Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1921-07-28
INDICTMENT HITS
GOVERNOR SMALL
Illinois Executive Is Charged With
EmbezzIing S5O0,OOO
State Funds.
-FOUR TRUE BILLS RETURNED
lieutenant Governor Sterling 10
Charged With Taking 100000 Of
the Peoples Money--verne 9.
Curtis, Banker, Also Named.

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Springfield, H., July 22.--Gov. Len
Small and Lieut.. Gov. Fred E. Sterling
were indicted by the Sangamon coun-
ty grand jury on charges OF embezzle-
ment and conspiracy to misappropri-
ate public moneys.
Verne s. 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 embezzling
100000 Of the states money and the
third charges conspiracy and conf
dence game by means of which the de-
PENDANTS unlawfully obtained $1,000
600 Of state funds.
Governor Small and Lieutenant Gov
ern0r Sterling are also named in sep
arate indictments charging the former
with embezzlement of $4,000 while
state treasurer, from 1917 to 1919, and
the lieutenant governor with misap-
preparation of 100000 while holding
the office from 1919 to 1921.
The true bills we're returned before
Judge e. s. 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.
"As the result of our investigation
we return herewith number of In
dictments.
From the evidence submitted 1t APP
pears that the treasury Of the state
of Illinois carries large daily balances,
and that during the administration of
Fred e. Sterling these balances have
ranged from s200O0.O00 to $4,000
600.
During the administrations of Len
Small and Fred e. Sterling as treasur-
ers 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
er were secure and which paid the
highest rate Of interest to the state
for such deposits.
eve 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 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-"
Brundaee Cites Constitution.
Attorney General Brundage said:
"The constitution of Illinois says In
plain language that the treasurer shall
receive for his services his salary, and
that he shall-not receive for his own
use any fees, perquisites or other COM
pensatiOn.
at has been the common gossip of
Springfield for quite q time that the
handling Of public funds was busi-
ness of profit for the officials charged
with their custody.
"When the new state treasurer, Mr..
Edward E. Miller. brought to my at
tention apparent confirmation of this
misuse Of public moneys, deemed II
my duty to lay the entire matter be-
fore the states attorney for presenta-
ton to the grand jury of Sangamon
county.
1.-The action of the grand jsry In re-
turning indictments is the view II took
of the sufiiciency of this evidence"
Governor Small issued statement
addressed ITO the People of Illinois,"
in which he charged the indictment
resulted from his attempt to cut down
state appropriations, resented by his
political enemies.
"For the present" the statement
said, "may not ask you to accept
from me with the same confidence
which you accepted my candidacy for
governor. assurance to you that am
absolutely innocent Of any charges
which the public may consider brought
against me by the grand jury"
The Art of Life.