3880. Illinois State Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
June 1, 1914*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
fe8e20b982b2bc42

Response Measures

None

Description

The Illinois State Bank (350 N. Clark St.), a subsidiary in the Lorimer–Munday chain, experienced a mild run in the weeks before June 12, 1914, was closed by the Illinois state bank examiner on June 12, 1914 along with the LaSalle Street Trust & Savings Bank, and by early July receivers were being asked for three of the subsidiaries including the Illinois State Bank. OCR errors in some articles corrected (e.g., LaSalle). Classification: run leading to suspension by state examiner and subsequent receivership (closure).

Events (3)
1. June 1, 1914* Run
Cause
Local Banks
Cause Details
A mild run over the prior three weeks tied to troubles at the parent LaSalle Street Trust & Savings Bank and general alarm about the Lorimer-Munday chain; deposit withdrawals ~ $1,000,000.
Newspaper Excerpt
In the last three weeks ... there has been what was termed a mild run on the bank, causing a depletion of about $1,000,000 in deposits.
Source
newspapers
2. June 12, 1914 Suspension
Cause
Government Action
Cause Details
Closed by State Bank Examiner D. V. (Daniel) Harkin / state banking department as part of action against the Lorimer–Munday group following discovery of bad/slow assets at the LaSalle Street Trust & Savings Bank.
Newspaper Excerpt
the state bank examiner ... caused a suspension of business in three subsidiaries ... and the Illinois State bank of Chicago, on North Clark-st.
Source
newspapers
3. July 6, 1914 Receivership
Newspaper Excerpt
Receivers were asked for three of the lesser of the Lorimer-Munday string ... They are the State Bank of Calumet, the Illinois State bank of Chicago and the Ashland-Twelfth State Bank. The application was made by William Freedman, attorney for certain depositors.
Source
newspapers

Newspaper Articles (24)
1. June 12, 1914 The Detroit Times Detroit, MI
Article from The Detroit Times, June 12, 1914

Click image to open full size in new tab

Article Text

La Salle Street Trust, Known as Lorimer Bank, With $4,648,070 Deposits. and Three Smaller Institutions Suspend DEPOSITORS IN STREET CLAMOR FOR THEIR MONEY Twelve Injured When Unknown Man Kicks Out Window Pane Above Crowd CHICAGO, Ill., June 12.-The LaSalle-st. Trust & Savings bank, popularly known as the William Lorimer bank, and one of the largest state banks in Chicago, closed its doors to day and was placed in the hands of the state auditor. Bank Examiner Markin has been placed in charge. The institution has a paid-up capital of $1,000,000. Within half an hour. 1,500 excited depositors jammed LaSalle-st. in front of the bank, clamoring for admission. A man appeared at the twelfth floor of the building in which the bank is located and deliberately kicked out a large pane of glass. The glass fel: into the crowd in front of the door and a dozen persons were cut and injured. Detectives searched the building in a vain attempt to find the man. Daniel D. Harkin, state bank examiner, who closes the Lorimer bank under instructions from State Auditor Brady, at the same time closed three smaller banks. correspondents of the Lorimer bank. These were the Broadway State bank, 4613 Broadway: the Ashland-Twelfth State bank. 1600 West Twelfth-st., and the Illinois State bank. of Chicago, 350 North Clark-st. Harkin said he might permit these smaller banks to reopen within a few days. "I was directed to make an examination of these banks and found con ditions such that I thought it not safe for them to open this morning," said Harkin, who would not state other reasons for this action. William Lorimer, ex-senator, is president of the LaSalle-st. bank. The vice-presidents are: C. B. Munday. I. L. Bacchus, and J. M. Logan. None. of the officers could be found to make a statement, though one was expected later in the day. The deposits of the LaSalle-st. bank are said by Harkin to total $4,648.070. The deposits of the two other banks are not known. "The LaSalle-st. bank has been under surveillance for six months," said Harkin. "Six months ago, the officials were notified that they must get $1,000,000 in cash for emergency purposes. They replied that their collateral consisted of long-time, nonnegotiable securities. "I came here yesterday and found conditions so bad that I gave the offlcials until 9 a. m. today to produce the $1,000,000. The Corn Exchange bank would no longer handle their checks, and I took charge this morning when they failed to obtain the money." The directors of the bank were in session this afternoon, and it was una derstood they were preparing statement. On behalf of the bank. Thomas McDonald, assistant cashier. made this statement: 'Mr. Harkin decided we ought to have $1,000,000. The directors called a meeting and discussed the matter, but didn't think it necessary. as the bank funds were invested in securities of unquestionable value. though they were long-time securities. 'The action this morning came as a surprise. We expect to have matters in such shape in three days that the The out bank bank has may paid reopen three $1,500,000 its doors. weeks. to and depositors in the last is now is seabout ors. This $3,100,000 amount invested due deposit- in curities worth their face value or more." "The closing of the LaSalle-st. bank should not have the slightest effect upon any other down-town bank," said James B. Forgan president of the First National bank The bank that closed its doors is not associated with any other down-town bank. It is not a member of the Clearing House association."

