest rates.

According to The Associated Press, “A bill to eliminate the option has cleared a state Senate committee, and if passed by the Legislature, will allow Texas to join Michigan as the only two states to bar school districts from using the bonds.”

Michigan banned CABs in 1994, following publication by the Detroit Free Press of my April 5, 1993 investigation of Michigan schools; use of CABs.

The story of California’s CAB scam was broken on this blog starting on April 27, 2012.

I’ll be speaking about how I uncovered the Michigan CAB scandal at the annual conference May 10 of the California League of Bond Oversight Committees in Sacramento.

 

 

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My first CAB stories

Twenty years ago today, on April 5, 1993, the Detroit Free Press published my investigation into a financial abuse known as Capital Appreication Bonds.  A year later, the Michigan Education Association awarded the Free Press and me its School Bell Award for alerting the public to the dangers of Capital Appreciation Bonds. But the most important achievement of those 1993 CAB stories happened in the Michigan Legislature. In 1994, lawmakers banned CABs in Michigan.  On the twentieth anniversary of my first CAB stories, here are some thoughts on CABs, news, and public finance.

By Joel Thurtell

If you’d uttered the words “capital appreciation bonds” a year ago, most people would have thought you were babbling nonsense.

CABs are a form of municipal bond so (perhaps intentionally) obscure that when I was researching them in the early 1990s, the industry textbook* didn’t mention them.

California requires that all governments issuing municipal bonds have a citizens watchdog Bond Oversight Committee to monitor borrowing. In April of 2012, a member of a California school district’s Bond Oversight Committee noticed an odd-sounding term in the fine print of bonds her schools were issuing. She googled “capital appreciation bonds” and “ban.”

By early 2013, googling for CABs brings up dozens of published mentions of Capital Appreciation Bonds.

CABs are on the radar now. The New York Times, Los Angeles Times, Bloomberg, National Public Radio, and many, many smaller news outlets mostly in California have written about CABs.

What was that lone hit the googling Bond Oversight Committee member found in April of 2012? “Muni ripoffs — same old same old,” was published on joelontheroad January 9, 2009. That one blog story contained all eight articles about CABs that I wrote for the April 5, 1993 Detroit Free Press.

I wrote an introduction explaining that acting on my Free Press stories, the Michigan Legislature in 1994 banned CABs. The bond committee member was dreaming of a ban for California and found there was indeed a ban, 19 years old, but in distant Michigan.

Acting on our recommendation and findings, the Michigan Legislature in 1994 also mandated competitive bidding for muni bond deals, thus eliminating an additional and unnecessary profit center for bond promoters.

Last April, the California Bond Oversight Committee member told me that California school districts were issuing CABs with enormous rates of interest that could push those districts into default decades in the future. At that time, the only people aware of the situation and who had a desire to stop CABs were this alert committee member in California and me, the guy known by some Californians as “the Michigan blogger.”

I’m very proud of what we at the Detroit Free Press accomplished with our CAB stories. One thing did not happen here. There was no general media cry of outrage. Unlike California, where local news organizations have produced their own localized CAB stories, no other Michigan newspapers ran stories examining CABs in 1993. It didn’t matter. Legislators were outraged, and they permanently stopped CABs in Michigan.

With that CAB-killing history in mind, I thought it might be possible to ban them in California. One element was missing: I’m retired, and no longer enjoy the power of a large-circulation daily newspaper to blast angry pages through the countryside.

But I have my blog. In 2008, I learned — well, a lot of us Michiganders learned — what this blog can do when I wrote about my encounter with the shotgun-totin’ goon. This hireling of billionaire Ambassador Bridge owner Manuel “Matty” Moroun had kicked me out of a public park. Until then, Moroun was virtually invisible to Detroit media. My angry report — and numerous JOTR follows — about the high-handed Matty Moroun put his name on the lips of Michiganders.

I wanted to inform Californians about the CAB scandal and mobilize public opinion against not only these pestilential bonds. I wanted to pillory the elected school board members and school administrators who were approving these financial holocausts.

