Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-22
US. Grand Jur,
|ndicts Hodge
And 7 Others

CHICAGO, July 81 (R.-A
Federal grand jury today in
dicted Orville E. Hodge, the de-
posed Republican state auditor,
and two associates on charges of
conspiring to mishandle $872,-
600 in bank funds.
Part Of the indictment was
based on misapplication of $685.
900 in Starte funds which hadn't
figured in previously estimated
shortages. raising the possibility
that the total amount of missing
money will be more than 81
million.
Mr.. Hodge also is charged with
embezzling $650,00O in State
warrants Cheeks, which State
officials said were cashed during
Mr.. Hodges tenure as auditor.
The $4,000 figure covers money
missing from a special State au-
ditor's fund which is separate
from the fund on which the war
rants were drawn.
Extraordinary Session
The Federal grand jury action
came after an extraordinary Sat-
urday session of the paney, with
what United States Attorney
Robert Tieken termed "the great
est possible expediency."
Mr.. Tieken took charge Of the
inquiry after returning from
Washington, where he conferred
with Justice Department officials.
Today's grand jury session was
marked by the surprise appear
ance of Mr.. Hodge, who came
voluntarily. His sudden trip
from Springfield to Chicago also
precipitated the issuance Of
State arrest warrants. one charg-
ing Mr.. Hodge with embezzle-
ment of $3.50, 900 in State funds.
Mr.. Hodge. once a big man in
the Republican State admins
tration, had been cooperating
in a State inquiry into his office.
Two Others Charged
The others named in the 54-
count Federal indictment were
Edward A. Epping, administra
tive assistant to Mr.. Hodge, and
Edward A. Hintz, resigned presi-
dent of the Southmoor Bank and
Trust Co., Chicago. Mr.. Epping
and Mr.. Hintz were charged by
States attorney George P. Cou-
trakon of Sangamor County
(Springfield) in arrest warrants
with conspiracy to defraud the
state.
Mr.. Coutrakon, obviosuly irked
by Mr.. Hodges trip to Chicago,
said he would ask 100000 bond
of the former auditor, and
$4,000 each of Mr.. Hintz and
Mr.. Epping. He said he wants
them available Monday when he
will seek As indictments from a
State grand jury.
Mr.. Hodge, accompanied by
a deputy United States marshal,
went back to Springfield to sur
render on the State charge i'm
mediately after his Federal grand
jury appearance. Mr.. Epping fol-
lowed an hour later, also to sub
init to arrest. A search by Cook
County Deputy Sheriffs failed to
locate Mr.. Hintz, who testified
Friday.
When Mr.. Hodge appeared q
few hours later before Justice of
the Peace Joseph Maddox in
Springfield to surrender on the
embezzlement warrant, however,
his bond was set at $4,000. 1t
was posted Immediately.
The Federal indictment ac-
cused Mr.. Hodge and Mr.. Epping
OF conspiring in the cashing of
AZ State disbursement warrants
Tor $4,000 by non-payees. The
indictment charges Mr.. Hintz ap-
proved the caShing of their war
rants.
Additional Charge.
Mr.. Hintz also was accused OF
segregating-Setting apart-for
Mr.. Hodge $3.50 in State
funds from II checks drawn in
favor of the Southmoor Bank
from an official State account in
the Springfield Marine Bank.
The fund from which the money
was taken, the indictment stated