Change in the Wind

In Illinois all summer the hot winds of scandal have blown hard at the Republican state administration. The blast blew Orville E. Hodge (TIME, July 30 et ante) from his perch as Republican state auditor and landed him a 12-to-15-year sentence in the state penitentiary for stealing more than $1,000,000 from the treasury through a warrant (state check) cashing dodge. Democratic leaders joyfully looked forward to using the Hodge case in their campaign to defeat Republican Governor William G. Stratton. Then, suddenly, the wind changed.

To the Democrats' embarrassment, the new blast roared straight at Cook County

Treasurer Herbert C. Paschen (rhymes with fashion)--hand-picked by Chicago's Mayor Richard Daley to run against Stratton this fall. The Chicago Sun-Times, sniffing for new leads in the Hodge case, fingered the county treasurer's chief deputy, John E. Sullivan, for suspicious connections with two banks through which Hodge had done his double-dealing. Paschen fired the man. Then the news paper revealed the existence of a Herbert C. Pashen Employees Association "welfare fund" in the treasurer's office--made up by contributions from banks where county money was on deposit. Some of the money, the paper charged, had been used to further Paschen's political career.

Flowers for the Sick. Paschen fought back. He went on radio and TV to say that the fund had been used solely for welfare purposes, e.g., flowers for the sick. Besides, he argued, his predecessors had established similar funds and nobody had objected. In any case, he abolished the fund and ordered its $14,000 balance returned to the banks.

But the trouble would not be abolished.

The U.S. Senate Banking and Currency Committee began to investigate, as did federal and county grand juries. Other newspapers moved in. Rapidly, Paschen's troubles were becoming double trouble to his sponsor, Dick Daley, and to the Democratic machine. Not only was their campaign case against the Republicans slipping away but Democrat John Gutknecht, up for re-election as Cook County state's attorney, was in for trouble himself if he tried to protect Paschen. Democrats feared that the county treasurer's trouble might even hurt Illinois' Adlai Stevenson.

Three weeks ago State's Attorney Gutknecht got himself off the spot by releasing records confirming that Paschen's welfare fund had indeed been used for political purposes. Democrats stepped up pressure on Paschen to get off the ticket for "the good of the party." Stubbornly, the treasurer held out. Said he time and again: "I'm running."

Doing the Right Thing. Last week the roof blew off. The Sim-Times disclosed that Paschen had failed to account for a $4,000 contingency fund. Reacting swiftly, Gutknecht subpoenaed Paschen to appear before the grand jury. That brought Dick Daley down with both feet. Said the mayor flatly: "His running would be injurious to the entire ticket. I hope he does the right thing."

Paschen did. He withdrew "to make sure that the issues this fall are clear in the public's mind." This week Dick Daley,

after conferences with Adlai Stevenson,

'will hand-pick a new nominee.

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