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Chicago Tribune
June 28, 2006

Editorial:  Secrets of Little Rock Road


Take a secret land trust, a booming real estate market and a long-sought nearby highway. Add a secret federal funding process known as a congressional "earmark," as in "let's earmark that money for this project." The result when all those elements become public knowledge can be embarrassing, as House Speaker Dennis Hastert now has discovered.

Hastert denies there is any connection between the profit (pegged at $1.5 million to $1.8 million) he made from selling land in booming Kendall County to a housing developer and the $207 million in federal funding he secured via earmarks for the proposed Prairie Parkway in the area.

Let's look at how all this came to pass.

Half of the 138 acres that Hastert sold last December to the developer was bought in the name of Hastert's wife, Jean, in 2002, then later transferred to a secret land trust.

The trust purchased the other half of the acreage to give Hastert's land access to a road. The Little Rock Trust No. 225 took its name from Little Rock Road in Plano, which borders the property. The trust included three partners: Hastert; Dallas Ingemunson, the Kendall County GOP chairman and a longtime Hastert supporter; and Thomas Klatt, owner of a local trucking company. But only Ingemunson's name was listed in public records.

Such secret land trusts are common in Illinois. They are troublesome because they can be used to disguise the true ownership of land in public records. Hastert and friends deny that was the intent. "When you have multiple owners a land trust is easier to deal with," Ingemunson told the Tribune earlier this month. "It wasn't an attempt to hide anything."

Hastert inserted two earmarks into last year's transportation bill--one for $152 million that would help fund the Prairie Parkway and one for a $55 million interchange. The parkway interchange is about 5 miles from the property he held in secret. Earmarks only become public knowledge after the fact. There's no chance for scrutiny in advance. The House under Hastert has turned the earmark into an art form.

There is nothing secret about Hastert's support for the Prairie Parkway. He has advocated for years for the controversial north-south route through Kendall County, which would connect Interstate Highways 80 and 88. Why he felt that funding for this route should have to be cloaked in earmark secrecy is a mystery.

Congress should do away with the earmark process. It promotes needless spending on pet projects and hides the tracks of the members who push for those projects. Congress has been stalling on ethics reform in the wake of the Jack Abramoff lobbying scandal--including proposals to eliminate the secret earmark process.

It's business as usual. Last week the House passed the $427.6 billion defense appropriations bill. It contained money for Iraq and Afghanistan, a military pay raise, missile defense--and $5 billion in earmarks for pet projects. Enough.

There's no law against the speaker profiting from a booming real estate market in his own back yard. Kendall County is one of the fastest growing counties in the country as acres of farmland are transformed into exurban housing developments. Hastert is furious that his integrity has come into question.

But there's no one in the nation who's in a better position to do something about that than the speaker of the House.

One, stay out of secret land deals. Two, eliminate the earmark process.