Local - Chicago Daily Herald - updated 9:36 AM ET May 30 Chicago Tribune | Daily Herald
Wednesday May 30 09:36 AM EDT

Elk Grove to pull its money after banks back runway ad
By Ames Boykin Daily Herald Staff Writer

Elk Grove Village will punish four banks that signed a published advertisement supporting new runways at O'Hare Airport by pulling out $87 million in assets and depositing the money elsewhere, Mayor Craig Johnson said Tuesday.

This is the harshest reaction yet to a full page ad that appeared in area papers May 14, and was signed by 60 business leaders who support expanding O'Hare.

Johnson, one of the most ardent opponents to new runways, said at stake are operating funds that the village plans to transfer out of Northern Trust Corp., Harris Bank, Bank of America and Bank One Corp. The money represents more than half of the village's total investments.

Johnson said the village already transferred a "portion" of the money out of some of those banks on Tuesday but did not say which banks had suffered the initial loss, how much was moved or where to.

He indicated he might stop the withdrawals if the banks apologize and agree to stay out of the debate over O'Hare.

Meanwhile, Elk Grove Village employees have begun checking other banks' interest rates, said Finance Director Hilda Ingebrigtsen said.

The Civic Committee of the Commercial Club of Chicago placed the advertisement May 14 in the form of an open letter to state and city officials. In it, leaders said that building another runway at O'Hare would generate more money for the region and create more jobs.

Withdrawing the money would send a strong message to the banks whose chief executive officers and presidents were the business leaders who signed the letter, Johnson said.

"They have the right to say what they want and our right is to do business with whom we want to do business," Johnson said.

Johnson is demanding the banks make a public apology and vow to stay out of the airport debate without the consent of customers.

"They have to do something to earn the trust of the village again," Johnson said.

Both Northern Trust, which holds $70 million of the village's money, and Bank of America declined to comment Tuesday.

R. Eden Martin, president of the Civic Committee, said Tuesday the village's move is regrettable.

"I think that's his call to make," Martin said. "It's a free country."

Johnson also threatened the United Way with the loss of Elk Grove Village's financial support. William K. Ketchum, the president and CEO of United Way/Crusade of Mercy, Inc. also signed the advertisement.

Ingebrigtsen said Elk Grove Village will not lose any interest or pay penalties for the withdrawals, even if it transfers the whole $87 million because such transactions cost no money.

Johnson, vice chairman of the Suburban O'Hare Commission group, said he did not consult with other commission members before making the announcement Tuesday. The commission fiercely opposes additional runways at O'Hare and instead supports a third regional airport near South suburban Peotone.

Johnson, however, added that any commission members who decided to follow Elk Grove Village in withdrawing business from those banks would be welcome.

Bensenville Village President John Geils said 10 years ago Bensenville threatened to withdraw funds from a local bank whose management supported O'Hare growth. Eventually, a compromise was reached before the village made a withdrawal, Geils said.

Geils said for the time being at least, Elk Grove Village is standing alone.

"His (Johnson's) efforts at this time do not have the support of the collective communities of the Suburban O'Hare Commission," Geils said.

Johnson said because his job is to represent the interests of Elk Grove residents and the majority of the community opposes new runways, using taxpayer money as an instrument to make his point is appropriate.