Columbia University Provost Katznelson's Russell Sage Foundation Connection: Part 4

 

How U.S. Robber Baron Jay Gould and his business partner, Russell Sage, became rich in 19th-century from owning U.S. railroads.

The Russell Sage Foundation, whose board of trustees Columbia Provost and 2019-2020 Russell Sage Foundation “Olivia Sage Scholar” Ira Katznelson (who failed to immediately agree to meet the demands of the Graduate Workers of Columbia [GWC-UAW 2110] during the union's 2021 strike at that Upper West Side university) chaired between 1999 and 2002, has a “Conflict of Interest Policy” posted on its website.

And according to this “Conflict of Interest Policy”, among “the requirements” governing “the activities” of its Trustees, the Trustees “may not be Visiting Scholars, Principal Investigators of a funded project, Authors/Editors of a Foundation book, or compensated participant in a funded project;” and “the Foundation may not approve or engage in any…arrangement that would constitute an act of `self-dealing.’” In addition, in an Apr. 2, 2021 email to this writer, Russell Sage Foundation President Sheldon Danziger stated the following:

“The Russell Sage Foundation Board of Trustees has a robust Conflict of Interest Policy and a Conflict of Interest Committee to ensure that the Foundation serves its mission to strengthen the methods, data and theoretical core of social sciences in order to better understand societal problems and develop informed responses. The Foundation and Committee take seriously any conflicts of interest and address them consistent with New York law and the laws and regulations governing exempt operating foundations.” 

Yet, according to the CV that Russell Sage Foundation Trustee and Yale University Professor Jennifer Richeson posted on the internet, the Russell Sage Foundation gave her a grant of $163,531 to study “Sociostructural and psychological factors supporting the misperception of racial economic equality” in 2020-2021; although Professor Richeson has been sitting on the Columbia University-linked Russell Sage Foundation board of trustees since 2019.

In response to an email query asking why a grant of $163,551 was apparently awarded by the Russell Sage Foundation to Russell Foundation Trustee Richeson in 2020-2021 for a funded project, if, according to the foundation’s “Conflict of Interest Policy”, Trustees “may not be Visiting Scholars, Principal Investigators of a funded project, Author/Editors of a Foundation book, or compensated participant in a funded project” and “the Foundation may not approve or engage in any…arrangement that would constitute an act of `self-dealing’”, Russell Sage Foundation President Danziger, in his Apr. 2, 2021 email, replied:

“You have only quoted part of the Russell Sage Foundation’s Conflict of Interest Policy. The Policy provides that trustees `may not be…Principal Investigators of a funded project…unless such activity was initiated prior to his or her appointment’ as a trustee. The grant to Jennifer Richeson was initiated before she was invited to join or elected to the Board and was awarded without any input from her whatsoever.

“Furthermore, Ms. Richeson is not the Principal Investigator (PI) on the grant but a co-PI and receives no salary support under the grant. The proposal received very high reviews during the roughly six-month review process involved in approving such grants (which involves input from a panel of expert, independent evaluators), and the Board approved the proposal without the input or participation of Ms. Richeson. As a result, there was no conflict of interest, no financial benefit to Ms. Richeson, and no-self-dealing.”

Russell Sage Foundation Trustee Richeson was also a Russell Sage Foundation “Visiting Scholar” in 2004, a member of a Russell Sage Foundation Working Group between 2010 and 2014 and a member of a Russell Sage Foundation Advisory Committee between 2016 and 2019; before joining the foundation’s board of trustees in 2019.

And, in addition to Trustee Richeson being given the $163,531 grant by the Russell Sage Foundation in 2020 (in which the Russell Sage trustee is described as a “Co-Principal Investigator” with M. Kraus PI, according to this trustee’s posted CV), Trustee Richeson was previously given a grant by the “philanthropic” Russell Sage Foundation of $197,524 between 2002 and 2005 to study “intergroup contact: interpersonal and situational influence of dyadic interactions;” a grant of $174,953 between 2013 and 2014 to study “public views about inequality, opportunity and redistribution: evidence from media coverage and experimental inquiry;” and a grant of $114,316 between 2015 and 2018 to study “inequality, diversity and working-class attitudes.”

Besides receiving all this “charitable” grant money from the tax-exempt “philanthropic” Russell Sage Foundation since 2002, Russell Sage Foundation Trustee Richeson was also given a $500,000 individual “genius grant” by the Chicago-based MacArthur Foundation in 2007. And, coincidentally, a former Columbia provost and former Russell Sage Foundation board of trustees chair and longtime trustee, Claude M. Steele, and a current Russell Sage Foundation trustee, Martha Minow, have been sitting on the MacArthur Foundation board of directors, since 2008 and 2012, respectively.

(end of part 4. To be continued). (This article was first posted on the Upper West Side Patch website).

