STATES AND CITIES: Hearst v. Kelly

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ordered dancing girls to cover their nakedness. On a second visit he found the Fair audiences applauding the change. Said he: "After all, the general public is pretty decent." Public decency was now being put to another test as the coverings were stripped off Mayor Kelly's private finances. Even his friends found it hard to get away from the fact that his official income never exceeded $18,000 per year, which was exempt from Federal taxation; that his tax settlement on $450,000 for three years coincided with the Sanitary District's "whoopee era." After the Sanitary District scandal began to fade most people were ready to forgive and forget whatever part friendly, genial Ed Kelly might have had in it. But since then things have changed. The U.S. had jailed Gangster Al Capone for eleven years for dodging his income tax. Many a good Chicagoan agreed with President Roosevelt in principle that he had a right to know how the Mayor became so rich while in public service. Ed Kelly was beginning last week to hear one of the most unpleasant sounds in public life, boos among the cheers at his public appearances.

*Later Mayor Kelly gave out a statement showing his assets and net income from 1919 to 1929. He had bought & sold $1,417,011 in securities and $243,351 in real estate, at a total profit of $361,445. To this was added $362,923 from salary, dividends, rents and interest, making a net income of $724,368. TA corporate body which controls all canals, waterworks, sewage and drainage systems in Cook County. Neither fish nor fowl, it is responsible to no other local government, raises its own money by taxation. Authority is vested in nine trustees.

**A onetime New York mayor whose income tax was under investigation last week by the U.S. was James John ("Jimmy") Walker, still in happy exile in Europe. Before the Federal Grand Jury in Manhattan appeared Russell T. Sherwood, Walker's financial Man Friday who fled investigation by the Legislature's inquisitor, Samuel Seabury. Sherwood balked at many a Question on the ground that the answer might tend to degrade and incriminate him, was upheld by a Federal judge.

***Last week the Fair was half over. It had taken in $13,211,214 from 10,000,000 cash customers. To break even this autumn its total receipts must more than double that figure. As a popular attraction it has fallen far below the estimates of enthusiasts who boasted that 50,000,000 persons would attend. "The Streets of Paris" continued to lead all concessions in popularity.

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