2. June 12, 1914 The Fargo Forum and Daily Republican Fargo, ND
Article from The Fargo Forum and Daily Republican, June 12, 1914

Click image to open full size in new tab

Article Text

LORIMER BANKS ARE CLOSED UP Chicago, June 12. - The LaSalle Street Trust & Savings bank of which former Senator William Lorimer is president was taken in charge by the state bank examiner. No business was done in the bank today. The examiner reported that conditions were such as to warrant the closing of the bank. A mild run on the bank was started two days ago, according to the secretary of the bank, today more and more depositors gathered in front of the institution which is a few doors from the board of trade building in LaSalle street. An hour after the arrival of the state bank examiner, doors of the bank closed. An examination of subsidiaries of the LaSalle Street bank, it was announced, will be taken up by the bank examiner. Lorimer, president of the bank. was in conference with the directors of the institution through the morning. Later, the state bank examiners caused a suspension of business in three subsidiaries of the La Salle street institution. These were the Broadway State bank on the north side, the Ashland bank on the west side in the ghetto district, and the Illinois State bank of Chicago, on North Clark street. The Broadway State and Ashland banks were organized within a year. In financial circles it is reported that the Corn Exchange bank yesterday refused to allow the La Salle street institution to clear through it. A rough estimate of the amount withdrawn by depositors is $1,000,000.

3. June 12, 1914 Brownsville Herald Brownsville, TX
Article from Brownsville Herald, June 12, 1914

Click image to open full size in new tab

Article Text

LORIMER'S BANK CLOSED AFTER A SMALL RUN EXAMINER ANNOUNCES SIMPLY THAT CONDITIONS WERE SUCH AS TO WARRANT CLOSING OF ALL FOUR BANKS. FORMER SENATOR SPENT MORNING IN CONFERENCE WITH DIRECTORS OF LA SALLE BANK--TWO BANKS A YEAR OLD. (By Associated Press). Chicago, III. June 12.-The state bank examiner today closed the LaSalle Street Trust & Savings Bank. and three local subsidiary banks, the Broadway State, the Ashland & Twelfth street bank, and the Illinois State Bank. Former United States Senator Lorimer was president of the LaSalle Trust. There had been previously a small run on this bank. The examiner simply announced that conditions were such as to warran a elosing of the banks. The LaSalle bank is but a few doors from the Chicago Board of Trade. Lorrimer was in conference with the bank directors throughout the morning. Lorimer's bank's last statement gave the capital stock of the institution at $1,000, 000; surplus, $250,000; undivided profits, $93,631; deposits, more than $5,000,000; loans, over $4,000,000. The Broadway State and the Ashland and Twelfth banks were organized less than a year ago. William Lorimer Jr. is listed as the heaviest stockholder in the Illinois State bank.

4. June 13, 1914 New-York Tribune New York, NY
Article from New-York Tribune, June 13, 1914

Click image to open full size in new tab

Article Text

SECURITY QUESTIONED ON $1,200,000 LOANS Combined Deposits Exceed $6,000,000 and Cash Means $1,400,000. WHEAT MEN SUSPEND Bank Troubles Partly Attributed to Politics-State Examiner Now in Charge. [By Telegraph to The Tribune. Chicago, June 12.-Four of the banking enterprises built up in Chicago by Charles B. Munday and William Lorimer were closed to-day by the State Banking Department. When the crash came the values remaining were of such a negligible character that none of the solvent banks could be induced to extend a helping hand. According to the records. there had been extracted from the La Salle Street Trust and Savings Bank about $1,200,000 in the way of loans on collateral said to be unmarketable. The banks forced by D. V. Harkin. the State Bank Examiner, to close their doors were the La Salle Street Trust and Savings Bank, the Ashland-Twelfth State Bank, the Broadway State Bank and the Illinois State Bank. The State Bank of Calumet, a fourth subsidiary, was not closed. These sums have been drawn within the last few days by the La Salle Street Trust from the four subsidiary banking institutions, evidently to tide over the larger bank: Ashland-Twelfth Street State Bank, $180,000; Broadway State Bank, $175,000; Illinois State Bank, $170,000: State Bank of Calumet, $115,000. Total, $640,000. Securities Called "Bad." The state bank examiner took possession of the banks after Lorimer and Munday acknowledged to him that it was impossible for them to clear up certain securities and collateral carried in the assets of the bank classed as "bad" by the State Auditor's office. The State Auditor had been insistent that these securities be replaced by "good" collateral ever since the first and only examination made of the bank by the new Democratic administration, in January. Action of the state officials comes soon after the legal proceedings against James J. Brady, State Auditor, and the suit filed by John H. Coyne, in which the names of C. B. Munday, vice-president of the La Salle Street Bank, and others were mentioned. Rumors of a receivership are current. The Ashland-Twelfth Bank was the centre of a riot when its depositors learned of the closing. Men and women clamored for their money. Refusal was met by excited cries, and before the police arrived a stone was thrown through a window and a rush was made on the locked door. Policemen restored order. The banks were known as the Lorimer-Munday chain of banks. The La Salle st. bank was the main institution, the others being outlying concerns, whose balances and reserves were carried to a great extent by it. Combined they have deposits of $6,411.997 and reported cash means of $1,434,692. Of their deposits, $966,000 consists of city funds. The bulk of this amount, $650,000, is on deposit with the La Salle Street Trust and Savings Bank. The sanitary district of Chicago has $75,000 in the La Salle st. bank. An examination of the La Salle Continued on page 2. column 6

