Here is a List of Those Who Paid for Derby’s Tunnels

Smugglers of Salem

  In 1801 Elias Hasket Derby  Jr., King Derby, extended the old tunnel system in town. The plethora of the extensions to the system he engineered was paid for by the Salem Common Fund Subscribers in the 19th century.  These are tunnels familiar to Webster and Adams.

  The Salem Common Subscriber Fund was a project brought about by Elias Hasket Derby Jr. disguised as a beatification program. A subscription was collected from 159 citizens of Salem, equaled to $2,500 ($35,855.80 roughly today), to on paper take down the hills, grade the common, fill in the 5 ponds and the river, add a whitewash fence, and some poplars.  The sum fell short and an additional fund was created to pay for the project with 66 more subscriptions. Some who had paid for the first would contribute again. Afterward many ship captains would build grand Federalist mansions around the park removing the industrial feel that pervaded earlier. No longer the tanneries, rope walks, foundries, and bakeries dotted the Common.

  Elias Hasket Derby Jr. would rise up as General Derby of Salem’s local militia. He would use these men to carry out the work. Previous the local militia had fallen to disorganization. So what occurred to inspire Derby to reorganize them? Thomas Jefferson.

  Thomas Jefferson had won a silent revolution in 1800 which limited the aristocratic tendencies of the Federalist Party. With Jefferson there was the hope of moving away from the seaboard into the country and buying a farm. Once you were a property owner you would have the ability to have a vote. To help for the interior improvements Jefferson imposed new duties on imports. A move not much favored in Salem.

   To help collect these duties Jefferson had asked the local militias to aid the custom agency in their collection. So Elias, General Derby, housed the militia in Wakefield Place on the location of the Hawthorne Hotel and had them set to work in the Common.  They did indeed carried out the plan that was above board, but they did much more below.

   Under the guise of a beautification program this militia dug a series of tunnels around the Common and hid the dirt in the ponds and the river that led to Collins Cove. The tunnels would connect the new Federalist mansions through their fireplace arches or holes in their basements. So these 159 merchants could smuggle goods from their wharf, to store in their homes, push to their stores, and bring the proceeds into the vaults connected to the tunnels. If they did not want to sell their goods in town, there was an underground railroad station provided by George Peabody, the progenitor of J.P. Morgan.

    These subscribers included  state and federal Senators and Congressmen, half the custom agency, local mayors, the founder of the New England Medical Review Journal, and families related by marriage or business to the Derbys, Peabodys, and Crowninshields. Later the tunnels would connect the homes of a Secretary of the Navy, an Associate Superior Court Justice, the financier behind Daniel Webster, a Secretary of State, and one of the most famous men to be murdered in the 19th century, and more…

     Benjamin Crowninshield (1772-1851)

  Director of The Second Bank of the United States Boston and Philadelphia, Secretary of the Navy, Senator, Collector of the Port of Marblehead, belonged to a family of merchant-seamen in his native Salem, Massachusetts. Served with Thomas H. Perkins as directors of the bank in Boston.

  He was a partner in his father’s firm, George Crowninshield & Sons and its successors, a business that prospered during the War of 1812 but dissolved in 1817. Crowninshield was elected to the Massachusetts House of Representatives in 1811 and to the state senate the following year. President James Madison appointed him Secretary of the Navy late in 1814. Although at first declining the position, Crowninshield soon consented and remained in office until his resignation in 1818.

  Thereafter he returned to his business pursuits, having been elected president of the Merchants Bank of Salem in 1811. Board members Joseph Story (another director The Second Bank of the United States in Philadelphia and Boston), John Dodge, and Stephen White. Joseph Story replaced him as president of Merchant Bank when he became Secretary of the Navy in 1815.  He was president of the following companies and institutions: The East India Marine Society, for 16 years ; (His grandfather was its first president); the Salem Lead Company (where Joseph Dixon got lead for his #2 pencils); the Association for the Relief of Aged and Destitute Women, for 19 years; and the Salem Savings Bank. He was a member of the Board of Aldermen in 1859. He was active and prominent in church work, and was for many years superintendent of the Sunday School of the East Church (Where the Witch Museum stands today), later called the Second Unitarian Church.

  He reentered the political arena with election to the Massachusetts House in 1821, Crowninshield became a director of The Second Bank of the United States in 1822 and remained connected to that institution until its charter expired in 1836.  He sat in the United States House of Representatives, 1823–31, where he aligned himself politically with John Quincy Adams. In 1833 Crowninshield served one final term in the Massachusetts House before retiring to Boston, where he died.

    George Crowninshield & Co.

  Benjamin’s brother’s company founded by their father George Crowninshield.

    Jacob Crowninshield

  Representative in U.S. Congress. Spits up blood in session and dies 5 days later in 1808. The once family lawyer Joseph Story will usurp Benjamin Crowninshield from the seat. Many strange deaths surround Story and his brother-in-law Stephen White. Jacob brought the first elephant to America. He did not understand how much an elephant could drink on board ship, so he preserved what was left for the sailors. In turn he gave her all of the beer on the ship. Once at port in NYC she was slightly pink from the alcohol. Pink elephants…Later the Stoned Elephant, Old Bet,would travel the country drinking bottles of beer she would uncork to drink for a nickel. A dime and she would drink the whole keg.

    William “Billy” Gray Jr.

  Started in Elias Hasket Derby Sr.’s counting house. He moved the Sun Tavern which was Benjamin Brown’s old house to the corner of Liberty and Essex Street. On the spot he will build his fine mansion that would become the Essex House hotel after he makes his leave to Boston. William Brown was also a loyalist who lost his property on Derby Square.  Lucy Brown would retain it so her father-in-law Elias Hasket Derby Sr. could build his wife the grand mansion there.

  After supporting Jefferson in the Embargo Act and keeping the sailors in town who suffered from it well fed, he was forced to remove to Boston.  During such time the country was poor and needed volunteers to gather subscriptions to build ships. Gray and Derby Sr. were behind the efforts to raise the money for the Salem Beverly Bridge, the aqueduct from Danvers with Joshua Ward,  and  for the USS Essex in 1799. During the War of 1812 David Porter would be captain of the ship.

  In his first biography Porter would tell of his genocides of native people in the Pacific and  the massacres of English sailors on whaling ships on the Pacific during the War of 1812. Then the Navy will rewrite his biography and gloss over these facts.

  Yes your history was correct, the War of 1812 was fought on the Atlantic and the west coast of North America was English, Russian, and Spanish. Admiral Farragut who served under Porter would later go on an massacre natives following his example.

  He was appointed a director to the Boston Branch of The Second Bank of the United States in 1815. Previously he was a director in The First Bank of the United Sates with George Cabot. In 1817 Gray was President of Discounts and Deposits of the Boston Branch. Also he was an agent to sell shares with Essex Junto Israel Thorndike and Thomas H. Perkins for the bank. His apprentice Joshua Bates would become a partner in Baring Brothers Bank who was also connected to associate director Thomas H. Perkins. Bates would purchase large amount of shares for his English bank. William Gray  Jr. would continue on to a be a senator from Boston and die the richest man in New England.

   John Treadwell (1738-1811)

  Moved to Salem where he became a state senator and judge of the Court of Common Pleas.

     Joseph Waters

  Appointed Navy agent to build the frigate Essex with Enos Briggs the master builder.

    William Prescott Jr. (1762-1844)

  William Prescott Jr. was a representative from MA who attended the 1814-15 Hartford Convention.  Prescott was the only child of American Revolution leader Colonel William Prescott, who served at  Bunker Hill in 1775. William Prescott, Jr., graduated from Harvard in 1783, and then taught at Brooklyn, Conn. and later at Beverly, MA. He passed the bar exam in 1787 after studying law in Beverly with Nathan Dane. Dane had taught Daniel Webster at Dartmouth.  Webster and Dane attended the secessionist Hartford Convention with him. Prescott founded a law practice in Beverly.

