3903. La Salle Street National Bank (Chicago, IL)

View Charter #9750 on SPMC

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 9750
Charter Number: 9750
Start Date: June 17, 1914
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 095a94e3557efac9

Response Measures

None

Description

The articles describe the La Salle Street National Bank (which later became LaSalle Street Trust & Savings) being ordered to suspend/payments by state examiner D. V. Harkin and a receiver (W. C. Niblack) being appointed in mid-June 1914 amid findings of insolvency, alleged fraud, and worthless loans. There is reporting of runs on affiliated smaller banks and crowded scenes at the trust & savings offices, but the main institution was closed by examiner action and placed in receivership; no credible reopening is reported. Some articles refer to the bank's conversion from a national to a state institution before the suspension. OCR/spacing corrected for bank name (La Salle/LaSalle variants) and dates inferred from publication dates (receiver appointment reported June 19, 1914).

Events (4)

1. May 7, 1910 Chartered

Source: historical_nic

2. October 21, 1912 Voluntary Liquidation

Source: historical_nic

3. June 17, 1914 Suspension

Cause: Government Action
Cause Details: State bank examiner D. V. Harkin closed the institution after finding depleted assets and insolvency; suspension followed reports of bad loans and alleged fraud.
Newspaper Excerpt: Bank Examiner Harkin will present report on Lorimer-Munday banks... All city funds deposited in the closed banks are safe. ... A report has been spread that the bank will only pay 40 cents on the dollar.
Source: newspapers

4. June 19, 1914 Receivership

Newspaper Excerpt: W. C. Niblack ... was named as receiver for the LaSalle Street bank this morning, and is now under two and one-half million dollars bond. ... In his petition he called bank 'insolvent' and intimated fraud. Receiver Niblack discovered loan ... Ward today said he never borrowed a cent. Lorimer was president of the LaSalle Street Bank.' (reports Jun 19, 1914).
Source: newspapers

Newspaper Articles (21)

1. June 17, 1914 The Day Book Chicago, IL

Article from The Day Book, June 17, 1914

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THE LORIMER BANK TROUBLE Bank Examiner Harkin intimated he might ask receiver for LaSalle street bank. State Auditor Brady refused to talk about Harkin's report. State's Attorney Hoyne says he will not interfere unless actually called upon to do so. "I've received no complaints from depositors," he said. Bank Examiner Harkin will present report on Lorimer-Munday banks to State Auditor Jim Brady today. All city funds deposited in the closed banks are safe. Bonding companies sending checks. A report has been spread that the bank will only pay 40 cents on the dollar. Depositors of the Illinois State Bank met in Callahan & Callahan's law office to discuss plans for reorganization. May join clearing house. William H. Tholen, Jr., cashier of Illinois State Bank, asserted that Wm. Lorimer, Jr., paid for all his shares. Attorney General Lucey arrives today.

