The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1921-07-29
INDICTMENT HITS
GOVERNOR SMALL
illinois Executive Is Charged With
EmbezzIing S5OO,OO0
State Funds.
FOUR TRUE BILLS RETURNED
Lieutenant Governor Sterling Is
Charged With Taking 100000 &C
the Peoples MoneY-Verne S.
Curtis, Banker, Also Named.

Springfield. H., July 22-Gov. Len
Small and Lieut.. Gov. Fred +. Sterling
were indicted by the Sangamon coun-
" grand jury on charges OF embezzle-
ment and conspiracy 10 misappropri-
ate public moneys.
Verne :. Curtis, president Of the
Grant Park Trust and Savings bank,
was named in two other indictments
charging similar offenses.
In all, four Indictments were re-
turned. Two are Joint indictments
charging the three with cmbezzling
100000 of the states money and the
third charges conspiracy and conf
dence game by means of which the de-
PENDANTS unlawfully obtained $2,oOO,-
600 of state funds.
Governor Small and Lieutenant Gov
! crnOr Sterling are also named liz sep
arate indictments charging the former
with embeZZlement of 100000 While
state treasurer, from 1917 10 1919, ana
the lieutenant governor with misap-
preparation of 100000 while holding
the office from 1910 to 1927.
The true bills were returned before
Judge T.. $. Smith in the circuit court.
The bonds Of Governor Small and
Lieutenant Governor Sterling were
fixed at $4,000 and those of Curtis
at 100000.
Grand Jury's Charges.
The grand jury's report charging
misuse of state funds, in part, follows:
The undersigned, the regular grand
jury Of Sangamon county, who were
instructed by this court TO inquire
into the handling Of state moneys by
former state treaSurers, beg leave TO
report that we have devoted two
! weeks to that work and in the course
of our Investigations have examined
many witnesses.
LAS the result of our Investigation
we return herewith a number of in
dictments.
From the evidence submitted it APP
pears that the treasury of the state
Of Illinois carries large daily balances,
and that during the administration of
Fred r. Sterling these balances have
ranged from $20,000,0OO To $50 ,00O,-
900.
During the administrations Of Len
Small and Fred f.. Sterling as treasur-
crS of the state of Illinois, the law then
in force in this state required the
state treasurer to deposit all moneys
received by him on account of the
state within five days after receiving
same in Such banks in the cities of the
state as in the opinion Of the treaSur-
or were secure and which paid the
highest rate OF interest to the state
for such deposits.
"We find that both the letter and
spirit of that law was violated. In
stead of lOaning the state moneys TO
all secure banks Of the state, without
discrimination, and TO such Of them
which paid the highest rate Of interest,
only n portion Of that money was
loaned in accordance with the prOvi-
sions of the statute. For the purpose
Of circumventing these provisions an
ingenious scheme was devised and
closely adhered to-" e
Brundage Cites Constitution.
Attorney General Brundage said:
1.-The constitution Of Illinois says in
plain language that the treasurer shall
receive for his services his salary, and
that he shall not receive 70: his own
use any fees, perquisites or other com
pensatiOn.
1T has been the common gossip OF
Springfield for quite a time that the
handling of public funds was a bust
ness Of profit for the officials charged
with their custody.
"When the new state treasurer, Mr..
Edward T.. Miller, brought to my at
tention apparent confirmation of this
misuse of public moneys, ! deemed it
nv duty TO lay the entire matter be-
fore the states attorney for p%resenta-
ton to the grand jury of Sanganlon
county.
"The action of the grand jury in re-
turning indictments is the view 1t took
OF the suffciency of this evidence"
Governor Small issued a statement
addressed "To the People Of Illinois,
i'm which he charged the indictment
resulted from his attempt to cut down
state appropriations, resented by his
political enemies.
For the present" the statemen,
said. may not ask you to accept
from me with the same confidence
which you accepted my candidacy fol
governor. assurance to you that an
absolutely innocent Of any charges
which the public may consider broush'
against me by the grand jury"
The Art Of Lite.
The art Of life is to keep step witt