I used to like to go to work,
but they shut it down.
I got a right to go to work,
but there's no work here to be
found.
And they say
we're gonna have to pay what's
owed,
we're gonna have to reap from
some seed that's been sowed.
Ontonagon,
MI -- October 2011
There'd been a paper mill at Ontonagon MI for something like 90 years.
In large part, that's why the community survived the 20th Century when so many
other towns around the U.P. didn't.
Ontonagon
MI -- October 2012
Smurfit Stone Corporation owned this mill, though they didn't build it
and merely bought in late in the game. Right up to the end, the operation at Ontonagon
turned a regular profit and was said to be the only paper plant in the State of
Michigan to meet or exceed air & water quality standards.
After years of aggressively acquiring other paper companies, Smurfit
Stone found itself saddled with crushing debt. When the economy collapsed the
Company resorted to Chapter 11 Bankruptcy protection, seeking legal relief from
it's bad decisions. This reinvention included closing the mill at Ontonagon, the
largest employer in the County.
At the time, financial analysts at Credit Suisse wrote that this &
another closure in Montana was good business, as the resultant lack of ready
supply would help push prices up for packaging materials, thus increasing Company
profit.
President
and Chief Operating Officer of the Company Steve Klinger agreed, saying:
"These decisions were made to ensure the Company's long-term growth and profitability and do not reflect on the hard work and commitment of the employees at the Ontonagon mill."
With news of the closing, the community rolled up its collective sleeves and went to work, trying to line up investors to buy the facility. In Bankruptcy Court, the good citizens of Ontonagon petitioned the judge to prohibit the Company from destroying the plant and with it, perhaps their town.
"We don't want stimulus money. We don't want handouts. We have potential investors. All we want is for these people to have the right to make a decent living", wrote one.
Their pleas went unmet.
"These decisions were made to ensure the Company's long-term growth and profitability and do not reflect on the hard work and commitment of the employees at the Ontonagon mill."
With news of the closing, the community rolled up its collective sleeves and went to work, trying to line up investors to buy the facility. In Bankruptcy Court, the good citizens of Ontonagon petitioned the judge to prohibit the Company from destroying the plant and with it, perhaps their town.
"We don't want stimulus money. We don't want handouts. We have potential investors. All we want is for these people to have the right to make a decent living", wrote one.
Their pleas went unmet.
Smurfit Stone exited bankruptcy and promptly sold the mill at Ontonagon to a Canadian salvage company. 90 years of community investment in blood, sweat and tears, sold for scrap.
Two days later, Smurfit Stone announced it had sold itself to yet another paper company. As
part of the deal, ex-CEO Patrick Moore received 59.5 million dollars. General
counsel Craig Hunt was entitled to 9 million if he found himself unemployed. Senior
V.P. Steven Strickland copped nearly 7 million.
Nice work, if 'ya can get it.
Today, where once beat the economic lifeblood of Ontonagon, there're
only acres upon acres of mostly empty field surrounded by a high fence topped
with barbed wire. This fallow ground is kept watch over by private security, hired
by the Company to protect its remaining interests
in Ontonagon, whatever in the world those might be.
What's true is this:
According to law, Smurfit Stone owned the mill at Ontonagon. It was
theirs to do with as they pleased, for whatever reasons they chose. And it was widely
considered only good business for them to do what they did.
What's also true is this:
They didn't build that mill, they just bought it. And once they decided
to abandon the place, by any reasonable moral standard if anyone had right of ownership over that mill, it was the community
of Ontonagon, as theirs was a generational investment that can't be measured in
dollars.
Now prime lakefront land on Superior stands fallow, future disposition
undetermined.
An ex-employee told me there'll never be housing built on the land as
before the environmental laws of the last few decades, lime and other toxins inherent
to the milling process were dumped onsite -- creating both one more manmade
wilderness on Superior's shore and leaving another sure sign of the legacy bequeathed
by Capital when given free reign over our fate. Which along with a wide
variety of poisons has left an entire region in poverty and despair.
What advocates for 'Job Creators' seem to resolutely ignore is that while
(for example) a paper plant processes lumber down to salable product, without a
community of workers it'd process nothing, ever.
Without workers, there'd never have been a mill in Ontonagon. Without
workers there'd never have been product to sell to finance the debt Smurfit
Stone used to acquire other paper companies and dig itself so deep into the
hole it could only resort to creative destruction as a last, best resort to reap
profit from its poor choices.
Without workers from this
community absorbed a fatal hit to ensure some other operation could never come
into Ontonagon and compete, the executives of Smurfit Stone wouldn't have
emerged from bankruptcy able to sell to another company and secure great piles
of personal wealth for themselves in the bargain.
As of the 2000 Census, the median annual income of the 786 households
in Ontonagon stood at $28,300. You can
bet both the number of households and the income has shrunk since. At any rate,
that's chump change, for those who managed to manage this place right into
dust.
The good citizens of Ontonagon didn't want charity. They didn't ask for
a handout. They simply asked for the chance to keep their town alive by
maintaining a facility it's onetime owner no longer cared to own. That opportunity was denied them.
Creative destruction, the Job Creators call that. They say it reflects
the best of who we are and is a good and proper thing. They say without we hew
to this overarching purpose, we'd no longer be America.
I say it's history repeating itself -- with honest, hardworking folk
getting hosed over & over & over again.
And the only real difference between this mill at Ontonagon and the
Wolverine Mohawk or Nonesuch or the Cliff location or dozens of other similar sites, left
by Capital to crumble where once they stood?
This being the 21st Century and not the 20th, the Company recycled its mistakes for cold cash on the barrelhead.
Which means that 100 years from now no one like me will ever stand near the fabled Ontonagon River amidst the mysterious ruins of long abandoned promises and wonder...
This being the 21st Century and not the 20th, the Company recycled its mistakes for cold cash on the barrelhead.
Which means that 100 years from now no one like me will ever stand near the fabled Ontonagon River amidst the mysterious ruins of long abandoned promises and wonder...
"How did this come to be?"