2. June 17, 1914 Rock Island Argus Rock Island, IL

Article from Rock Island Argus, June 17, 1914

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Crowds about the LaSalle Street Trust and Savings Bank after it was closed, and its president, former Senator Lorimer. bank in Chicago has included the ormanufacturing. Bonds and securities Chicago, Ill., June 17.-Assurances of these various concerns were ganization of several small neighborby C. B. Munday, in financial hood banks, whose deposits and balstuffed into the strong box of the ontrol of the LaSalle Street Trust ances remained with the downtown LaSalle Street Trust and Savings Savings bank, and by William bank. bank. Much of the good assets of "The situation was further comLorimer, its president, that the instithe bank were hypothecated or sold ution will yet be saved from wreck, plicated," said the banker, "by the to meet the speculative crisis in the aroused confidence in the deposismall banks lending money to the Munday affairs. who late last week, when the enterprises with which Munday has Last April he was notified to rebeen connected. He was the domiiclosed its doors, believed their place the "slow" assets with some nant figure at the bank so far as the avings had been swept away. live ones. Evidently this was a difThe scandal in the state auditor's other bankers of Chicago had any ficult job. The run following the ffice caused the crash in the Munrelationship with the bank. Brady scandal forced the action. The bank was not a member of the "Thus when the jam comes the ay-Lorimer banks last week. State small banks are unable to realize on auditor James J. Brady was sued, Clearing House association, and their commercial paper, the central breach of promise by Mrs. Louise though it frequently applied for adbanks is unable to realize either on its Kuhns, whom he had married coinmission, the application was as freto the state law. The suit led own paper, loaned to the same comquently denied. mercial or industrial enterprises, or charges that the office was conA member of the clearing house ucted for the benefit of spoilsmen. the small banks' paper, and we have said: "Just prior to the ejectment of William Lorimer from the United was charged that the LaSalle bank a failure. That whole plan is what ontributed $2,500 to the Brady camwe call kindergarten banking. An States senate on charges reflecting fund. on his election the LaSalle Street overland of bad paper." For months it had been known The failure of a trolley running National bank was organized. Lorifrom East St. Louis loaned Mr. Munmer stated at that time that he mong bankers that the LaSalle treet bank was a "lame duck." At day with $500,000 in bonds for which hoped to found a business for his last examination it was found no market could be found. sons. This afterward became the the bank had been loaded down When the LaSalle National was orLaSalle Street Trust and Savings "dead" paper. ganized hundreds of state and city bank. Since then I should say that Besides his banks, Munday was inLorimer has been a passive presipoliticians subscribed for the stock rested in ten or twelve industrial at $125. They exchanged it when dent, and the management of the oncerns. These included a grain the bank was reorganized. Now they bank has been largely in the hands usiness, trolley line building and are thinking. of C. M. Munday. The policy of the

3. June 18, 1914 The Waxahachie Daily Light Waxahachie, TX

Article from The Waxahachie Daily Light, June 18, 1914

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BONDS LISTED FOR MORE THAN THEY were WORTH. By the Associated Press. Chicago, III., June 18.-The petition of Attorney General Lucey for the appointment of a receiver for the La Salle Street Bank, of which William Lorimer is president, said that the bank listed bonds worth nine hundred thousand dollars but that they were worth only a quarter of a million. Of three millions in loans it was said that one million and one half were of no value. Of cash items listed at one hundred and thirty-seven thousand dollars it was found there were only thirty-two thousand. The petition alleges that large loans were improperly secured. These were made to Lorimer's enterprise.

4. June 19, 1914 The Daily Ardmoreite Ardmore, OK

Article from The Daily Ardmoreite, June 19, 1914

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W. C. NIBLACK PUT IN CHARGE OF CLOSED INSTITUTION THIS MORNING. UNDER A HEAVY BOND Receiver Gives Bond of Two and AHalf Million Dollars. Lorrimer's Secretary on Note for Hundred SixtyNine Thousand. Chicago, III., June 19.-W. C. Niblack vice president of the Chicago Title & Trust Company, was named as receiver for the LaSalle Street bank this morning, and is now under two and one-half million dollars bond. Among the bank's assets found today was an unsecured personal note for one hundred and sixty-nine thousand dollars signed with the name of Charles E. Ward. Ward today said he never borrowed a cent. Ward was the private secretary of Lorimer, when the latter was United States Senator. Lorimer was president of the LaSalle bank.

5. June 19, 1914 Bryan Daily Eagle and Pilot Bryan, TX

Article from Bryan Daily Eagle and Pilot, June 19, 1914

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MORE CROOKEDNESS IN LA SALLE BANK Bank of Which the "Blonde Boss" Was President Was Looted to a Finish. . [By Associated Press] Chicago, III., June 19.-W. C. Niblack, vice president of the Chicago Title and Trust Company, was named as receiver for the LaSalle Street Bank this morning under a $2,500,000 bond. Among the bank's assets was found an unsecured personal note for $169,000 signed with the name of Charles E. Ward. Ward today said he never borrowed any money. Ward was the private secretary of Lorimer when he was United States Senator. Lorimr was president of the LaSalle Street Bank.

6. June 19, 1914 The Day Book Chicago, IL

Article from The Day Book, June 19, 1914

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LA SALLE STREET BANK MESS Att'y Gen. Lucey will probably call special grand jury to investigate La Salle Street Bank crash. Lorimer and Munday will have chance of testifying before this jury if they waive immunity. Lucey's application for receivership will be heard today. In his petition he called bank "insolvent" and intimated fraud. The Tribune is already boosting a couple of men for job of receiver. Lucey says he has no choice. Three more receivers named for Chas. B. Munday enterprises. State will investigate all surety companies. Munday resigned as treasurer of Rosehill Cemetery.

