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The Chicago
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Published
Weekly
Vol. 3. No. 26
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A LONE Arab guard walks beside the sacred Wailing Wall in Jeru
salem. protecting it against any desecration during the four-week
truce prevailing in Palestine. The Arab have agreed to make
the Holy City neutral, subject to unqualified agreement by the Jews.
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IN PRAGUE, acting Vice-Premier Antonin Zapoiocky (left) informs
Premier Element Gottwald that he has been elected President of
Czechoslovakia, following the resignation of Eduard Benes. Zapo
iocky is now Premier.
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THOUGH blind himself. Adrian Scheltes (left), Chicago, gives in
structions in the operation of a lathe to Bernard Arcus, 28, who lost
his sight twelve years ago in an accident. Scheltes is regional super
intendent for the blind division of Illinois Vocational Rehabilitation.
Chicago, June 26- 1948
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the people’s viewpoint
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CITY GAB AGE
DEAL SMELLS!
Politician hikes bid for cartage
By CARL HIRSCH
IS Mayor Kennedy's investigation of
the garbage disposal contract an
other "grand stand play?"
And is the city going to get soaked again
when all the investigations and studies are
over?
In an effort to answer these questions, a
probe by the Chicago Star revealed the follow
ing facts:
1. That a $1 million city contract with the
Illinois Development Corp. for garbage disposal
is now awaiting City Hall final approval. This
contract covers only transportation of the gar
bage to dumps and not actual pick-up of gar
bage.
2. That this figure represents a 15 per cent
jump over the previous contract —and that the
Illinois Development Corp. was the only bidder.
3. That the Illinois Development Corp. is
headed by Paul V. Colianni, who is also a trustee
of the Sanitary District and a politician with
potent connections.
* • *
THE Illinois Development Corp. handles the
garbage from the point where it is delivered by
city-owned trucks. From there it is transported
by rail to two places to be dumped. One of these
dumping places, Lake Calumet, is city-owned.
The other is an old quarry in McCook, 111.
Colianni was at a loss to explain to the Star
what the investigation was all about. He said
that the increase in railroad freight rates was
mainly responsible for the jump in price.
But the Star also learned from the city's
purchasing office that the city assumes the addi
tional cost for any increases in freight rates.
* * *
THE NEW contract, which was to go into ef
fect April 1, was approved by City Purchasing
Agent Leo A. Murray. It was also o.k.’d by Aid.
All GOP factions agree
on pro - war platform
See Page 3
★ Edition
-- —4 —4
John J. Duffy, head of the City Council finance
committee.
But the Mayor moved to head off a scandal
over the rate boost and over the questionable
position of Mr. Colianni as politician and con
tractor.
This week, the Mayor’s office reported that
it was still investigating. A “highly respectable”
committee was also supposedly investigating.
These probers are “anonymous,” but it was
learned that the committee is made up of mem
bers of the Commercial Club, a big business
outfit.
Head of the Commercial Club is Merle J.
Trees, the Mayor’s friend, who is also a director
of the International Harvester Corp., Montgom
ery Ward, the Northern Trust Co. and the Santa
Fe RR.
* * *
THE STAR learned that the Illinois Develop
ment Corp., 105 W. Adams, is a Delaware cor
poration set up in 1931. That was shortly before
Colianni first became Sanitary District Trustee.
Colianni has had the garbage disposal contracts
since then.
Colianni was staunchly defended by Lloyd
M. Johnson, Commissioner of Streets and Elec
tricity, whose office is responsible for garbage
disposal.
He told the Star that the boost in price was
“due to higher freight rates.”
Aid. Duffy, who also put the stamp of ap
proval on the new contract, iz one of the two
aldermen who is now under fire in another
"deal." This involves a subway construction con
tract in which S. A. Healy, contractor, was the
only bidder.
The contract was originally about $1,500,000.
It was later upped to $3,100,000 —with Duffy’s
approval.
Five Cents