5. June 13, 1914 The Broad Ax Chicago, Salt Lake City, IL
Article from The Broad Ax, June 13, 1914

Click image to open full size in new tab

Article Text

Early Friday morning the four state banks under the control of ExUnited States Senator William Lorimer failed to throw their doors open to the public for several weeks there had been a very heavy run on them. The banks which he controlled were as follows and which closed at the same time were the LaSalle Street Trust and Savings Bank 233 South LaSaile street. The Broadway State Bank, 4618 Broadway, the Illinois State Bank, 350 North Clark street and the Twelfth Ashland State Bank, 12th and Ashland Boulevard. The history and stockholders of the four Lorimer's busted banks follows: Ex-Senator Lorimer's financial instition was first organized as a national bank in 1910 and styled the La Salle Street National bank. Two years ago the bank was reorganized into a state institution, which was done for the purpose of giving the bank a wider scope in the handling of all branches of business. On April 4 the last report made to the state auditor showed the La Salle Street Trust and Savings bank to have total deposits of $5,389,000 of which $3,595,978 were individual deposits and $1,462,089 was due to other banks and $331,519 was savings deposits subject to notice. The resources of the bank were given as follows: Loans and discounts, $4,255,817; bonds and stocks. $1,193,325; cash on hand, $115,325; due from other banks, $275,010; checks and other cash items, $613,135. The liabilities were given as follows: Total deposits, $5,389,586; capital stock paid in, $1,000,000; surplus and undivided profits $343,632. La Salle Street Trust and Savings stock was sold originally at 125. During the last six weeks the stock has been poorly supported around 95. Yesterday one share was sold at 85, and there were no bids in the market for any more. There are two outlying banks under the domination of the La Salle Street Trust and Savings, both banks being organized within the last year. The Ashland and Twelfth State Bank and the Illinois State, the latter located in the new John R. Thompson building, North Clark and Kinzie streets.

6. June 13, 1914 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, June 13, 1914

Click image to open full size in new tab

Article Text

Rumors Current Say Receivership May Be Asked for Institutions MEN AND WOMEN CLAMOR FOR MONEY Policemen Forced to Restore Order in Chicago-Lorimer Refuses Comment-$6,411,997 in Deposits Involved Chicago, June 12.-Four state banks. the most Important having for its president William Lorimer, unseated from the United States Senate. were closed by the state banking department today. Representatives of the department Immediately began an examination into the Institutions' affairs. Rumors were current that a receivership would be asked. The four banks were the LaSalle Street Trust and Savings bank, the Broadway State bank. the Illinois State bank and the Ashland-Twelfth Street State bank. known as the Lorimer-Munday chain of banks. The LaSalle Street bank was the main institution. Combined the banks have deposits of $6,411,997. and reported cash means of $1,434,692. Of deposits, $966,000 consists of city funds. The bulk of this amount, $650,000, is on deposit with the LaSallee Street Trust and Savings bank. Daniel Harkin, chief bank examiner, who took personal change of the downtown and sent deputies to the smaller ones, said he expected to see the La. Salle Street Trust and Savings bank open for business next week. He declared he sent examiners to the smaller institutions as a precautionary measure. He insisted there was no political phase to the action of his men. Slow Assets Action of the LaSallee Street Trust and Savings bank by Harkin two months ago disclosed, he said, a quantity of what he regarded as slow assets. State officials say the bank officials pleaded for a time to change that condition. In the last three weeks, according to Harkin and the cash. ier of the bank, there has been what was termed a mild run on the bank causinis a depletion of about $1,000,000 in deposits. Former United States Senator Lorimer, former president, and C. B. Munday, refused to comment oa the situation. James B. Forgan. president of the First National bank and chairman of the Clearing House committee. said: 'The closing of the LaSallee Street bank f should not have the slightest effect on any other banks in the Chicago district. The banks are not associated with other downtown banks. The LaSallee Street Trust and Savings bank is not a member of the Clearing House association, and has had none of the privileges of the clearing house.' State officials declare the financial condition of the LaSalle Street bank had caused them to fear the possibility of a disastrous run. The Ashland-Twelfth Street State bank was the center of a riot when its depositors learned of the closing. Clamor for Money Men and women cramored for their money. Refusal was met by excited cries and before police arrived a stone was thrown through a window and a rush $ was made on the locked door. Policemen restored order. The financial condition of the four banks, taken from the report to the state e auditor June 1, follows: t LaSallee Street Trust and Savings bank: Loans and discounts. $4,254,119; cash means, $1,003,469; capital. surplus and undivided profits, $1,343,631; deposits, $5.472,992 y Illinois State bank: Loans and dist counts, $340,395; cash nveans, $193,430 cape ital. surplus and undivided profits, $230,916; r deposits, $424,894. e Broadway State bank: Loans and dis1 counts, $269,852 cash means, $159,151; capital, surplus and undivided profits, $251.020: deposits, $228,429. Ashland-Twelfth Street State bank: Loans and discounts. $346.220: cash means, $278,640; capital and surplus, $505,681. < Mr. Munday recently was named among other defendants in two court actions a suit fled by John H. Coyne against, James J. Brady, state auditor, and/an application for a receiver by the minority stockholders of the Rose Hill Cemetery company n In the Coyne suit it was alleged that n (Continued on Page Nine.)

