Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-03-06

indictment charging embezzlement of
100000 during his term as state
treasurer but the state objected to
trying this case first, and when the
judge insisted c. Fred Mortimer,
states attorney of Sangamon county,
dismissed the indictment.
The fourth indictment, which was
never brought to Waukegan, charged
FIR Sterling with cmbezzling $780,
900.
The conspiracy Indictment charges
the two former trea sufcrs with en-
tering into a conspiracy with Mr..
Curtis to defraud the state out of
large sums due it as interest. Curtis
owned the charter of the Grant Park
Rank, former private banking in
stitution, which, the state alleges
absolutely ceased to function as
bank after 1905" Grant Park is a
town of 600 population ir Kankakee,
a few miles from Gov. Sinall's home.
To this private bank. the state
claims, Mr.. Small and Mr.. Curtis
the former as state treasurer in 1917
Is and the latter in 1919 20-lcnt mill
lions of state funds with nc other Sc
curity than Mr.. Curtis certificate of
deposit. The money was then loaned
to four Chicago packing companies,
Armour's, Swift's. Morris and the
Cudahy Packing company, on
short term notes paying from five
to eight per cent interest, of which,
it is claimed, mot more than two per
cent" wcs turned into the state treas
ury.
The bill Of particulars filed by the
state claims the total profits in the
alleged conspiracy are unknown be-
cause Gov. Small carried away part
of the records of the treasurer's Of
flee when his term expired and be-
cause part of the books of Swift and
company have not yet been found"
The state charges the three defend
ants, with the late Senator Edward
Curtis, brother and business partner
Of Vernon Curtis, kept S535.000 of
state funds "for their personal and
private property and the property of
others unknown" in addition to the
sums of interest retained.
Gov. Small and Lieut.. Gov. Sterling
kept two sets of books while in the
tr2asurer'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 Mr.. SmaIls term the
bill of particulars alleges. the funds
in the Grant Park bank alone earned
$924,066.2s in interest. while the total
amount of interest. discounts and
profits accounted for by Mr.. Small
from all funds in his charge was only
s450,010.1a The earnings of the
Grant Park transactions alone ex-
ceeded the total of all interest ac-
counted for by the governor by S474,-
05616. the bill alleges.
The state estimated the earnings
of funds in the Grant Park Bank
during Mr.. Sterling's term at large
ly in excess of $S43.7SS.21," claiming
the exact total is unknown because
the Swift and company books have
not been found. The bill claims Mr..
Sterling failed to turn over to the
otdtc dI iSdSl $OfoSOof.Io VI tliC lHlet
est earned on the packers loans.
During Mr.. Small's term as treas
urer the Grant Park bank is said to
have had the use of $17,91S,5O0, while
in Mr.. Sterling's two year term SILL
100000 was placed in the pretend
ed and fictitious bank"
When Edward A. Miller, present
state treasurer. took office in January
1921. the state claims, the Grant Park
bank still had s10,0O0.Co0 of state
funds and the defendants delivered
to the new treasurer twenty false,
bogus and alleged certificates of de-
post of moneys and funds in the
false, pretended and fictitious bank
called the Grant Park bank" Mr..
Sterling, the bill adds. "unlawfully
en1eavored" to have Mr.. Miller per-
nit the $10.000.0OO to remain in the
Grant Park bank. but the latter re-
fused and demanded production OF
the sum.
January. IS. 1921. the state says.
Gov. Small and Mr.. Curtis turned
over to the treasurer various notes
totalling $10,o12.5o0 and 400 shares
y %<l