I wanted to blast CABs the same way I opened the gate to covering Matty Moroun.

So what is this blog, joelontheroad? JOTR does not have an office. Who needs an office? I did Matty from my computer. It doesn’t matter where I am sitting.

So the Bond Oversight Committee member and I collaborated.

My first California CAB story ran on April 27, 2012: “Muni bomb ticks in California.”

I wrote:

There’s a school bond scandal brewing as California schools load taxpayers with horrendous debt for the next generation of taxpayers.

The blight is called CABs — short for Capital Appreciation Bonds.

I gave a short historical overview:

It hit Michigan in 1988. Within four years of the first CAB issue, Michigan public school debt had doubled to reach more than $4 billion. That was just principal. The interest on the CABs amounted to 200 percent — 300 percent — even 575 percent of principal, depending on the terms of the individual bond issue.

I described the difficulties of understanding CABs, spawned in “this fascinating but arcane world with its private argot strewn with obscure words like ‘zeroes’ basis apsis points’ describing fairly simple things in language you need a special dictionary to comprehend. It’s an industry with specialized documents that seem encrypted so that people like you and I will have trouble understanding them.”

My biggest concern, though, as I began publishing articles about CABs, was that the subject would be treated by California media in the same way it was treated in Michigan when we published CAB stories in 1993: with a huge yawn, followed by continued slumber.

Because most journalists are lay people not indoctrinated into these clubby ways, and because municipal bonds are not well known as the powerful economic motors they are, journalists don’t look closely at this business that accounts for trillions of spending with virtually no accountability and the lightest of pseudo-regulation.

In Michigan, there was a cartel of businesses that controlled school bond issuing, with — in the early 1990s — two bond underwriters sharing nearly all the business; two law firms were also cut into the deals, as was an Ann Arbor financial advising firm. I learned of lavish trips to New York ostensibly paid for by the supposedly independent financial adviser, who introduced school officials to bond rating officials in Manhattan, although those meetings produced nothing of benefit to the schools; the cost of the trips, together with Broadway plays, was eventually billed by the “independent” adviser right back to the schools. School officials were being bribed and their taxpayers — already on the hook for huge unnecessary interest costs — were made to pay for their officials’ personal spending sprees.

Another word: bribes. Payola was going on in Michigan, and I recommend that Californians ask whether school officials received money or gifts worth money from bond hucksters.

I hear that California may limit CABs, but is unlikely to outlaw them, as Michigan did. That is too bad. Californians deserve no less than a total ban on these monstrous drains on community resources.

I said it on April 28m 2012, and I’ll say it again today:

“Michigan killed CABs; California can do it too!”

* Fundamentals of Municipal Bonds, Public Securities Association, Fourth Edition, New York, 1990.

Posted in CAB scams, Joel's J School, Muni bonds | Tagged | Leave a comment

Free Press to deliver NY Times

By Joel Thurtell

Note to newspaper publishers:

Can’t make money on your own news product?

Peddle somebody else’s.

A note in today’s (March 24, 2013) New York Times states: “Starting on Monday April 1st we will no longer be your paper carrier. PCF distribution has lost the delivery contract to the Detroit Free Press.”

 

 

 

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Antique oboist plays Denison Hall

Me and my chirimía. Joel Thurtell photo.

By Joel Thurtell

This tale is all about a joke, really, but it begins with my chirimía.

For years, this curious musical instrument sat atop the hutch in our kitchen.

It was made by a musician from the Lake Pátzcuaro area in the state of Michoacán, western México, where I did historical research in the early 1970s.

I bought my chirimía along with a wooden flute from the musician after he and a pal played Tarascan songs on them. The Tarascans, or Purépecha, are an indigenous people who live in the west Mexican state of Michoacán.

My Chirimía. Joel Thurtell photo.

I brought the flute and chirimía home. The chirimia came with a double-reed mouthpiece, but with time and neglect, the reed fell apart and eventually the mouthpiece was lost.

I used the chirimía as an ornament, flanking two colorful ceramic pots and a copper pitcher, also from Michoacán.

