I kept looking and think I found the answer to my own question. It's in the
Codex Arcanis, 1st ed, p. 111, "The Origins of Freeport."
Still, if anyone has any further details to add, that would be great.
I also think it's neat that Green Ronin's FREEPORT TRILOGY mentions Arcanis.
Henry, if you happen to read this, my current quesiton connects back to a question I asked you the first time we ever met about in-character research in Freeport's library. I still have my handwritten notes from that brief conversation, and I'm pretty sure I understand your answers much better in light of other things I've figured out since then.
The fact that Henry and all of Team Paradigm are so involved with the players and the campaign (on-line and in-person and in designing games for us) is one of numerous reasons why Paradigm and Arcanis are very special.