HISTORY—CEI/MUNY WARS AND TRIALS
0600 by Roldo BartimoleHistory tells a story. But not everyone reads it the same. Not everyone gets the same message.
I’m going to do something that may tax a reader’s patience but, I believe, tells the story of the corruption of the private utility company and the desire to profit no matter what the cost.
There has been a history of corruption involving the utility industry.
In a current chapter of utility corruption, First Energy Corp., which includes the Cleveland Electric Illuminating Co., paid some $60 million to fund a political move to pass Ohio state legislation that would bail out its nuclear and coal plants. It would cost customers billions of dollars over time.
But in Cleveland the classic dirty battle for utility monopoly has been going on for most of the last century.
Former Cleveland Mayor Dennis Kucinich played a central role this classic battle to maintain a city-owned utility—the Municipal Light Co. (Muny Light).
He made that effort the main subject of his memoir he wrote this year.
I devoted some 30 issues of Point Of Viəw, a newsletter I published from 1968 through 2000 to the prime issue of Who Governs. The writing included coverage of two federal jury trials involving CEI and the city of Cleveland. It also included coverage of CEI’s corrupt activities before Kucinich became mayor and after he was mayor.
It is a history of corporate corruption on a grand scale.
It also is a look at the failure of the Cleveland newspapers—Plain Dealer and Press—and other news media to examine and report the attempted robbery of a city asset as it was happening. This news media failure ended when Plain Dealer reporters revolted. They forced the PD finally to publish the truth. And the truth shifted the balance in a vote of whether to keep or sell Muny to CEI. Citizens, armed with the truth about the conflict, voted to keep the city’s asset. I will try to present not a simple quick read but a history that can be kept and referred to if needed. I believe it is worth saving.
It is worthy lesson of civic history that lends itself as a study subject for students from high school to college.
Here first is a 12-page issue that covered the case against CEI including a ruling by the Federal Energy Regulatory Commission that caught CEI anti-competitive activity against Muny Light. It also examines the activity of Federal Judge Robert Krupansky, CEI law firm Squire Sanders & Dempsey, the dirty deals of Councilman Frank Gaul, and the city’s lawsuit against the private utility.
It was published Feb. 3, 1979.

This led to a federal anti-trust $150-million suit against CEI for its misdeeds.
You don’t often get the opportunity to hear corporate executives having to answer for their actions.
I remember asking Elmer Lindseth, a former chairman of CEI, as we both attended the trial, whether he ever thought he’d see the day the company was brought before the court of law to defend its actions.
Lindseth pause and I wondered if he wasn’t going to answer. But he then responded, “The times are different and things change.” He said it with a smile.
In Dennis Kucinich’s memoir The Division of Light and Power—largely devoted to his fight as mayor to keep the city’s municipal light plant—he attacks CEI for its corporate interlocks, charging the Cleveland corporate community with aiding CEI in its pursuit of the city’s asset.
As I read that portion of the book, I had forgotten the details but in looking back I realized I had written those details back in 1979.
In the issue I identified 88 corporations and corporate controlled bodies in an easy to read chart. It revealed numerous interconnections. The July 21, 1979 issue follows.

I reported Kucinich’s Muny victory with the March 3, 1979 issue.
I had used a quote that Kucinich repeated in his book. It is from Mayor Tom Johnson, the progressive mayor who established the city electric system.
I believe in municipal ownership of all public service monopolies because if you do not own them they will in time own you. They will rule your politics, corrupt you institutions and finally destroy your liberties. —TOM JOHNSON, MAYOR 1901-1903.
The battle had coursed through more than 100 years.
I made a list of losers who wanted to sell Muny Light: George Forbes, Michael White, Bob Hughes, Ed Feighan, Bob Sweeney, Basil Russo, and Tim Hagan.
Talk about the past.
Non-politicians on the list: Brock Weir, Claude Blair, Tom Vail, Virgil Dominic, Dorothy Fuldheim, Dave Hopcraft and Ned Whelan.
For the media, I noted, “a news media washout”—PD, Press, and TV 3, 5 & 8. All failed in their mostly negative coverage of the Muny Light issue.

Early on the city ran into a judge who appeared biased against its lawyers. I came back to show his prejudices time and again.
It started early when U.S. Federal Judge Robert Krupansky ruled that the city would not be allowed new discovery but would have to be satisfied with what it had been given by March 1976, a four-year lag. The ruling was made in 1980 by Judge Krupansky.
A month later Krupansky’s bias was revealed in a story that appeared in the Plain Dealer. Krupansky described how he saw the trial as it began by telling the reporter it would “be boring.” He later tried to get his description changed in a telephone call to the reporter. “He wanted to be quoted as saying the trial would be technical, not boring.” But it was too late. The story had been published.
Krupansky had tipped publicly his feeling for the city’s case.

CEI was represented by Squires, Sanders & Dempsey, of course. The lead lawyer was John Lansdale. He was sometimes known as Cactus Jack because of his prickly nature. Lansdale had a distinguished reputation. He had been chosen to head intelligence for the secretive Manhattan Project, where the atomic bomb was being developed.
His prickly demeanor was visible in his question of witnesses. Indeed, his anger with city lawyers hit a peak during a trial recess. He pushed Brad Norris, a city lawyer, as I reported, “in anger.”