I assumed, incorrectly, that the chirimía was an indigenous, pre-colombian musical instrument. I wished that I’d tape-recorded those musicians. I’d acquired several long-play records of Michoacán music, but when I listened to them recently, I noticed that there were no chirimías. I wondered why. My records of Michoacán music are very sonorous — sweet-sounding music.

Occasionally, I’d look at my chirimía and wonder what it would sound like. If only I had a mouthpiece for it. I didn’t realize it, but the solution was not far off.

My chirimia. Joel Thurtell photo.

Motivation to do something finally came, thanks to a class I’m auditing at the University of Michigan. It’s an anthropology class, “Mexico: Culture and Society.” The instructor, David Frye, assigned students to do a project of some kind related to México. As an auditor, I don’t have to take tests or write papers. But the project assignment intrigued me. I thought of my chirimía. Why not make a project of making my wooden chirimía playable? David Frye told me to go for it.

Where to find a chirimía mouthpiece?

First, I googled “chirimía” and learned that I was mistaken — the instrument is not pre-Hispanic, after all. It was introduced to indigenous American people by Spanish priests in the sixteenth and seventeenth centuries.

It is definitely a double-reed instrument. It is, in fact, the ancestor of the modern oboe, or bassoon. Chirimías were made in different sizes to achieve different pitches, high, medium or low. The chirimía is a shawm. The shawm was a medieval oboe, or bassoon — there was variation in size, again according to the pitch, high, low or in-between needed for the musical piece being played.

If you look at the words, “shawm” and “chirimía,” they resemble each other. The German word for shawm is Schalmei. The shawm made its way to Europe from the Middle East after Crusaders encountered them in use by Saracen armies. They were used to signal troops, but also to scare the bejesus out of enemies. Pretty soon, the Crusaders adopted the shawm and brought it back to Europe.

Double-reed instruments have a unique sound. The clarinet is a single-reed instrument. It has a mellow tone. The oboe, English horn, oboe d’amore, and bassoon are double-reed instruments. Their tone has more vibration and is not as sweet as a clarinet. The modern oboe and bassoon can have a haunting quality. Their tone can sound other-worldly. Delicate, refined.

My older son used to play the oboe. My younger son played bassoon. That gave me an idea. I talked to Bob Willliams, my son Abe’s bassoon teacher. Serious double-reed musicians fabricate their own mouthpieces. Bob has a small reed-making factory in his house. In his  his shop, he selected pieces of arundo donax cane for shaping. I watched as he cut, shaved and shaped a piece of cane, forcing one end into a cylindrical shape so it would fit into a bassoon — or into my chirimía.

I mentioned my little gag. Not much to it. I planned to show my chirimía to the class and spin a bogus preamble about how I’d done lots of ethno-musicological research to find out how a colonial Tarascan chirimía tune would sound. Here is the result of all that research: Then I’d play “The Victors” — the University of Michigan fight song. If I got one or two laughs, great.

But could my chirimía play “The Victors”?

Having finished one reed, Bob shoved it into the chirimía and began to play. It was a powerful, raucous sound, and it was — yes! — “The Victors”!

It’s one thing for the principal bassoonist of the Detroit Symphony Orchestra to render a tune on a primitive oboe. But can someone who’s never played an oboe do it?

I was afraid playing the chirimía would be a challenge. Occasionally, I’ve been known to toot on the French horn. But a French horn has a metal mouthpiece, similar to but smaller than a trumpet mouthpiece. You press your lips lightly against a French horn mouthpiece, whereas with an oboe or bassoon, you grasp the mouthpiece between your lips.

I know that this mouthpiece is not an exact replica of a true chirimía mouthpiece. The ancient shawms had something called a pirouette, a wooden cylinder that surrounded the reed and supported the musician’s lips. Though not historically correct, my chirimía can be played.

With a little practice, I could play the first notes of “The Victors” — enough, at least, for people to recognize the tune. My notes are not all on pitch, but they’re close enough.

The key to concert hall success, I realized, would be simply not playing a lot of notes. Give people just enough sound so they get the humor, then get off stage — fast.

