The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-07-22
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STANDS ON STATUTE
Will Heed the Advice OF
His Attorney
ENEMIES ARE BLAMED
Charge of Embezzlement Is
Laid At the Door of the
Executive,
ASSOCIATED Press Dispatch.J


Springfield, H., July 21.-Goyernor
Len Small is expected to appear in
court today to demand an immediate
ments returned yesterday by the
grand jury charging conspiracy to
defraud the state and the embezzling
OF public funds. q
Lieutenant Governor Fred e.
Sterling and Vernon S. Curtis of
Grant Park, ILL.,. one of the owners
of the Grant Park bank, named
Jointly with Governor Small in the
indictments, probably will be served
with warrants today and will take
similar action. The warrants were
sworn out here yesterday for the
three men following the returning of
the indictments but Governor Small
was the only one in the city then.
Endorsement Is Charge.
The indictments returned charge
the three men with conspiring to
defraud the state of two million dol
lars and the embezzlement OF seven
hundred thousand dollars, while Gov
ernor Small is charged with the en-
dollars. AND Lieutenant Governor
Sterling is charged with the en-
bezzlement of like amount. The
bonds of Governor Small and Lieu
tenant Governor Sterling were fixed
at $4,000 each and those of Curtis
at one hundred thousand dollars.
The jury's report recommended
that the legislature conduct an in
yestigation of the whole subject of
the handling Of public funds to de-
termine. the official delinquency. If
any, and to determine what legisla-
ton should be enacted to protect
the public funds.
Daily Balances FIuctuated
The jury found that during the
terms of Governor Small and Lieu
tenant Governor Sterling as treasurer
the daily balance in the state treas
ury fuctuated between $40, 900
beginning with Smalls administration
the balances were carried on the
books as two funds, vault and safe
fund. the former 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
junction as a bank after 1908. De-
posits> carried by the Grant Park
bank, the report asserted were used
TO purchase short term notes from
he jury found was ten million dol
lars.
The Loans To Packers.
The loans to the packers earned,
he jury reported, nearly Is not quite.
light per cent while Small and
Sterling, according to the report,
paid over to the state less than two
yer cent, the remainder constituting
he bulk of the states interest money
which the jury charges Small and
Sterling with embezzling
Governor Small issued statement
: which he laid the entire blame for
he indictments on his political enc
MES and Lieutenant Governor Sterl-
ne in a statement declared he wei
omed the opportunity to lay bare
is record before public.
Governor Immune From Arrest
Governor Small, It was said today,
will stand on the opinion of his coun- !
ell and refuse to submit to arrest on
charging him with embez-
lement. conspiracy and operation Of
confidence game as result of yes
erday's indictments Of the governor.
Lieutenant Governor Sterling and
'ernon Curtis. Grant Park, H., bank
r. Opinions holding that the COVER
or Is immune from arrest were be-
lg drafted by his legal staff to be
resented to Judge Smith later In
he day.