The UCC Connection: Free Yourself from Legal Tyranny (1/3)

ubik_heisenberg at freedom.net ubik_heisenberg at freedom.net
Fri Mar 9 17:26:01 PST 2001


                       The UCC Connection:

                Free Yourself from Legal Tyranny


                       September 22, 1991


                            Foreword

     This  is   a  slightly   condensed,   casually   paraphrased
transcript of tapes of a seminar given in 1990 by [the late] Howard Freeman.
It was prepared to make available the knowledge and experience of
Mr. Freeman  in his  search for  an accessible and understandable
explanation of  the confusing  state of  the government  and  the
courts.   It should  be helpful  to those who may have difficulty
learning from  such lectures,  or those  who want  to  develop  a
deeper understanding of this information without having to listen
to three or four hours of recorded material.

     The frustration  many  Americans  feel  about  our  judicial
system can  be overwhelming  and often  frightening and,  as most
fear, is  based on  lack of understanding or knowledge.  Those of
us who  have chosen  a path  out of  bondage and into liberty are
faced, eventually,  with the  seemingly tyrannical  power of some
governmental agency  and the  mystifying and awesome power of the
courts.   We have  been taught  that we must "get a good lawyer,"
but that  is becoming  increasingly difficult, if not impossible.
If we  are defending  ourselves from the government, we find that
the lawyers  quickly take our money and then tell us, as the ship
is sinking,  "I can't  help you  with that  --  I'm an officer of
the court."

     Ultimately, the  only way  for us to have even a "snowball's
chance" is  to understand the RULES OF THE GAME and to come to an
understanding of  the true  nature of  the Law.  The lawyers have
established and  secured a  virtual monopoly  over this  area  of
human  knowledge  by  implying  that  the  subject  is  just  too
difficult for the average person to understand, and by creating a
separate vocabulary  out of  English words  of  otherwise  common
usage.   While it  may, at times, seem hopelessly complicated, it
is not  that difficult  to grasp.  Are lawyers really as smart as
they would have us believe?  Besides, anyone who has been through
a legal  battle against  the government  with the aid of a lawyer
has come to realize that lawyers learn about procedure, not about
law.  Mr. Freeman admits that he is not a lawyer and, as such, he
has a  way of  explaining law  to us that puts it well within our
reach.   Consider also that the framers of the Constitution wrote
in language  simple enough  that  the  people  could  understand,
specifically so that it would not have to be interpreted.

     So, again we find, as in many other areas of life, that "THE
BUCK STOPS  HERE!"  It is we who must take the responsibility for
finding and  putting to  good use  the TRUTH.   It is we who must
claim and  defend our God-given rights and our freedom from those
who would  take them  from  us.    It  is  we  who  must  protect
ourselves, our  families and  our posterity  from the  inevitable
intrusion into  our lives by those who live parasitically off the
labor, skill and talents of others.

     To  these   ends,  Mr.  Freeman  offers  a  simple,  hopeful
explanation of  our plight, and a peaceful method of dealing with
it.  Please take note that this lecture represents one chapter in
the book  of his  understanding, which  he  is  always  refining,
expanding and  improving.   It is,  as all  bits of wisdom are, a
point of  departure from  which to  begin our  own  journey  into
understanding, that  we all  might be  able to  pass on to others
greater knowledge  and hope,  and to God, the gift of lives lived
in peace, freedom and praise.


                          UCC Connection

        "I send you out as sheep in the midst of wolves,
        be as wise as a serpent and harmless as a dove."


                          Introduction

     When I  beat the  IRS, I used Supreme Court decisions.  If I
had tried to use these in court, I would have been convicted.

     I was  involved with  a Patriot  group and I studied supreme
Court cases.   I  concluded that  the Supreme  Court had declared
that I  was not a person required to file an income tax  --  that
the tax  was an  excise tax  on privileges granted by government.
So, I  quit filing  and paying  income taxes, and it was not long
before they  came down  on me  with a  heavy hand.  They issued a
notice of  deficiency, which  had such a fantastic sum on it that
the biggest  temptation was  to go  in with their letter and say,
"Where in  the world did you ever get that figure?"  They claimed
I owed  them some $60,000.  But, even if I had been paying taxes,
I never  had that  much money, so how could I have owed them that
much?


