South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-07-21
Man
TO FACE MANY
OTHER COUNTS
Lieut. Gov. Sterling and Yer
non Curtis, Banker. Indict-
ed on Same Charge.
REQUIRE HEAVY BONDS
Say Officials Used States
Money for Personal Bust
ness Interests.

SPRINGFIELD. H.. July 20
Warrants were issued wednesday
night for Gov. Small. Lieut.. Gov.
Sterling and Vernon Curtis. a banker
Of Grant Park. ILL.,. following their
indictment "Wednesday afternoon on
Charges Of embezziement. cOngptracv
and confidence game. through the
alleged use OF interest on state funds
Tor their personal gain.
-Four indictments were returned.
They covered charges ~ fraud hv The
trio during the terms ~ Smau and
Sterling IN the state trassur.r= office
between 1917 and 1921. The 4rsr
indictment charged the governor.
Lieutenant governor and Curtis Joint
~ with embezz,euenr or 100000.
A separate Indictment against Gov.
Small charged him with eubezzIe-
ment Of $4,000 while Lieut.. GOV.
Sterling was individually CHARGED
with embezzlement of $500 600. The
fourth indictment charges the three
with conspiracy ard confidence game
involving two million dollars inter
est on state funds.
Fictitious Bank.
Alleged Illegal operations bv the
governor, lieutenant governor and
Curtis named in the indictments
conferred around deposits OF state
funds with the Grant Park bank
held by the grand jury 10 be fcu-
t-ous institution since 1905. when D.
ceased to function.
Individual bonds Of each indlct-
ment were fixed al $4,000.
Gov. Small will appear in court
Thursday morning. il was said. 20
arrange his bonds.
The Grant Park bank" estab-
| lished many years ago By the Iare
Senator T. c. Curtis and by AIonzo
Curtis. father of Vernon Curtis. all
/ though having ceased 70 function
3 several years prior 10 SmaII's term
/ AZ treasurer. was used by the ALLEGED
I cOnspiratOrs as the agency through
which TO make loans OF state funds
10 Armour and Co. and swift ana co.
Chicago packers according % the
/ indictments.
Interest Drops.
Although the packers notes drew
Z and 3 per cent interest. IL is chare-
ed that less than per cent was
turned into the state treasury DUR
ing the Small and Sterling terms.
Under the law in operation then
the state treasurer was required %
obtain az least . per cent on state
funds. but according 10 AIRY Gen.
Brundage. who pushed the iUvaeff-
cation. the law does not Derntt -ha
treasurer TO use for private gain any
interest earnings in excess of two
per cent.
States Atty Mortimer declined %
indicate the scope OF the testimony
/ before the grand jury saying il would
be used in the court of trial Atty
Brundage. political foe If GOV. smau
ard prime mover behind the nvesti-
cation said.
THE constitution OF Illinois says
+ in plain language that the trrs suror
shan receive for his services his
/ salary and that he shall nor rerr nc
[ for his own use any fees. Derqsi-i-es
( or other forms Of compensation
Common C.o.--f,
"r. has heer common -os-, ~
c,-;,gse5 Cor c,,f... . .t,-- .r-.- ~.
bs,4Ii,g % ,ne ,r-,r-. s..-5- --..
business ~ nroe- f-- ~ -4r-.--s
CHARGED v-i+b .bef.. ~,z.-r--
.,Wbe, .ba new -,s-a --e.=,.-s-
r75u-a-5 2 1r.-a~ t-----,, -. -,-.
atter-f1., sr,s-e-. o,.-e-.-,.s-.. -
ms misuse n DubI.c 7-o-av r -ae---
Cd q. NV 5,,+,. =, ,.--. 49,. ..-.t-- ---..-
ter before the states attorney Tor
/ presentation 10 the grand jury
The action OF The grand jury .r
returning indictments is the view &c
took Of the suflc-ency Of this evl-
I dence"
In its report presented by = A.
Brian, foreman. the jury SAID:
From the evidence submitted -t
} appears that the treasury of the
state OF Illinois carries -arga bali
/ ances and that during the adm ~
+ -stration OF Fred z. Sterling chose
/ balances have ranged from tuer--
two million dollars % r1---y--.-o
million dollars During the admin
tratione Of Len Small and Fred y
Sterling IS treasuTers OF the state r.