The Alaska daily empire., 1922-03-06

state funds flor their personal and private property and the property of others unknown" in addition to the sums of interest retained.
 Governor Small and Lieutenant Governor Sterling kept two sets Of books while in the treasurer's office, the state says, one accounting for a so-called vault fund.- which was loaned to banks throughout the state, and the other, known as the safe fund" covering money placed in the Grant Park Bank. During MT. Smalls term, the bill of particulars alleges, the funds in the Grant Park Bank alone earned $924 4,0662S in interest, while the total amount of interest, discounts and profits accounted for by MT. Small from all funds in his charge was only $450,010.12. The earnings on the Grant Park trans actions alone exceeded the total Of all interest accounted for by the Gov ernor by $474,0J6 16, the bill alleges Sterling Charged
 The state estimates the earninge i of funds in the Grant Park Bank dur ing Mir. Sterlings term at largely in excess of $743,7SS.21,' claiming the ! exact total is unknown because the Swift & Co. books have not been 1 ,ound. The bill claims MT Sterling 'aied to turn over to the state at 1 east $345 ,63415 of the interest earned on the packe'sr loans. | During Mir. Small's term as treas urer the Grant Park Bank is said to nave had the use of $17,918,5O0, while ! Mr. Sterling's two-year term $11,- , 100000 was placed in the "pretended
 md fictitious bank
 i When Edward A. Miller, present state treasurer, took office in Janu. ary 1921, the state claims, the Grant
 Park Bank still had $10,000,000 oi state funds and the defendants deliv- cred to the new treasurer twenty false, bogus and alleged certificates. of deposit of moneys and funds in | the false, pretended and fictitious bank called the Grant Park Bank"
 Mr. Sterling, the bill adds, ''unlaw'
 fully endeavored" to have MT. Miller permit the $1O,OO0,O00 to remain in the Grant Park Bank, but the latter refused and demanded production of | he sum.
 Turn over Notes
 January 15, 1921, the state says,
 Governor Small and Mir. Curtis turn d over to the treasurer various
 notes totalling $10,012,500 and 490
 shares of stock in down-state bank,
 issued in the name of the late Sena-
 tor Edward c. Curtis.
 | The case is expected to last from six weeks to two months, or even
 longer, depending upon the time ta
 ken to get jury. Estimates by law
 yers indicate it will take from ] Q hear the case, because of the wide
 publicity it has received.
 Battery of Lawyers
 The battery of lawyers for both
 tides is one of the largest ever as
 sembled in the historic old Lake
 county court room. The state is in l tharge of c. Fred Mortimer, states 1 tto~ney of Sangamon county, who
 ,btained the indictments. He is as 1 listed by two assistant attorney gen
 erals of Illinois, James N. Wilker- 1 son and Thomas Marshall. the latter 1 ln expert on embezzlement cases; | Col. A " C.. Smith, states attorney
 of Lake county; Edward Pree, assis'-
 mt states attorney of Sangamon
 county; Ralph Dady, former states
 attorney of Lake county, and half a | lozen other lawyers.
 The defense is represented by c. .. LeForgee, of Decatur; Werner w. Schroeder, of Kankakee, and Alexan- l der F. Beaubein. of Waukegan. ~ The defense is expected to wage an attack on the constitutionality Of the state treasurer's act of 1908,
 which required the treasurer to place state funds in the bank paying the highest rate of interest. The act, the defense claimed, in preliminary arguments, is unconstitutional be- cause it was improperly passed and because it combines two subjects ua- der one title, provision having also been made by the law for an app-o-