7. June 13, 1914 The Nome Daily Nugget Nome, AK
Article from The Nome Daily Nugget, June 13, 1914

Click image to open full size in new tab

Article Text

CHEASTY OF SEATTLE SUICIDES FULL PASSENGER LIST THREE CHICAGO BANKS STEAMSHIP SENATOR CLOSE THEIR DOORS examiners are solvent and will pay doors of these banks created intense Special Nugget Service. dollar for dollar and the public to excitement throughout the city and CHICAGO, June 12.-Three of the assured by statements through the depositors are clamoring at the doors largest banking institutions in this of the banks seemingly unconscious of Chicago papers that depositors of city closed their doors today by order other banks have no occasion for an the fact that it is impossible for them of the bank examiner who has been alarm but such assurances does not to get their money. The effect on the conducting an investigation of their other banks was immediately felt and seem to allay the the general feeling affairs for some time. The banks of distrust which exists among the there was a general rush of deposi whose doors were closed today are the tors to withdraw their money. It is depositors who it is feared will pre. Lasalle Trust and Savings Bank, also cipitate a real panic. The excitement feared that a real crisis will be preciknown as the Lorimers bank, and the is growing in intensity and vast pitated unless the feeling of distrust Broadwater State and Illinois State crowds of depositors are besinging the which seems to be general, can be a. banks, both of which are closely asdoors of the closed banks. layed. sociated with the Lasalle. The three banks have a total deposit exceedirs The statement is made that the

8. June 13, 1914 Las Vegas Optic Las Vegas, NM
Article from Las Vegas Optic, June 13, 1914

Click image to open full size in new tab

Article Text

FIFTH BANK SHUTS ITS DOORS IN CHICAGO LAST OF THE LORIMER-MUNDAY INSTITUTIONS CLOSED IN EXAMINERS LORIMER A PHYSICAL WRECK STATE BANK OF CALUMET IN AS BAD CONDITION AS ALL THE OTHERS LITTLE CHILDREN BESEIGE IT PRIVATE.BANKER ALSO CLOSES DOORS AND SUSPENDS PAYMENT Chicago, June 13.-A fifth bank was closed today by the state bank examiner in connection with the disclosures of conditions in La Salle Street Trust and Savings bank. This bank, the State Bank of Calumet, according to the bank examiner, completes the chain of what were known as the string of Lorimer-Munday banks in Chicago. Two bank examiners from the state audtor's office in Springfield arrived today to assist in the examination of the five banks now in the state banking department's hands. William Lorimer, president of the La Salle Street bank was said to be near a physical collapse from the strain of developments of the last 24 hours. The bank examiners worked steadily on the books of the La Salle Street bank, the Broadway State bank, the Illinois State bank, the Ashland Twelfth State bank and the State Bank of Calumet. Approximately $4,000 000 of deposits are tied up in the state controll ed institutions. Scores of children today besieged the State Bank of Calumet with hand bnaks in hand, seeking money which they had deposited IOT a Christmas fund. They crowded about the doors, but could not get their money. An echo of the closing of the La Salle Trust and Savings bank was heard in the federal court today, when a receiver was appointed, for the Southwest Savings bank, owned by Louis J. Krejci. The private banker had $4,000 deposited in the La Salle Street bank and when he heard the bank was closed he suspended business. Krejci, however, declared he 'had sufficient means to meet the demands of his depositors.