7. June 20, 1914 The Day Book Chicago, IL

Article from The Day Book, June 20, 1914

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ACTION SOON IN BANK MESS Ass't State's Attorneys Chas. C. Case, Jr., and George C. Bliss have been appointed by Hoyne to handle Lorimer bank case. Receiver $2,500,000 bond approved approved by Judge Windes. It is rumored that evidence has been found by Hoyne that will show bank took deposits two days after becoming insolvent. C. B. Munday predicted LaSalle street bank would re-open. Hoyne will investigate withdrawal of $374,000 by Marquette National Fire Insurance Co. from bank three days before the closing. Munday is interested in company. State's attorney will ask County Board for $20,000 special appropriation for this case. Lorimer quit Southern Traction Company. Receiver appointed for firm of C. B. Munday of Litchfield, Ill.

8. June 24, 1914 The Day Book Chicago, IL

Article from The Day Book, June 24, 1914

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THE BANK MESS United State's Att'y Wilkerson today entered the Lorimer-Munday bank mess and has two assistants going over the books of the old LaSalle Street National Bank. Receiver Niblack discovered loan of $b,000 to Ald. John Coughlin. The alderman sent check for interest on note. State auditor may be asked to appear before the grand jury. No witnesses appeared before Cook county grand jury today, but Hoyne announced four would appear on Friday. Att'y Gen. Lucey defended Brady in not closing bank at time Harkin made his first report. "The law clearly gives bank the right to time, before action is taken," said Lucey. Investigation will be made of loan of $2g,000 by LaSalle Bank to E. K. Kelley, with which amount he became director of Ashland-Twelfth Bank. Rumored that LaSalle Street Bank was in ba dcondition at time it liquidated from national. to state bank and that several former federal officials will be caught in mess. It is openly hinted that many Taft men aided Lorimer "get by." Reported that long ago $750,000 loans were made without security. $200,000 more said to have been dumped into Florida lands. While federal action was pending, State's Attorney Hoyne sprung surprise when he opened up grand -jury action. A summons was secured on Bank Examiner Harkin and the latter is said to have told a sensational story

9. June 27, 1914 Lower Coast Gazette Pointe a La Hache, LA

Article from Lower Coast Gazette, June 27, 1914

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STOCKHOLDERS ARE JOINT DEFENDANTS CHICAGO PETITION ASKING RECEIVER FOR LORIMER BANK SAYS OFFICERS LIABLE. OFFICERS WERE NEGLIGENT Attorney-General Bases His Request Upon Report of the State Examiner Regarding Cause of Closing Institutions. Chicago.-Naming all stockholders as party defendants, asking the court to enforce their stock liability, adding that the officers and directors of the bank were culpably negligent and therefore were liable to depositors and creditors for all losses sustained, the petition filed here asking for the appointment of a receiver for the LaSalle Street bank, was scheduled to be heard in court here. Two petitions for a receiver were filed. The first, filed by Desidor L. Tarjan, as receiver for a syndicate having deposits in the bank, Judge O'Connor, in superior court, refused to consider. The second petition was filed by Attorney-General Patrick J. Lucey. i The petition was based on the report f of the state examiner, showing a dee pleted condition of the bank's assets. be Based on the report of D. V. HarS kin, the bank examiner, who closed the t LaSalle street bank, the petition recites that the institution was "wholly 0 and irretrievably insolvent," and that e immediate appointment of a receiver g was necessary to conserve the remain. e ing assets. S Particular attention was directed to 0 loans made to various Lorimer-Munday n enterprises which the examiner found g were largely financed by the LaSalle street bank, and to which, according d to the petition, large loans improperly secured were made.

10. June 27, 1914 The Seattle Star Seattle, WA

Article from The Seattle Star, June 27, 1914

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ELSEWHERE Women lawyers of Illinois organize bar association. Battleship Kansas will carry body of Senor Don P. Ezequiel Rojas, minister of Venezuela, who died at Atlantic City, to La Guayra. Final conference report authorizIng sale of battleships Idaho and Mississippi to Greece, filed in senate. Maj. Gen. Leonard Wood will go to New York, to assume command of the Eastern department of the army. Special U.S. grand Jury will probe affairs of defunct La Salle Street National bank, at Chicago. Work of reorganizing the dry goods firm of H. B. Claflin Co., which went into receivers' hands at New York, under way. Merchants and jobbers promise support Gen. G. N. Whistler, who invented smokeless powder, died at Pensacola, Fla. America's exports exceeded its Imports in the past year by $653,000,000. President will appoint I. N. Morris, Chicago packer, minister to Sweden or Denmark. Diving, George L. Clark, formerly well-known athlete, struck his head on a rock and was killed at Willets, Cal.