It helps to have an audience guaranteed to know what tune you’re playing.

Well, not in every case: I certainly wouldn’t play this for a class at Michigan State.

An hour before class, I entered UM’s West Hall, where the anthropology people hang out. I found a drinking fountain and drenched my double-reed mouthpiece. That’s part of the rite of oboe-playing. I knocked on the door to David Frye’s office. Nonchalantly, I withdrew my chirimía from my back pack. I inserted the mouthpiece and quickly blasted out a few opening notes of “The Victors.”

“Do you want to try it?” he said.

The University of Michigan has lots of halls, none of them named “Carnegie.” The anthropology class happens to meet in small, blackboard-lined room in a place called Denison Hall.

I was nervous, not having spent hours practicing my instrument.

Truth is, the sum of my practice time might add up to five minutes.

A virtuoso performance this would not be.

I had to accomplish two things.

First, talk my way through the set-up for the gag. Hocus-pocus about research into ancient indigenous music. Tell this is an ancient Tarascan tune.

Then play the notes. This is critical. If I could hit the first seven notes with some semblance of accuracy, my audience would get the hint. The next seven notes would be the clincher. The final eleven notes would be icing on the cookie. But if they couldn’t recognize “The Victors,” my comedy act would be dead.

My set-up went okay. I forgot to mention several facts I wanted people to know about the oboe-shawm-chirimía, but who cares? As far as the gag was concerned, that was excess baggage.

My first run of notes is really the signature of “The Victors.” It came out a bit off pitch now and then but it must have been recognizable. People were laughing.

Halfway through the second run, more people were laughing. I stopped playing. Any more would be anti-climax.

I took a bow to scattered applause.

 

 

 

 

 

 

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Did beaver ever leave Detroit?

By Joel Thurtell

If you believe the Detroit Free Press, beaver were trapped to extinction in the Detroit area, and “then industrial pollution in the mid-20th Century made the Detroit River too toxic for beaver and many other species to return. The cleanup of the river in recent decades has seen many species making a comeback.”

Were beaver thoroughly removed from the Detroit area?

Did pollution deter beaver from making a comeback?

I don’t believe the Free Press has proved either contention.

In fact, the newspaper could rebut its own story if its staff would check their clip files. I was writing in the Free Press about beaver in Oakland County in 1998, 10 years before a beaver was reported at a Detroit electrical facility in November 2008. Beaver were causing problems in Oakland County by the 1980s.

Do beaver go around measuring pollution levels before they build their lodges? I kind of don’t think so.

I don’t think trapping, by itself, caused beaver to depart from urban areas. Shorelines often are not inviting. They may respond to improved habitat. Workers at DTE have worked hard to create wildlife-friendly surroundings at their plants on the Detroit River. If beaver see natural rather than concrete and steel shoreline and delicious-looking deciduous trees, they may come calling.

Question: Where did these beaver come from?

Hmmm. Wonder if beaver ever totally left the Detroit area?

With permission of the Detroit Free Press, here is the January 7, 1998 story I wrote about beaver in the Detroit area.

Headline: THEY’RE BACK

WITH NO PLACE TO GO, BEAVERS GNAW OUT A NICHE IN MIDST OF CIVILIZATION

Sub-Head:

Byline:  JOEL THURTELL

FREE PRESS STAFF WRITER

Pub-Date: 1/7/1998

Memo:

Correction:

Text: Oakland County — While kayaking in a Cass Lake canal last summer, Ronda Shapiro found a log stripped of its bark, with its ends chiseled into sharp points.

She knew what it meant: Beavers.

Shapiro called West Bloomfield Township naturalist Jonathan Schechter, who was skeptical.

“But she was so insistent on the phone that I went out to look,” said Schechter. Soon he was a believer.

“Beavers are back — and building without permits,” he proclaimed.

A dead beaver was found two years ago in Bloomfield Township along 16 Mile, or  Big Beaver Road.

“It was a good-size beaver, about 3 1/2-feet long,” recalls veterinarian Dr.

James Mangner.

