Forgive me if I'm wrong, but didn't the Silmarillion hint towards Orcs being the twisted forms of elves?
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Yet this is held true by the wise of Eressëa, that all those of the Quendi [Elves] who came into the hands of Melkor, ere Utumno was broken, were put there in prison, and by slow arts of cruelty were corrupted and enslaved; and thus did Melkor breed the hideous race of the Orcs in envy and mockery of the Elves, of whom they were afterwards the bitterest foes...
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Also, in TTT Saruman says
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Do you know how the Orcs first came into being? They were elves once, taken by the dark powers, tortured and mutilated. A ruined and terrible form of life...
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