  In 1789, he moved his practice to Salem where he became a well-known attorney. He represented Salem for several years in the MA Legislature.  He was elected a state senator by the Federalist Party in 1806 and 1813.  He twice declined a seat on the bench of the Supreme Court of Massachusetts.  In 1808 he moved to Boston and was for several years a member of the Governor’s Council. In 1815 he became a fellow of the American Academy of Arts and Science.

  His son William H. Prescott became a well known historian and traveling partner to John Quincy Adams in Europe.  In Europe he met Queen Victoria, Robert Peele, and the Duke of Wellington. Prescott was Justice of the Peace with Stephen White and Daniel Webster in Boston in 1835.

  In 1849 spoke to Daniel Webster to keep Nathaniel Hawthorne’s post in the Custom House. He was on the original board of the Perkins School for the Blind with Israel Thorndike, William Balch Parker, Thomas H. Perkins, and Benjamin Pickman. Many were members of the Salem Common Subscriber Fund. If you were going to make secret tunnels in Boston, I guess it would be great to have a building of blind people not knowing what you were doing…

  In America he met Zachary Taylor and James Polk,  two presidents that would die from Typhoid. As a friend of Daniel Webster, I wonder if  he had access to Polk and Taylor’s food… He did sit next to Taylor and feigned off suggestions about a history of the Mexican War in which Taylor was a hero in 3 months before Taylor was to die of Typhoid. Before he dined with Taylor he was at Henry Clay Sr.’s table. This was in April of 1850. Right before visiting Taylor, Prescott would suffer a stomach ailment before traveling. I believe Taylor might have been ill after his visit, but he would not catch the Typhoid that killed him until July 4th.

    William Carlton

Salem Register was a Republican-Democratic paper that ran against the Salem Gazette which was a Federalist paper. Rev. William Bentley and Joseph Story wrote in it. It started in 1800 and ran till 1911 with different names. The press that was used to print it was paid for by the Crowninshields. He chided the town Federalist for not supporting John Adams enough after the Essex Junto jumped ship to Hamilton. His newspaper led to the failed congressional campaign of the Essex Junto’s leader Timothy Pickering against Jacob Crowninshield of the Stoned Elephant fame.

  He was jailed for libel under the times of the Alien & Sedition Acts for statement against it’s drafter Timothy Pickering stating it was hard to believe he did not take bribes from the British.  He was sentenced to 2 months in prison and 2 years of bonds that secured his silence. He was a hard drinker in poor health and jail did not help matters any.  He succumbed to the stress of 2 more Federalists suits and fines. A fine for having his print shop open on a Sunday. Then another libel suit from Timothy Pickering. All of this would lead to his death 2 years after being released from jail. His wife followed soon afterward. Democratic-Republicans tried to alter the state libel law in 1804 but failed.

    Benjamin Webb

  1851 director of Merchants Bank when it resided in his building.  Owned the Sun Tavern, the tavern the smugglers drank and dined in. Currently the offices of the Peabody Essex Museum on Essex Street.

    Isaac Osgood

  Brewer. Alexander Hamilton petitions congress to grant him a loan for brewing malt liquors. Could he be a member of Essex Junto and provide them with their ale? On the government cuff?

    Joshua Ward

    Member of the Salem Marine Society. Married Edward Augustus Holyoke’s daughter. His mother was a Derby. He lent rooms in his home to the Essex Lodge once they reestablished themselves after the Revolutionary War.  The Mason George Washington would stay in his home on the second floor and walk through his tunnel to the Stearns Building which held the Assembly Hall where a party was given in his honor where the Fountainside Diner resides now on the corner of Washington and Essex.  His house was built on the site of Sheriff Curwin’s home in which he was buried under the stairs until his wife could pay off the lien on his body. Ward was also a distiller.

    Abel Lawrence

  Distillery was in Lawrence Place. A place not haunted but filled with spirits.  He was the 4th captain of the Essex Cadets. He was the Master Mason after Joseph Hiller in the Essex Lodge. His home was across the street from the Lodge and Joshua Ward House. He provided the Mason’s strong drink with duty free molasses…when Ward ran out he just had to run across the street.

    Israel Dodge

  Another distiller.

   John Norris

  Left fortune to Andover Theological Institution. Distiller…

    Jonathan Hodges

  You guessed it… distiller. Father of Benjamin Hodges who founded the Salem East India Marine Society. The society that started the Peabody Essex Museum.

    Nehemiah Adams

  Wood worker who burned down 3 shops. One on the Common that burned down in 1798. Maybe he drank too much fire water from the group above. His son was Nehemiah also. He was a pastor and writer. Many of Senior’s furniture was moved into the Winterthur House after Frank Crowninshield marries Louisa Dupont around WWI. Frank owned Benjamin Crowninshield’s house on Peach’s Point Marblehead. The house is gone but the chasm from the ocean they would smuggle under the house remains.

  Joseph Hiller (147-1817)

  Appointed from 1789 to 1802 as Collector of Customs for Salem and Beverly MA in Salem MA. First Master of the Essex Lodge after the Revolutionary War. Lodge met in Joshua Wards House. Silversmith and watch maker. His father performed electrical experiments near the Old Meeting House in Boston and was a silversmith as well. Married Margaret Cleveland.

    Rev. Charles Cleveland (1772-1872)

  Father of Charles Dexter Cleveland, was born in Norwich, Connecticut. Introduced by an uncle to Salem. He would fulfill his seaman apprenticeship around the Cape of Good Hope. He later served as a deputy collector at the Salem custom house until 1802. He would step down the same year Joseph Hiller was removed from his post.

  Charles next became a clerk in Charlestown for seven years and subsequently launched his own brokerage business in Boston, Massachusetts. He changed careers again to become a senior partner in the dry-goods firm of Cleveland & Dane from 1822 until 1829. Charles then returned to working as a broker for approximately five years, which he followed with his complete abandonment of the business world in order to devote himself full time to charitable works.

     In 1816 he organized the Society for the Moral and Religious Instruction of the Poor at his home. He also labored to collect funds for a mission-house, which was dedicated in May 1821 and in 1830 became a missionary to the Boston poor. Charles received a license to preach in 1835 and was ordained an evangelist on July 10, 1838. Throughout his life, Charles, who eventually became known as “Father Cleveland,” continued to engage in charitable works, including serving as the Chaplain at a House of Correction for both men and women. Rev. Charles Cleveland died on June 5 1872, just sixteen days short of reaching his one-hundredth birthday.  He was the granduncle of President Grover Cleveland.

    Penn Townsend

  Privateer in the war of 1812. Owned the Alexandria from Maryland with Joseph J. Knapp Sr. and Joseph White. Also the Helen and the Dolphin from Georgetown with Joseph “Jr.” White and Joseph J. Knapp Sr.  Owned a few ships without the Whites but with Joseph J. Knapp Sr. His ties were closer to the Knapps than the Whites because he owned 3 more ships with Joseph J. Knapp Sr. without any of the Whites. He was a Mason and a 2nd Lieutenant on a revenue cutter for the Boston Custom House.

    John Gibaut

  Collector for the port of Gloucester.

    Henry Prince

  Bought the Derby House and the West India Good Shop in front of it. His son was a captain of a revenue cutter in the harbor.

    James Cheever

   Jefferson appointed official in the Custom House.

    Elijah Haskell

One arm custom inspector.