              Never Argue the Amount of Deficiency

     Fortunately,  I   had  been  given  just  a  little  bit  of
information:  NEVER ARGUE THE FACTS IN A TAX CASE.  If you're not
required to file, what do you care whether they say you owe sixty
dollars or  60,000 dollars?  If you are not required to file, the
amount doesn't  matter.   Don't argue  the amount   --  that is a
fact issue.   In  most  instances,  when  you  get  a  Notice  of
Deficiency, it  is usually  for some  fantastic amount.   The IRS
wants you  to run  in and argue about the amount.  The minute you
say, "I  don't owe  that much," you have agreed that you owe them
something, and  you have  given them jurisdiction.  Just don't be
shocked at  the amount  on a  Notice of Deficiency, even if it is
ten million  dollars!   If the law says that you are not required
to file or pay tax, the amount doesn't matter.

     By arguing  the amount,  they will just say that you must go
to tax  court and  decide what  the amount is to be.  By the time
you get  to tax  court, the  law issues are all decided.  You are
only there  to decide  how much you owe.  They will not listen to
arguments of law.

     So, I  went to  see the  agent and  told him  that I  wasn't
required to  file.   He said,  "You are  required  to  file,  Mr.
Freeman."  But I had all these supreme Court cases, and I started
reading them  to him.  He said, "I don't know anything about law,
Mr. Freeman, but the Code says that you are required to file, and
you're going  to pay  that amount  or you're  going to  go to tax
court."   I thought  that someone  there ought  to know something
about law, so I asked to talk to his superior.  I went to him and
got out  my Supreme  Court cases, and he wouldn't listen to them.
"I don't  know anything  about law, Mr. Freeman ...."  Finally, I
got to  the Problems  Resolution Officer,  and he  said the  same
thing.   He said  that the only person above him was the District
Director.   So, I  went to  see him.   By  the time  I got to his
office, they had phoned ahead, and his secretary said he was out.
But, I heard someone in his office, and I knew he was in there.

     I went  down the  elevator, around the corner to the Federal
Building and  into Senator  Simpson's office.   There  was a girl
sitting there  at a  desk, and she asked if she could help me.  I
told her  my problem.   I said that I really thought the District
Director was up there.  I asked her to call the IRS and tell them
that it  was Senator  Simpson's office calling, and to ask if the
District Director  was in.  I said, "If you get him on the phone,
tell him  that you  are from  the Senator's office and you have a
person whom  you are  sending over to speak to him  --  if he is,
can he  wait just five minutes.  His secretary met me when I came
in and said, "Mr. Freeman, you're so lucky  --  the Director just
arrived."

     The Director was very nice and offered me coffee and cookies
and we  sat and talked.  So, he asked me what I wanted to talk to
him about.   (If  you ever have someone say to you, "I'm from the
government and  I'm here  to do you a favor," watch out!  But, we
can turn  that around  and approach  them the  same way.)   So, I
said, "I  thought you ought to know that there are agents working
for you  who are writing letters over your name that you wouldn't
agree with.   Do  you read  all the  mail that  goes out  of this
office over  your signature?"  The Director said, "Oh, I couldn't
read everything   --   it  goes out of here by the bagful."  That
was what  I thought.   I  said, "There  are some  of your  agents
writing letters  which contradict  the decisions  of the  supreme
Court of  the United States.  And they're not doing it over their
name;  they're doing it over your name."

     He was  very interested to hear about it, and asked if I had
any examples.   I  just happened  to have  some with me, so I got
them out  and presented  them to  him.   He thought  it was  very
interesting and asked if I could leave this information with him,
which I  did.   He said  he would  look it over and contact me in
three days.   Three  days later,  he called  me up and said, "I'm
sure, Mr. Freeman, that you will be glad to know that your Notice
of Deficiency  has been  withdrawn.  We've determined that you're
not a  person required to file.  Your file is closed and you will
hear no  more from  us."   I haven't heard another word from them
since.  That was in 1980, and I haven't filed since 1969.


