South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-07-21

The vault fund and the other as the
safe fund The vault fund repre-
scented Che aggregate loans made 20
legitimate haukinc institutions
throuehout the state and was uni
formUy less iu amount than the safe
fund. The social safe FUND rep
resented loans made 20 the so-called
grant park bank which was for
merry "a private banking institution
which absolutely ceased to function
a. bank after 1905. Although this
nurported bank was purported 20 be
owned by single individual and did
not transact banking business what
ever. and had no depos.tor other
than the state ~ Illinois yet DO was
clv1n huge deposits o. public moneys
bv two former state treasurers.
small and Sterling. The average
deposits OF state moneys carried by
this purported bank were 49,
100000
No security
The evidence shows that money
was taken from tho state treasury
generally In lots OF five hundred
thousand dollars and deposited in
the so-caI.ed grant park bank which
thercupon issued and delivered 90
the state treasurer certificates or de-
posi- for tho amounts received but
without any collateral security In
other words. tho only evidence OF
Indebtedness and the only security
held by the treasury for loans az
rragatlng S10.000.Oo0 were paper
obligations Of fictitious bank. The
moneys received In purchasing .
a discount short time notes issued
By Swift and company and Armour
and company. two large corporations
engaged in the packing business IN
Chicago These transactions Melted
the purchasers Of the notes large
profits II any portions Of the prof
It's 20 realized was paid into the
state treasury. 90 was less than two
per cent. The evidence shows that
most OF the banks receiving public
moneys paid into the state treasury
on all public funds during the adj
ministrations Of Small and Sterling
was less than two per cent per an
mum
Treasurer's Records.
THE records OF the treasures
ONCE for July 10. 1919. illustrate the
manner IN which the public funds
have been handled. on that day the
vault fund Is debted with S7.977 500
OF which sum $4.977. 600 thousand
dollars was deposited in approx
nately 500 banks throughout the
state. and $4,000. 600 in a private
banking institution. while the safe
fund was dehted with SIS. 900, 600"
The grand jury recommended an eX-
haustive INVESTIGATION Of the whole
subject OF handling the public funds.
The jury asked TO be permitted 20
extend its investigation. but Judge
Smith after expressing his belief in
their honesty discharged them, an
nouncing that another grand jury
would be called September g.
Lieut.. Gov. r. +. Sterling made
the following statement "Wednesday
IN connection with his indictment:
ct have never believed in trying
cases in the newspapers and have
no further statement TO make at this
time. other than j have violated no
law to my knowledge and will well
come an opportunity 20 meet and
fully answer any charges that may
De preferred against me when the
proper time arrives
SPRINGFIELD. Ill. July 2O-Gov.
Len Small. indicted Wednesday by
the Sangamon county grand jury on
charges Of embezzlement and con-
spiracy 20 defraud. Wednesday is
sued "a statement Ito the people of
Illinois" declaring his innocence Of
every charge made and asserting the
charges were the result Of a con-
spiracy 20 accomplish his political
assas sinatiOn."
The governor said that in his ef-
forts 90 cut state expenses he had
vetoed appropriations of 100000
for the office of Atty. Gen. Brun-
dage whom he accuses of heading
the movements against him.
Mr.. Small asserted the Chicago
Tribune and the Chicago Daily News
had assisted the attorney general
in spreading his political propagan-
da broadcast"
Gov. Small was elected in the re-
publican landslide last November
over former sen. James Ham Lewis.
Mr. Small and Mr.. Brundage were
both candidates in the republican
primary but were supported by sep
arate wings of tho party within The
state Gov. SmalIs candidacy had
the support of the political adherents
&c. 49,, neon. .,f Thfnlwo