Chuck's Luck

Good fortune, as well as hard work, has always contributed heavily to the political and business success of Illinois' Charles Percy (TIME cover, Sept. 18). And in his bid to unseat Democratic Governor Otto Kerner, luck still rides with Chuck. Just a scant few weeks before the election, the Kerner Administration finds itself involved in a much headlined scandal.

Last week Kerner's campaign manager, Theodore Isaacs, 53, withdrew to defend himself against conflict of interest charges being investigated by a Sangamon County grand jury. Isaacs and Kerner have been buddies ever since 1938, when they met in the Illinois National Guard. As Cook County judge in 1955, Kerner appointed Isaacs attorney for the Chicago Board of Election Commissioners. Isaacs managed Kerner's successful 1960 race for Governor, was rewarded by appointment to the $15,000 job as director of state revenue. He ran the Revenue Department, which collects some 75% of the state's cash income, mostly in sales taxes, until returning to private law practice in September 1963.

The grand jury investigation was an outgrowth of the disclosure, first made by Chicago American Columnist Jack Mabley, that Isaacs drew fees for services from the Cook Envelope & Lithographing Co. at the same time that the firm had contracted to sell $1,144,688 worth of envelopes to the state--and at the same time that Isaacs was state revenue director.

The Cook company was formed only ten weeks after Isaacs took office. He admits receiving $4,000 in fees from the company for each of the years 1961, 1962 and 1963. He also owns 50 shares of Cook stock, concedes that he has paid nothing for them. Though it is not known how many shares exist, at the time of incorporation there were only 100 shares on record. One official of the firm estimates that 99% of Cook's business is with the state. The company's first sale to the state was made just twelve days after it was formed, apparently before it even had the equipment to turn out the envelopes.

Otto Kerner insists that he is "not associated with this in any way," that "a man is innocent until proven guilty" and that "I will stand by my friends." As for Chuck Percy, he just smiles, says not a word about the scandal. Why should he, with headlines about it every day?

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