The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-21
RESIST ARREST.
Indicted Illinois Governor Will
Claim Immunity.
Was Charged With Private Use
of Illinois State Funds.
MADE LOANS TO PACKERS
Governor, Lieutenant Governor
and Banker Defendants.
EmbezzIement and Confidence
Game Involves S3,7OO,OOO.

on the opinion of his counsel and re-
fuse to submit to arrest on warrants
charging him with embezzlement, con-
spiracy and confidence game as a re-
suit of yesterdays indictments of the
ing and Vernon Curtis, Grant Park,
ILL.,, banker. Opinions holding that
the governor is immune from arrest
were being drafted by his legal staff
to be presented to Judge Smith later
in the day.
The indictment returned charge the
three with conspiracy to defraud the
state of $2.000.006 and the embezzle-
ment of 100000 Jointly, while Gov
ernor Small is charged with embezzle-
ment of 100000 and Lieutenant Gov
ernor Sterling is charged with the en-
bezzlement of a like amount.
Bond Is $15O,OOO.
The bonds of Governor Small and
Lieutenant Governor Sterling were
fixed at $4,000 each and those of
Curtis at 100000 The grand jury
asked permission to make a further
investigation but this was refused for
the summer.
The jury's report recommended that
the legislature conduct an inVeStiga-
ton of the whole subject of the han
ulAHB VI puDIlC 1ulOS u O0L6TIHlu6 the
official delinquency, If any, and to de-
termine what legislation should be en-
acted to protect the public funds.
The jury found that during the
terms of Governor Small and Lieuten-
ant Governor Sterling as treasurer the
daily balance in the state. treasury
fluctuated between $2O,00O.000 and
$S2,000,000 and beginning with.
Smalrs administration the balance
was carried on the books as two
funds, a vault and safe fund, the for
mer representing loans to legitimate
banking institutions.
The report asserts the other fund
represented loans made to the Grant
Park bank which it says ceased to
function as bank after 1908. Deposits
carried by the Grant Park hank. the
report asserted, were used to purchase
short term notes. from Chicago pack
ers, the +otaI of which the jury found
was ten million dollars.
The loans to the packers earned,
the jury reported, nearly, If not quite,
eight per cent, while Small and Sterl-
ing, according TO the report, paid over
to the state less than two per cent, the
remainder constituting the bulk of the
states interest money which the jury
charges Small and Sterling with en-
bezzling.
Governor Small issued a statement
in which he laid the entire blame for
the indictment on his political enemy
and Lieutenant Governor Sterling in a
statement declares he welcomed the
opportunity to lay bare his case before
the public.
Expected to Fight Back.
That Gov. Len Small, of Illinois and
those indicted with him Jointly on
charges of embezzlement of state
funds will fight back, maintaining
their innocence until a verdict of the
court has been rendered, is the signifi-
canoe taken today from the governors
statement on the action of the Sanga-
mon grand jury in returning four in
dictments against the governor, Lieut..
Gov. Fred E. Sterling and Vernon
Curtis, Grant Park banker, charging
embezzlement, conspiracy and con-
fidence game involving . total of
$3.700,000 of state funds.
In the statement he declared that
Attorney General Brundage, '1eader
of the conspiracy" has gained the in
dictment simply because of the per-
sonal fury 1 aroused in him because
1 refused to permit him to take from
the taxpayers pockets $1,500,0o0 for
the upkeep of his personal political
machine"
tWas Not Surprised"
Other parties aiming at his political
assassination, the governor charges,
are the traction interests of Chicago,
the public utility interests and certain
Chicago newspapers.
The governor said he was not sur
prised at the Sangamon county grand
jury in returning the Indictment, as
it is the "only county in the state
where he (Brundage) had any hopes
of securing an Indictment against me-"
4 He charges that Sangamon county Is
dominated by an organization protect
| ing the most vicious criminals and
brazen law violators to be found In
| the state
The next term of the Sangamor
county circuit court will be in Septem-
| Der and unless a change Of venue Is
taken, the case is likely to be tried
here at that time.
Hear Arguments Friday.
Arguments as to whether Governor
Len Small is subject to service on war
rants of the Sangamon county circuit
court charging conspiracy and embez-
/ element of state funds will be heard
| by Judge E. S. Smith, at 300 O'CLOCK
tomorrow morning.
The time for discussion on the issue
raised by the governors legal staff
was set by the judge today. His at
torneys in a signed opinion contend
that the governor of the state is i'm
mune from arrest and not subject tt
direction from the court
The bond of Vernon Curtis was filed
at noon today after Judge Smith ruled
to reduce the same from 100000 te
$4,000. 1t was signed by Mrs. Er-
nest Griffin, sister-in-law of the late
Senator E. c. Curtis, and E. A Cur
| tis brother of the banker.
II know of no statutes that protect
the governor of the state from ar.
rest" declared attorney Genera
Brundage in discussing indictment
proceedings against state officials. IL
/ commenting on the legal point raised
by the governors attorneys. q
| THE governor. is a citizen of tbs
state" the attorney general added
! ''and subject to its laws the same a.
'anv other citizeno