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Newspaper Page Text
(SAM INSULL IS HIT HARD BY
TWO MOVES COOLEY FIRED
1 Sam InsuH had his grip of Chicago
loosened a little yesterday. Insull is
the chief operator for the bankers
and promoters who are back of the
Commonwealth Edison Co., the light
and power trust, and the Chicago El
evated Railroads Collateral Trust, the
combine of elevated railroads.
State's Att'y Hoyne got a decision
from the supreme court which opens
the way for showing up all the water
ed stock and queer money moves in
elevated road finance.
And Lyman Cooley, chief engineer
of the sanitary district board, was
thrown out of his job. Cooley's offi
cial reports and other actions were a
help to the Insull light and power
trust, so much so that it was often
charged the Commonwealth Edison
Co had a hand in writing the reports.
Those who want public ownership
of these utilities say that chances for
public ownership are made better by
the actions yesterday.
Here's why Cooley was thrown
out: Dowrt.JjQckport is a fine
electric light and power plant worth
somewhere over $3,000,000. The
people of Chicago own it. It is doing
good work and paying its way, ac
cording to Trustees Clark and Paul
lin on the sanitary hoard.
Lyman Cooley wrote a report at
tacking the plant as a loser. The re
port was so rotten that wh6n Clark
and Paullin showed it up at sanitary
board meetings the board decided the
report should not be printed. Cooley
goes ahead and has copies printed as
he explained "for professional circu
lation." It was sent to places where
light and power interests want to
spoil municipal ownership.
The resolution throwing Cooley out
.of his job says he was guilty of "open
and flagrant disobedience and insub
ordination." The report is called a
'scandalously vicious attack against
the district's hydro-electric plant and
Ray Palmer, city electrician, and
John Ericson, city engineer, signed
the report so criticized, yesterday.
Trustees Clark, Paullin, Reading
and Kane voted for Cooley's dismis
sal. It was a lively day for Sam Insull
and his lawyers and under-cover men.
Insull is not only chairman board of
directors, Commonwealth Edison Co.
He is also head director of the Chi
cago Elevated Railroads Collateral
Trust, which holds a controlling in
terest in the bonds and stocks of the
The supreme court decided that
State's Att'y Hoyne has the right to
file information in quo warranto
against the Union Elevated loop Ry.
Hoyne says there is $70,000,000 of
stock in the elevated roads which is
wind and water and though capitaliz
ed at $122,000,000 the roads are not
worth over $52,000,000. Before
Judge Windes and Judge Scanlan lo
cally Hoyne failed to get permission
to start his suit Now the way is
open for him to show jugglery and
"It's the firts basic decision in rail
road stock watering," said Att'y
Glenn Plumb, who assisted Hoyne.
"It provides a starting point for pub
lic ownership of the roads. The ele
vated roads must come into court and
Bhow they have not watered their
stock. If they cannot show they have
not watered stock they can expect to
forfeit their franchises. Forfeiture
is the penalty."
William G. Beale, attorney for the
elevated roads and the Common
wealth Edison Co., is the controlling
trustee of the Chicago Tribune. Sam
Insull is a chief leading bondholder of
the Herald. The present auditor in
the Herald office came from the of
fices of the Edison Co.
County board given right to ac
cept any bid by decision of Judge
Windes in case of nurses' training