I'm mordantly amused by the suggestion that this deal "could have 
adverse consequences for how America votes" (see below)--our voting 
system having long since been subverted by Diebold
and ES&S when they were nominally separate companies. If not for such 
subversion, Bush/Cheney never would have happened.

There are a few facts that Sen. Schumer should review (although he won't):

Diebold and ES&S originated from a single company--Data Mark, which 
then morphed into American Information Services (AIS), which then was 
split up into Diebold and ES&S. The
founders of Data Mark were brothers Bob and Todd Urosevich, a pair of 
raging Christianists from Oklahoma. When AIS divided, Bob became the 
president of Diebold, Todd a vice president of ES&S. Data Mark's 
change into AIS was facilitated by another pair of brothers: William 
and
Robert Ahmanson--cousins of Howard Ahmanson, the fearsomely 
pro-active theocratic
multimillionaire who funds the Discovery Institute (for the 
propagation of "intelligent design"),
the schism in the Episcopalian Church, and the careers of countless 
theocratic politicians, to name
a handful of his covert strikes against American democracy.

Now, we don't know whether Howard's cousins share his views of what 
America should be,
and, in any case, they sold their piece (68%) of AIS some time ago. 
The fact remains that Bob
and Todd Urosevich are fervent Christianists--as are a lot of other 
folks who own and manage
segments of the electronic voting (and vote-counting) infrastructure. 
And then there are those
firms whose owners have been, or are now, not theocrats but dedicated 
Bush Republicans. For example, Hart InterCivic, another big e-voting 
company, was, until not long ago, owned largely
by a holding company controlled by Tom Hicks, a Texas plutocrat and 
longtime buddy of, and
major donor to, George W. Bush.

The problem with e-voting, then, is not, as Schumer has it, 
insufficient "competition." The
problem, rather, has to do with the highly partisan complexion of the 
ownership and management
of those firms that now dominate the voting process in America; and 
that points to the deeper
problem--which Schumer surely won't discuss--of total unaccountability.

For whether it's ES&S that henceforth dominates the "market" of 
election management,
or whether it's ES&S and Diebold/Premier that hold the lion's share 
between them, our voting
process is profoundly unaccountable in two interrelated ways. First 
of all, the fact that we
have private companies in charge of our elections means that our 
whole voting system is
completely unaccountable to We the People--just like Blackwater, DynCorp,  CACI
International, Titan, Dick Cheney's KBR and all the other military 
contractors now wreaking
havoc globally, and with impunity; and just the like the private 
firms that run America's
complex of prisons. That our elections should be thus controlled by 
private interests is, in
fact, grotesque--and would be even if they tilted Democratic.

And such private unaccountability has been compounded radically by 
the Establishment's
embrace of electronic voting and vote-counting: a system that is 
perfectly opaque, entailing
no such thing as ballot-counts observable by all. Instead, we have 
"results" based wholly
on the mere say-so of corporate bosses and their hired technicians. 
No mere partial "audits,"
however scrupulously managed, can properly replace the public 
tabulation of all ballots--
a process that is crucial to democracy (and, therefore, mandated 
clearly in a number of state constitutions). Nor is the so-called 
"voter-verified paper trail" (VVPAT) an adequate equivalent
to proper ballots. The use of DRE machines and op-scans tends 
automatically to mystify the
voting process, which--since that technology is privately 
controlled--is therefore doubly
hidden from us.

So if Chuck Schumer, or the Democrats in general, really gave a 
flying f**k about American democracy, he and they would all be airing 
these concerns, instead of arguing that there should
be two large private corporations, not just one, controlling most 
elections in America.

MCM

Senator Schumer seeks DOJ probe of Diebold's sale of voting-machine business

FOR IMMEDIATE RELEASE: September 14, 2009

SCHUMER URGES JUSTICE DEPT. TO PROBE DIEBOLD'S PROPOSED SALE OF 
ELECTION MACHINE BUSINESS TO ITS BIGGEST COMPETITOR; SAYS DEAL
COULD HAVE 'ADVERSE CONSEQUENCES' FOR HOW AMERICA VOTES

Schumer, As Senate Rules Chairman, Raises Flags Over Proposed Merger 
On Antitrust Grounds

Says Deal Could Give One Company Control Over 75 Percent of Election 
Machine Market
Senator: Competition Is Needed To Reduce Chances of Widespread Election Fraud

WASHINGTON, DC - U.S. Senator Charles E. Schumer (D-NY), the Chairman 
of the Senate Rules and Administration Committee and a senior member 
of the Senate Judiciary Committee, raised alarm bells Monday over 
Diebold's proposed sale of its voting machine business to its biggest 
competitor and urged a full Justice Department review of the deal, 
saying it could have "adverse implications on how our country votes."

