As the Molly Maguire cases show, private corporations often like
'state rights' approaches to governance because this power is more
easily bent, broken, corrupted to serve the prevailing interests of
the corporations that operate or want to operate in a given state or
locality. However, if the state or local government fights them and
their interests, then the private corporation has use state and then
federal courts to prevail.

So a paradox emerges in 'state rights' in that sometimes private
corporations support state rights and local autonomy because they
think they can control it or defeat it. Or they end up opposing it--or
it opposes them--and have to prevail over it--which is why having
influence and sympathetic judges in the court system is also
necessary. In the second source I cite here--celdf.org (which
interestingly enough is HQ'd in my hometown, Chambersburg, PA, a VERY
REPUBLICAN area of defense workers, defense worker retirees, and
federally-subsidized dairy farmers), they seem to be arguing that the
solution is to go BELOW states rights, since the federal-state
structure has favored private corporations, and re-establish local
autonomy. I'm not sure how workable that is outside of real socialism,
but that isn't a term this legal action and advocacy group is going to
discuss on its homepage. So I think it's possible to take 'tenther'
arguments in the leftward direction if we have socialism,
anarcho-syndicalism and non-profit cooperative production in mind.

BTW, these local rightists are challenging corporate moves to turn
Pennsylvania into the nation's biggest 'fracking' natural gas
production site using township government action. Unlike southern
states, local 'power' in Pennsylvania can often be found at the
township level, especially when it comes to land and water use. The
school district is another focus of local power, but they have long
been dominated by adherence to state requirements to get federal money
and to local/regional university-based 'schools of education' for the
indoctrination of teachers. Their real power is in levying property
taxes to pay for schools.

CJ

http://en.wikipedia.org/wiki/Molly_Maguires

excerpt:

Four members of the Molly Maguires, Alexander Campbell, John "Black
Jack" Kehoe, Michael Doyle and Edward Kelly, were hanged on June 21,
1877 at a Carbon County prison in Mauch Chunk (renamed Jim Thorpe in
1953), for the murder of mine bosses John P. Jones and Morgan Powell,
following a trial that was later described by a Carbon County judge,
John P. Lavelle, as follows:

    The Molly Maguire trials were a surrender of state sovereignty. A
private corporation initiated the investigation through a private
detective agency. A private police force arrested the alleged
defenders, and private attorneys for the coal companies prosecuted
them. The state provided only the courtroom and the gallows.

http://www.celdf.org/corporate-rights

"I hope we shall crush in its birth the aristocracy of our monied
corporations which dare already to challenge our government to a trial
by strength, and bid defiance to the laws of our country."  -- Thomas
Jefferson, 1816

"In 1819 in Dartmouth College v. Woodward, the U.S. Supreme Court
introduced a distinction between the rights of a public corporation
and a private one. The U.S. Constitution's contract clause did not
protect the political powers granted in the charter of a public
corporation such as a municipality. State legislatures could,
therefore, unilaterally amend or revoke municipal charters and strip a
city of authority without the municipality's consent. But the charter
of a private corporation, such as a business enterprise or a privately
endowed college, was an inviolate grant of property rights guaranteed
by the nation's Constitution." -- Jon C. Teaford, Municipal Charters


The structure of federal and state law – both statutory and
constitutional – empowers corporations to override local democratic
decision making.

Since the early 1800s, corporations have gained rights and protections
under the United States Constitution.  While we never find the word
“corporation” in the Constitution, corporations are able to invoke
constitutional “rights” and protections under the Commerce Clause and
Contracts Clause, as well as under the First, Fourth, Fifth, Sixth,
and Fourteenth Amendments.

Corporations use these “rights” to challenge state and local laws, and
to chill efforts at the local level to fight corporate siting plans.
Thanks to the U.S. Supreme Court's ruling in the Dartmouth case in
1819, "private" business corporations first gained constitutional
protection from government interference in internal governance,
ostensibly under the Contract Clause of the Constitution. Curiously,
the court found no reason to similarly protect municipal corporations,
such as towns, boroughs, cities and counties from state interference
with self-government.

As an example: the Waste Management Corporation was able to
successfully sue the State of Virginia under the Commerce Clause to
overturn a state law which prohibited the importation of out-of-state
waste, arguing that the law interfered with the flow of commerce.
With the First Amendment, we see corporations participating in the
writing of our laws and the election of candidates at all levels of
government.  Citing the Fifth Amendment “Takings Clause,” the U.S.
Supreme Court ruled in Pennsylvania Coal Co. v. Mahon (1922), that
coal corporations must be compensated for property value lost due to
laws protecting homes from mining subsidence.  Under the Fourteenth
Amendment, corporations are able to claim equal protection and due
process rights.

Charters of incorporation seem to grant special privileges for private
wealth, including limited liability protections from legal
responsibility by individuals benefiting by dint of this corporate
shield, along with the "rights" of pershonhood bestowed by the courts.
Any yet charters do not actually grant rights, but rather they deny
rights held by all by identifying corporations as a specially
protected class under the law.

While corporate charters once privileged all corporations to the
degree that the sovereign specified in each individual charter,
another outcome of the Dartmouth case was that the federalist judges,
lead by John Marshall, created the unprecedented distinction between
"private" business corporations and "public" corporations like
municipalities. The rights recognized judicially for publicly
chartered business corporations were withheld from municipal
corporations. This bias toward the "rights of property" (corporations)
and against the right to assert self-governance through incorporated
municipalities explains how it is that business corporations today
dictate governance in our communities. The people are denied authority
to "violate the rights" of corporations, and the right to assert
self-governance in the communities where they live, using that
government closes to them, is denied and usurped.

http://www.celdf.org/downloads/Making%20the%20Case%20for%20the%20Right%20to%20Local%20Self-Government.pdf

What is certain is that the American Revolution rested its legitimacy
on the proposition that it is beyond the delegated power of any
government to deprive the people of their fundamental right to local
self-governance.
For all of the reasons specified in this discussion, and because it is
a self-evident truth that people have a right to self-government in
the communities where they live, it is the assertion of the people of
Blaine Township that the power of community self-government is their
inalienable and fundamental right, and that it constituted the central
purpose for which independence was wrested from the world‘s most
powerful empire. Community self-government is exempt from, and hence
superior to, the general government of the state.16
15

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