As civilization creeps north in Oakland County, Mother Nature has her own agenda. Beavers started making a comeback in northern Oakland County several years ago. In 1989, Gary and Alice Stanley complained to the Michigan Department of Natural Resources that a beaver dam threatened to flood their driveway.

Schechter on Monday pointed out a 50-foot-long beaver dam some 30 feet west of state highway M-15 in Ortonville. The dam has made a pond and flooded a lawn.

Beavers are more of a nuisance at the state’s Bald Mountain Recreation Area, where they have built log dams in culverts, flooding roads and trails and creating safety concerns, said recreation area manager Bob Reemer.

But Cass Lake seems a rather odd home for beavers. It’s a big body of water, true, but except for a township park on one end, it is a sprawling piece of suburban real estate, its shores crowded with homes. On a hot summer weekend day, noisy boats churn the water into heavy, rolling wakes.

“That surprises me — I was not aware of any beaver in West Bloomfield

Township,” said Tim Payne, district wildlife director for the DNR. “If we had one in Bloomfield Township and they’re in Cass Lake, there’s no doubt they’re moving in.”

Beavers also are living in Washtenaw and Livingston counties, said Payne. None have been reported in Wayne County, said Wayne County Parks naturalist Carol Clements.

Beavers once lived all over the state, but were driven out of southeastern

Michigan by people. Nonetheless, the beaver is far from endangered in

Michigan, which has a lengthy trapping season — Dec. 1 to March 31 in

southern Michigan — to control the beaver population.

Why would beavers move into Cass Lake, a well-developed area of human

occupation where there is little natural shoreline?

“I think more of their habitat up north is being dwindled,” said veterinarian Mangner. “You go north 10 miles from here and all that area that was remote five years ago is now suburbs. That’s why there’s hundreds of complaints of raccoons in people’s attics — where else are they going to go?”

The problem is overpopulation, Payne says. “As they reproduce, they kick out the young, and the young have to explore and find new areas.” Despite Michigan’s long trapping season, human predation isn’t enough to control the beaver population, Payne said.

The beaver’s only predator, humans, has about given up killing beaver, said Chris Normandine, a Port Huron trapper. Changing fashions have steered clothing manufacturers to other kinds of fur, so the market for beaver pelts is depressed.

“Recently, I got $17 for a really good blanket. It was a huge beaver,” said

Normandine. Smaller beaver pelts, or blankets, bring lower prices. “Seventeen dollars for your time and effort …you might check the trap every night for a week and spend more in gas and equipment than it’s worth.”

Normandine said the St. Clair County Road Commission pays him $35 per beaver carcass for trapping beaver where they have plugged up road culverts. Added to the price he receives for the fur, it is barely a profitable business, he said.

Schechter concedes that trapping is necessary where beaver-caused flooding endangers humans. Otherwise, he favors coexistence.

On his 11-acres of forest near Ortonville, Schechter recently discovered a

couple of dozen toppled poplar trees. The incisor marks, piles of wood chips, bark-stripped tree trunks and pointed log ends were certain evidence that beavers had moved onto his property.

Drop me a line at joelthurtell(at)gmail.com

Caption:

The evidence is unmistakable to naturalist Jonathan Schechter. The

tree, sharpened to a point by beavers, is on his property in Ortonville.

Schechter has seen more evidence of the rodent resurgence, including on Cass

Lake.

Illustration:  PHOTO RICHARD LEE/DETROIT FREE PRESS

Edition: METRO FINAL

Section:  NWS

Page: 2B

Keywords: OAKLAND COUNTY; ANIMAL; BEAVER

 

 

 

Disclaimer:  THIS ELECTRONIC VERSION MAY DIFFER SLIGHTLY FROM THE PRINTED ARTICLE.

 

 

 

 

 

 

 

Posted in Adventures on the Rouge, Wildlife | Tagged , , | Leave a comment

Beaver logic again

Once again, a federal agency is claiming the arrival of a lone beaver in Detroit signals less-polluted waterways. The claim was first made by a US Fish and Wildlife spokesman in 2009, when a beaver was seen at DTE’s Conner Creek power plant. Recently, a beaver was seen near a DTE facility at the confluence of the Rouge and Detroit rivers.

