Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-07-21

ALSO FOR LIEUT.. GOV.
Banker of Grant Park Accused--Trio
Accused of Scheme to Defraud State
of $4,000, ,0OO-Attor. Gen. Explains

| Springfield, H., July 21.-War-
rants werer issued tonight for Gov
Len Small, Lieutenant Governor
Sterling and Vernon Curtis. banker
of Grant Park, following their in
dictments this afternoon on charges
of embezzlement, conspiracy and
confidence 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 Small
and Sterling in the State Treasurers
office between 1917 and 1921.
The frs. Indictment charged the
Governor, Lieutenant Governor and
Curtis jointly with embezzlement
of 100000. A separate Indictment
against Governor SmalN charged him
with embe4zlement OF s500,000, while
Lieutenant Governor Sterling was
individually charged with embezzle-
ment of s;n0,OOG. The fourth indict-
ment charges the three with con-
spiracy an! confidence game invclv-
ing 5000 900 interest on State
| funds.
Alleged illegal operations by the
Governor, Lieutenant Governor and
| Curtis na~ed 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. Cover
nor Small will appear in court to
morrow mt rhing, it was said, 70 ar
range his bonds.
The "Grant Park Bank" establish
| ed many years ago by Alonzo Curtis,
father of Vernon Curtis and the late
Senator, although having ceased to
! function several years prior TO
Small's term as Tresurer, was used
by the alleged conspirators as the
agency through which to make loans
of State finds to Armour and Com
pany and Swift and Company Chi
cago packets, according to the indict-
ments. Although the packers notes
drew Z are per cent. interest, 1t
:s charged that less than 2 per cent.
was turned into the State Treasury
during the Small and Sterling terms.
Under the law in operation then
the State Treasurer vas required to
obtain at least per cent. on State
funds, but according to Attorney
Brundage, who pushed the investl-
cation, the law did not permit the
Treasurer to use fof private gain
any interest earnings in excess of
2 per cent.
States Attorney Mortimer de-
J clined to indicate the scope of the
testimony before the grand jury, say
ing it would be used in the court of
trial.
Attorney General Brundage, po-
litical foe of Governor Small and
| prime mover behind the investiga-
ton, said:
"The constitution Of Illinois says
in plain language that the Treasurer
shall receive for his services his
salary AMI that ne snail not receive
for his own use any fees, perquisites
or other compensation.
t"fWhen the new State Treasurer,
Edward E. 1Jiller, brought to my at
tention apparent confirmation of
misuse OF public moneys, deemed
it my duty to lay sne entire matter
before the States Attorney for pre-
sentation to the grand jury.
'The action Of the grand jury in
4 returning indictments is the view it
took of the suffic;ency Of this evi-
| dence"
Governor Small tonight issued
statement "to the people Of Illinois,"
declaring lis ignorance of every
charge made and asserting the
charges were the result Of a con-
spiracy to accomplish his political
assassination.