Earlier this month, Diebold announced it was selling its Texas-based 
subsidiary, Premier Election Solutions, to the country's largest 
voting-machine manufacturer, Election Systems & Software Inc. of 
Omaha, Neb. The deal immediately sparked concern from election law 
experts since it would join Premier, which has a 33 percent share of 
the voting-machine market, with ES&S, whose systems were used in 
counting approximately 50 percent of all ballots cast in the last 
four major U.S. elections. Candice Hoke, an election law professor at 
Cleveland State University, told the Associated Press on Sept. 3 that 
the proposed deal represented "a massive consolidation of 
voting-system vendors."

In a letter sent to Attorney General Eric Holder today, Schumer 
requested that the Justice Department's Antitrust Division probe the 
deal based on anti-competitiveness concerns.

"If this acquisition proceeds, one company could control over 
three-quarters of the U.S. market for voting systems. Given other 
factors, including high barriers to entering the market, I am deeply 
concerned that local governments and taxpayers will not be getting a 
fair deal because too much market power will be held in too few 
hands," Schumer wrote.

"It is in the public interest to maintain a range of choices in 
voting systems," Schumer added, noting that increased consolidation 
in the election-machine market could make elections more susceptible 
to fraud.

A copy of Schumer's letter appears below.

September 14, 2009

The Honorable Eric Holder
Attorney General
United States Department of Justice
950 Pennsylvania Avenue
Washington D.C. 20530

Dear General Holder,

I am writing today to express my concern with the proposed 
acquisition of the second largest voting system company by the 
largest voting system company. Last week, Election Systems & Software 
Inc. (ES&S) announced that it plans to purchase Premier Election 
Solutions, Inc., a subsidiary of Diebold Inc. This acquisition may 
have serious adverse implications for how our country votes. Since 
this industry provides a product vital to American governance, I am 
asking that the Antitrust Division examine this acquisition carefully 
to make sure there is no anticompetitive impact on election 
officials, states, or voters.

There is a history of concern over lack of competition in this 
industry. In 1997, American Information Systems purchased Business 
Records Corporation and became the company now known as ES&S. At the 
time, the Department of Justice intervened and forced a divestiture 
of the optical scan voting equipment business to another company, 
Sequoia Voting Systems. The concerns over consolidation have not 
abated in the past decade; in fact, the number of voting systems 
manufacturers is continually decreasing.

Elections are run by state and local election officials. Counties and 
cities have to purchase voting systems to count the ballots. A county 
may not be able to negotiate effectively against a company that 
controls the vast majority of voting systems in the country. ES&S, 
currently the largest election system company in the U.S., serves 
1,985 jurisdictions in more than 43 states with approximately 67 
million registered voters. ES&S systems were used in counting 
approximately 50% of votes in the last four major U.S. elections. 
Meanwhile, Premier Solutions has a 33% share of the U.S. market. If 
this acquisition proceeds, one company could control over 
three-quarters of the U.S. market for voting systems. Given other 
factors, including high barriers to entering the market, I am deeply 
concerned that local governments and taxpayers will not be getting a 
fair deal because too much market power will be held in too few hands.

It is in the public interest to maintain a range of choices in voting 
systems. Historically, states have used a wide variety of voting 
systems from a number of manufacturers. A 2003 Congressional Research 
Service report raised concerns over the consolidation of voting 
systems in the United States. The report indicates that having a 
diversity of voting systems in our country may decrease the 
likelihood of widespread election fraud. We need to do everything 
possible to make our elections reliable and secure.

As Chairman of the Senate Committee on Rules and Administration, I 
understand that following the new requirements in the Help America 
Vote Act, the voting system industry has gone through many changes. 
The largest of these changes is a new, more rigorous voting system 
testing and certification program. I am not without sympathy of the 
increased costs that accompany new federal testing requirements and 
that voting system companies must bear. However, that does not 
alleviate my concern of any one company obtaining such an outsized 
share of the market.

I ask that you perform a full and fair review of this proposed 
acquisition. We need to ensure that local governments can choose 
among a range of options for voting systems, that prices and services 
offered by these companies are competitive and fair, and that voters 
are assured that elections are secure and their tax dollars are being 
used wisely.


I look forward to hearing from you on this issue. If your staff has 
any questions, please contact my office at 202-224-6352.


Sincerely,


Charles E. Schumer
Chairman
Senate Rules and Administration Committee
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