ALLEGED GRAFT.

Manawatu Standard, Volume LIV, Issue 89, 14 March 1934, Page 7

ALLEGED GRAFT.

CHICAGO POLITICIANS. CHICAGO, March 12. Newspapers here publish a sensational exposure to-day of alleged bribery of local Democratic politicians by utility corporations to gain favourable legislation. The allegations are in the form of a “confession” by Mr Moe Rosenberg, a wealthy deceased scrap metal and junk dealer who, to avoid prosecution for income tax evasion, informed Federal agents that most of the large profits from the sale of junk went to a group of politicians, including the late Mayor (Mr Anton Cermak), numerous aldermen and other officials. Mr Cermak was listed as receiving 95,000 dollars, presumably for “campaign expenses.” In all, about 500,000 dollars were distributed.

The way the system worked, according to Rosenberg’s statement, was that the corporations, notably the Insull group, sold him scrap metal at a ridiculously low figure, which he sold for enormous profits, most of which were turned over to politicians in cash without receipts. A few of the politicians named denied the charges. Others admitted gifts, but insisted that they were legitimate campaign contributions.