The Circumstances
During the Commencement Ceremonies of Prime Minister Waltmann's third term, a perimeter was secured around the Council Building, in response to concerns of frequent gunfights in the area. The Oath and Address were carried out by Waltmann in his Office, instead of the Public Assembly Chamber, as this was broadcasted over the radio. In the days that followed, the Federal Estates Council voted to designate 5 February as World Day, which had previously been dedicated to the first arrangements made with the Lykians in 1285. With World Day celebrating international cultures and heritage, the Darkfire Community, and supporters of Waltmann, began expressing themselves more openly. This provoked the conservative Knights of the Common Good, the KCG, into carrying out more "pick-and-shoots." In March 1309, Waltmann signed a law voted in by the Federal Estates Council to divide the Basin District into five sectors, with the perimeters of each marked by firearm checkpoints. Similar perimeters would also be established in all of the major city-districts throughout the country. This created backlash from popular groups, who decried such measures as violations of personal freedoms. With the security checkpoints becoming more invasive, even those loyal to Holz Finzi began to feel oppressed, prompting Finzi, himself to relocating to a secret place within the Capital, where closer proximity allowed for a more effective underground network.
An anonymous source tipped the Waltmann administration concerning Finzi's recent move; and the Prime Minister, holding relatively progressive views over darkfire but still perceiving it as an illness and Finzi as a threat, responded with an even tighter grip on security, which now included unwarranted searches of businesses and properties. Before long, large sectors of the Retunian public began protesting, citing numerous constitutional violations carried out by Waltmann. But Waltmann responded only with motions for further security measures.
Joe Morner
Despite constitutional provisions making it harder for Mitigators to be picked based upon democratic sentiment, pro-Finzi activists pooled enough money to nominate Joe Morner as a Mitigator for the Federal Estates Council. As Mitigator, Morner stayed numerous critical debates and Council votes on Waltmann's additional security measures, and prompted the Council to resurrect an economic measure considered in 1307. However, the latter was voted down.
The Fall of the Federal Estates
Succeeding James Welch as a nominee for the Provincial Domain Governor-General for Waltmann's third term, William Irving made it his priority to hold Prime Minister Waltmann accountable for his initial agenda and beliefs from the 1296 elections. With a conflict between Waltmann's promises and his actions, numerous arguments erupted between Waltmann and Irving over Waltmann's business deals and security measures.
While Irving was on extended leave, however, Waltmann sought out the Ancondrian Kornyk Guild and implemented a secret agenda to form a deep-trade deal, a last-ditch effort to fully rehabilitate the Federal Estates economy. Economic stakes were raised on 1 September 1309, when cheating Ancondrian beneficiaries unrelated to the Kornyk Guild caused another moment of instability in the Diamond District Tradestone Exchange. In a high-risk move, Waltmann borrowed money from the banks to finance the Kornyk deep-trade agenda, hoping that revenue from this would correct this fallout.
However, on 6 September, news was publicized over Kornyk's diversion of deep-trade interests, which triggered the most devastating economic fallout yet for the Federal Estates. Tradestone prices fell again; and the Federal Estates government, already over-strained from the ensuing economic hardships, filed for bankruptcy. It was on this day that Governor-General Irving returned to the Basin District, discovering Waltmann's recent decisions. The two men met in a secret meeting place not far from the Council Building, where a physical altercation broke out. During this incident, Irving allegedly pulled out a gun and shot Waltmann dead, and, moments later, committed suicide by gunshot, himself.
Within the hour, news of this plunged the Federal Estates public into chaos, as Marshall Nolan, in accordance with constitutional protocol, was named the next Prime Minister. An Oath would never be administered, however, as government proceedings were interrupted by an attack carried out by the KCG, which forced the Federal Estates Council to disband, never to meet again. Over the next 36 hours, pro-darkfire and pro-KCG militant groups clashed in the Basin District, fighting for control of its sectors and government buildings.
On the evening of 7 September 1309, Holz Finzi launched an organized band of forces upon the Basin District from his command post. Within two hours, he brought the Capital under his control and established it as the capital of a new nation, later to be named the Independent Commonwealth State of Retun.
In the new Commonwealth, darkfire was legalized and subject to Finzi's first signed piece of legislation: the Great Compromise. Meanwhile, the provinces of Gymia and Pimdan voted to declare autonomy from the Retunian Republic. Pimdan would join the Great North shortly thereafter.