Krupansky continued to cripple the city’s case with rulings against the city’s lawyers. They seemed unable to please the judge.
I noted his negative behavior suggested that he should remove himself from the trial.
No way would he do this as the fix seemed to be in.
CEI escaped a guilty ruling as one jury member held out.
Despite Krupansky’s actions the trial ended in a hung jury. One juror deprived the city of a victory. The woman foreman of the jury was clearly favorable to the city’s case.
Indeed, Lansdale seem to gloat that CEI was determined to destroy Muny Light.
He told the court in his opening statement, “Yes, we refused to wheel PASNY (cheap electricity from New York State)… because it would have given Muny cheaper power” than CEI could produce. “We did not wish to help Muny,” he said.
A second trial would be necessary if the city were to continue its battle.
Krupansky was even more negative with the city’s effort in the second trial in late 1981.
CEI made no pretense that it want Muny out of business.

As the trial continued, Judge Krupansky kept city lawyers Brad Norris and David Welner of Hahn, Loeser, Freedheim, Dean & Wellman, off balance. Often calling the lawyers to bench conferences that seemed to treat them as incompetent.
I called the conferences “brutal beatings.” Of course, the jury could not hear the content but couldn’t miss the nature of the judge often summoning the city’s lawyers to the bench.

Although Judge Krupansky had told reporters that he really didn’t want to hear this case and that he tried to give it to another judge, Krupansky reigned as the hearing judge six years into the troubling case. He never gave it up.
During the time when Kucinich was mayor Krupansky had city property tagged to be sold to pay CEI past debts, some $14-million. This was at the same time the city faced default of about the same total debt.
Kucinich managed to pay CEI the $14 million, thwarting any other action against the city that Krupansky might take.
As the trial ended in a hung jury, Mayor George Voinovich at first suggested the city didn’t have the financial ability to pursue a second trial. He tried to toss the ball to George Forbes, who had gotten free legal service from CEI’s lawyers, Squire, Sanders & Dempsey as defense in a carnival payoff case.(Forbes was exonerated.)
But apparently the strong feelings for little Muny Light were still intense in the Cleveland community and a second trial was pursued. My take at the time was reflected in a headline: Do it again.

In the second trial, now in 1981, Lansdale utilized objections that triggered bench conferences called by Krupansky. It seemed a tactic the two had practice.
It kept witnesses, along with city lawyers, off balance.

Lansdale and CEI had changed tactics in the second trial. He corrected mistakes of the first trial.
“We thought that Mr. Lansdale behavior made CEI look bad,” said the forewoman of the first jury. “Many times after we’d get to the jury room someone would remark that CEI’s defense seemed bumbled.”
He and CEI, the second trial revealed, had learned the lesson. Better witnesses were brought in and others were handled differently.
Krupansky helped by ruling out some crucial city testimony he had allowed heard in the first trial. Two discriminatory acts allowed hearings in the first trial were ruled out by Krupansky in the second trial.
Krupansky seemed to be helping Lansdale.
One case allowed in the first trial but not the second involved a lawsuit filed against the city to delay interconnection. The suit by a law firm was secretly financed by CEI.
Krupansky’s ruling allowed CEI to avoid revealing this secret deal revealed in the first trial.

After the trials, a Case-Western Reserve University law professor wrote a magazine article based on his talks with jurors in both trials.
Prof. Arthur Austin wrote that had a first jury needed to use an alternate juror, which he reported it nearly did, the city would have won its case in the first trial. In the second trial, he said, a similar situation would have ended the trial in another hung jury.
He described the first jury as a blue collar jury that viewed management “with hostility.” Jurors in the second trial, he said, had a “management perspective. It favored vigorous competition and approved corporate profit-seeking.”
I would note that the jury foremen—a woman in the first; a man in the second, were opposites in their demeanor during the trial. In the second trial, the jury foreman showed a distinct bias toward Judge Krupansky with facial signs of bias toward the city lawyers.
In the end, CEI avoided anti-trust penalty. It paid a bad publicity price.
It also lost its long desired hope of taking Muny Light and establishing a monopoly.
With all the powerful backing—high-priced legal support, media bias, powerful political allies—CEI never was able to win the prize.
And in the end, CEI was bought out by First Energy Corp. CEI no longer is based in Cleveland but in Akron, and CEI’s former headquarters building no longer exists for its headquarters.
Maybe there’s a lesson in all of this.
James Aronson, a New York journalist and a founder of the National Guardian, called Roldo Bartimole’s Point Of Viəw, “perhaps the sharpest critique of the media—and the city it serves—being published anywhere,” in his 1972 book, Deadline for the Media. In 1991, Roldo was awarded the Joe Callaway Award for Civic Courage by the Shafeek Nader Trust.
Bonus No. 1: How “The People’s Mayor” Saved Public Power.
Bonus No. 2: At 245, America Is Old Enough to Be Honest About Its Founding.





















In this morning’s North Royalton Post, I have a letter to the editor—
So, 