    Henry Tibbets

  Inspector of Customs.

  Bartholomew Putnam

  Surveyor of Port who lived where the East Church was built. Now the Salem Witch Museum.

    Edward Augustus Holyoke (1728-1829)

   Third President and founding member of the American Academy of Arts & Sciences. He was president of the Massachusetts Medical Society which created the New England Journal of Medicine which he penned several articles for. He was the first dean of Harvard Medicine. He trained close to 40 doctors. He started the 2nd savings bank in the country. An early proponent of inoculation against smallpox, it is estimated he vaccinated 600 persons during his career against the dreaded disease. Traveling by horseback, chaise, or on foot, Holyoke over the next 80 years would cover an estimated one-and-a-half-million miles and make approximately a quarter-of-a-million house calls.

   He was a founder of both the Social and Philosophical libraries in Salem, and was a driving force in the merger of these two institutions into the Salem Athenaeum in 1810 that also proffered by the Irish chemist’s library that Bowditch loved.  He was also an incorporator of the Essex Historical Society, later the Essex Institute, in 1821.

  Also he looked like my grandmother in drag. My grandmother and him share the succession of Edward’s in their family trees, originate from the same area of England, and both were in the medical profession as my grandmother scored best in her nursing school. So if there is reincarnation, my grandmother beat me to town. I showed his painting in the Essex Institute to my father, he was skeptical. My mother, the daughter-in-law, mouth dropped and she said in a gasp, “Oh Shit! She is back!”

   Jonathan Waldo & Son

  Apothecary owner in the Stearns Building. Major in second Cadets. Renovated Fort Pickering with brick arched corridors. Later uses this experience to help engineer a new tunnel system using brick arches over granite flat tops. Grand Uncle to Ralph Waldo Emerson.

  Benjamin Lynde Oliver Jr. (1760-1835)

  The Rights of an American Citizen: With a Commentary on State Rights, and on Constitution and Policy of the United States 1832…authored. Physician.  Andrew Oliver was his father. His siblings were Peter and Sarah. Studied law under Joseph Story.  1813 tutored Hawthorne. Could have been MA Superior Court Justice and was an excelled chess player. His mansion was built by Justice Lynde whose son would live in it as well before Oliver. It was erected in 1700 taken down in 1836. Dr. Benjamin Lynde lived in that house next till he died in 1835. His estate sells his organ to St. Peter’s Church. Oliver’s Hollow or Cellar, only thing remaining, was standing on the corner of Liberty and Essex from 1836-1844.

  That cellar they filled and made a garden of it. Kids used it as cut across from Essex to Liberty. John Kinsman buys it after Oliver and builds the first Lynde Block…3 stories.

  Mary Oliver

  Dies 1807. Her son is Dr. Benjamin Lynde Oliver. It was a family affair, these tunnels…

    Peter Oliver

  Deranged 1821 and gives estate to Col. Abel Lawrence, head Mason, distiller, and another smuggler.

   Samuel Webb

  Deranged silversmith.

   

   Walter Bartlett

  Deranged auctioneer.  Is there a pattern…

   Joshua Orne

  The site where City Hall is on his lot. One of many buildings in town connected to tunnels. Joseph Cabot, gives up the house he inherited through the Orne’s to build City Hall.  Cabot changes the name of Orne’s Point to the Cabot Farm I believe. A place of many tunnels and the brickyard that built them. Timothy Pickering bought 200,000 bricks in one order from there.

   John James Scobie

  Master mariner turned dry goods merchant from Scotland marries Jonathan Mason’s daughter.  Had dry goods store in the Wakefield Place connected to the tunnels on the location of the Hawthorne Hotel.

    Amos Hovey

  Also had a dry goods company in Wakefield Place and prospered from the tunnels connected to the building. A military man who owned a warehouse on Union Wharf.

    John Norris

  Norris hired Jonathan Goodhue. Later Goodhue & Co. were confidential correspondents of Baring Brothers.

    Nathaniel Bowditch  (1773 – 1838)

  An early American mathematician remembered for his work on ocean navigation.  Serendipity aided Bowditch’s autodidact study inasmuch as he found himself able to use the eminent Irish chemist Richard Kirwan’s library;  a privateer from Salem known as the Pilgrim had intercepted the ship carrying the library between Ireland and England and brought the library back to Salem in June 1791.

  In 1795, Bowditch went to sea on the first of four voyages as a ship’s clerk and captain’s writer. In 1799 elected to the Academy of Arts and Sciences. His fifth voyage was as master and part owner of a ship. Following this voyage, he returned to Salem in 1803 to resume his mathematical studies and enter the insurance business.  In 1804, Bowditch became America’s first insurance actuary as president of the Essex Fire and Marine Insurance Company in Salem.

  By 1819, Bowditch’s international reputation had grown to the extent that he was elected as a member of the Royal Societies of Edinburgh and London. He  also was a member of the Royal Irish Academy.

  In 1823, Bowditch left the Essex Fire and Marine Insurance Company to become an actuary for the Massachusetts Hospital Life Insurance Company in Boston. There he served as a “money manager” for wealthy individuals who made their fortunes at sea, directing their wealth toward manufacturing. Towns such as Lowell, MA prospered as a result.

  Bowditch’s move from Salem to Boston involved the transfer of over 2,500 books, 100 maps and charts and 29 volumes of his own manuscripts.

  Bodwitch is often credited as the founder of modern maritime navigation; his book The New American Practical Navigator first published in 1802, is still carried on board every commissioned U.S. Navy vessel.

Daniel Hathorne

  Mason. Father of Nathaniel Hawthorne. Dies at sea in 1805. Same year subscriber David Patten dies at sea.

   William Manning

  Nathaniel Hawthorne’s uncle and benefactor. Owned the stage coach company in town. His brother Robert owned the nursery near Orne’s Point. This Dutch Colonial cottage was built by Nathaniel Hawthorne’s maternal uncle Robert Manning for his widowed sister, and Nathaniel lived there with his mother after his graduation from Bowdoin College. The cottage was then across and down the street from its present location, adjacent to Manning’s own house and famous nursery, orchard and garden which is part of Greenlawn Cemetery now.

   Richard Manning

  Another uncle of Hawthorne. Money lender, captain, and justice of the peace. His house was removed to build the Phillip’s School which was the location for Hocus Pocus scene in which the kids burn the witches in the furnace. My neighbor used to teach in that school. After knowing her for 15 years I realized that she was retired longer than I was alive…

    Jonathan Gardner Jr. (1755-1821)

  Founder of the Salem Marine Society that still retains their clubhouse on top of the Hawthorne Hotel. A property sold to Frank Poor of Sylvania to fulfill his wishes to have a hotel for his business clients in town. They received the Franklin Building which was once called Wakefield Place from the drug lord Thomas H. Perkins.

  Jonathan was a privateer during the French Indian War and commander of minutemen in the Revolutionary War. His ancestor Joseph Gardner died in the Great Swamp Fight during the King Phillip War and his widow Ann Downing will marry Simon Bradstreet, governor,  and move the Gardner home from Gloucester across the street where I wrote a few books. Ann would become America’s first poet.

  Jonathan Gardner Jr. would suffer financial losses and sells 2 properties that were connected to the tunnels in town to Joseph White who would be murdered in the second house he purchased.

    John Watson

  Maternal great-grandfather of the Parker Brothers. I used to live on his old farm lot and found a marble his great-grandsons could of played with.  Beacon Street was once East Watson Street. One of the many properties he had owned off Bridge Street.

    Joseph Knapp Sr.