9. June 13, 1914 The Times Dispatch Richmond, VA
Article from The Times Dispatch, June 13, 1914

Click image to open full size in new tab

Article Text

FOUR*ILLINOIS STATE BANKS ORDERED CLOSED Investigation Into Affairs of Most Important, Which Has William Lorimer as President. RECEIVERSHIP MAY BE ASKED Combined, the Institutions Have Deposits of $6,411,997 and Reported Cash Means of $1,648,692-State Department in Charge. Chicago, III. June 12-Four State banks, the most important having for its president, William Lorimer, unseated from the United States Senate, were closed by the State Banking Department here to-day. Representatives of the department immediately began an examination into the Institution's affairs. Rumors were current that receivership would be asked. The four banks were the La Salle Street Trust and Savings Bank, the Broadway State Bank, the Illinois State Bank and the Ashland-Twelfth Street State Bank, known as the LorimerMunday chain of banks. The La Salle Street bank was the main Institution. Combined, the banks have deposits of $ 6,411,997. and reported cash means of $1,643,692. Of deposits $966,000 consists of city funds. The bulk of this amount $650.000, is on deposit with the La Salle Street Trust and Savings Bank. Daniel Harkin. chief bank examiner, who took personal charge of the downtown bank and sent deputies to the smaller ones, said he expected to see the La Salle Street Trust and Savings Bank open for business next week. He declared he sent examiners to the smaller institutions as a precautionary measure. He insisted there was no political phase to the action of his department. An examination of the La Salle Street Trust and Savings Bank by Harkin, two months ago, disclosed he said, a quantity of what he regarded as slow assets. State officials say the bank officials pleaded for time to change that condition. In the last three weeks, according to Harkin and the cashier of the bank, there has been what was termed a mild run on the bank, causing n depletion of about $1,000,000 in deposits. OFFICERS DECLINE TO COMMENT ON SITUATION Former United States Senator Lorimer, president, and C. B. Munday, vicepresident, refused to comment on the situation. James B. Forgan, president of the First National Bank, and chairman of the cleàring-house committee, said: "The closing of the La Salle Street Trust and Savings Bank should not have the slightest effect on any other banks in the Chicago district. The banks are not associated with other downtown banks. The La Salle Street Trust and Savings Bank 18 not a member of the Clearing-House Assoclation. and has had none of the privileges of the clearing-house." State officials declared the financial condition of the La Salle Street bank had caused them to fear the possibility of a disastrous run. The Ashland-Twelfth Street State Bank was the centre of a riot when its depositors learned of the closing. Men and women clamored for their

10. June 14, 1914 The Washington Herald Washington, DC
Article from The Washington Herald, June 14, 1914

Click image to open full size in new tab

Article Text

SIX BANKS CLOSED IN LORIMER CRASH State Bank of Calumet and Southwest Savings Added to List of Affected Institutions. Chicago, June 13.-The State Bank of Calumet. affiliated with the La Salle Street Trust and Savings Bank-the Lorimer bank-which was closed yesterday. did not open its doors for business today and State Bank Examiner D. V. Harkin took charge. A receiver also was asked for the Southwest Savings Bank. This institution had a deposit of about $5,000 in the La Salle Street Bank. The failure of these two banks to open brought the number of Chicago banks closed during the last twenty-four hours following action by the State banking department to six. They were: The La Salle Street Trust and Savings Bank, the State Bank of Calumet, the Illinois State Bank, the Broadway State Bank. the Ashland-Twelfth State Bank, and the Southwest Savings Bank. Crowds of depositors besieged the doors of the La Salle Street Bank early today, struggling to get inside. Outside the Ashland-Twelfth State Bank and the Illinois State Bank crowds collected, shouting to the bank officials to open their doors and give them their savings.

11. June 16, 1914 The Sun New York, NY
Article from The Sun, June 16, 1914

Click image to open full size in new tab

Article Text

FIVE OF SIX LORIMER BANKS MAY REOPEN Were Dragged Down by Failure of the La Salle Street Institution. ONE SHUT TO PREVENT RUN Loan of $203,000 on Louisiana Swamp Lands Said to Be in the Tangle. CHICAGO, June 15.-The affairs of the collapsed La Salle Street Trust and Savings Bank were reported to be such by Chief Bank Examiner Daniel Harkin tonight that the examination of the books cannot be completed until Wednesday or Thursday, possibly later. The examiner had expected to complete his report today. Possible criminal action against officers of the bank and the matter of an application for a receiver, the bank examiner said, were things which the State Auditor would have to decide. "All I can say to-night," Mr. Harkin said, "is that we have found much more work for us to do than was at first anticlpated." The bank examiner said that the offer of Charles B. Munday, vice-president of the La Salle Bank and actively in charge of Its affairs before It was closed, to advance $1,000,000 to put the bank on its feet could not be considered at this time. None of the subsidiary banks will be opened at present, Mr. Harkin said, although one may be opened late in the week. "The La Salle Street Trust and Savings Bank is the only one that really failed," Mr. Harkin continued. "The other banks were caught only as they were involved in this bank. The Ashland-Twelfth State Bank, the State Bank of Calumet, the Illinois State Bank and the Broadway State Bank will be the first to be reopened. These Institutions apparently are sound. The only trouble is that their funds are tied up in the La Salle." The Marine Bank of Marine, III., sixth of the Munday institutions to be closed, was taken over by State bank examiners who have been Investigating its affairs since Friday. The directors issued a statement saying the institution was closed to prevent a run. Loans on Louisiana swamp lands amounting to $203,000 were reported today as part of the financial tangle beIng unravelled in the La Salle Street bank by Examiner Harkin. The loan was made on about 45,000 acres of undrained land held by the Louisiana Land Company. Ex-Governor Sanders is head of the company and the stationery of the company mentions his erstwhile title.

