Plan for Chicago

(See front cover)

Chicago, often casually termed the "worst governed city in the world,'' approached, last week, another major cure experiment. Coming to a head was a plan for a businessman's administration. The plan, as announced by Silas Hardy Strawn, onetime (1927-28) president of the U. S. Bar Association, calls for cooperation with the regularly constituted municipal authorities, rather than the creation of a new city government. Thus, for instance, a famed engineer would sit at the right hand of the city's Director of Public Works. A famed banker would lend talent to the City Treasurer. The leader of this business group would presumably have access to the Mayor's office. These businessmen would receive no salary from the city; their services would be donated by their companies as an act of public service.

Loosely described as setting up a "super government," the plan actually remains indefinite concerning the authority to be invested in the business group and the extent to which their advice would necessarily be followed. Mr. Strawn himself described the scheme as "embryonic." John W. O'Leary, suggested as head of the new regime, said that "the whole thing" was in a "formative state." and James Simpson, Marshall Field president, scolded Mr. Strawn for making a "premature" announcement. Yet, loose and shapeless as the plan at present appears, the business government movement, perhaps immediately inspired by the desirability of "cleaning" Chicago before the World's Fair of 1933, is undeniably under way.

Assuming that the businessman control idea actually goes into operation, whom might Chicagoans select as leader of the business group? Young as Chicago is, many of its great pioneer families have already passed into their third generations. Among the Swifts, the Armours, the McCormicks. the Potter Palmers, perhaps the most available candidate is Harold Higgins Swift (president of the board of the University of Chicago, director of Chicago's United Charities). Potent, indeed, are Robert Rutherford McCormick and Joseph Medill Patterson, heads of the Chicago Tribune. But Mr. McCormick would hardly leave the Tribune to act in an advisory capacity at City Hall, and Mr. Patterson is busy with the weekly Liberty and New York Daily News and with extended airplane cruises (TIME, Jan. 14). It was recalled, last week, that the maternal grandfather of these men, Joseph Medill. was elected Mayor in 1871, running, after the great fire, on a "Fireproof ticket. Among other possible candidates, Hale Holden, railroader, has more than local interests, and Richard Crane (Crane valves) is only a part-time Chicagoan. A great Chicago enterprise is International Harvester Co.. but its present head, Alexander Legge (TIME, Jan. 14) is too preoccupied with the world's harvests to be concerned with city management.

Bankers. Search for the new leader might possibly centre along La Salle St., Chicago's banking street. Here are the Reynolds brothers, George McClelland Reynolds and Arthur Reynolds, who last September (TIME, Sept. 17) merged their Continental National Bank & Trust Co. with Eugene M. Stevens' Illinois Merchants Trust Co. to make the second largest U. S. bank. The Reynolds brothers, however, are money makers rather than law makers, and Banker Stevens belongs to the comparatively younger generation. There is also Banker Melvin Alvah Traylor, onetime Texan, head of Chicago's First National Bank.

Other Possibilities. Outstanding among Chicago's industrialists, of course, is utilityman Samuel Insull. Possibly the baseball and gum interests of William Wrigley Jr., the stock market speculations of Arthur W. Cutten, the taxicab past of John D. Hertz (see BUSINESS) make them less available. No such considerations, however, would arise in connection with Thomas E. Wilson, packing house (Wilson & Co.) president, or Thomas E. Donnelley, "biggest" printer. Ideal from the standpoint of public spirit would be Julius Rosenwald, chairman of the board of Sears Roebuck, famed philanthropist (Chicago Industrial Museum, Jewish colonization in Russia, Negro schools and Negro Y. M. C. A.), mentioned as possible Hoover Secretary of Commerce.

O'Leary. Thus the possibilities. Meanwhile, Banker John W. O'Leary, definitely suggested for leadership of the businessmen's group, remains a probability. Born in Chicago (1875), he is the son of an able ironmaster, to whose business he succeeded. He has been president of the O'Leary company since his father's death. Last week he became president also of Chicago Trust Co. In 1916, while president of the Chicago Association of Commerce, he organized, within 48 hours, the largest of the nation's pre-War preparedness parades. In 1925-26 he was president of the U. S. Chamber of Commerce; in 1928. vice treasurer of the Republican National Committee.

Simpson. Last week, however, Banker O'Leary appeared hesitant, and Chicagoans considered another logical candidate for the post. As head of Marshall Field & Co., James Simpson runs Chicago's greatest, perhaps the world's greatest department store. Born in Glasgow, Scotland (1874), James Simpson arrived in the U. S. at the age of six. The year 1860 was a milestone in Chicago's history, for in that year its population climbed above the half million mark. James Simpson was an obscure six-year-old among the 10,000 newcomers who made Chicago a real metropolis.

At 17 he entered Marshall Field & Co. as clerk in the cashier's office. At this time he was described as being "ordinarily stupid," yet within a year Marshall Field had made him his confidential clerk. Soon after this promotion he asked for a salary raise, to which request Mr. Field replied: "Young man, at your age I was making $3 a week." "Well, Mr. Field," said Simpson, "perhaps you were not worth any more." Mr. Field gave him the raise.

At Marshall Field's Mr. Simpson was associated with such men as Potter Palmer, Levi Z. Leiter. H. Gordon Selfridge. Upon the death of Mr. Field (1906), Mr. Simpson became second vice president; president of the company in 1923. Outstanding developments of his administration have been the building of the men's store annex, the purchase of Rothschild & Co., and the construction of the Merchandise Mart now being erected on Wacker Drive. In 1926, Mr. Simpson succeeded Charles H. Wacker as chairman of the Plan Commission which has done so much in the development of Chicago's river and lakefront. No talker, Mr. Simpson tells interviewers that business and personal success come from hard work, from being of service to others, from preferring the sound to the spectacular.

Significance. The entrance of businessmen, the application of business principles, to municipal affairs has often been advocated, has occasionally been tried. Usually the businessmen find that running a city is a more complicated affair than they had conceived it. Generally the professional politician finds them only a temporary annoyance. Chicago has, and has had, for years, a committee of businessmen who have given Mayor Thompson much good advice, yet Chicago's present reputation as a centre of lawlessness and of corruption is hardly a testimonial to their efforts. On the other hand, civic pride is unquestionably a major issue with the Chicagoan who spends sleepless nights calculating in what year his city will be larger than New York. Tremendous publicity has been given to Chicago bombings, machine gunnings, graft. Not so much has been said concerning the fact that Chicago has one of the few U. S. waterfronts which is not a disgrace to its city. Should Chicagoans, mindful of the approaching World's Fair, enter upon a determined campaign of civic improvement via business methods, they will certainly bring abundant energy to the experiment. Certainly no more crucial proving ground for a test of municipal government could be provided than the test that roaring, restless, growing Chicago may give to the business-in-government-idea.

The City of Chicago won a legal victory, along with something of a moral defeat, when the U. S. Supreme Court, this week, gave a decision on the long-wrangled question of water-diversion from Lake Michigan. The court denied an injunction by which the Upper Great Lakes States had sought to stop diversion. But though the injunction was denied. Chief Justice Taft's opinion declared chat the Chicago drainage district had defied the authority of the U. S. Government in increasing diversion from 4,167 cu. ft. a second to 8.500 cu. ft. a second and flayed Chicago for :.ot providing proper sewage disposal plants more promptly. Said the Chief Justice: "Although the restoration of just rights to complainants (the Upper Great Lakes States) will be gradual instead of immediate, it must be continuous and as speedy as practicable. ..." The problem of reducing diversion to a legal basis and restoring Lake Michigan to its proper level was referred to special master Charles Evans Hughes.