May 28, 2013

#1) - makes a lot of sense and #2) - sad that major politicians are purchased for so little money

From Investors Business Daily:
Now The Gibson Guitar Raids Make Sense
IRS Scandal: The inexplicable raid nearly two years ago on a guitar maker for using allegedly illegal wood that its competitors also used was another targeting by this administration of its political enemies.

On Aug. 24, 2011, federal agents executed four search warrants on Gibson Guitar Corp. facilities in Nashville and Memphis, Tenn., and seized several pallets of wood, electronic files and guitars. One of the top makers of acoustic and electric guitars, including the iconic Les Paul introduced in 1952, Gibson was accused of using wood illegally obtained in violation of the century-old Lacey Act, which outlaws trafficking in flora and fauna the harvesting of which had broken foreign laws.

In one raid, the feds hauled away ebony fingerboards, alleging they violated Madagascar law. Gibson responded by obtaining the sworn word of the African island's government that no law had been broken.

In another raid, the feds found materials imported from India, claiming they too moved across the globe in violation of Indian law. Gibson's response was that the feds had simply misinterpreted Indian law.

Interestingly, one of Gibson's leading competitors is C.F. Martin & Co. According to C.F. Martin's catalog, several of their guitars contain "East Indian Rosewood," which is the exact same wood in at least 10 of Gibson's guitars. So why were they not also raided and their inventory of foreign wood seized?

Grossly underreported at the time was the fact that Gibson's chief executive, Henry Juszkiewicz, contributed to Republican politicians. Recent donations have included $2,000 to Rep. Marsha Blackburn, R-Tenn., and $1,500 to Sen. Lamar Alexander, R-Tenn.

By contrast, Chris Martin IV, the Martin & Co. CEO, is a long-time Democratic supporter, with $35,400 in contributions to Democratic candidates and the Democratic National Committee over the past couple of election cycles.
Sad. Less than $35K political contribution from a manufacturer bought a royal smack-down ($350,000 penalties and "community service payments") on their competition -- more at the article. I know who I will NOT buy from now. Christian Frederick Martin -- you used to make an incredible product. Posted by DaveH at May 28, 2013 10:56 PM