The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-11-26
5 TREASURES
ARE ALLEGED
TO Be SHORT
Suits for Accounting Against
Five Former Officials of IL
linois Charging 81, 100000
Shortage Started.
SMALL CASE is CLUE
CRy Associated Pressl


state treaSurers, alleging a shortage
of approximately S2,500,000 were start
ed today by Attorney General Edward
J. Brundage.
The suits cover the six tearms pre-
ceding that of the present treasurer,
Edward f. Miller and are directed
against all state treasurers who held
office between 1909 and 1921. State
auditor Andrew Russell, who was
treasurer twice during the period, is
defendant in two suits
The other former treasurers invol-
we'd are: Governor Len Small, Lieu
tenant Governor Fred E. Sterling,
William Ryan, Jr., and Edward E.
Mitchell.
The Small. Sterling and Russell
suits were filed in the Sangamon coun-
ty circuit court at Springfield, their
official residence. Suit against Ryan
?nd Mitchell were TO be filed today in
Cook county.
Bondsmen of all the former treasur-
ers were made defendants
Disclosures made through the inves-
ugation of the state treasury which
resulted in Indictment of Governor
Small, Lieutenant Governor Sterling
and Vernon Curtis, banking associate
of Governor Small, last July, furnish
ed the evidence on which the civil
suits were based, the attorney gener-
ais office announced.
Searching Investigation
The Sangamon county grand jury
probe which ended in the indictment
of Small, Sterling and Curtis was the
beginning of a searching investigation
into treasury affairs lasting for weeks
and months, according to the Brund-
age office.
Going back to enactment of the law
/ of 1908 which required the state treas
urer to deposit money received by
him in Illinois banks that would pay
the highest rate of interest, Attorney
General Brundage and his invesugaf-
ors are said to have made an exhaust
i've search of all treasury records re-
lating to deposits and loans and inter
est earnings.
! This law was in operation until the
| present measure requiring the treas
urer to loan state money to the high
/ est and best bidder became effective
| this year.
/ Lieutenant Governor Sterling is de
/ fendant in a suit which alleges that
/ $10,000,000 of state money alleged to
! have been used by Treasurer Len
| Small and the late Senator Edward G.
! Curtis for their own personal profit
! continued under the control of Curtis
after Sterling, SmalIs successor, be
came treasurer.
Alleges Scheme
/ The bill alleges that shortly after
/ Small became treasurer in 1917, he
! entered into q scheme with Curtis tC
use large sums of state money fol
/ their own private gain. Small, at the
expiration of his term, the bill con
tinues, removed from the treasurer
office books and records relating tC
deposits loans and interest earnings
Immediately upon the commence
ment of his term as treasurer, Sterl
ing, the bill further alleges, became
a party to plan through which The
money was to continue under the con
troll of Curtis, that additional sum.
were to be turned over to him, anC
that the scheme was carried out, tC
the personal profit of all in the ALLEGED
plot.
Money thus handled was carried OF
the books in an account characterized
as the safe fund in order the bill
states, to conceal the real facts.
Curtis. according to the bill, issueC
, pretended certificates of deposit in th'
Grant Park bank" an institution
!, which the prosecution declared, dit
not exist.
A large part of the money handled
: through the arrangement was invested
in notes of Armour and company, ant
. Swift and company. Chicago packers
and the bill charges that Curtis col
lected approximately S2,0O0,O0O inter
est from the packers.
These particulars of the civil suit
are similar to and cover the sam
charges made in the criminal case
Ipending against Small and Sterling
7 and Vernon Curtis, who is a brothe
!; of Senator Curtis, whose death OF
Cured in March, 1920.
r All of the bills charge that the fiv
D former treasurers made only two re
' ports each on interest earnings dul
. ing their terms; that the interest az
' counts were not itemized, but sui
mitted in lump sums.