Audubon County journal. (Exira, Iowa) 1884-1993, 1921-07-28
SMALL, STERLING,
CURTIS INDICTED.
EmbezzIement and Conspiracy to
Defraud Is Charged.
MUST FACE FOUR TRUE BILLS
illinois Governor Alleged to Have Mis-
appropriated $780, 900; Lieutenant
Governor $500 1000; Bonds Are
Fixed at $4,000 Each.

Governor $ouO,UOOs 6onoS Arc
4 Fixed at $4,000 Each.
Springfield, Ill.,, July 22.-Charges
of embezzlement and conspiracy to de-
fraud the state Of Illinois are alleged
in indictments returned by the Sanga-
mon county grand jury against Gov.
Len Small and Lieut.. Gov. Fred r.
Sterling.
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 CONT
dence game by means of which the de-
PENDANTS unlawfully obtained $1,000
600 Of state funds.
Governor Small and Lieutenant Gov
ernor Sterling are also named in sep
arate indictments charging the former
with embezzlement of 100000 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 were returned before
| Judge e. S. Smith in the circuit court.
The bonds of Governor Small and
Lieutenant Governor Sterling were
fixed at $4,000 each 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 the 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 a number Of In
dictments.
"From the evidence submitted it ap-
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 $2O,OOo,OOO to $32,OOOO 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 state as in the opinion of the
4 the highest rate Of interest to the
| state for such deposits.
I'VE 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 a 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-"
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 for his own
use any fees, perquiSites or other COM
pensation.
st has been the common gossip of
\ Springfield for quite time that the
| handling Of public funds was bust
ness of profit for the officials charged
with their custody.
"When the new state treasurer, Mr..
Edward q. Miller, brought to my at
tention apparent confirmation of this
misuse of public moneys, / deemed 1t
my duty to lay the entire matter be-
for the states attorney for presenta-
ton to the grand jury of Sangamon
county.
1.-THE action of the grand jury in re-
turning indictments is the view it took
of the sufticiency of this EVIDENCE"
Governor Small issued statement
addressed "To 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"
Chinook Language.
The G. ook language is jargon of
Indian, inch, English and other