12. June 16, 1914 The Madisonian Richmond, KY
Article from The Madisonian, June 16, 1914

Click image to open full size in new tab

Article Text

TWO MORE BANKS FORCED TO QUIT Concerns Affected by Closing Up of La Salle Street Trust & Saving. FINANCIAL FLURRY IS OVER Bankers Do Not Anticipate Further TroubleDepositors Are Flocking to Office of Postal Savings in the Federal Building Chicago, June 15.-Two more banks closed their doors here as a result of the financial troubles of the LaSalle Street Trust and Savings bank, bringing the total now closed up to six. The State Bank of Calumet, one of the so-called "string" of Munday-Lorimer banks in Illinois, failed to open and the South West Savings/bank, a private concern, closed its doors and applied for a receivership. Both banks had deposits in the LaSalle street institution, the Calumet having $100,000 there and the other bank $4,000. The banks now closed as a result of the financial difficulties of the Lorimer institution follow: List of Banks Closed. LaSalle Street Trust & Savings bank, head of the Munday-Lorimer string of banks. The Broadway State bank. The Illinois State bank. The Ashland Twelfth State bank. The State Bank of Calumet. The South West Savings bank. Local bankers however do not anticipate further trouble here. Bank Examiner Harkin, who has taken charge of the LaSalle Street bank, declared today that every other state bank in Illinois.with the exception of those already in the hands of the state banking department is absolutely sound in every respect. Twelve private and state banks in Chicago have either closed their doors themselves or been closed by the state banking department within the past three weeks. A majority were small institutions in the outlying districts. Flock to Postal Savings Bank. Nearly five hundred persons flocked to the office of the postal savings bank in the Federal building to open accounts there. Within two hours $40,I 000 had been received and amounts t refused could not be computed. According to the law governing the postal banks, not more than $100 can be deposited by any one person within one month and no account shall exi ceed $500. Many persons were turned I away because of the size of the accounts they desired to open. The four downstate banks domi3 < nated by C. B. Munday, vice-president of the Lorimer institution, opened : their doors as usual this morning and 3 announcement was made that they would weather whatever financial I storms they might encounter. No Other Banks Will Be Closed. Springfield, III., June 15.-From statements made at the auditor's office it is believed that no other banks will be closed as a result of the Lorimer incident. The closing of the Calumet bank was anticipated from previous reports. The condition of the Farmers' bank at Bethalto, the Citizens' t State bank at Alhambra, the Bank of Marine at Marine and the State bank : at Oconee, connected with the Munday institutions, are all said to be in t no good condition. The auditor has one at any of these banks today, former investigations having satisfied him that they are not involved.

13. June 19, 1914 Highland Recorder Monterey, VA
Article from Highland Recorder, June 19, 1914

Click image to open full size in new tab

Article Text

LORIMER'S BANK IN CHICAGO CLOSED State Examiner Takes Charge of Institution. The La Salle Street Trust and Savings bank, in Chicago, who was or. ganized by William Lorimer five years ago, when he was United States senator from Illinois, and of which he has since been president, was closed by the state bank examiner. Coincident with this action, the bank examiners also closed three state banks which had heavy deposits with the larger institution. No statement of what the closing of the La Salle street bank actually means in dollars was made by the ex. aminer. Recent reports to the stat auditor placed the deposits at more than $5,000,000. For the last three weeks, according to officials, there has been a mild run on the bank and more than $1,000,000 of deposits have been withdrawn. The smaller banks which were clos ed weer the Illinois State bank. o Chicago; the Broadway State bank and the Ashland and Twelfth Street State bank. Daniel V. Harkin, state examiner for Cook county, expresse the opinion that the smaller banks would resume business in a few weeks. He said they were closed for their own protection.

14. July 1, 1914 The Sun New York, NY
Article from The Sun, July 1, 1914

Click image to open full size in new tab

Article Text

RECEIVERS FOR THREE BANKS. Hope for Disentangling Lorimer Institutions' Affairs Is Given Up. CHICAGO, June 30.-Hope of solving the difficulties of the Calumet State, Broadway State and Illinois State banks, three institutions in the Munday-Lorimer chain carried down with the collapse of the La Salle Street Trust and Savings Bank, was abandoned to-night. Indications are that receivers will be asked for the three institutions possibly to-morrow According to the State bank examiners the stockholdersand depositors of the three institutions have not been able to come to an agreement. The Ashland Bank, the fourth in the Lorimer-Munday string. will receive further time to try to adjust its affairs.

