The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1921-07-27
100000 FRAUD LAID
TO ILLINOIS G0VERAoR
Lieutenant Governor and Anoth'
er Implicated; Warrants
For Trio Issued

OpTiuSHciu, lii, July ~ W as
rants we're issued tonight for Gov.
Len Small, Lieut.. Gov. F. e. Sterl-
ing and Vernon Curtis. Grant Park,
banker, following their indictments
this afternoon on charges Of en-
bezzlement, conspiracy and conf
dence game through the alleged
use of interest on State funds for
their personal gain.
Four indictments were returned.
They covered charges Of fraud by
the trio during the terms Of Messrs.
Small and Sterling in the State
Treasurer's Office between 1917 and
1921.
The first Indictment charged the
Governor, Lieutenant Governor and
Curtis Jointly with embezzlement Of
$500, 900.
A separate indictment against Mr..
Small charged him with embezzlc-
ment Of 100000. while Mr.. Sterl-
ing was individually charged with
enbezzlement Of 100000.
The fourth Indictment charges
the three with conspiracy and con-
fdence game involving 100000
interest on State funds.
Centers On State Deposits
Alleged illegal operations by the
Governor, Lieutenant Governor and
Curtis named in the indictments
centered around deposits Of State
funds with the Grant Park Bank"
held by the grand jury to have been
a fictitious institution since 1908,
when it ceased to function.
Individual bonds on each indict-
ment were fixed at $4,000.
Mr.. Small will appear in court to-
morrow morning, it was said, to ar
range his bonds.
The "Grant Park Bank" estab-
lished many1lyears ago by Alonzo
Curtis, father of Vernon Curtis. al
though having ceased to function
several years prior to Mr.. Small's
term as treasurer. was used by the
alleged conspirators as the agency
through which to make loans of
State funds to Armour & Company,
and Swift & Company, Chicago
packers, according to the indict-
ments.
Although the packers notes drew
per cent interest. it is charged
that less than 2 per cent was turned
into the State treasury during the
Small and Sterling terms.
What LAW Provides
Under the law in operation then
the State treasurer was requrted to
obtain at least per cent on State
funds, but according to Attorney
General f. j. Brundage, who pushed
the investigation, the law did not
permit the treasurer to use for pri-
vate gain any interest earnings in
excess of per cent.
States Attorney Mortimer declin-
ed to indicate the scope of the testi-
mony before the grand jury, saying
it would be used in the court of
trial.
Mr.. Brundage, prime mover be-
hind the investigation, said:
1.-The constitution of Illinois says
in plain language that the Treasurer
shall receive for his service his sal
airy and that he shall not receive
for his own use any fees, perquisites
or other compensation.
at has been common gossip of
Springfield for quite time that the
handling of the public funds was a
business of profits for the officials
charged with their custody.
when the new State Treasurer.
Edward e. Miller, brought to my at
tention apparent confirmation OF
this misuse of public moneys,
deemed it my duty to lay the entire
matter before the States Attorney
for presentation to the grand jury.
'The action of the grand jury in
returning indictments is the view it
took of the suifieiency of this evil
dence."
Grand Jury's Report
In its report presented by D.. A.
Brian. foreman. the jury said:
From the evidence submitted II
appears that the treasury of the
State of Illinois carries large daily
balances and that during the adj
ministration of Fred e. Sterling
those balances have ranged from
$4,000. 900 to s32.OO0.oOO. During
the administration Of Len Small and
Fred e. Sterling as Treasurers Of
the State of Illinois, the law then in