New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-21
Gov. Small Of
ILL. Indicted in
2 Million Deal
Accused With Lieut.. Gov. of
Enlbezzlement and Con-
spiracy in Their Terms
as Treasurer of she State
Based ON Loan to Packers
Difference Alleged Between
Interest Collected and the
Sum Treasury Received

SPRINGFIELD, H., July 20.-Gov-
ernor Small, Lieutenant Governor Fred
e. Sterling and Verne E. Curtis, of
Grant Park, were indicted to-day by
the Sangamon County Grand Jury for
conspiracy and em5ezzlement in cen
nection with the interest earnings of
the State Treasurer's office during The
terms of Small and Sterling.
The true bills were returned before
Judge Ebert Z. Smith of the Circuit
Court Of Sangamon County. An iadict-
rent is returned against Small for EN-
bezzlement of S5G9,O0O while State
Treasurer. One is against Sterling for
100000 for embezziement and third
is against Small, Sterling and Curtis
for embeZzlement OF $70O, 900 Another
Indictment for conspiracy to defraud
and confidence games runs against
Small, Sterling and Curtis. Bonds of
all three were fixed at S5O,OO0 on each
count
The indictment for conspiracy and
confidence games charges that the
three obtained divers grants, war
rents, vouchers and documents to the
amount OF s2,OOO,OO0"
Warrants were issued later for Small,
Sterling and Curtis, and they will ap-
pear in court tomorrow to arrange
bonds.
Case Hinges on Loans to Packers
The investigation hinges on the s1o.-
100000 loan of state funds to Armour
& Co. and Swift g. Co. This loan, it
was said, was made through the Grant
Park Bank, an institution operated by
the late Senator E. C. Curtis, close
friend and political colleague of Gov
crnor Small for many years.
Attorney General Brundage and his
aids, it is said, have attempted to
show that the Grant Park Bank existed
only on paper. Interest on the $10,-
paid to the state during the terms Of
Governor Small and Lieutenant Gov
ernor Sterling as State Treasurer of
Illinois. The packers notes are SAID
to have drawn and 8 per cent inter
est. 1t is the difference in interest
earnings that was said to be the crux
of the investigation.
Under the Treasury law in operation
when Small and Sterling were in office
the State Treasurer was required to
earn at least 2 per cent on state funds
loaned. This law was changed and
State Treasurer E. f. Miller is obliged
TO lend state money to the best bidder.
Bank Goes Out of Existence
The Grant Park Bank, phantom or
real, went out of existence last Janu-
ary, when the new state bank law went
into effect
Sterling followed Small as State
Treasurer and preceded E. E. Miller,
whose revelations of alleged irregular
tiles existing before his term are said
to have started the most bitter political
battle of the Small -Brundage war.
Sterling is said to have accepted
Smalls securities on state loans when
he took over the office. Some of these
securities were not accepted in the
same manner by Miller
Miller went to Brundage with his al
legged discoveries. The Attorney Cen
eral conferred with States Attorney
Mortimer and the Sangamon County
Grand Jury was recalled
The findings of the grand jury were
anticipated. The state, familiar with
the testimony presented and the ma
ture of the evidence from the start of
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