                   The Supreme Court on Trial

     I thought  sure I  had the  answer, but  when a  friend  got
charged with  Willful Failure  to File an income tax, he asked me
to help  him.   I told  him that  they  have  to  prove  that  he
willfully failed  to file,  and I suggested that he should put me
on the  witness stand.   He should ask me if I spoke at a certain
time and  place in  Scott's Bluff,  and did  I  see  him  in  the
audience.   He should then ask me what I spoke of that day.  When
I got  on the stand, I brought out all of the Supreme Court cases
I had  used with  the District  Director.   I thought  I would be
lucky to  get a  sentence or two out before the judge cut me off,
but I was reading whole paragraphs  --  and the judge didn't stop
me.  I read one and then another, and so on.  And finally, when I
had read  just about  as much  as I  thought I  should, the judge
called a  recess of  the court.   I  told Bob I thought we had it
made.   There was  just no  way that  they could rule against him
after all that testimony.  So we relaxed.

     The prosecution  presented its  case and  he decided to rest
his defense  on my  testimony,  which  showed  that  he  was  not
required to  file, and  that the  Supreme Court  had upheld  this
position.   The prosecution then presented its closing statements
and we were just sure that he had won.  But, at the very end, the
judge spoke to the jury and told them, "You will decide the facts
of this case, and I will give you the law.  The law required this
man to  file an  Income Tax  form.   You decide whether or not he
filed it."   What  a shock!  The jury convicted him.  Later, some
members of  the jury  said, "What  could we  do?    The  man  had
admitted that  he had  not filed  the form,  so we had to convict
him."

     As soon  as the trial was over, I went around to the judge's
office and  he was just coming in through his back door.  I said,
"Judge, by  what authority do you overturn the standing decisions
of the United States supreme Court.  You sat on the bench while I
read that  case law.   Now,  how do  you, a District Court Judge,
have the  authority to  overturn decisions of the Supreme Court?"
He says,  "Oh, those  were old  decisions."   I said,  "Those are
standing decisions.   They  have never  been overturned.  I don't
care how  old they are.  You have no right to overturn a standing
decision of the United States Supreme Court in a District Court."


                   Public Law vs Public Policy

     He said,  "Name any decision of the Supreme Court after 1938
and I'll  honor it,  but all the decisions you read were prior to
1938, and  I don't honor those decisions."  I asked what happened
in 1938.   He said, "Prior to 1938, the Supreme Court was dealing
with Public  Law;   since 1938,  the Supreme Court has dealt with
Public Policy.   The  charge that Mr. S. was being tried for is a
Public Policy  Statute, not  Public Law,  and those Supreme Court
cases do  not apply to Public Policy."  I asked him what happened
in 1938.   He  said that  he had already told me too much  --  he
wasn't going to tell me any more.


                   1938 and the Erie Railroad

     Well, I  began to  investigate.   I found  that 1938 was the
year of  the Erie Railroad v. Tompkins case of the Supreme Court.
It was  also the  year the  courts claim  they blended  Law  with
Equity.   I read the Erie Railroad case.  A man had sued the Erie
railroad for  damages when  he was struck by a board sticking out
of a  boxcar as  he walked along beside the tracks.  The district
court  had   decided  on  the  basis  of  Commercial  (Negotiable
Instruments) Law  that this  man was  not under any contract with
the Erie  Railroad, and  therefore he  had no standing to sue the
company.   Under the Common Law, he was damaged and he would have
had the right to sue.

     This overturned  a standing  decision of  over  one  hundred
years.   Swift v. Tyson  in 1840  was  a  similar  case  and  the
decision of  the supreme Court was that in any case of this type,
the court  would judge  the case  on the  Common Law of the State
where the  incident occurred   --   in  this case,  Pennsylvania.
But, in  the Erie Railroad case, the supreme Court ruled that all
federal cases  will be  judged under  the Negotiable  Instruments
Law.  There would be no more decisions based on the Common Law at
the federal  level.   So, here  we find  the blending of Law with
Equity.