Once again. I’ll say it: The presence of wildlife neither confirms nor denies the presence of pollution.

Rather than re-write the argument I made four years ago, I’m re-publishing my “Beaver logic” column of February 18, 2009:

By Joel Thurtell

Amazing what one beaver can do.

This lone paddle-tail isn’t just damming Conner Creek.

A beaver’s image, captured by a DTE Energy camera as it worked some timber along the Detroit River, has inspired claims by a federal agency that its presence means the river has been cleaned enough to sustain wildlife.

Baloney.

I’ll say it again: One beaver on the banks of the Detroit River does not prove all is well with this once highly-polluted river.

Here’s what it signifies: A beaver is living on the Detroit River.

Nothing more.

I’m not questioning that the the river has vastly improved in the past few decades due to major efforts by some hardworking humans to stop other humans from polluting it.

But the beaver isn’t logically connected to whatever success there’s been.

It reminds me of the claim I once heard from an environmentalist who said a gyrfalcon’s brief sojourn alongside the Rouge River in metropolitan Detroit somehow proved that stream’s water quality was better.

No, no — it just meant the arctic-loving raptor took a break beside the water.

I first saw the beaver story in the February 16, 2009 Detroit Free Press: “Their return,”  the newspaper said, “signals that a multiyear effort to clean up the river has paid off.”

“Leave it to beaver,” the Free Press Page One headline said, “To prove river cleaner.”

Wonder how much that beaver weighs?

The Windsor Star swallowed this whopper, too, quoting a U.S. Fish and Wildlife staffer declaiming that “it’s part of a larger story of recovery. What a dramatic ecological recovery of one of the most polluted river systems in North America.”

The recovery may well be real. But the beaver doesn’t prove it.

By the way, I think it’s great that there’s a beaver in Detroit, and I applaud the enterprising DTE Energy folk who followed their hunch and planted the video camera that captured footage of a beaver working on a tree.

But I wonder, how did the beaver learn the water is okay?

From the newspapers?

I don’t think it tested the river. If it did, it was more environmentally proactive than its homo sapiens neighbors. Water quality monitoring by humans is, like Detroit’s beaver of yesteryear, heading for extinction. In recent years, there have been monstrous cutbacks in funding for monitoring.

I also wonder about the claim that the last time a beaver was seen in Detroit was “at least 75 years ago, possibly as long ago as a century.”

Really? Which is it? Seventy five years? More than 75 years? “Possibly” 100 years ago? Why so fuzzy on the timing? Because the statement can’t be substantiated?

Nobody knows why this beaver moved to Detroit, other than that it must have found food, shelter and work. If the beaver, as claimed, returned because the pollution is gone, then it follows that its reason for decamping 75 or 100 or however many years ago must have been because the place was too contaminated.

That would be logical. But it seems not to be the case.

It seems more likely that beaver, being shy, hard-chewing engineers accustomed to working night shifts, might have departed for the same reason many human city-dwellers left — in quest of quieter, more sedate places. Or, as the Free Press suggests, maybe they were “wiped out” by trapping.

The fur trade, not pollution, may have done the beaver in.

But if the beaver didn’t leave because of pollution, what would motivate them to return because it’s gone?

The idea that people and animals will leave a place because of pollution is an illusion, anyway. If it were true, no animal or human would live in Southwest Detroit, where water and air are terribly contaminated.

Pollution doesn’t keep animals away. Fish, for instance, will live in water contaminated with human and industrial waste. That’s why the Michigan Department of Community Health advises limited eating of fish from all Michigan waterways on account of mercury contamination, and warns of eating fish caught in many other places due to chemicals like PCB.