Columbia University Provost Katznelson's Russell Sage Foundation Connection: Part 3

 

Robber Baron Jay Gould's business partner, Russell Sage: Inherited Wealth from Sage endowed Russell Sage Foundation

The former long-time Russell Sage Foundation trustee and current Columbia University provost (who failed to immediately agree to meet all of the demands of the Graduate Workers of Columbia [GWC-UAW 2110] in the 2021 strike by Columbia’s academic workers), 2019-2020 Russell Sage Foundation “Olivia Sage Scholar” Ira Katznelson, may have claimed, historically, to be a supporter of the U.S. labor movement and U.S. working-class people.

Yet the Russell Sage Foundation is named for a super-rich U.S. capitalist who, by the time of his death in 1906, had accumulated an individual fortune of between $70 million and $100 million [equal to between $2 billion and $2.9 billion in 2021 U.S. dollars], by economically exploiting U.S. railroad workers, small farmers and, U.S. taxpayers, as well as by engaging in corporate stock and bond manipulation, in partnership with 19th-century U.S. Robber Baron Jay Gould.

As Richard Boyer and Herbert Morais indicated in their Labor’s Untold Story book, by the late 1880’s, Jay Gould and Russell Sage “had owned and pillaged the Union Pacific, the Wabash, the Missouri-Kansas-Texas, the Texas-Pacific, the Western Union Telegraph Company,…and a number of shorter Eastern railroads;” and it was their “practice to gain control of ruined railroads, usually through stock manipulation…, make a pretense of profitable operation, and then sell stocks and bonds based on that pretense before getting out just as the property failed again.” According, for example to Gustavus Myers’s History of the Great American Fortunes:

“Sage testified that he himself had begun buying Union Pacific stock in 1868 or 1869. One of the railroads that Gould, Sage…and their accessories bought as individuals, and then sold to themselves as directors of the Union Pacific, was the Kansas Pacific…Its chief assets were an issue of Government bonds, and a land grant of 3 million acres in Kansas and Colorado…In the juggling exchange of stocks and bonds and the fraudulent diversion of funds, they stole…more than $20,000,000 [equal to around $431 million in 2021 U.S. dollars]…The frauds of the Union Pacific Railroad Company, under the direction of Gould, Sage…were truly gigantic.

“Millions of acres of public land were stolen outright. No less than seven million acres were sold without any patent from the Government. Coal lands of inestimable value were fraudulently seized. Millions of dollars were fraudulently shuffled from one corporation to another…

“The Texas Pacific was one of the four main lines that Gould and Sage obtained control of by their well-known methods…Another of their lines was the Wabash, composed of…68 originally separate little railroads…Within 5 years of the time they gained hold of the Wabash, Gould and Sage had obtained a great series of privilege from various States, looted the railroads of millions of dollars, and then had thrown it into bankruptcy…Each new haul gave Gould and Sage a still greater supply of resources with which to manipulate other railroads and other public utility systems into their control…”

In addition, as the Internet Accuracy project noted, Russell Sage was also “a director of several New York banks, was a founding director of the Fifth Avenue Bank of New York City, and was president of New York's Standard Gaslight Company;” and he “was one of the largest stockholders of” of the “Manhattan Elevated Railway Company, Metropolitan Elevated Railway Company” and “many others.”

Gustavus Myers’s History of the Great American Fortunes book also recalled that, after holding a government position during the 1840’s in Troy (as an alderman of the Troy Common Council, until 1848) and occupying the Renssalaer County treasurer position in Upstate New York between 1844 and 1851 (before also being elected as an Upstate New York representative in the U.S. Congress between 1853 and 1857), Russell Sage had “gathered in his first notable amount of money.” He did so by “a transaction in which as a public official he betrayed the city of Troy into selling to himself for a small sum a railroad line” which “he later, according to a prearranged plan, sold to the New York Central consolidation at a very large profit.” And “there is nothing vague or conjectural regarding this…transaction” because “the facts are inscribed” in the “public record.”

At public expense, the City of Troy had built the 21-mile-long Troy & Schenectady Railroad in the early 1840’s to connect Troy, NY to Schenectady, NY. But later, in the early 1850’s, then-Renssalaer County Treasurer Sage persuaded the Troy Common Council (of which he had recently been a member) to sell its railroad line for $50,000 [equal to around $1.7 million in 2021 U.S. dollars] down, to a company headed by Sage; who then soon “sold it for $900,000 [equal to around $30.7 million in 2021 U.S. dollars] or so to a group of capitalists forming the New York Central Railroad combination.”

And Russell Sage also gained part of his excessive wealth from being a large stockholder in the 1860’s and 1870’s of the Pacific Mail Steamship Company that “obtained by bribery” large U.S. government subsidies “for carrying the mails between San Francisco and Asia via Honolulu,” according to The History of the Great American Fortunes.

(end of part 3. To be continued). (This article was first posted on the Upper West Side Patch website).