Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1921-07-20
INQUIRY into STATE
TREASURY SCANDAL
BROUGHT TO CLOSE
Springfield, July 20.-Indictments charging
Governor Len Small Lieut.. Governor Fred F.
Sterling and Vernon Curtis with embezzlement.

~Ao Will SliiOSZZlClllCll
conspiracy and operation
OF a confidence game
were returned by the
sansamon county grand jury at
sos this afternoon.
Bonds Of all three were fixed at
$4,000 on each count.
On the first indictment the governor
and lieutenant governor were charged
with emhezzlement of 100000. The
indictment for conspiracy and conf
dence game charges that the three OBJ
taind divers drafts, warrants. vouch.
ers and documents to the amount of
$2,000,000"
Climax Reached Today.
The climax of the first act in one of
the most startling political dramas of
the states history was expected late
today or early tomorrow Upon the
result Of the grand jurys action may
depend the political future of one or
more of the republican leaders in IL.
linois, some observers of the inquiry
predicted
"Will Governor Small or Lieut.. Gov.
Sterling be indicted?"
What will be the result if Attor-
ney General Brundage and States
Attorney Mortimer fail to secure in
dictments against the governor or
lieutenant governor after all that has
been said?"
Those were questions which OBJ
seryers of recent developments in Hi.
nois, officials were asking today.
The entire investigation hinges, it
was said this morning, on the ten
million dollars of state funds to Ar
mour Company and Swift and COM
pany Chicago packers. This loan, it
was said, was made through the Grant
Park bank an institution operated by
the late Senator F.. G.. Curtis, close
friends and political colleague of
Governor Small for many years.
Attorney General Brundage and his
aides, it is said, have attempted to
show that the Grant Park bank exist
ed only on paper charter granted
many years ago by AlonZo Curtis.
father of the late senator Interest
on the ten million dollars amounting
to two per cent, was paid to the state
during the terms of Governor Small
and Lieutenant Governor Sterling as
state treasurers of Illinois. The pack
ers' notes are said to have drawn
seven and eight per cent interest 1t
is the difference in interest earnings
that was said to be the crux of the
Under the treasury
aW in operation when Small and
Sterling were in the Office the state
treasurer was required to earn at
east two per cent on state funds
oaned. This law was changed and
state treasurer Miller is obliged to
Oan state money to the best bidder
The Grant Park bank, phantom or
eal, went out OF existence last Janu-
Try when the new state bank law went
ntO effect
II the bank at the time the loans
we're made was a legitimate institu-
ion why was such an obscure estab-
ishment selected as the depository for
uCh huge sum as ten million dol
ars, and if the then Treasurer Len
small was serving the interests of the
'0BlN why uii tli1 1iiOhNy Cut II pily
wo per cent for the state although it
'as secured by notes bearing Z and
er cent, Attorney Brundage asked
lille the investigation was in pro-
ress
Governor Small has scarcely broken
is silence since the investigation
tarted 1t began while he was away
rom the capital Lieutenant Cover
or Sterling said he had violated no
iw to his knowledge and then re-
lained silent The investigation was
losely guarded by secrecy during its
rogress,
Lieutenant Governor Sterling from
ne start occupied the unenviable posi-
ion Of being in direct line with At
)rney General Brundage's brOadside
gainst Smalls term in the treasurer's
flee Sterling followed Small as
tate treasurer and preceded f. K.
Iiller whose revelations of alleged ir-
sgularities existing before his term
re said to have started the most
liter political battle of the Small
rundage war,
Mr.. Sterling is said to have accept
1 Small's securities on state loans
hen he took over the office.