There’s another reason besides pollution why beaver might not like this area. Take the Rouge River, for example. It might be too “flashy” for beaver. Flashiness — the tendency of the river to rise or fall suddenly — is caused by human misuse of land surrounding the waterway. Storm runoff from streets, parking lots, roofs and other hard surfaces no longer percolates through the ground, but rushes through gutters and drains and storm sewers to rapidly fill the river. Fast rising and falling water levels blow out wildlife habitat. Also, beaver might not like the four miles of concrete pavement underlying the Lower Rouge, just as fish find it inconvenient for forage and reproduction.

Still, I would not be surprised to learn there are beaver in the Rouge. What do they care if the water has crap in it? I once counted nearly two dozen mallards paddling in the Rouge, the biggest tributary of the Detroit River. Where were the ducks? Below a huge sewer outfall. The stink of sewage didn’t faze them.

I would not claim that the presence of ducks or mergansers or green herons or snapping turtles proves the Rouge is clean enough for human contact when analysis of E. coli testing tells us that this river is safe for us to swim in no more than 5 percent of the time.

The claim that a beaver in Detroit proves the river is clean is not scientific. It is a policy statement. It is meant to justify money spent on reducing pollution. It is meant to rationalize the means humans chose to alleviate pollution and, by extension, it approves the individual humans and agencies that chose those means.

It is about politics.

True, the intent partly may be to cheer people up about the state of water quality. But these phony statements also make people complacent and too trustful of environmental agents who make logic-defying claims.

The beaver’s presence is interesting, but false deductions about what it means about the environment tell us more about the humans who issue them than they enlighten us about the beaver.

Science?

Nah. Sheer propaganda.

Drop me a line at joelthurtell(at)gmail.com

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‘Michigan blogger’ to speak in Sacramento

Michigan journalist  Joel Thurtell will speak in Sacramento about how he broke last year’s major story about California’s Capital Appreciation Bonds.

Thurtell is scheduled to address the annual conference of the California League of Bond Oversight Committees between 2:15-3:15 P.M. on May 10.

Known by California news media as “the Michigan blogger,” Thurtell published his first warning about California CABs on April 27, 2012. Thurtell broke the first of seven stories about Poway schools’ ultra-high-interest bonds on May 1, 2012.

After Thurtell began writing about California’s Capital Appreciation Bonds last year, the California CABs story was picked up by numerous news organizations, including the New York Times, the Los Angeles Times, Bloomberg, and NPR.

“How does a general assignment reporter at the Detroit Free Press come to write about an arcane financial instrument called Capital Appreciation Bonds?” mused Thurtell. “CABs were so obscure that the financial industry’s textbook on municipal bonds didn’t even mention them. Yet I convinced editors to let me drive every day for months to the state capital in Lansing, where I researched every CAB ever issued by a Michigan school district. I’ll give the lowdown on this high-interest story in Sacramento.”

Thurtell’s articles about Michigan school CABs in the April 5, 1993 Detroit Free Press prompted the Michigan Legislature in 1994 to enact a ban on CABs and a requirement that municipal bonds be competitively bid.

Thurtell’s Free Press stories won the Michigan Education Association’s 1994 School Bell Award for meritorious reporting about education. Re-published in 2009 on joelontheroad, the stories drew the attention of a California bond oversight committee member whose collaboration with the reporter helped spawn his 2012 exposés on California CABs.

The California League of Bond Oversight Committees was formed in 2006 to promote school district accountability and provide training and resources for members of bond oversight committees. A 2000 California law requires that local governments issuing municipal bonds appoint citizens committees to ensure accountability in bond issues.

Now retired from the Free Press, Thurtell in 2009 was named “best independent blogger raising hell” by Detroit’s Metro Times newspaper. Thurtell’s book, Up the Rouge!, about environmental conditions on a famous Detroit river, was published in 2009 by Wayne State University Press and named a 2010 Michigan Notable Book by the Library of Michigan. The journalism faculty of Wayne State University named Thurtell “2011 Journalist of the Year.”

Thurtell’s investigative reporting has been credited with impelling Detroit news media to cover Manuel “Matty” Moroun, the billionaire owner of Detroit’s Ambassador Bridge who hijacked a city park and was jailed for contempt of court in connection with a contracat involving the bridge approach.

