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Tough Straits. Chicago's U.S. Attorney Robert Tieken won out, produced Hintz, Hodge and Epping before a federal grand jury investigating the Southmoor Bank angle of the case (the bank's deposits are federally insured). After the three had testified, the jury handed down a 54-count indictment charging them with conspiracy in misapplying $875,677.72 in bank funds, with intent to defraud. Maximum penalty on any one count: five years' imprisonment and $10,000 fine. Even that was not all. At week's end State's Attorney George P. Coutrakon ordered Hodge arrested for embezzlement, Epping for conspiracy. After fingerprinting, the two were released on bail. Hintz, for whom a warrant was also issued, was expected to surrender.
Shocked by the fast-breaking scandal, Governor Stratton stoutly maintained that the Illinois G.O.P. "can restore confidence and go on to win" in November. But Stratton and other leaders of his administration who are seeking re-election are plainly in tough political straits over exposure of wholesale corruption in the official family.