     This was  a puzzle  to me.    As  I  put  these  new  pieces
together, I  determined that  all  our  courts  since  1938  were
Merchant Law  courts and not Common Law courts.  There were still
some pieces of the puzzle missing.


                      A Friend of the Court

     Fortunately, I  made a  friend of  a judge.   Now, you won't
make friends  with a  judge if  you go into court like a "wolf in
black sheep  country."   You must  approach him as though you are
the sheep  and he  is the  wolf.  If you go into court as a wolf,
you make  demands and  tell the judge what the law is  --  how he
had better  uphold the  law or else.  Remember the verse:  I send
you out as sheep in wolf country;  be as wise as a serpent and as
harmless as  a dove.   We  have to  go into court and be wise and
harmless, and  not make  demands.  We must play a little dumb and
ask a  lot of  questions.   Well, I  asked a lot of questions and
boxed the  judges into  a corner  where they  had to  give  me  a
victory or admit what they didn't want to admit.  I won the case,
and on  the way  out I  had to  stop by the clerk's office to get
some papers.   One  of the  judges stopped  and said,  "You're an
interesting man,  Mr. Freeman.   If you're ever in town, stop by,
and if I'm not sitting on a case, we will visit."


                       America is Bankrupt

     Later, when  I went  to visit  the judge,  I told  him of my
problem with  the supreme  Court cases dealing with Public Policy
rather than  Public Law.   He  said, "In  1938,  all  the  higher
judges, the top attorneys and the U.S. attorneys were called into
a secret meeting and this is what we were told:


     America is  a bankrupt nation  --  it is owned completely by
     its creditors.  The creditors own the Congress, they own the
     Executive, they own the Judiciary and they own all the State
     governments.


     Take silent  judicial notice  of this fact, but never reveal
     it  openly.    Your  court  is  operating  in  an  Admiralty
     Jurisdiction  --  call it anything you want, but do not call
     it Admiralty.


                        Admiralty Courts

     The reason  they cannot  call it  Admiralty Jurisdiction  is
that  your   defense  would   be  quite  different  in  Admiralty
Jurisdiction  from  your  defense  under  the  Common  Law.    In
Admiralty, there  is no court which has jurisdiction unless there
is a  valid international contract in dispute.  If you know it is
Admiralty Jurisdiction, and they have admitted on the record that
you  are   in  an  Admiralty  Court,  you  can  demand  that  the
international maritime  contract, to  which you  are supposedly a
party, and  which you  supposedly have  breached, be  placed into
evidence.


     No court has Admiralty/Maritime Jurisdiction unless there is
     a  valid  international  maritime  contract  that  has  been
     breached.


So, you  say, just  innocently like  a lamb,  "Well, I never knew
that I got involved with an international maritime contract, so I
deny that  such a  contract exists.   If  this  court  is  taking
jurisdiction in  Admiralty, then  place the contract in evidence,
so that  I may challenge the validity of the contract.  What they
would have  to do is place the national debt into evidence.  They
would have  to admit that the international bankers own the whole
nation, and that we are their slaves.


                          No Expedient

     But, the  bankers said  it is  not expedient at this time to
admit that  they own  everything and  could  foreclose  on  every
nation of the world.  The reason they don't want to tell everyone
that they  own everything  is  that  there  are  still  too  many
privately owned  guns.   There are uncooperative armies and other
military forces.   So,  until they  can gradually consolidate all
armies into  a WORLD  ARMY and  all courts  into a  single  WORLD
COURT, it  is not  expedient to admit the jurisdiction the courts
are operating under.  When we understand these things, we realize
that there  are certain  secrets they don't want to admit, and we
can use this to our benefit.


