New Britain herald., 1921-09-07
THE PUBLIC CHARGE
 AGAINST GOV. SMALL
Understandable Basis Against
 Him Just Becomes Public

Springfield. Ill.,. Sept. 7.--The basis for tho charges against Governor Len Small. Lieut.. Gov. Fred F. Sterling and Vernon Curtis. Grant Park. H.. bank CT. was explained in the report of D. Brain, foreman of tho Sangamon coun- ty grand Jury which returned th indict- ments. as follows:
 From the evidence submitted it ap- pears that the treasurer of the state Of Illinois carries largo daily balances and that during the administration of Fred E. Sterling those balances have ranged from x22 .OOO, ,OOO to x32, GOO GOO. Dur Ing the administrations Of Len Small and Fred r.. Sterling us treasurers of the state of Illinois. the law then in force In this state required the state treasurer to deposit all moneys recciv- cd by him on account of the state, in such banks as paid the highest interest rate. We nnd that both the letter and spirit of the law was violated. Instead Of loaninE the state money to all secure banks of the state. without discrimina- ton, and to such of them as paid the highest interest rate. only a portion of that money was loaned in accordance with the provisions of the law. For the DufD0NO VI NtINultlNfIAAfik AAlD@6 Kiona an ingenious scheme was devised and closely adhered to-
 The grand jury statement goes on to explain thaat. beginning with Mir. smaIl's term as treasurer in 1o10. tho daily balances were carried in two funds. one denominated the vault fund and the other tho 'safe fund" The vault fund" tho books show. ac- cordinE to the grand jury. was loaned to some 900 banks. Tho so-called ''saie fund" consisted of loans to the Grant Park bank. the charter of which was owned by Vernon Curtis. president of another bank at Grant Park. Ill.,. few miles from Governor Smalfs homo at kankakce.
 'The ao-calIcd safe fund" the grand jury statement says, represented loans made to the so-called Grant Park Bank which was formerly n private banking institution which absolutely ceased to function as n bank after 1908. Although this bank was purported to bo owned by Il stnElo individual. and did not tranAact banking business whatever and had no depositor other than the state 'of Illinois. yet it was given huge deposits of public moneys by two for mer state treusureTs. Small and Ster- ling. The average deposits Of statc moneys carried by this purported bank were SiO,OO0.OOO.
 ''The evidence shows that money was taken from the state treasury gen erally tn lots of flvo hundred thousand dollars and deposited in the so-called Grant bank. which thereupon issued and delivered to tho state treasurer cer- tlicatcs of deposit for the amounts rec ceivcd. but without any collateral sc- curity. Tn other words. the only cvtd- ence of indebtedness and the only Sc- eurity held by the treasurer for loans agRrcgating 0,OOO. GOO were paper oD- ngutions on a flctiCious bank.
 ''The moneys SO received were used in purchasing at n discount short time notes Issued by Swift X Company nnd Armour A Company. two large corpora tionA engaged in the packing business In Chicago. These transactions netted tho purchasers Of the notes large pro fts. Tf any portion of the profits so realized was paid Into tho state treas n1y. t was less than two per cent