15. July 3, 1914 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, July 3, 1914

Click image to open full size in new tab

Article Text

OTHER BANKS ARE WOBBLY Receivers May be Asked for Broadway State and Calumet State. TWO ABLE TO REOPEN All Institutions Affiliated With Lorimer Banks Are Having Rough Plowing These Days. [United Press Leased Wire Service.) SPRINGFIELD, III., July 3.-Receivers may be asked by Attorney General Lucey next week for the Broadway State bank, and the Calumet State bank of Chicago, two of the institutions affiliated with the LaSalle Street Trust and Savings bank of Chicago, closed three weegs ago, State Auditor Brady admitted today. The Ashland-Twelfth Street bank and the Illinois State bank in the same group have indicated that they expect to be able to open next week, and the auditor stated they will be permitted to do so upon reorganization and showing the soundness of their condition. Officials of the other two have made no statement as to their intentions. Reports on the condition of the four institutions, subsidiary to the bigger Lorimer-Munday LaSalle Street bank, were received by Auditor Brady from examiners today. These were submitted to Attorney General Lucey who said several days would be required to examine them carefully enough to determine on receiverships. Bank Closes Doors. PINE BLUFF, Ark., July 3.-The bank of Pine Bluff failed to open for business this morning, following a decision reached at the meeting of directors last night. State Bank Examiner Alvin Read is in charge. Inability to realize on securities is given as the cause. A run WAS made on the bank a month ago, soon after J. N. McDonnell succeeded W. D. Hearn as president, and since then many accounts have been withdrawn. The last statement of the condition of business March 4, showed capital of $100,000 and a surplus of the same amount, with individual deposits of $516,440 and public funds totaling $227,365. Other banks here are not affected.

16. July 6, 1914 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, July 6, 1914

Click image to open full size in new tab

Article Text

want RECEIVERS FOR BANKS. Depositors Apply to Court For Relief From Present Uncertainty. Chicago, July 6.-Receivers were asked for three of the lesser of the Lorimer-Munday string of banks today. These banks clased with the failure of the parent bank, the LaSalle Street Trust and Savings Bank. They are the State Bank of Calumet, the IIlinois State Bank of Chicago, and the Ashland-Twelfth Street State Bank. The application was made by William Freedman, attorney for certain depostiors. It is alleged that no one is now in possession of the properties. It is charged that $75,000 of city deposits allotted to the Calumet bank and smaller city deposits allotted to the other two branch banks never reached them, but were deposited in the LaSalle street bank. It is further alleged that certain stockholders in the banks never paid for their stock. Asessment of stockholders under. the double liability act is requested.

17. July 6, 1914 Las Vegas Optic Las Vegas, NM
Article from Las Vegas Optic, July 6, 1914

Click image to open full size in new tab

Article Text

RECEIVERS FOR THREE BANKS CITY DEPOSITS INTENDED FOR SMALL INSTITUTIONS DIVERTED TO LORIMER'S OWN Chicago, July 6.-Receivers were asked for three of the lesser LorimerMunday string of banks today. These banks closed with the failure of the parent bank, the LaSalle Street Trust and Savings bank. They are the State Bank of Calumet, the Illinois State Bank of Chicago, and the Ashland Twelfth State Bank. The application was made by William Freedman, attorney for certain depositors. It is alleged that no one is now in possession of the properties. It is charged that $75,000 of city deposits allotted to the Calumet bank and smaller city deposits allotted to the other two branch banks never reached them but were deposited in the LaSalle Street bank. It is further alleged that certain stockholders in the banks never paid for their stock. Assessment of stockholders under the SYSTES double liability act is requested.

18. July 7, 1914 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, July 7, 1914

Click image to open full size in new tab

Article Text

RECEIVERS FOR LORIMER BANKS Chicago, July 6.-Receivers were asked for three of the Lorimer-Manday string of small banks today. These banks closed with the failure of the parent bank, the LaSalle Street Trust and Savings Bank. They are: The state bank of Calumet, the Ilnois State Bank of Chicago and the Ashland-Twelfth State Bank. The application was made by William R. Freedman, attorney for certain depositors. It is charged that $75,000 of city deposits allotted to the Calumet bank, and smaller city deposits allotted to the other two branch banks, never reached them and were in fact deposited in the La Saltle street bank. It is further alleged that certain stockholders in the banks never paid for their stock. Assessment of stockholders under the double liability act IS requested.