  Sons will be hanged for the murder of Joseph White. The game Clue will include rope as a murder weapon to represent his innocent sons hanging. Also the lead pipe is for the real murderer’s weapon Stephen White used and the Scottish dagger his accomplice and blackmailer used to stab White 17 times producing no bloodstains on the sheets in the bed his uncle was murdered in. Knapp will try hanging himself during his son’s trial. His wharf was Union Wharf. He had bought the murdered man’s ship the Revenge years before. He had owned many ships with Joseph White and his nephews.  Then the  Pirate Phillips took the ship Revenge. An insult Joseph White could not stand for, as a widower he treated that boat as his only child and was jealous that Knapp had a child who would continue  his name.  As well as White’s other business partner Richard Crowninshield Sr. had insulted him. His son will be found in his cell hanging from a low window with his knees almost on the ground. One of Richard Crowninshield’s sons would be hanged for White’s murder and two of Knapp’s sons.

   Joseph White

  His murder is the premise of the Parker Brother’s version of Clue. The rooms of his mansion appear on the board and the secret passages represent the tunnels leaving the house. He was Salem’s first privateer, a man who loved revenge, and a slave trader who would sell anyone of any color. Owned many shares in The Second Bank of the United States his nephew Stephen will inherit. Once partner to Joseph Knapp Sr. and Richard Crowninshield Sr.

    Benjamin Hodges

  Was a master of the Essex Lodge of Masons. He was the first president of the Salem East India Marine Society, the society whose collection is part of the Peabody Essex Museum now.  His father’s house on the corner of Orange and Essex Street had a tunnel running from the Derby House and another down to Union Wharf which is Pickering Wharf today. The trapdoor in the kitchen might be the last open connection to the vast tunnels in town.

  Also the distance between his house and the Derby’s is the length between his house and Brigg’s and Silsbee’s mansion on the Common. The same distance from Silsbee’s to Cook-Kimball and David Lord’s houses on Pickman Street. Two mansions of great size will be built next to each other all over Salem separated by that distance. The size of the mansions would be used to hide the extra purchases of the bricks to go that stretch.

  Most members of the Salem East India Marine Society were members of the Salem Marine Society. A friendship that still continues for if you want liquor at the Peabody Essex East India Marine Hall you have to have it supplied by the hotel below the Salem Marine Society’s clubhouse.

  Joseph Vincent

  First Steward of renewed Lodge in the Joshua Ward House. Elias Hasket Derby Jr. Senior Warden.  William Bentley Junior Warden. Joseph Hiller Master Right Worshipful and Head of Customs. Vincent owned a ropewalk on the Common next to Thomas Brigg’s ropewalk. If the project called for it they would join ropes from one ropewalk to  the other as they did when they made the rope for the anchor of the USS Essex. Grand parties would be held in the Common for the rope walks and buffets would be stretched the grand distance of their establishments for their employees.  First brought Henry Clay Sr. to New England to discuss the economic advantages of hemp over jute or sisal in making rope for riggings. This visit might of introduced him to John Quincy Adams who he serves under as Secretary of State. He was a Revolutionary War Hero. His son Joseph K. Vincent becomes a judge in Idaho.

    Jeduthan Upton Jr.

  Upton was exchanged for another prisoner and returned to Salem, Mass. on July 9, 1813.  Marries Jessie Smith’s daughter. Smith was the last of Washington’s bodyguards to die.

    Israel Williams

  First captain of Friendship. Captain of the Cadets.

    Aaron Waite

  Partners with Jerthmael Pierce in the ship Friendship. Their wharf was off the old North Street Bridge. Carlton’s bridge washed up against their wharf from Felt Street during the Great High Tide.

  Jerthmael Pierce

  Partner in Pierce & Waite

   Samuel Skerry

  Kicked in head by a horse in 1808 in  his 36th year.

   Nathaniel West

  Suffered one of the worst divorces in history. He wished he was kicked in the head by a horse instead.

To find out more and other fabulous stories about how Salem, MA shaped American History read Sub Rosa by Christopher Jon Luke Dowgin published by Salem House Press.

So How Does the Federal Reserve Work

George Peabody in Salem MA

How is Your Money Made….

 Do You Know Jack ….?

  The U.S. Treasury looks for loans by selling Treasury Bonds Bills, Notes, and Securities. They sell these to primary dealers. A primary dealer is a bank or securities broker-dealer who can  trade directly with the Federal Reserve after purchasing Treasury Bonds or Securities or sell them to the public. They also make bids or offers on open market operations and provide information to the Fed’s open market trading desk. They consult with U.S. Treasury and the Fed about the budget deficit and implementing monetary policy. Primary dealers can work at the Treasury because of their expertise in the government debt markets, but the Federal Reserve avoids a similar revolving door policy.

  The trading between primary dealers, called inter-dealer trading.  Located on floors 101 to 105 of One World Trade Center was Cantor Fitzgerald, the single largest inter-dealer broker, who alone controlled 25% of the volume in securities. On 9-11 $500 billion in repos and $80 billion in securities had been traded but the settlement instructions were burned Fed regulators worked many long, over-time hours to accomplish to salvage records of these sales.

   All of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of foreign exchange trading volume. Who are the primary dealers whose job is to distribute U.S. Debt? Daiwa Securities and Mizuho Securities distribute the debt to Japanese buyers. BNP Paribas, Barclays, Deutsche Bank, and RBS Greenwich Capital (a division of the Royal Bank of Scotland) distribute the debt to European buyers. Goldman Sachs, and Citigroup account for many American buyers. Most of these firms compete internationally and in all major financial centers. Citigroup was First City National Bank which was influential in the early formation of the Federal Reserve during the period of Stillman and Fifi’s divorce years. After the 2008 Financial Collapse the Federal Reserve set up the Primary Dealers Credit Facility (PDCF), whereby primary dealers could borrow at the Fed’s discount window using several forms of collateral including mortgage-backed loans.

  The Primary Dealers today are:

  • Bank of Nova Scotia, New York Agency
  • BMO Capital Markets Corp.
  • BNP Paribas Securities Corp.
  • Barclays Capital Inc.
  • Cantor Fitzgerald & Co.
  • Citigroup Global Markets Inc.
  • Credit Suisse Securities (USA) LLC
  • Daiwa Capital Markets America Inc.
  • Deutsche Bank Securities Inc.
  • Goldman, Sachs & Co.
  • HSBC Securities (USA) Inc.
  • Jefferies LLC
  • J.P. Morgan Securities LLC
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated
  • Mizuho Securities USA Inc.
  • Morgan Stanley & Co. LLC
  • Nomura Securities International, Inc.
  • RBC Capital Markets, LLC
  • RBS Securities Inc.
  • SG Americas Securities, LLC
  • TD Securities (USA) LLC
  • UBS Securities LLC
  • Wells Fargo Securities LLC

   J.P. Morgan and Morgan Stanley & Co. continue George Peabody’s tradition today selling state securities abroad. They also follow his steps to make a perfect panic. Both corporations were fined for orchestrating the 2008 Financial Scandal among other crimes recently. The largest fine only equaled about 13% what they could make in one year.

  The Bank of Nova Scotia is rumored to have been robbed after September 11th when World Trade Center Building 4 was compromised. The long tunnel that was converted over from a PATH way that serves as its entrance was in the film Die Hard 3. Although in the film it was the Federal Reserve NY branch and New York City Water Tunnel #3.

  Wells Fargo is owned by Kuhn, Loeb & Co. and linked by the Schiffs  to N.M. Rothschild & Sons.

  Who prints the Federal Reserve notes? Crane & Company. Winthrop Murray Crane was an advisor to Presidents Theodore Roosevelt and William Howard Taft, and served as a political mentor to Calvin Coolidge who gave his firm the contract.

