Evening journal., 1921-07-21
governor OF
ILL. Indicted
Len Small Is Charged on
One Count TO Have
Taken S5OO,0O0
LIEUT.. GOVERNOR,
BANKER ALSO HELD

SPRINGFIELD, H., July 21-The
sangamon County grand jury has
indicted Governor Len Small on
charges growing out Of the investi-
cation Of the State Treasurer's Office
for the period Of 1917 TO 1919. when
he was State Treasurer. That is the
first time a Governor Of Illinois has
been indicted.
Fred e. Sterling. Lieutenant Gov
ornor. also was indicted. Mr.. Sterl-
ing was State Treasurer from 1919
to 1921. A true bill also was re-
turned against Laverne G. Curtis,
president of the Grant Park State
Bank
The indictments charge embezzle-
ment. conspiracy and operation Of
confidence game.
one Indictment charges Governor
Small with embezzling $500. 900; an
other charges Sterling with embezzl-
ing 100000; a third charges Small,
Sterling and Curtis with embezzle-
ment. Another indictment charges
Governor Small. Sterling and Curtis
with conspiracy to procure divers
drafts, vouchers and documents be-
longing to the State valued at 81.
OOO.OOO Judge Smith fixed the
bonds in each case at $4,000.
James NJ. Graham, formerly
States Attorney and al former MEM
ber Of Congress, and George Giles
pie were in court as local counsel
for Governor Small when the jury
reported. They were prepared 10
argue against the issuance OF a
capias and claimed that a Governor
could not be arrested.
Judge Smith discharged the Grand
Jury and announced he will adjourn
the court until September. That
may mean that there will be no
immediate trial.
States Attorney Mortimer advised
Sheriff Mester TO notify Governor
Small by telephone that warrants for
his arrest were out. Judge Smith,
however. had informed Mr. Giles
pie that the court would await the
convenience Of the Governor in COM
ing in to give bonds.
Lieutenant Governor Sterling Is in
Rockford and Curtis is in Grant
Park.
The action of the Jury Is the clim-
ax Of the investigation which ii start
ed on July IL at the direction OF
Judge Smith. who summoned the
jury into a special session at the re-
quest OF States Attorney Mortimer.
Of Sangamon County. Attorney
Mortimer acted on the suggestion Of
Attorney General Brundage. The
calling Of the Grand Jury caused a
/ Statewide sensation.
The jury investigated the disposal
OF interest on State funds between
| the years 1917 and 1921. Accord
/ ing to estimates made by f. r. Mil
/ Ter. present State Treasurer. about
/ $4,000. 600 Of interest on State funds
/ during those years was not turned
/ into the State Treasury. From
1917 to 1919 Governor Small was
| State Treasurer and from 1919 to
| 1921 Lieutenant Governor Sterling
was State Treasurer.
The main quest Of the jury was TO
/ discover what became of the interest
centered around the sum OF $4,000,
/ 600 Of State funds loaned 20 Chicago
packers. A former State Treasurer
put S1O.O00.OO0 Of State funds into
/ Grant Park Bank. Certificates Of
deposit from the Grant Park Bank
Z. +. and V. S. Curtis, proprietors
were turned into the State Treas
ury as memoranda receipts for that
amount"
II is charged that a representa-
tive of the Grand Park Bank visited
Armour q Co. and Swift d Co. and
negotiated to lend the two packing
I 4 49, 81
notes bearing Z per cent. interest.
The packing houses accepted the
proposal not knowing that the
money was State funds Il is stated.
but with the understanding that It
came from a group of thirty-six
down-State banks. The packers
notes were purchased below par and
IL is said the actual interest earned
on the s1O.0OO,OOO was about 81
per cent.
It is charged that sh per cent.
interest was not turned into the
tate Treasury. but that only per
cent. interest was deposited with the
other public funds Mr.. Brundage
charged that somebody got rake
off" Of or G y per cent. interest on
the S10,000,O0O, or approximately
10000 a year. His statements 10
State Attorney Mortimer was that II
the persons who got the "rake-off'
could be located they could be prose
cuted for embezzlement Of public
! funds.
The Attorney General also ad-
vised the state Treasurer that II Il
could be proved that certain persons
kept the extra interest they could
be sued in the civil courts for the
recovery Of the money to the State
Treasury.
Mr.. Smalrs first public office in the
State was as State Senator from the
Kankakee district
Four years ago, when Mr.. Small
was a candidate for State Treasurer
opposition Of more than passing in
terest was shown in his home coun-
IS. That opposition extended to Mr..
Smalrs close political and business
friend, the late Senator Edward c
Curtis, who died early last year.
When Frank o. Lowden entered
the race for Governor in 1915, with
Frank /. Smith, OF Dwight and
Morton d. Hull. OF Chicago, as his
opponents for the Republican nom
nation, the Small-Curtis combina-
tion. as did the Thompson organiza-
ton, got behind Lowden to a man.
FIRE DAMAGES AUTO
An automobile owned by j. p