On Sunday, 2 January 1972, Ralph Joseph Perk became Cleveland’s 52nd mayor and the first Republican to be elected to that office since the second World War. Perk would be remembered for this ribbon cutting, but Roldo Bartimole knew that there were much bigger issues for the new mayor to handle and he got right down to business.
In his 3 January 1972 issue of Point Of Viəw (volume 4, number 13), Roldo, under the headline—Able To Produce $6 Billion In Profits Over Decade, Now Finds Itself Pauper Case. why?—ledes:
Would you believe that an entity that could produce more than $6,000,000,000 in profits, pay out more than $3,000,000,000 and have another $3 billion to invest in capital projects could today be a pauper organization on the verge of bankruptcy?
That that organization could be mired in self pity, spiritually depressed and pitifully disillusioned?
That it could be physically disintegrating?
That its board chairman must tell its work staff that it must endure further employee cuts? And that the chairman cannot find any new resources to keep present operations functioning?
The organization is the Cleveland community.
Cleveland’s financial crisis is as real as Disneyland.
This was a bold move for Roldo. The theme was not a new one for him, but he had not before hit the issue of wealth inequality fostered by Capitalism in the United States so directly. Roldo asked:
If this community and its people can produce such wealth during the past decade, why is it that there is not enough money in the community to pay for even minimum services to protect the health and safety of its citizens?
The short answer is greed, but I have come to believe that the people who produce collect the wealth suffer from a kind of psychological illness akin to that which leads people to become hoarders. Our über wealthy, Roldo’s elites live in a capitalist world where wealth is the only scorecard. They engage in pissing contests where the length of the numbers after the dollar sign are a stand in for the strength of your stream. Their success, their self-worth, is literally their self-worth. Roldo continues:
There is no financial crisis in Cleveland. There is merely a need to distribute the wealth of Cleveland among its people, rather than a handful of wealthy.
Why then is there no revenue to operate the city? And why are the near suburban cities almost in the same position as Cleveland? And why will Shaker Heights and Cleveland Heights be in the same position soon?
No reason other than the enormous greed of corporate Cleveland and the leeches that live off the dividends it produces.
And the politicians are all bought, if not directly, indirectly. Perk is no different from his predecessor. Carl Stokes opted for a city payroll tax he knew was inequitable. Perk, instead of seeking a tax increase (so far), demands severe sacrifices primarily from the people least able to afford it.
Further, Perk perpetuates the myth that Cleveland has no money to provide needed services and the solution to the city’s financial needs lie in the direction of service cutbacks and reducing waste. But never, never does the solution lie in making those enjoying the benefits of city services pay the bill.
The classic response is, of course: If you raise the cost of doing business in a community by raising taxes, at some point the wealthy will just move. America was not quite there in 1972, but it very soon would be. This is the argument that has pitted community against community, state against state and, ultimately nation against nation as multinational corporations threaten to take their business (and their jobs) elsewhere.
This continues today with businesses abandoning communities in search of tax breaks. Perhaps the most egregious examples came in 2017 under the ludicrous Make America Great Again era of defeated President Donald John Trump with faux bidding wars among communities started by Amazon and Foxconn’s $3 billion con of Minnesota. “People,” Roldo wrote, “are getting angry.” He continues:
The pressure is so severe that even David Rockefeller, chairman of Chase Manhattan Bank, has felt the need to speak about it at the Advertising Council dinner recently and his talk was partially reprinted in the Wall Street Journal:
Considering the seriousness and growing prevalence in some quarters of this (anti-business) attitude, it seems to me that businessmen have no choice but to respond by becoming reformers themselves, making a conscious effort to adapt the operation to the market system to our changing social, political and technological environment.
The question really comes down to this: Will business leaders seize the initiative to make the necessary changes and to take on new responsibilities voluntarily, or will they wait until these are thrust upon them by law?