11. June 27, 1914 New-York Tribune New York, NY

Article from New-York Tribune, June 27, 1914

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Methods of Concern While Yet National Institution Censured. BIG LOANS MADE TO POLITICAL FRIENDS Paynter, Who Voted Against Ousting Lorimer from Senate, Explains How He Got $40,000. Chicago, June 26.-A special United States grand jury will be called to investigate the affairs of the La Salle Street National Bank, the predecessor of Lorimer's La Salle Street Trust and Savings Bank, it was announced today by James H. Wilkerson, United States District Attorney. A preliminary report of government accountants has revealed that between $600,000 and $850,000 was loaned to companies in which officers of the bank were interested, to officers of the bank themselves and to political friends. A loan of $40,000, made to Thomas H. Paynter, former United States Senator from Kentucky, was reduced by payments, investigation showed, until his indebtedness to the bank is $2,646, which he says he will pay on demand. The La Salle Street National Bank, which was controlled also by William Lorimer and C. B. Munday, was shaky three years ago, according to a report made public to-day by Wilkerson. The port was that of a committee appointed by the Chicago Clearing House Association in February, 1911, acting on ap. plication for admission of the bank. to the association. The application was refused because of unethical banking. The committee requested the directors of the bank to replace huge sums in doubtful collateral with quick assets, and to cease loaning money to Lorimer and Munday and their enterprises as preliminaries to another application to the Clearing House Association. Efforts to trace the interest paid on city deposits of more than a million dollars thus far have failed. The receiver, W. C. Niblack, discovered that while the bank paid 3 per cent interest on these deposits, checks were made, apparently one for 2½ per cent and the other for three-quarters of 1 per cent. Frankfort, Ky., June 26.-Ex-Senator Paynter, who was a member of the first Senate committee that investigated Lorimer's election to the Senate, and voted in favor of Lorimer's retaining his seat, said to-day: "After my connection with the Lorimer committee had ceased I needed $40,000 to complete a business transaction. C. B. Munday told me he could take my four notes for $10,000 each and use them. Mr. Munday took care of them through the La Salle Street Bank. However, every dollar of the notes has been paid excepting $2,676, which will be paid on demand."

12. June 28, 1914 Evening Star Washington, DC

Article from Evening Star, June 28, 1914

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PROBE OF CLOSED BANK Chicago Institution Accused of Profiting From Use of Worthless Paper. CHICAGO. June 27.-Investigation of events preceding the change of La Salle Street National Bank to a state institution will be the keynote of the government's inquiry into the closed bank's affairs, District Atterney Wilkerson said tonight. Charges have been made. to federal offi-. cials that good securities were substituted for worthless paper in the vaults of the national bank to enable It to pass the last inspection of government exam-. iners. These securities were withdrawn. as soon as the examiners left the bank, it is alleged. Before time for another examination the bank forfeited its national charter and became a state institution. Uneasiness caused by the failure of the five Lorimer-Munday banks is believed to be the cause of a run late today on the North Avenue State Bank. By 9 o'clock about $15,000 in small accounts had been withdrawn. Business men in the neighborhood expressed confidence in th institution and endeavored to reassure depositors lined up in front of the paying teller's window.