19. July 7, 1914 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, July 7, 1914

Click image to open full size in new tab

Article Text

Receivers Asked for Three Other Banks in Lorimer Chain CHICAGO, July 6. Receivers were asked for three of the lesser of the Lorimer-Munday string of banks today. These banks closed with the failure of the parent bank, the LaSalle Street Trust and Savinsg bank. They are the State bank of Calumet, the Illinois State bank of Chicago and the Ashland-Twelfth State bank. The application was made by William Freeman, attorney for certain depositors. It is alleged that no one is now in possession of the properties. It is charged that $75,000 of city deposits alloted to the Calumet bank and smaller city deposits allotted to the other two branch banks never reached them, but were deposited in the LaSalle Street bank. It is further alleged that certain stockholders in the banks never paid for their stock, Assessment of stockholders under the double liability act is required.

20. July 7, 1914 The Sun New York, NY
Article from The Sun, July 7, 1914

Click image to open full size in new tab

Article Text

Ask Receivers for 3 Lorimer Banks CHICAGO, July 6.-Applications were made to-day for the appointment of receivers for the State Bank of Calumet. the Illinois State Bank of Chicago and the Ashland-Twelfth State Bank, three smaller institutions of the Lorimer-Munday string. The applications were made by counsel for groups of depositors. All three banks closed at the time of the failure of the La Salle Street Trust and Savings Bank, the parent bank. The petitioners allege that city deposits allotted to the three banks never reached them, but were deposited in the La Salle Street Bank, and that certain of the stockholders in the institutions never paid for their stock.

21. July 7, 1914 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, July 7, 1914

Click image to open full size in new tab

Article Text

WANT RECEIVERS FOR BANKS. Depositors Take Action Against Lorimer-Munday Institutions. Chicago, July 7.-Receivers were named for three of the LorimerMunday string of small banks yesterday. These banks closed with the failure of the parent bank, the La Salle Street Trust and Savings Bank. They are the State Bank of Calumet, the Illinois State Bank of Chicago and the Ashland-Twelfth State Bank. The application was made by William Freedman, attorney for certain depositors. It is alleged that no one is now in possession of the properties. It is charged that $75,000 of city deposits alloted to the Calumet Bank and smaller city deposits allotted to the other two branch banks never reached them and were in fact deposited in the La Salle Street Bank. It is further alleged that certain stockholders in the banks never paid for their stock. Assessment of stockholders under the double liability act is requested.

22. July 9, 1914 The Citizen-Republican Scotland, Parkston, SD
Article from The Citizen-Republican, July 9, 1914

Click image to open full size in new tab

Article Text

TO NAME RECEIVERS FOR LORIMER BANKS Three Subsidiaries of La Salle Street Institution Hopelessly Entangled. Chicago, July 7.-Receivers were asked for three of the Lesser of the Lorimer-Munday string of banks today. These banks closed with the failure of the parent bank the La Salle Street Trust & Savings bank. They are the State Bank of Calumet, the Illinois State bank, of Chicago, and the Ashland-Twelfth State bank. The application as made by William Freedman, attorney for certain depositors. It is alleged that no one is now in possession of the properties. It is charged that $75,000 of city deposits alloted to the Calumet bank and smaller city deposits alloted to the two other branch banks never reached them, but were deposited in the La Salle street bank. It Ks further alleged that certain stockholders in the banks never paid for their stock. Assessment of stockholders under the double liability act is requested.

23. July 9, 1914 The Tabor Independent Tabor, SD
Article from The Tabor Independent, July 9, 1914

Click image to open full size in new tab

Article Text

TO NAME RECEIVERS FOR LORIMER BANKS Three Subsidiaries of La Salle Street Institution Hopelessly Entangled. Chicago, July 7.-Receivers were asked for three of the Lesser of the Lerimer-Munday string of banks today. These banks closed with the failure of the parent bank the La Salle Street Trust & Savings bank. They are the State Bank of Chlumet, the Illinois State bank, of Chicago, and the Ashland-Twelfth State bank. The application as made by William Freedman, attorney for certain depositors. It is alleged that no one is now in possession of the properties. It is charged that $75,000 of city deposits alloted to the Calumet bank and smaller city deposits alloted to the two other branch banks never reached them, but were deposited in the La Salle street bank. It is further alleged that certain stockholders in the banks never paid for their stock. Assessment of stockholders under the double liability act is requested.

24. July 11, 1914 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, July 11, 1914

Click image to open full size in new tab

Article Text

THREE LORIMER BANKS SAY THEY CAN MAKE GOOD (BY MORNING JOURNAL SPECIAL LEASED WIRE Springfield, III., July 10. - When the application for receivers for the Broadway State bank, the AshlandTwelfth State bank and the Illinois State bank comes up for hearing next Monday, before Judge John M. O'Connor, of the superior court of Cook county, State Auditor James J. Brady will appear and ask that an extension of time of a week or ten days be given the three Institutions in which to make good their impaired capital. This announcement was made today by the state auditor, following receipt of word from the three banks that they could "make good," If given a few more days' time. Reports received by the auditor from the Calumet bank, another of the Lorimer-Munday institutions hit by the failure of the La Salle street Savings bank. indicate that it will not be able to reopen and that a receivership is inevitable.