Rockefeller isn’t talking about real change, of course, but rather a need by business—a need by Capitalism—to throw a sufficient heap of scraps to the people making the most noise so as to quiet the barking and, in so doing, stave off the tumbrels. Rockefeller continues:
Because of the growing pressure for greater corporate accountability I can foresee the day when, in addition to the financial statement, certified by independent accountants, corporations may be required to publish a ‘social audit’ similarly certified. In anticipation of this, businesses should seek ways of reflecting in their accounting procedures their concern for the less tangible elements of the quality of life.
In the midst of our current pandemic, I wonder if Rockefeller would have had the balls to call out the insane profits of Amazon and Jeff Bezos’ mountain of wealth? Under the tag Money-Makers, Roldo lists the profits and cash dividends of the worst offenders: Cleveland’s wealthiest corporations. The top ten on the list were:
Cleveland's 10-Wealthiest Corporations in 1971
Corporation | Profits* | Cash Dividend* |
Republic Steel | $663,240,000 | $373,940,000 |
Ohio Bell | $567,000,000 | $488,000,000 |
East Ohio Gas | $408,000,000 | $253,000,000 |
Eaton Corporation | $366,810,000 | $162,170,000 |
Cleveland Electric | $348,000,000 | $215,000,000 |
Diamond-Shamrock | $182,600,000 | $93,850,000 |
Hanna Mining | $179,310,000 | $58,590,000 |
Sherwin Williams | $171,350,000 | $94,780,000 |
Harris-Intertype | $118,300,000 | $38,600,000 |
Lubrizol | $113,520,000 | $36,240,000 |
*All dollar amounts are for a 10-year period. | |
In total, the 50, Cleveland-based, corporations raked in $6,194,490,000 and paid cash dividends of $3,199,890,000.
In a brief notice under THE CLEVELAND PAPERS, Roldo writes:
A set of papers dealing with the Cleveland power structure is now available for $1.50. It examines Cleveland’s ruling class as it relates to various problem areas, including health, consumer affairs, housing, pollution, politics and the job place.
The Papers are produced by The Illuminating Company, a radical Cleveland research group.
The book is well worth the price and could serve as the basis for a class on power structure operations.
While there are no authors listed on the document, I do know that in addition to Roldo, Barbara Ehrenreich wrote at least one part of the report. The table of contents lists:
- The Business Oligarchy;
- Foundations—Tools Of The Oligarchy;
- Cleveland’s Medial Empire;
- Housing;
- Consumer Concerns—Who’s Responsible;
- Taxes: No Robin Hood For The Poor;
- The Fouled Environment; and
- Workplace Oppression.
When the 25th Street Bookstore closed I acquired a number of copies of the document and I still have two copies left for anyone who thinks $5 is not too much to pay for a bit of Cleveland history. (A steal at that price since A. I may be in possession of the only surplus issues on the planet and B. Adjusted for inflation, $1.50 would be $9.59 in 2021 prices.) If you’re interested, let me know in the comment section below.
In his 17 January 1971 issue of Point Of Viəw (volume 4, number 14), Roldo followed on on the general case of rapacious greed by Cleveland’s corporate elites made in the previous issue and devotes the issue to a very specific tax-money grab: the insane scheme to build a jetport on Lake Erie. This would prove to be the first in a long list of such raids on public coffers—including a billion-dollar bridge to Canada. Roldo, writing in Jetport In Lake A Corporate Profit Scheme. So, Don’t Do It In The Lake—Or Anywhere, ledes:
The ability of one group to set priorities for a community enables that sector to derive enormous unearned profits. The Greater Cleveland Growth Association, fronting for corporate interests, has pushed to the front of the community priority list its plan for a Jetport in Lake Erie.
The Jetport scheme would make someone of the Jesse James mentality drool. It has all the profit potentials that evidence the monumental greed and selfishness typical of corporate leadership of any city.
The 200-plus page proposal, called a ‘prefeasibility technical report,’ outlines one of the largest ripoffs this community will ever be left paying for.
I wonder how Roldo might compare this ripoff to those that would follow in the decades to come including Gateway, Tower City, The Galleria, The Flats, The Rock Hall (with its attending rapid service). Roldo continues:
As usual, the scheme was paid for by tax-free foundation funds, $50,000 from Leonard C. Hanna Jr. Fund, routed through the Cleveland Development Fund, which has done more to divert public funds into private hands than any one agency I know. CDF has been a major business, tax-free front used to fund studies that result in private profit via the use of massive public tax funds.