                          Jurisdiction

     The Constitution  of the  united States mentions three areas
of jurisdiction in which the courts may operate:


Common Law:

     Common Law  is based  on God's  Law.   Any time  someone  is
     charged under the Common Law, there must be a damaged party.
     You are free under the Common Law to do anything you please,
     as long  as you  do not  infringe on  the life,  liberty, or
     property of  someone else.   You have a right to make a fool
     of yourself,  provided you  do not  infringe  on  the  life,
     liberty, or  property of  someone else.  The Common Law does
     not allow  for any  government action  which prevents  a man
     from making a fool of himself.  For instance, when you cross
     over State  lines in  most States, you will see a sign which
     says, "BUCKLE  YOUR SEAT  BELTS   --   IT'S THE  LAW."  This
     cannot be  Common Law,  because who  would you injure if you
     did not  buckle up?    Nobody.    This  would  be  compelled
     performance.   But, Common  law cannot  compel  performance.
     Any violation  of Common  Law is  a  CRIMINAL  ACT,  and  is
     punishable.


Equity Law:

     Equity Law is law which compels performance.  It compels you
     to perform  the exact  letter of  any contract  that you are
     under.  So, if you have compelled performance, there must be
     a contract somewhere, and you are being compelled to perform
     under the obligation of the contract.  Now, this can only be
     a civil  action   --  not criminal.  In Equity Jurisdiction,
     you cannot  be tried criminally, but you can be compelled to
     perform to  the letter of a contract.  If you then refuse to
     perform as  directed by  the court,  you can be charged with
     contempt of  court, which  is a  criminal action.   Are your
     seat belt  laws Equity  laws?  No, they are not, because you
     cannot be  penalized or  punished for  not  keeping  to  the
     letter of a contract.


Admiralty/Maritime Law:

     This is  a civil jurisdiction of Compelled Performance which
     also has  Criminal Penalties  for not adhering to the letter
     of the  contract, but  this only  applies  to  International
     Contracts.   Now, we can see what jurisdiction the seat belt
     laws (and  all traffic laws, building codes, ordinances, tax
     codes, etc.)  are under.   Whenever  there is  a penalty for
     failure to  perform (such  as willful failure to file), that
     is  Admiralty/Maritime   Law  and  there  must  be  a  valid
     international contract in force.


However, the  courts don't  want to admit that they are operating
under  Admiralty/Maritime   Jurisdiction,  so   they   took   the
international law  or Law Merchant and adopted it into our codes.
That is  what the supreme Court decided in the Erie Railroad case
--   that the  decisions will  be  based  on  commercial  law  or
business law  and that it will have criminal penalties associated
with it.   Since  they were  instructed not  to call it Admiralty
Jurisdiction, they call it Statutory Jurisdiction.


                       Courts of Contract

     You may  ask how  we got into this situation where we can be
charged with  failure to  wear seat  belts and  be fined  for it.
Isn't the  judge sworn  to uphold  the Constitution?  Yes, he is.
But, you  must understand  that the  Constitution, in  Article 1,
Section 10,  gives us the unlimited right to contract, as long as
we do  not infringe  on the life, liberty, or property of someone
else.   Contracts are enforceable, and the Constitution gives two
jurisdictions where  contracts can  be enforced   --   Equity and
Admiralty.   But,  we  find  them  being  enforced  in  Statutory
Jurisdiction.   This is the embarrassing part for the courts, but
we can  use this  to box  the judges  into a  corner in their own
courts.  We will cover this more later.


                   Contracts Must Be Voluntary

     Under the  Common Law,  every contract  must be entered into
knowingly, voluntarily,  and intentionally by both parties, or it
is void and unenforceable.  These are characteristics of a Common
Law contract.   There  is another  characteristic  --  it must be
based on  substance.   For example,  contracts used to read, "For
one dollar  and other  valuable considerations, I will paint your
house, etc."   That  was a  valid contract   --  the dollar was a
genuine silver  dollar.   Now, suppose  you wrote a contract that
said, "For  one Federal  Reserve Note and other considerations, I
will paint  your house ...."  And suppose, for example, I painted
your house the wrong color.  Could you go into a Common Law court
and get  justice?  No, you could not.  You see, a Federal Reserve
Note is  a "colorable"1  dollar, as it has no substance, and in a
Common Law jurisdiction, that contract would be unenforceable.


