• U.S.

INVESTIGATIONS: Star-Crossed

2 minute read
TIME

Pale and earnest Hugh Cross seemed destined to warm benches while first-stringers flashed upfield. Eventually he became Republican lieutenant-governor of Illinois, served without public notice for eight years (1940-48) until the Democrats, headed by new Governor Adlai Stevenson, moved into the capitol. In 1949 Harry Truman put Hugh Cross on the bipartisan Interstate Commerce Commission; four months ago, the rotating chairmanship finally reached him. Last week, out in midfield at 59, Hugh Cross was caught in the latest congressional investigation of a conflict-of-interest case.

At issue was the loss by Chicago’s ancient Parmelee Transportation Co. of its 102-year-old franchise to haul passengers and baggage between the city’s eight painfully scattered railroad stations. Last spring the railroads, considering Parmelee inefficient and overpriced, threw open bidding on a new five-year contract. Successful low bidder was Railroad Transfer Service, Inc., headed by tempestuous John Keeshin, trucking magnate and longtime, if unlikely, friend of quiet Hugh Cross.

The ICC, which polices U.S. railroads, had no jurisdiction over the intracity deal. But a Senate investigations subcommittee, meeting in executive session, heard allegations that Chairman Cross went out of his way to present himself to the railroads as a character witness on behalf of Bidder Keeshin. Also discussed was an alleged job offer by Keeshin to Cross, who admitted that he helped Keeshin but flatly denied that his motive was anything more than friendship.

As Chairman Cross emerged shakily from the closed hearings, the Senate subcommittee voted unanimously to hold open sessions; the Justice Department requested a transcript of testimony for possible later action.

Led by Arkansas Democrat John Mc-Clellan, the investigators said they hoped frankly that gentle Hugh Cross, hitherto a highly reputable public servant, would resign. Hugh Cross decided last week not to stay and fight. In a letter of resignation to President Eisenhower, he called the still-fuzzy charges against him “baseless.” Wrote he: “I am realistic enough to know that, unfounded as they are, the mere pendency of such charges impairs my further service on the commission and its proper functioning in the public interest.” Replying that he appreciated “the years of diligent service you have rendered.” the President accepted star-crossed Hugh Cross’s resignation without further comment. The Senate investigators canceled open hearings.

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