By spending no more than pennies of its own, the Cleveland corporate community wants a billion dollar creation, supplemented by about another billion dollars in transportation feeder facilities, that will become the foundation for private profits of billions for rich corporations.
I have been known to say that you don’t get rich by making money, you get rich by not spending money. What I normally mean is that buying bigger houses and cars tends to make you poorer, but what Roldo is writing about here is my advice on steroids: getting richer by spending other people’s money. Roldo continues:
But by all means placing the true cost where it belongs should be avoided at all costs as the Growth Association suggests:
The Jetport must be an economically sound product and NOT SUBJECT THE AIRLINE CARRIERS TO UNFEASIBLE INVESTMENTS AND COSTS. [Roldo’s emphasis.]
In other words, you build a billion dollar facility for their business but make sure they have to finance it. How about the taxpayer and his or her unfeasible investments and costs?
The Growth Association plan explains that revenue bonds will be used to finance local commitments where possible. But this too is a tax. For example, toll charges or special taxes to pay off revenue bonds typically continue years after the reason for them has been paid. [Emphasis mine, JH] The New York Port Authority is a good example of the misuse of such powers.
I doubt that even Roldo foresaw how this theme would consume his reporting over the next four decades. Much deeper in his piece I was struck by the following paragraph. Roldo continues:
The intention that the construction of a Jetport would be good for the ecology of the region [Emphasis mine, JH] received wide coverage in the news media.
The rationale was as perverse and twisted as you might imagine. You have to read the whole sordid explanation to appreciate how pathological these people were.
Speaking of pathological, finally in the issue, Roldo returns to the Cleveland Police Department in Leisman Case Shows Perk, As Stokes, To Allow Police To Rampage With News Media Covering Up. He writes:
An officer couldn’t have a worse record of misbehavior than [Cleveland Police Lieutenant Harry] Leisman and still remain on the police force.
Mayor Ralph Perk has continued the practice of coddling a man who seems to have made a habit of shooting people. Wherever he goes, people turn up dead.
Perk, who pleaded that he wants a clean administration and doesn’t want a ‘bad’ cop on the force, moved to cooperate with Leisman by not suspending him but granting a leave of absence after Leisman’s latest shoot ’em up.
This one, Christmas eve, left a trail of blood on the West Side and two dead, one a 10-year old boy who was watching TV and the other a 25-year old woman. A bar room dispute set off the gun battle. Leisman used a stolen M-14 in his wild one-man charge of the bar.
What was a cop doing with an M-14? Good question. Roldo continues:
If the news media had any concern for the community, or any desire to show their concern for justice they wouldn’t be handling the whole Leisman story as they have.
What the media are doing is boxing themselves in purposefully by dredging up conflicting stories so that they will not have to take a stand.
They have reported Leisman with a shotgun, with a rifle, with nothing, with an M-14 handed to him by a mysterious ‘someone.’
All this is the product of a form of journalism that allows the journalist to escape any responsibility and thus allows the cop to escape responsibility too.
The reporter works hand in hand with the cops who traditionally shield one of their own.
Police reporters at the [Cleveland] Press and Plain Dealer know Harry Leisman much better than I do. They know his reputation. They can quote first hand to show exactly what he is. But they won’t. Frankly, they can take the blame, as much as Leisman, for the death of the 10-year old.
And oh. Did you think I was over the top using the word pathological above? I wasn’t. Roldo continues:
Probably most damaging are the results of a psychological test which concludes that Leisman is psychologically unfit to be a policeman.
Roldo concludes by doxing the mayor.
Perk’s home number is 883-3866 or at work 694-2000. He ought to hear from people who feel that cops who kill 10-year olds through negligence don’t make good employees.
Sadly, I think any reasonable person might draw a line directly from Harry Leisman to Timothy Loehmann.
See here for a bibliography of books and other materials mentioned in this series.
Previously while Readin’ Roldo…