  Stephen Crane was the first in the Crane family to make paper. “The Liberty Paper Mill” opened  in 1770. They sold currency-type paper to engraver Paul Revere, who printed the American Colonies’ first paper money.  Crane embed parallel silk threads in banknote paper to denominate notes and prevent counterfeiting in 1844. In 1879, Crane grew when Winthrop M. Crane won a contract to deliver U.S. currency paper to the Bureau of Engraving and Printing in Washington, D.C. In 1922, Crane & Co. incorporated, with Frederick G. Crane elected as president. Dixon also came up with an anti counterfeiting practice.

  What is the discount window and how do banks profit?

  When the government needs money for their budget they print Treasury Bonds, Bills, and Notes. The Primary Dealers buy them and sell them to the Federal Reserve, other nations, and large corporations.  At other times the Federal Reserve sells the securities to the Primary Dealers.  The Primary Dealers buy them from Treasury Automated Auction Processing System (TAAPS).  The dealers who bid on the largest amount of the debt with the lowest yield wins the portion they bid on. They then sell these to the Federal Reserve at a higher yield.

   Then the Federal Reserve prints new money and digitally increase their accounts. They then lend this money to banks throughout the nation at a higher yield. On top of that they hold 10% of all the money they sell to the banks. Example…The Federal Reserve prints up $10 billion in new bills, and they credit an additional $90 billion in readily liquefiable accounts. So you think it stops there with $100 billion, but you would be wrong…

  Now all of that extra $100 billion enters banking reserves. So your bank borrows a million. They now have $900,000 to lend out. Ten percent of what they borrowed is held by the fed who pays them 2.5% interest. Yes the Fed pays your bank 2.5% interest for borrowing money. Now your bank makes more money that enters circulation. They can lend out $10 million. So if they issue you a loan and you make a purchase, the buyer receives the money from the bank and now it enters circulation when they make purchases. So, in a fractional reserve banking system, like the Fed, new loans actually create even more new money. With a legally reserve ratio of 10%, the new $100 billion in bank reserves could potentially result in a nominal monetary increase of $1 trillion by all the banks lending out 10 times the money they borrowed.

  Then you have inflation. It only starts with the government spending more than they receive in taxes and other funds. They are like the fleas on Norwegian Brown Mice that bite you, the Federal Reserve and the bankers are the ones who really spread the plague.

  It is a slight of hand. The government didn’t raise your taxes, it just stripped your buying power of every dollar. Every year it gives you an invisible pay cut. Crafty fingers are no longer needed to pick pocket you.

   So who owns the debt? Well there is public debt and intergovernmental holdings. On November 7, 2016, debt held by the public was $14.3 trillion or about 76% of the previous 12 months of GDP.  Of that debt 55% is held by state and local pensions and mutual funds. The remaining 24% is held by foreign government and investors. $1.5 Trillion is held by China and $1.25 Trillion is held by Japan. Third is Ireland who owns $271 million. Go figure the Cayman Islands is fourth. Brazil is Fifth and the United Kingdom is 8th.

  The Bank of England’s plan escaped them? The nation they fought during the Opium War usurp them in holdings of our national bank.  Well Americans sold a lot of Opium to them too, but in truth it probably was the old New England shipping families and bankers who continued their trade of shipping goods over manufacturing that have did us in.

  The yield on 10 year Treasury Notes set the Federal Fund Rate that sets the PRI or Primary Rate Interest for banks. Also there is overnight and 9 month lending through the Discount Window. Depending on a bank’s liquidity and trust they can borrow at the primary or secondary credit rate. The Primary Rate is 1% higher than the Federal Fund Rate. A bank borrows from the Federal Reserve overnight to remain liquid during internal or external disturbances like transferring money between their internal accounts and external accounts with other banks. So say a bank borrows $10 million overnight the Federal Reserve can create $100 million more until the debt is paid.  Also banks can borrow at a seasonal rate which is closer to the Federal Fund Rate for a week or 30 days. Plus the Discount Window can act as lender of last resort during emergencies to prevent bank runs.

   Repos? The Federal Reserve buys $1 billion repo to inject reserves today from a bank to pay back tomorrow. Under such arrangement the bank promises to buy it back. So imagine they borrow $1 Billion, another one tomorrow and an additional one the next day, $3 billion will have been injected, but $2 billion will have expired by the third day.  Bank reserves are only $1 billion above previous levels, since the first repurchase agreement expired on the second day, the second one expired on the third day and so on.

  So in short that is how money is created out of thin air.

To find out more and other fabulous stories about how Salem, MA shaped American History read Sub Rosa by Christopher Jon Luke Dowgin published by Salem House Press.

Limited Collector’s Preview Edition

Sub Rosa The Sequel to Salem Secret Underground: The History of the Tunnels in the City

 

Don’t miss your opportunity to get these rare copies. Be the first to find a typo, a smudge, or a section of type that might not make it to the final copy of the book. Strange as it sounds, people love the books in which they can find a flaw.

Do know any copies bought on Amazon.com within the next two weeks will be the Advance Readers Editions which would have these limited errors. Then after the next two weeks, everyone gets the same book. The next million copies will be the same. Yes I did say Advance Reader’s Editions!  In the next two weeks, I might upload three or four revisions. So you might get lucky and purchase the one and only printing of that revision…

It is the luck of the draw and you only have two weeks from the date this post was…posted. Read the latest posts in our blog to get a taste of the stories in the book. So Good Luck and enjoy the book!

Click Here to Get Your Copy Now!

Cover to the book Sub Rosa which is about Tunnels in Salem and those who built them.

How the Federal Reserve Work? I Bet You Don’t Know…

Federal Reserve

So how does the Federal Reserve work?

The U.S. Treasury looks for loans by selling Treasury Bonds Bills, Notes, and Securities. They sell these to primary dealers. A primary dealer is a bank or securities broker-dealer who can trade directly with the Federal Reserve after purchasing Treasury Bonds or Securities or sell them to the public. They also make bids or offers on open market operations and provide information to the Fed’s open market trading desk. They consult with U.S. Treasury and the Fed about the budget deficit and implementing monetary policy. Primary dealers can work at the Treasury because of their expertise in the government debt markets, but the Federal Reserve avoids a similar revolving door policy.

The trading between primary dealers, called inter-dealer trading. Located on floors 101 to 105 of One World Trade Center was Cantor Fitzgerald, the single largest inter-dealer broker, who alone controlled 25% of the volume in securities. On 9-11 $500 billion in repos and $80 billion in securities had been traded but the settlement instructions were burned Fed regulators worked many long, over-time hours to accomplish to salvage records of these sales.

All of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of foreign exchange trading volume. Who are the primary dealers whose job is to distribute U.S. Debt? Daiwa Securities and Mizuho Securities distribute the debt to Japanese buyers. BNP Paribas, Barclays, Deutsche Bank, and RBS Greenwich Capital (a division of the Royal Bank of Scotland) distribute the debt to European buyers. Goldman Sachs, and Citigroup account for many American buyers. Most of these firms compete internationally and in all major financial centers. Citigroup was First City National Bank which was influential in the early formation of the Federal Reserve during the period of Stillman and Fifi’s divorce years. After the 2008 Financial Collapse the Federal Reserve set up the Primary Dealers Credit Facility (PDCF), whereby primary dealers could borrow at the Fed’s discount window using several forms of collateral including mortgage-backed loans.