              Colorable Money  --  Colorable Courts

     The word  "colorable" means  something that  appears  to  be
genuine, but  is not.  Maybe it looks like a dollar, and maybe it
spends like  a dollar,  but if  it is  not redeemable  for lawful
money (silver  or gold)  it is "colorable."  If a Federal Reserve
Note  is  used  in  a  contract,  then  the  contract  becomes  a
"colorable" contract.  And "colorable" contracts must be enforced
under a  "colorable"  jurisdiction.    So,  by  creating  Federal
Reserve Notes,  the government  had to  create a  jurisdiction to
cover the kinds of contracts which use them.  We now have what is
called Statutory  Jurisdiction, which  is not a genuine Admiralty
jurisdiction.   It  is  "colorable"  Admiralty  Jurisdiction  the
judges are  enforcing because  we are  using  "colorable  money."
Colorable Admiralty  is  now  known  as  Statutory  Jurisdiction.
Let's see how we got under this Statutory Jurisdiction.


                     Uniform Commercial Code

     The government  set up  a "colorable"  law system to fit the
"colorable" currency.   It  used to be called the Law Merchant or
the Law  of Redeemable  Instruments, because  it dealt with paper
which was  redeemable in  something  of  substance.    But,  once
Federal Reserve  Notes had become unredeemable, there had to be a
system of  law which  was completely  "colorable" from  start  to
finish.    This  system  of  law  was  codified  as  the  Uniform
Commercial Code,  and has  been adopted  in every State.  This is
"colorable" law, and it is used in all the courts.

     I explained  one of  the keys  earlier, which  is  that  the
country is  bankrupt and  we have  no rights.  If the master says
"Jump!" then  the slave  had better  jump, because the master has
the right  to cut  his head  off.   As slaves, we have no rights.
But, the  creditors/masters had to cover that up, so they created
a system  of law  called  the  Uniform  Commercial  Code.    This
"colorable" jurisdiction under the Uniform Commercial Code is the
next key to understanding what has happened.


                      Contract or Agreement

     One difference between Common Law and the Uniform Commercial
Code is  that in Common Law, contracts must be entered into:  (1)
knowingly  (2) voluntarily and  (3) intentionally.


     Under the  UCC, this is not so.  First of all, contracts are
unnecessary.   Under this  new law,  "agreements" can be binding,
and if  you only  exercise the  benefits of an "agreement," it is
presumed or  implied that  you intend  to  meet  the  obligations
associated with  those benefits.  If you accept a benefit offered
by government,  then you  are obligated to follow, to the letter,
each and  every statute  involved with  that benefit.  The method
has been  to get  everybody exercising  a benefit, and they don't
even have  to tell  the people  what the benefit is.  Some people
think it  is the  driver's license,  the marriage  license or the
birth certificate, etc.  I believe it is none of these.


                        Compelled Benefit

     I believe  the benefit being used is that we have been given
the privilege of discharging debt with limited liability, instead
of paying  debt.   When we  pay a  debt, we  give  substance  for
substance.   If I  buy a quart of milk with a silver dollar, that
dollar bought  the milk,  and the  milk bought  the  dollar    --
substance for substance.  But, if I use a Federal Reserve Note to
buy the  milk, I  have not paid for it.  There is no substance in
the Federal  Reserve Note.    It  is  worthless  paper  given  in
exchange for  something of substantive value.  Congress offers us
this benefit:


     Debt money,  created by  the federal  United States,  can be
     spent all  over the  continental united  States;  it will be
     legal tender  for all  debts, public  and private,  and  the
     limited liability  is that you cannot be sued for not paying
     your debts.


So, now they have said, "We're going to help you out, and you can
just discharge your debts instead of paying your debts."  When we
use this  "colorable" money to discharge our debts, we cannot use
a Common Law court.  We can only use a "colorable" court.  We are
completely under  the jurisdiction of the Uniform Commercial Code
--  we are using non-redeemable negotiable instruments and we are
discharging debt rather than paying debt.

(continued in The UCC Connection: Free Yourself from Legal Tyranny  (2/3) )



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