The Birmingham age-herald., 1921-07-21
ENTERTAINMENT OF
 S7OO,OOO CHARGED IN HE INDICTMENTS
Conspiracy and Confidence Games Charged to Cover nor, Lieutenant Governor
 and Banker of Illinois
By Associated Press

Ppl lHS Slltlui iil., July AO---- " ar rants were issued tonight for Gov ernor Small, Lieutenant Governor Sterling and Vernon Curtis, a banker of Grant Park, H., who were indicted this afternoon on charges of embezzlement, conspiracy and games through the al legged use of interest on state funds for their personal gain.
 Four indictments were returned. IT ey covered charges of fraud oy the trio during the terms of Small and sterling in the state treasurer's cf- flee between 1917 and 1921.
 The first indictment charged
 the governor, lieutenant Eover-
 nor and Curtis jointly with cm-
 bczziement of $7OO,0oO. \ scpa-
 rate indictment against Governor
 SmaiI charged him with embcz-
 clement of $5O0,OOO, while Licu-
 tenant Governor sterling was
 individually charged with com
 spiracy and confidence games,
 involving S2,OOO.000 interest on
 state funds.
 Alleged illegal operations by the gov einor lieutenant governor and Curtis set forth in the indictments eentered around deposits of state funds with the Grant Park nank," held by the grand jury to have bcen 8 fictitious institution since 1908, W hen it ceased to function
 Bonds Fixed nt S5O.O00
 Individual bonds on each indict- ment were fixed at s50,000.
 Governor Small will appear in court tomorrow morning, it was said. to arrange his bond.
 The Grant Park bank" established many years ago by the late senator F. C. Curtis and by Alon1o Curtis. father of Vernon Curtis. although having ceased to function eVerai years prior to Small's term as treas- urer was used by the alleged con- spirators as the agency through which to make loans of state funds to Armour and company and Swift and company, Chicago packers. ac- cordine to the indictments. Although the packers notes drew and per cent interest, t Is charged that less than per cent was turned into ahe state treasury during the Small and Sterling terms.
 Under the law in operation then the state treasurer was required to obtain at least , per cent on state funds, but according to Attorney General Brundage, who pushed the investigation. the law did not permit the treasurer to use for private gain any interest earnings in excess of 2 per cent.
 States Attorney Mortimer declined to indicate the scope of the testi- mony before the grand jury, saving it would be used in the court Of trial
 The grand jury recommended an exhaustiven ninvestigatio of the hole subject of the handling of rublic funds
 Jury Is Discharged
 The jury asked to be permitted to extend it's investigation. but Judge smith after expressing his belief in their honesty, discharged them, an- nouncing that another grand jury would be called September 6.
 Lieutenant Governor Sterling made the following statement today in connection with This indictments.
 T have never believed in trying cases in the newspapers and have no further statement to make at this time. other than that l have violated no law to my knowledge. and will welcome an opportunity to meet ana fully answer charges that may be preferred against me when the proper time arrives"
 Attorney General Brundage, poii- tical foe of Governor Small. snt prime mover behind the investlga- ton. said:
 pThe constitution of Illinois says [ huf 10 shall receive for his services his salary. and that he shall not receive for his own use any fees, perqlisites or ether compensation,
 .ft has been common gossip ot Springfield for quite a time that the handling of the public funds was a business of profit 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. 1 deemed it my duty to lay the entire matter before the states attorney for pre- sentation to. the grand jury.
 ''The action of the grand jury in returning indictments is the view It took of the sufficicncy of this evi- dence."
 small Declares Innocence
 
 Governor Small indicted today hy the Saneamon county grand jury on charges of embezzlement and con spiracy to defraud tonight issued staten ent ito the people of Illinois. declaring his innocence of every charge made, and asserting the charges were the result of consp.r- acy to accomplish his political as- sassination."
 The governor said in his efforts to cut state expenses he had vetoed sp- propriations of $700,000 for the of- flee of Attorney General Brundage, whom he accuses of heading the movement against him. Mir Small asserted the Chicago Tribune and the Chicago Daily News had assisted the attorney general in spreading his political propasanda broadcast.
 Governor Small was elected n the republican landslide last November over former Senators James Hamil- to,l Lewis. Mir. Small and Mir. Srun- dege were both nominated in the re- publican primary. Governor Smalfs ca ndidacy had the support of the po- Iitical adherents of Mayor Thompson