The Primary Dealers today are:

  • Bank of Nova Scotia, New York Agency
  • BMO Capital Markets Corp.
  • BNP Paribas Securities Corp.
  • Barclays Capital Inc.
  • Cantor Fitzgerald & Co.
  • Citigroup Global Markets Inc.
  • Credit Suisse Securities (USA) LLC
  • Daiwa Capital Markets America Inc.
  • Deutsche Bank Securities Inc.
  • Goldman, Sachs & Co.
  • HSBC Securities (USA) Inc.
  • Jefferies LLC
  • J.P. Morgan Securities LLC
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated
  • Mizuho Securities USA Inc.
  • Morgan Stanley & Co. LLC
  • Nomura Securities International, Inc.
  • RBC Capital Markets, LLC
  • RBS Securities Inc.
  • SG Americas Securities, LLC
  • TD Securities (USA) LLC
  • UBS Securities LLC.
  • Wells Fargo Securities LLC.

J.P. Morgan and Morgan Stanley & Co. continue George Peabody’s tradition today selling state securities abroad. They also follow his steps to make a perfect panic. Both corporations were fined for orchestrating the 2008 Financial Scandal among other crimes recently. The largest fine only equalled about 12% what they could make in one year.

The Bank of Nova Scotia is rumored to have been robbed after September 11th when World Trade Center Building 4 was compromised. The long tunnel that was converted over from a PATH way that serves as its entrance was in the film Die Hard 3. Although in the film it was the Federal Reserve NY branch and New York City Water Tunnel #3.

Wells Fargo is owned by Kuhn, Loeb & Co. and linked by the Schiffs to N.M. Rothschild & Sons.
Who prints the Federal Reserve notes? Crane & Co. Winthrop Murray Crane was an advisor to Presidents Theodore Roosevelt and William Howard Taft, and served as a political mentor to Calvin Coolidge received the contract to print them.

Stephen Crane was the first in the Crane family to make paper. “The Liberty Paper Mill” opened in 1770. They sold currency-type paper to engraver Paul Revere, who printed the American Colonies’ first paper money. Crane embed parallel silk threads in banknote paper to denominate notes and prevent counterfeiting in 1844. In 1879, Crane grew when Winthrop M. Crane won a contract to deliver U.S. currency paper to the Bureau of Engraving and Printing in Washington, D.C. In 1922, Crane & Co. incorporated, with Frederick G. Crane elected as president. Dixon also came up with an anti counterfeiting practice.

What is the discount window and how do banks profit?

When the government needs money for their budget they print Treasury Bonds, Bills, and Notes. The Primary Dealers buy them and sell them to the Federal Reserve, other nations, and large corporations. At other times the Federal Reserve sells the securities to the Primary Dealers. The Primary Dealers buy them from Treasury Automated Auction Processing System (TAAPS). The dealers who bid on the largest amount of the debt with the lowest yield wins the portion they bid on. They then sell these to the Federal Reserve at a higher yield.

Then the Federal Reserve prints new money and digitally increase their accounts. They then lend this money to banks throughout the nation at a higher yield. On top of that they hold 10% of all the money they sell to the banks. Example…The initial expansion of deposits and reserves will lead to an expansion of 10 times $10 million because each dollar of reserves will support roughly 10 times that amount in deposits. So now there is $100 million more in circulation.
When your bank receives the other 90% of the money ($90 million) they borrowed they lend it to you at a higher yield. They credit your account and when you make a purchase the money is circulated. So in this example the Federal Reserve has made magical money that grows on trees. They start with $10 million they owe interest on and turn it into more than $100 million. Impressive…

Well now your bank can lend 90% of what they borrowed to other banks and those banks can lend 90% of that amount, and so on….

Then you have inflation. It only starts with the government spending more than they receive in taxes and other funds. They are like the fleas on Norwegian Brown Mice that bite you, the Federal Reserve and the bankers are the ones who really spread the plague.
It is a slight of hand. The government didn’t raise your taxes, it just stripped your buying power of every dollar. Every year it gives you an invisible pay cut. Crafty fingers are no longer needed to pick pocket you.

So who owns the debt? Well there is public debt and intergovernmental holdings. On November 7, 2016, debt held by the public was $14.3 trillion or about 76% of the previous 12 months of GDP. Of that debt 55% is held by state and local pensions and mutual funds. The remaining 24% is held by foreign government and investors. $1.5 Trillion is held by China and $1.25 Trillion is held by Japan. Third is Ireland who owns $271 million. Go figure the Cayman Islands is fourth. Brazil is Fifth and the United Kingdom is 8th.

To find out more and other great stories from Salem and how that little city shaped America read Sub Rosa which is available at Barnes & Noble, Amazon.com, and your local bookseller!

Salem Secret Underground and The Salem Smugglers’ Tour

Chocolate and Peanut Butter

Chris Dowgin Leading the Salem Smugglers' Tour

So what is down there? Within the pages of the book Salem Secret Underground: The History of the Tunnels in the City I tell you. The book is filled with pictures of the tunnels in the city. On the Salem Smugglers’ Tour I take you where the photos were taken and show you them on my tablet while going over the history of the people who built them.

So are any of these smugglers important today, or even then? Well lets take a look…

Joseph Story Smuggler in Salem MA

Man who shaped the Constitution, Associate Supreme Court Justice Joseph Story.

George Peabody in Salem MA

George Peabody orchestrated several economic panics with Rothschild in England. His bank is now called JP Morgan which orchestrated the 2008 Financial Collapse.

 

Timothy Pickering in Salem MA

Timothy Pickering was Secretary of State for Washington and Adams. He wrote the Alien & Sedition Acts which are now very similar to Homeland Security and the Patriot Act.

So these men were the politicians who shaped our country. Pickering was Washington’s general and Secretary of State who helped ratify the Constitution. Joseph Story shaped the Constitution with Daniel Webster. Both were in Stephen White’s pocket defending the Second Bank of the United States and their attempts to create what we call the Federal Reserve today. George Peabody founded the Rockefeller Foundation, sold the majority of shares in our national bank to foreign investors, collapsed our economy several times, founded what became JP Morgan bank, and bailed out the local museum which was renamed after him. He owned the Eastern Railroad that built the Gothic railroad station in town.

Elias Hasket Derby Jr.

Elias Hasket Derby Jr. spent the 10th Largest fortune in American history and extended 3 miles of tunnels in town.

 

Elias Hasket Derby

Elias Hasket Derby America’s first millionaire and tenth richest man in American history.

Who else? Elias Hasket Derby was America’s first millionaire and the tenth richest man in American history to this day. Beyond Gates and Buffet put together. He built a tunnel from his wharf, to his home, and to his cousin’s Hodges house who founded the Peabody Essex Museum. His son Eias Hasket Derby Jr. who extended the tunnels so 159 politicians and businessmen could avoid paying Jefferson’s duties. Thomas Perkins who’s opium empire spurred on the wealth of the Forbes, Russells, and Sturgis families. In fact the Russells purchase his land in New Haven and erect the Skull & Bones crypt on it. Russell will create the fraternity with Alphonso Taft who is President Taft’s grandfather.

How do I know these tunnels exist? Because I have been in them!

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Can I get you in…no! One day though so keep checking back, but for now there is so much more about this tour than witches. Stuff that still effects you today! Plus the tour is filled with vintage photos of town from the 1800’s, old car crashes, comedy, ghost stories and a famous murder!!!

40731 10202387671025682 East_India_Marine_Hall_3 Essex_Street_Mud_Puddle_Toys Original Almy's next to Pamplemousse 10202387802188961

Also you will learn how Stephen White who had the East India Marine Hall in the Peabody Essex built got away with murdering his uncle with the involvement of Supreme Court Justice Joseph Story and Secretary of State Daniel Webster. A murder that empowered them to murder presidents Harrison and Taylor to secure the Third Bank of the United States so George Peabody could sell more of our country away to the Rothschilds.

