Farmers Bank (Bethalto, IL)

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RECEIVER FOR LORIMER BANK W

C. Niblack is Appointed to See What Can be Saved From Wreck. THREE MILLIONS SHORT State Auditor Orders Another Munday Bank Closed for investigation of Its Books. [United Press Leased Wire Service.] CHICAGO, June 19.-W. C. Niblack, trust officer for the Chicago Title & Trust company was today appointed receiver for the LaSalle Street Trust and Savings bank, the big Lorimer institution whose doors were closed by a state banking examiner one week ago today. His bond was fixed at $2,500,000 by Judge Windes, who authorized the receiver to liquidate the assets of the bank and take whatever steps necessary to insure the return of depositors' money. ] Attorney General Lucey on whose y application the receiver was named, e told the court today that the assets of f the bank probably would not exceed e $2,000,000. Total Habilities will exa ceed $5,000,000 he said. Following the r appointment of a receiver, Attorney General Lucey said that he would not ask the appointment for a special f garnd jury and special prosecutor to d probe alleged criminal irregularities. r "If such an investigation is made it ewill be through the regular channel," e said Lucey. "State's Attorney Hoyne, d of Cook county will be the man in n charge." Appointment of Niblack was requested by attorneys representing various groups of creditors, includ] ing ex-Mayor Fred A. Busse, who told rl the court he had $136,000 on deposit in of the LaSalle Street bank when it susa pended. Representatives of bonding t companies declared they had paid to t the city $650,000, the amount of city non deposit when the bank money a closed, and therefore had assumed g the city's claim against the bank. t. is Another One Closed. A SPRINGFIELD, III., June 19.-Un8 der direction of State Auditor Brady, it Assistant State Bank Examiner Soule lens today closed the Farmers bank of Bethalto, Madison county, III., a state bank, contarolled by the C. B. Munday interests, involved in receiv] erships for banks in Chicago and down state. It was announced that of the bank apparently is in good condito tion, but will be closed pending a t thorough examination of its affairs. n

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CALLS LORIMER NOTE FORGERY

Ex-Senator's Secretary Denied He Got $169,925 From Failed Bank. CHICAGO, June 19.-Charles E. Ward, whose name was signed to a personal unsecured note for $169,925 found among the assets of the failed La Salle Street Trust and Savings Bank, said to-day that he never borrowed the money. Ward was private secretary of William F. Lorimer, head of the bank, when Lorimer occupied a seat in the United States Senate. Ward was a director of the bank. W. C. Niblack, vice-president of the Chlcago Title and Trust Company, was named receiver of the bank to-day by Judge Windes, who placed his bond at $2,500,000. Patrick J. Lucey, Attorney-General of Illinois, said during the receivership proceedings that the La Salle street bank was "hopelessly insolvent." "What are the assets?" asked the court. "They are actually $4,000,000 : with certain questionable assets they amount to $5,000,000," he replied. The Farmers Bank of Bethelto, Madison county, of which C. B. Munday is president. was closed to-day by Assistant Bank Examiner John Scullins.

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CLOSES ANOTHER BANK Illinois Examiner Still After the Lorimer-Munday String. Springfield, Ill., June 19.-The Farmers' bank of Bethalto, Madison county, was today closed by John J. Scullens, a state bank examiner, on orders from State Auditor Brady. The closing was simply a precautionary measure, according to the auditor, as reports show the bank in good condition. C. B. Munday was president of the bank until a week ago. The Sangamon Loan and Trust company of this city was today appointed receiver for C. B. Munday and Company by Judge Humphrey in the United States district court on application of the company. C. B. Munday and Company hold controlling interests in the Bank of Smithboro and the People's bank of East Alton, for which receivers have heretofore been appointed. Lorimer Resigns. Danville, ILL, June 19.-William Lorimer of Chicago today resigned as trustee of the Southern Traction company of Illinois. The road, which is operated partly by electricity and partly by steam, runs out of East St. Louis. William E. Trautman, former federal attorney for this district and a heavy stockholder in the line, was named as Lorimer's successor by F. M. Wright, United States district judge.

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Bank Suspension Only Temporary

BETHALTO, Ill., July 9.-The Farmers' Bank of Bethalto, one of the chain of Munday banks that closed after the failure of the La Salle Street Trust and Savings Bank of Chicago, reopened today in charge of a representative of the state banking department.