13. June 29, 1914 The Bridgeport Evening Farmer Bridgeport, CT

Article from The Bridgeport Evening Farmer, June 29, 1914

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NEW HAVEN LOSES WHEN O.&W. FAILS TO PAY DIVIDEND (Barron Financial "News.) New York, June 29-With an indicated surplus on its common stock of but 1 per cent. for the fiscal year to end June 30, New York, Ontario & Western has been forced to suspend its customary 2 per cent. disbursement again. The New Haven Railroad which owns $29,160,000 of the total $58,113,983 common stock outstanding will suffer the largest single loss. The early months of the past winter formed a poor anthracite season and since that time the revenues from general merchandise freight have also been unsatisfactory. . Passenger revenues alone have held up of late but this department contributes but 18 per cent. & of the road's revenues. Ontario Western has never earned much over its 2 per cent. dividend requirements, and a period of poor earnings does not have to be long to so weaken the narrow margin as to threaten dividend payments. With a decrease of $130,000 in April net earnings, and indications of poor returns on May and June operations, the Western Maryland Railway gives promise of showing net earnings for the current fiscal year of $1,125, $1,250.000 below those of last year, before allowing for payment of taxes. Last year the company failed to earn its Fixed fixed charges by $514,000. charges this year will be heavily in. creased. Therefore, the deficit for 1914 is likely to be / anywhere from $2,000,000 to $2,500,000. Saturday's bank statement reflected the heavy gold exports to a considerable extent. There was a decrease of $7,481,400 in the actual surplus reserve which was brought about by a failing off of $12,332,000 in cash holdings. There was a decrease of $7,800,000 in loans which was attributed partly to the fact that the dry goods failure caused banks to curtail purchases of commercial paper and making other commitments. Under ordinary circumstances, loans should have shown a material increase owing to preparac tions for July 1 settlements. Seven railroads in the Central Freight association territory operating 12,000 miles of main line road, reported a falling off of $10,800,000 in gross earnings for the ten months to April 30, last, and a decrease of $19,488,000 in the net with which to meet interest and other obligatory charges. According to officials of the Corn Products Refining company, earnings for the second quarter of the current year will show a marked decrease from those of 1913, Earnings for the first quarter showed material improvement over those of the same period of a year ago, but the falling off in business during the second period is expected to bring the showing for the six months down to that of last year. The total loss of Lorimer banks according to figures of Receiver Niblack will aggregate $3,500,000, which includes losses of $800,000 by four small institutions. The La Salle Street Trust loaned its directors and enterprises $1,500,000 more than its total capital and surplus. Records /of between $600,000 and $850,000 loans to directors and their concerns by the Old La Salle Street National were disclosed.

14. July 2, 1914 The Tabor Independent Tabor, SD

Article from The Tabor Independent, July 2, 1914

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RECORDS IN BANK SCANDAL MISSING Chicago, June 29.-United States District Attorney Wilkerson and State's Attorney Hoyne are today searching for important documentary evidence bearing on the failure of the LaSalle Street Trust & Savings bank which are said to have disappeared from the office of the State Auditor James J. Brady. One of the documents is a report of a state bank examiner alleged to show that the Lorimer-Munday bank was in a shaky condition. The missing documents are wanted for use before grand juries. Chicago, June 29.-Federal grand jury inquiry into the conduct of the LaSalle Trust & Saving bank while it was a national institution, was set today for July 13, it was announced at the office of the United States district attorney. Depositors of the four small state banks in this city which were affiliated with the LaSalle Street bank and which closed at the same time as the Main Lorimer-Munday institution will all be paid in full, it was made known today by Daniel V. Harkin state bank examiner. The vault of the LaSalle State bank was scheduled to be opened today by the receiver. It was closed since it was sealed by Harkin when he ordered the bank to suspend. In the vault are about $40,000 in currency, it is said, and about the same sum in memoranda of cash withdrawn by Lorimer and Munday on their personal marker slips.

15. July 7, 1914 The Daily Gate City Keokuk, IA

Article from The Daily Gate City, July 7, 1914

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75 Cents on the Dollar. [United Press Leased Wire Service.) CHICAGO, July 7.-With a special federal grand jury called by Judge Landis for July 13 to consider the failure of the LaSalle Street bank so far as its career as a national bank was concerned, its depositors were cheered today by the statement from Receiver Niblack that the bank's depositors would receive at least 75 cents on a dollar. This statement was far more optimistic than earlier statements had admitted.