President Taylor. Second to president to be murdered because of the Third Bank of the United States.

President Taylor. Second president to be murdered because of the Third Bank of the United States.

 

President Harrison. Murdered by people in Salem.

President Harrison. The first president murdered by people in Salem.

Daniel Webster Murdered Two Presidents.

Daniel Webster who murdered two presidents in a failed attempt to create the Third Bank of the United States.

Here are some of the cool tunnels in Salem you will see in the book and on the tablet on the tour.

Crypts

Green-House-Tunnel-Stairs2

DSCN0255

From_Street

Registry_Tunnel

20140801_181704

Downing_Block_Me_Jail_Cell_Door2

Door that led to compartments runaway slaves could sleep in on the tunnel route in Salem, MA.

13.Downing_Block_Jail_Cell_Door2

Joshua_Ward_House_Far_Left_Tunnel_edited

Tunnel_Between_Buildings_Front

So book a tour today at http://www.salemtunneltour.com and head over to Barnes & Noble to buy Salem Secret Underground: The History of the Tunnels in the City. If you buy the book on the tour you will save $5 and will have it signed and doodled in by the author for no extra cost! What a deal!!

The Murder That Led to the Murder of Two Presidents

Revenge!

Joseph_White_House_Essex_St

Gardner Pingree House

128 Essex Street

Built in 1804-1805 for John Gardener Jr. by Samuel McIntire. Jeremiah Page provided bricks, David Robbins was the mason, Joseph Fogg the lumber, Epes Cogswell was housewright, and William Luscoomb III painter. Gardner had owned 6 ships. All but 2 had different captains and co-owners. He never captained any of his ships. The only economic venture he went on twice with anyone was with his relative Simon Gardener who had owned two ships with him and captained both. Next door was the site of the Captain Joseph Gardener home where the Plummer Hall now stands that houses the Essex Institute. The Captain was killed by Narragansets in 1675 at the Great Swamp Fight. At the Captain’s death his wife Anne inherited her father’s Emmanuel Downing’s house which is west of Plummer Hall and married Gov. Simon Bradstreet and lived there. This house was torn down in 1750 and Francis Peabody built his mansion. This book was written across the street from where the first American poet wrote her books, Anne Bradstreet.

Downing House Governor Bradstreet Mansion Salem MA where nn Bradstreet wrote her poetry

In 1811 John Gardner Jr. ran into financial problems and sold the house to Nathaniel West. Nathaniel West was a captain who owned many ships with Nehemiah Andrews, Crowninshields, Derbys, Benjamin Pickman, and Francis Boardman. Nathaniel West bought the John Turner mansion, next to the Peter Palfrey House to the right, opposite Central Street in 1833 and opened it as a tavern called “The Mansion house” in time for President Andrew Jackson’s visit. Later it would be called the “West Block”. Nathaniel West sold the Gardner-Pingree House three years later to Captain Joseph White. He was murdered in this house.

It’s raining, it’s pouring.
The old man is snoring.
He went to bed bumped his head,
and he couldn’t get up in the morning.”

Captain Joseph White who bought the “Come Along Patty” from Elias Haskett Derby with the Cabot brothers and renamed it the “Revenge” became the first privateer from Salem. He was in the slave trade. He had questionable feelings towards a young niece who lived with him. He hated the man whom she would marry and made a fortune which he was not going to give her any. In the winter of 1829-1830 Captain Joseph White was feeling ill and had his lawyer Joseph Waters draft him a new will. In 1830 someone snuck through the tunnel and murdered him. Not just once, but possibly on 3 separate occasions.

This murder would inspire Edgar Allen Poe’s to write the Tell Tale Heart. It is reminiscent of Agatha Christies’s Murder on the Oriental Express. The intrigue of the murder and the sudden death of Judge Parker might of led Parker Brothers to buy the U.S. rights to the 1949 Cluedo/Clue game because it reminded them of the strange tale that happened in this Salem house and the possible murder of their uncle the high Federalist Isaac Parker who was to hear the case! I wonder if it was a literature fan who moved the Crowninshield-Bentley House to the right from its old home in the Hawthorne Hotel’s parking lot. That house was in H.P. Lovecraft’s story The Thing on the Doorstep. Also Rev. Bentley wrote his memoirs of Salem in the Crowninshield- Bentley House.

Knapp Brothers with George Crowninshield
Captain Joseph White was not kind to his relations that had worked for him in his house. He only showed a special form of kindness to his young attractive grand niece. The announcement of her engagement to a captain that was just released from Joseph Jr. & Stephen White Co.’s employment just sent him into a furor. At 82 he has been abandoned by his grand niece for 3 years and is ill during a hard winter. His favorite nephew, Joseph “Jr.” White, has been dead for some years but his brother is still at the old captain’s side. Was Stephen jealous of the attention his uncle gave to his female cousin or the attention she deprived him? Did Stephen foster some hatred towards his uncle for favoring his dead brother over him? Did the old Captain plan a mercy killing that would gain him “Revenge” against two x-business partners who aggrieved him?

In 1827 Jospeh Knapp Jr., who’s father was a partner of Joseph White who lost his favorite ship the Revenge to the pirate Phillips, marries Mary Beckford who was having an affair with the wealthy grand uncle in hopes of producing an heir. This is the same year Stephen White loses his own wife.  At the end of the Embargo Act Richard Crowninshield insulted Joseph White publicly  after Napoleon captured 3 ships from Salem in Naples. Richard Crowninshield will loose his heir Richard Crowninshield Jr. by a rigged suicide while waiting arraignment for Captain White’s murder and so  Joseph Knapp will loose his two sons through the prosecution of Stephen White’s daughter’s father-in-law. All in the name of “Revenge”.

Stephen White rounds up the Committee of Vigilance which had no police or detective involved in its formation, but 27 scoundrels who were offered a $2,700 reward in the capture of the murderers.  April 27th the Knapp brothers have their carriage attacked heading back to Cherry Farm. In 1827 Joseph Knapp Jr. looses his mother,  marries Joseph White’s grand niece and lover, and Stephen White looses his wife. It has been 3 years since when the old man is murdered. Three months after the murder the high Federalist Isaac Parker who sits as the head of the MA Superior Court dies after saying three days prior he was never in better health and he has never missed a day on the bench in his whole career.  Daniel Webster then offers the Superior Court position to Stephen White’s brother-in-law Joseph Story who turns down the offer to remain on the Supreme Court bench in D.C. The man he does offer it to next takes the position, but can’t hear the case since he acquitted two men in the murder previously. Daniel Webster opposition in the case is an attorney who had won a case against him for libel in the past. With all of this funny business the Knapp brothers will be tried twice for the same crime and hanged.

William Henry Harrison

This cabal that was formed with the Joseph White murder goes on and protects the murder victim’s investments in the Second Bank of the United States. Daniel Webster and Joseph Story will become directors in the Second Bank of the United States. Story will defend the bank in the Supreme Court.  Democrat Joseph Story would turn on Andrew Jackson in 1836 after he does not renew the charter for the Second Bank of the United States. Afterward there will be an assassination attempt against Jackson because of the bank. Daniel Webster will help Stephen White, head of the Ma National Republican Party that transforms into the Whig Party, elect William Harrison president after Webster fails to be elected. They chose Harrison explicitly so they could control him and create the Third Bank of the United States. Daniel Webster writes Harrison an inaugural address to only be rebuked as he writes the longest one in American history. Harrison expels Webster’s cohort Henry Clay from the White House and refuses to create the Third Bank of the United States.  Embolden by the murder they got away in Salem; Story, White, and Webster assassinate Harrison by typhoid poisoning one month into office. Mysteriously Stephen White dies 3 days later.  Harrison’s successor Tyler will also refuse to establish the bank.