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Thank you, Jimmy Boegle

By Joel Thurtell

Thank you, Jimmy Boegle of the Coachella Valley Independent, for setting the record straight regarding the history of reporting on Capital Appreciation Bonds in California.


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California’s wake-up call from “Michigan blogger”

By Joel Thurtell

How does it happen that a retired reporter in Michigan breaks news that could change the way schools are financed in California?

On March 27, 2012, I found a comment here on JOTR warning that a financial crisis loomed for California schools saddled with a peculiar kind of debt known as Capital Appreciation Bonds that threatens the solvency of California public schools.

This was a 20-year-old story for me. I began investigating Michigan schools’ use of CABs in fall 1992 when I was a Detroit Free Press reporter. After I made daily trips to the state Treasury in Lansing over several months, my multi-story, multi-graphic report on CABs was published April 5, 1993. Though CABs were banned in Michigan as a result of my stories, I was concerned that they might resurface elsewhere. In 2009, I posted my 1993 Free Press CAB stories on joelontheroad.

The commenter on my website, it turned out, is a certified public accountant and member of the state-mandated bond oversight committee of her school district near San Francisco. She had discovered that, through CABs, her district had borrowed $16 million that would mushroom to $70 million by the time the total debt was repaid in 40 years. Wanting to learn about CABs, she googled. That’s when she found my 1993 Free Press articles.

California reporters had ignored the complex story. That sounded familiar. The Bond Buyer trade newspaper reported on our 1993 stories, and Business Week followed with a Sept. 2, 1993 cover story about Michigan’s CABs. But mainstream newspapers in Detroit and around the state were silent. CABs don’t show up on general interest news beats, and reporters are mostly unversed in the special lingo of municipal bonds. In frustration, the commenter contacted me, a retired reporter living some 2,300 miles from San Francisco.

“Thank you for keeping this blog up,” she wrote. “You are one of the few journalists that have written about the ugly side of school bond financing.”

In 1993, it hadn’t mattered that other papers failed to beat the CAB drum. In Lansing, Michigan’s capital, then-state Sen. Jim Berryman was outraged. The day the Free Press stories ran, he asked senate aides to draft legislation outlawing CABs. “I read it and I just

couldn’t believe it. It floored me that we put that type of temptation in front of school boards. It’s truly irresponsible – they’re like junk bonds,” he said. In 1994, the Michigan Legislature banned CABs.

For my California commenter, Michigan’s ban on CABs was good news. “Hopefully,” she told me, “Michigan’s (law) will be used as a model today where CAB financing by local agencies and schools (in California) will be banned.”

But how to get the attention of policy-makers and voters? Well, I might be in Michigan, but my website can be read anywhere. I published my first warning on California CABs on April 27, 2012: (“Muni bomb ticks in California”).

My commenter told me about Poway, a San Diego school district that had borrowed $105 million with 40-year CABs and a billion-dollar pay off. Poway would be my poster child. It would illustrate just why these instruments are bad news for everyone but the lucky people who bought the bonds at a 94 percent discount.

I ran my first article about Poway’s billion-dollar CAB deal on May 1, 2012: (“CABs = compound trouble for California”). As I wrote fresh articles about California CABs, I republished my 1993 Michigan CAB stories under italicized leads explaining that these 19-year-old stories are relevant now as examples of the kind of abuses being perpetrated against California taxpayers. Using Michigan cases as examples, I pointed out features of CAB behavior that California investigators might look for, such as free trips given to school officials by CAB-interested financiers, lawyers and financial advisers; attorneys with conflicting interests representing bond underwriters and school districts, and interest rates of hundreds and sometimes more than a thousand percent of principal.

By now, many newspapers, websites, television and wire services have written about Poway and California CABs. The New York Times in August and The Los Angeles Times in November weighed in with CAB stories. The Los Angeles treasurer has called for a ban on CABs; the California state treasurer has ordered a moratorium on schools issuing CABs while the debate on a permanent CAB ban has gone to the California Legislature.

Will California follow Michigan’s lead and forbid these costly bonds?

 

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