16. July 15, 1914 The Day Book Chicago, IL

Article from The Day Book, July 15, 1914

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LORIMER STATEMENT TO BE A STARTLER, SAYS RUMOR William Lorimer is preparing a statement in which he will astound the city, according to the leaks dropped by his friends. I nit, the rumors indicate, he will charge: That the attack upon the LaSalle Street Bank was the result of a political conspiracy in which the Clearing House . Association was used as a catspaw to harass the bank. That the loans made by the bank to Lorimer-Munday subsidiary concerns are "good" loans and that the collateral accepted will bring full value in the final settlement. That the receiver is getting from $75,000 to $100,00 a week, and that if a year's time is given the bank will pay off in full without the aid of stockholders. That among faults found with the Lorimer bank by the clearing house when rejecting its application were two notes of alleged "political" origin, and when the makers of these notes were asked to pay up by the Lorimer bank one man obtained $25,000 from a clearing house bank on his unsecured notes and the other gave a check for $35,000 on another clearing house bank, which was honored by that bank at once. Federal grand jury is going over books of Lorimer bank. Federal agents yesterday grabbed books of the Rosehill Cemetery Association. Dis't Att'y Wilkerson is probing the relations of Henry W. Huttig with the LaSalle Bank and Rosehill Cemetery. William C. Niblack, receiver, says LaSalle Bank will pay at least 75 per cent without assessment of stockholders. Sollie Lewinsohn, Wm. R. Fors-

17. November 4, 1915 Wood County Reporter Wisconsin Rapids, WI

Article from Wood County Reporter, November 4, 1915

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FORGAN STOOD BY MUNDAY. Chicago Financier Says He Did All in Power to Avert Failure. Morris, III., Oct. 29.-James B. Forgan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared he did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution; despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.

18. November 5, 1915 Northern Wisconsin Advertiser Wabeno, WI

Article from Northern Wisconsin Advertiser, November 5, 1915

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FORGAN STOOD BY munday. Chicago Financier Says He Did All in Power to Avert Failure. Morris, Ill., Oct. 29.-James B. Forgan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared he did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution, despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.

19. November 6, 1915 The L'anse Sentinel L'anse, MI

Article from The L'anse Sentinel, November 6, 1915

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FORGAN STOOD BY MUNDAY Chicago Financier Says He Did All in Power to Avert Failure of LaSalle Street Bank. Morris, III., Oct. 29.-James B. For. gan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared be did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution, despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.

20. December 3, 1915 The Jasper Weekly Courier Jasper, IN

Article from The Jasper Weekly Courier, December 3, 1915

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FORGAN STOOD BY MUNDAY Chicago Financier Says He Did All in Power to Avert Failure of LaSalle Street Bank. Morris, III., Oct. 28.-James B. Forgan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared he did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution, despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.

21. September 22, 1924 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, September 22, 1924

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NOMINEE DAVIS DIRECTS HIS FIRE AGAINST DAWES Chicago, III., Sept. 20 (A. P.)Opening his campaign in the middle west, Senator Wheeler of Montana, vice-presidential candidate on the third ticket, in a speech here tonight turned his guns on Charles G. Dawes, the running mate of President Coolidge. Senator Wheeler focused his attack on General Dawes on the noted Lorimer bank failure and on the organization of the Minute Men of the Constitution, which has been charged by its critics as being an opponent of organized labor. Prefacing his remarks with a statement that if the public did not know his own record it was "no fault of the republican national committee" Senator Wheeler plunged into his attack on General Dawes. "Every statement I shall make will be based either on court documents. on printed statements of the candidate himself, or on other public records easily obtainable by any one who cares to verify my assertions," Senator Wheeler began. "Mr. Dawes' political philosophy, his view of the relation of the people to their government, helps to explain certain events of his career and certain of his recent activities. It helps to explain how he could lend himself to a fraudulent banking transaction that robbed 4,000 Chicago citizens of their savings; it helps to explain why he organized the little political army which he calls The Minute Men of the Constitution. "In 1902 Mr. Dawes organized the Central Trust Company of Chicago. with himself as president. Some years later another bank was organized in Chicago, the La Salle Street National Bank. At its head was one William Lorimer, who had retired from the United States Senate in somewhat the same manner that Newberry. of Michigan, retired two years ago. Lorimer's bank began business in May. 1910. Examiners of the Chicago Clearing House Association refused to grant it membership in the Clearing House Association. The directors agreed, on the demand of the United States Comptroller of the Currency. to do certain things to strengthen the bank's condition, but failed to keep their promise and by October 12, 1912, the bank was in a bad way. "Lorimer and his associates then decided to change their national bank into a state bank, to be known as the La Salle Street Trust and Savings Bank. They proposed to turn over the assets of their national bank to the new bank. along with its liabilities. of course. but they did not (Continued on Page 2-Col. 3)