President Taylor Murdered?

Later Daniel Webster , after the deaths of Stephen White and Joseph Story, on the verge of the Civil War will assassinate President Taylor 16 months into office by Typhoid once more. President Polk who also was against the Third Bank of the United States would die 3 months after leaving office and 13 months before Taylor of typhoid. These three men would add to the ranks of political assassination which would include Alexander the Great. It becomes public that foreign investors hire Daniel Webster to leave his wealthy law practice to become Secretary of State for his successor Millard Fillmore in hopes of the creation of the Third Bank of the United States or the Fiscal Bank which in time becomes the Federal Reserve under Wilson. These investors could of been owners of shares in the Second Bank of the United States after Jackson did not renew the charter. One reason Jackson removed the federal finances from the bank because 70% of the shares in the bank were owned by English bankers who bought a majority of them from George Peabody, the namesake of Peabody MA.  Today most of the shares in the Federal Reserve are held by foreign investors.

The trees in front of this house and the home being named Gardenor-Pingree was inspired by Louisa Dupont-Crowninshield. For the love of her husband and his relationship to the murdered Richard Crowninshield Jr., who was implicated in the murder of Joseph White, she donated to the Peabody Essex Museum large funds to erase the memory of the murder that happened here. A museum that was bailed out by George Peabody who was selling shares in the Second Bank of the United States.

The tunnels connect the White/Story compound to the old man’s mansion. The old man bankrolled Joseph Jr. & Stephen White Co. and the construction of his nephews houses with the tunnels attached to them. I have been in the White brothers homes and seen the sealed up entrances to the tunnels and I have friends who have played in the tunnels attached to Judge Story’s House. I have been in the tunnels under the old Sacon Jewelry Building. It leads me to strongly believe that this house with exterior chimneys, the tunnel marked on an old city engineers map leaving the Armory, it was built by Samuel McIntire, plus manhole covers reading “Sewer”, “Drain”, and “S” which mark converted tunnels for public utilities in front of the property lead me to believe this house is connected to the tunnels in town.

Clue

The purchase of the English game Cluedo by William Parker’s sons would be inspired by the murder of Isaac Parker.

Get the book everyone digs before its sequel comes out!
Salem Secret Underground:The History of the Tunnels in the City!
Available at Barnes & Noble, Remember Salem, and Wicked Good Books in Salem on Essex Street. Also on Amazon.com!

Superior Court Associate Justice Joseph Story in Salem MA

Salem Judge Defends the Second Bank of the United States

 Joseph Story House Salem MA

Joseph Story House

26 Winter Street

This house was built in 1811 for Joseph Story. His sisters married the White brothers. The year in which Elias Hasket Derby Jr. begins his plan to build a new series of tunnels in town, Joseph Story in 1801 was admitted to the bar in Salem. At the time he was the only Jeffersonian Democratic- Republican in Essex County to be admitted. He would rise to be the head of the bar in Essex County. Because of his alignment with Jefferson the firm George Crowninshield & Sons Co. had retained him. In 1805 he was elected to the Massachusetts House of Representatives alongside his brother-in-law Stephen White. This year his wife Mary F.L. Oliver and his father would die. Joseph Story made a power move when in April 1807 Congressman Jacob Crowninshield spat up blood while speaking in Congress and soon died. Story was the Crowninshield family lawyer. Benjamin Crowninshield was tapped to replace his brother but Story took his seat in 1808 with the help of the White brothers and his new marriage to Judge William Wetmore’s daughter Sarah Waldo Wetmore. She would give him 7 children. Story now felt that his power in Washington and the White’s power in Salem could dethrone the Crowninshields that he had worked for. Story lobbied for Jefferson’s downfall after the Embargo Act and became the Federalist favorite Democratic-Republican. He only sat in Congress for a year. Now power in Salem was truly now in the hands of the White family and Story’s. They would start the Friday Evening Club which brought together 10 members who were friends and family to discuss affairs of banks, insurance companies, and the local Democratic-Republican Party. In 1811 Story became the Speaker in the Massachusetts House of Representative.

Joseph Story Statue

In 1811 Joseph Story, who was head of the Essex Bar in Massachusetts, was appointed to the Supreme Court at 32. He is still the youngest to ever be appointed. His main course in the Supreme Court was to protect the property rights of the minority of the rich man in the country. He was a hero of Alexander Hamilton’s and John Marshall’s conservative Republicanism. In his life he wrote many books concerning his opinion on the Constitution.  It has been said that Joseph Story was more influential on how we perceive the Constitution today than even Judge Marshal. After the War of 1812 Stephen White and Judge Story pushed forward for Salem to install new sidewalk curbs, plant trees, pave roads, and create schools. In 1819 he led the pursuit to denounce the slave trade. In 1841 he presided over the case of the escaped slaves who mutinied on the Amistad. He also was a Whig in the 1820’ and 1830’s. He fought against Jacksonian Democrats as a conservative Republican.  He was a staunch supporter of the Second Bank of the United States in which he was a director of in Philadelphia and Boston. This was the main reason he would be against Jackson who would veto the charter of the Second Bank of the United States in 1836. In many cases in the Supreme Court Story would rule in favor of the bank. His associate in the Supreme Court Daniel Webster was also a director of the Boston Branch of the Second Bank of the United States. Daniel Webster was also tied to Stephen White though the marriage of his brother-in-law to Stephen White’s daughter and his son’s marriage to the other daughter.  Stephen White was the man behind the curtain who controlled Story and Webster and their role in the election of William Harrison and his future murder. In 1829 Story moved to Cambridge to become Harvard’s first Dane Professor of Law.

In 1830 the uncle of his brother-in-laws was murdered. He would accuse his brother-in-law Stephen White of murder. Two blackmail letters came to Salem, the first accusing Stephen White which Story believed. The second only appeared afterward.

Joseph White Murder Salem MA

Captain Joseph White who was on his death bed for months before the murder was bludgeoned and then stabbed 13 times. The blow by the club killed him. The first autopsy attested to this.  Then someone came back to stab him with two different daggers for a total of 13 stab wounds to make the murder more ghastly and shocking. None of which produced any blood splatters or stains on the walls or sheets for Captain White would of been dead for some time by then. Joseph White had heavily invested in the Second Bank of the United States in which Stephen White now inherited.

Judge Isaac Parker Salem MA

After the mysterious death of the high Federalist Isaac Parker who had said 3 days before he died that he never missed a day at the bench in all of his years and he never felt better, Daniel Webster propositioned Story to be the head of  Massachusetts Superior Court to hear the murder. Since the murder was a capital offense the Superior Court Justice was to hear the case.  Daniel Webster was hoping this would become Story. Story refused to give up his position in Washington.

In 1845 Joseph Story dies in Cambridge.

I have not been in these tunnels of yet.  Since I have seen that both of the White brother’s house and Stephen White’s other brother-in-law Stephen Foster were connected I would conclude their brother-in-law and partner’s home would be connected as well. But, I have one friend who grew up in this home and several others who had played with him tell me how they ran through the tunnel that leads from this house.

Also Story’s neighbor Richard Gardener’s (17 Winter Street on the corner of Pickman Street) brother John had built the home that Captain White was murdered in. The Gardener brothers were Commons Improvement subscribers too..

Get the book everyone digs before its sequel comes out!
Salem Secret Underground:The History of the Tunnels in the City!
Available at Barnes & Noble, Remember Salem, and Wicked Good Books in Salem on Essex Street. Also on Amazon.com!