Friday, May. 02, 1969

Rhodes Under Fire

Republican Jim Rhodes has done very well in Ohio politics. He was mayor of Columbus for nearly four terms, and after ten years as state auditor he was picked in 1962 to take on Democratic Governor Mike DiSalle. Take him Rhodes did, by the largest majority ever in an Ohio gubernatorial election. Rhodes' second four-year term is near ly up, and statehouse scuttlebutt has it that the popular and efficient Governor may try for a U.S. Senate seat next year.

Now it appears that this impressive record may lose some of its sheen. The reasons, reported by LIFE this week following extensive investigation, are two. Rhodes commuted the life sentence of a major Mafia mobster early this year, ostensibly because of age, ill health and good behavior. And for years, Rhodes has been using political campaign funds for his own personal purposes. Special Favors. The Mafia character is Yonnie Licavoli, now 65, who has been running Toledo numbers rackets by long distance and raking in underworld income from Detroit and else where-- all the while reposing in his cell at the Ohio State Penitentiary. He was sent up for life in 1934 for murdering and conspiring to murder two gambling competitors, a Toledo bootlegger and the bootlegger's girl friend. Before commutation, Licavoli was not eligible for parole; Ohio law forbids it in the case of a life sentence for first-degree murder. Now, however, the pa role board can vote to free him at any time. Licavoli has relatives who are Cosa Nostra powers in Michigan, Ohio and Arizona. If released, he would live in a Grosse Pointe, Mich., house until now occupied by an in-law who is still in the rackets.

Over the years, three prison officials have lost their jobs for permitting Licavoli special favors. The latest scandal occurred in 1958, when a state police investigation showed that Licavoli was being allowed unauthorized visitors by the superintendent, who accepted presents from Licavoli's friends and even turned up as a guest at the Detroit wedding of Licavoli's daughter. One of Licavoli's visitors was Teamster President James R. Hoffa, now doing time at the Federal Penitentiary at Lewisburg, Pa., for jury tampering. Only a month ago, Licavoli was transferred from prison to a private hospital, for treatment of a "massive" heart attack.

Why Rhodes chose to commute Licavoli's sentence, thus making him eligible for parole for the first time, is a mystery. Governor after governor had turned down Licavoli's pleas for clemency. Rhodes himself had done so in 1963, telling the prisoner: "It is impossible to disassociate your recent good conduct from the extended criminal conspiracy that brought about your imprisonment in the first place." For years, reports have flourished that Licavoli's Mafia friends would pay at least $250,000 for his release. In announcing the commutation, Rhodes took pains to observe that an investigation he ordered found "no evidence of such payment or promises." But LIFE quotes former officials, including ex-Governor DiSalle, as saying that they were aware of bribe offers from Columbus Mafia Leader Mike DeAngelo, among others. LIFE does not contend that Governor Rhodes accepted a bribe.

Even without Licavoli, Rhodes has troubles. LIFE says that while Rhodes reported $21,024.29 on his federal income tax forms as "gifts and gratuities" in 1958 and 1959, the Internal Revenue Service collected more than $85,000 in deficient taxes and interest because of income--supposedly political campaign funds--which Rhodes had entirely failed to report.

"In summary," concludes LIFE'S Denny Walsh, "over the past ten years Rhodes has settled tax claims against him by paying in excess of $100,000 in taxes, interest and penalties on income he did not report. For purposes of comparison, the amount he has been forced by IRS to pay in deficiencies is nearly equal to the total amount of income on which Senator Tom Dodd of Connecticut has been accused of evading taxes in his celebrated case."

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