70 years ago, as a result of the Age of Formation, The Cleansing raged across The 5 Kingdoms. Humans and dwarves joined forces to protect the world against those standing in the way of civilization and taming the lands, and the races who seemed more in tune with magical forces were first in line. These Lesser races were deemed part of a larger conspiracy to hold civilization back, and so the Cleansing began, and would run for two decades. When it finally ended, high elves were near extinct, wood elves had retreated to deep forests and grown feral and hostile, dragonborn were hunted and displayed as trophies, and tieflings were burned at the stake. Halflings and gnomes initially argued for a peaceful solution and so were considered puppets of the elves, and they now serve the humans and dwarves as slaves and servants.
Other humanoid races, such as goblins, orcs and trolls were also hunted during the Cleansing, but less so, because this was a war about civilization, and those races usually keep to themselves in far away places. Since these races are considered Savages, to this day, there is still no penalty for killing them. Indeed, some places even offer a bounty for each one proven dead.
In Treldor, the royal family of house Wilfrom had ancient ties to the high elves, and they argued for peaceful coexistence, during the early stages of the Cleansing. It soon became clear however, that remaining neutral was going to be impossible, and eventually Treldor joined the Cleansing on the side of the Iron Alliance.
To this day, there are rumors that House Wilfrom has secret dealings with what remains of the elves. It is known that Treldor is one of the more tolerant places in the world, where many halflings and gnomes live free, and other races can even be seen in the cities. For its tolerance, rumor has it House Wilfrom has come under investigation by the Iron Alliance, though other whispers say perhaps the Arcanum is preventing them from coming up with anything.