Multiple contemporaneous articles (June 12–13, 1914) report a mild run beginning a few days earlier, the state bank examiner taking charge and closing the La Salle Street Trust & Savings Bank on June 12, 1914. A receiver (William C. Niblack / Chicago Title & Trust Co.) later took possession (receiver in place by June 19–22, 1914) and the institution went into liquidation with subsequent criminal investigations. The immediate trigger for depositor withdrawals is repeatedly linked to allegations in the Coyne–Brady suit and related rumors; examiners also cited questionable/slow assets. OCR typos corrected (e.g., Harkin/Harkins, LaSalle/La Salle).
Events (3)
1.June 10, 1914Run
Cause
Rumor Or Misinformation
Cause Details
Depositor withdrawals attributed to allegations in the John H. Coyne vs. State Auditor Brady suit and related rumors about the bank's political contributions; articles call it a 'mild run' beginning a few days before June 12.
Measures
State bank examiner placed the bank in charge and the bank closed its doors; examiners began investigation and closed subsidiary banks as precaution.
Newspaper Excerpt
A mild run started on the bank two days ago ... for the last three weeks there has been a mild run on the bank
Source
newspapers
2.June 12, 1914Suspension
Cause
Government Action
Cause Details
State bank examiner Daniel V. Harkin (Harkins) took the bank in charge and ordered it closed after finding conditions and questionable collateral; suspension applied also to three subsidiary state banks.
Newspaper Excerpt
The La Salle Street Trust and Savings Bank ... was taken in charge today by the state bank examiner. An hour after the arrival ... the doors of the bank were closed.
Source
newspapers
3.June 22, 1914Receivership
Newspaper Excerpt
W. C. Niblack, receiver of the LaSalle Street Trust & Savings bank, took possession of the institution ... the bronzed doors, closed since a week ago last Friday, swung open.
Source
newspapers
Newspaper Articles (24)
1.June 12, 1914Evening StarWashington, DC
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LORIMER'S BANK CLOSED Institution of Which Former Senator Is President in Hands Examiner. CHICAGO, June 12.-The La Salle Street Trust and Savings Bank, of which William Lorimer, former United States senator, is president, was taken in charge today by the state bank examiner. The examiner reported that conditions were such as to warrant the closing of the bank. A mild run started on the bank two days ago, according to the secretary of the institution, and today more and more depositors gathered in front of the institution, which is a few doors from the Board of Trade building on La Salle street. Examiner Takes Charge. An hour after the arrival of the state bank examiner the doors of the bank were closed. Examination of subsidiaries of the La Salle Street Bank, it was announced, would be taken up by the examiner. Mr. Lorimer was in conference with the directors of the institution throughout the morning. In the last statement issued by the bank its capital stock was placed at $1,000,000, surplus $250,000 and undivided profits $93,631. Its stock was then held at par.
2.June 12, 1914Evening Capital NewsBoise, ID
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LORIMER'S BANK TAKEN IN CHARGE BY THE EXAMINER La Salle Street Savings and Trust Bank Closes Its Doors - Examination Is Being Made. Chicago, June 12.-The La Salle Street Trust and Savings bank, of which former United States Senator William Lorimer is president, was taken in charge today by the state bank examiner. No business was done in the bank today. The examiner reports conditions : uch as to warrant the closing of the bank. Lorimer was in conference with the directors of the institution today. An examination of the subsidiaries will be taken up by the state examiner. A mild run has been made on the bank for two days and more depositors gathered in front of the institution today. The last statement issued by the bank showed the capital stock placed at $1,000,000 with $250,000 surplus and undivided profits of $93,000. The stock was then held at par. The statement gave the deposits as $5,000,000 and loans at $4,000,000. The examiners later, caused the suspension of three local banks classed as subsidiaries. It is reported the Corn Exchange bank yesterday refused to allow the La Salle Street Trust and Savings bank to clear through it. It is reported that runs in the past three weeks have caused withdrawals of more than $1,000,000.
3.June 12, 1914Rock Island ArgusRock Island, IL
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Brady Scandal Disclosures Starts a Run by Chicago Depositors. OVER MILLION DRAWN Three Subsidiaries of Chicago Concern Are Also in Charge of State. Chicago, Ill., June 12.-The La Salle Street Trust and Savings bank of former Senator Lorimer is preswas taken ident, which charge of today by bank examiner. No business in the bank a was state done today, and the examiner reported conditions were such as to warrant closing of the bank. A wild run was started on the bank ago and today more deposiwere in front of the two tors days made by institution. the state Announcement was bank examiner that an examination of the bank's subsidiaries would be taken up Lorimer in a the of the bank directors by conference this morning. of of the The last monthly statement stock was at and bank $1,000,000 the capital undivided profits placed $93. was held at par. Deposits were 000. Stock $5,000,000; loans $4,300,000. caused Later the bank examiners a of business bank. way suspension State the in Illinois the Broad- State bank and the Ashland & Twelfth bank, three benks which were classed as subsidiaries of the La Salle street institution. Over Million Withdrawn. The run on the bank was attributed to allegations made in connection with the suit of John H. Coyne against State Auditor Brady, in which Coyne charged the La Salle street bank had contributed to the Brady campaign fund. with the understanding it would be consulted regarding appointments i by the auditor. It is roughly estimated that depositors in the last three weeks have with( drawn more than a million. H The bank was organized by Lorimer o five years ago. It is not a member of the clearing house. a Last spring Harkin made an examic nation of the LaSalle bank, he said today, and called attention to the bank t officials to conditions he found. "I found a lot of assets in the bank g vaults I deemed slow and questionat ble" said Examiner Harkin "RecentS ly deposits dropped off alarmingly and I decided to make an investigation." d City Refused Deposit. V Examiner Harkin said he did not beh lieve the disclosures in the CoyneW Brady scandal had any bearing on C the financial conditions of the La Salle si street bank. no A demand made today by the treasn urer of the city of Chicago for $650.c 000 which the city had on deposit at ti the La Salle bank was refused. Ac10 cording to Cashier Fox, the bank's of present deposits are $3,900,000. The sa board of trade markets were made to re reflect to some extent the troubles of all the Lorimer banks. a Small Banks to Reopen. "o St Examiner Harkin expressed the no opinion that the three smaller banks would resume business in a few weeks. cia He said they were dominated by men th connected with the LaSalle institution re and were closed for their own protecof tion. William Lorimer, Jr., is listed at as the heaviest stockholder in the IlliCO nots State bank. ha Authorized by Brady. is Springfield, III., June "The action of Chief Examiner Harkins in closing the La Salle Street Trust & Savings P bank of Chicago was authorized by me, if in his opinion conditions warranted action," said Auditor Brady. Board of Trade Firm Fails. Chicago, III., June 12.-Notices posted on the board of trade that the Sidfus hey Logan company had failed to pay ne its debit balance at the clearing house. Dr It had been active on the bull side of wheat. to
4.June 13, 1914Evening StarWashington, DC
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FIFTH BANK IS CLOSED UP IN CHICAGO TANGLE Examiners Estimating Value of Securities-May Be Reopened Solvent. CHICAGO June 13.-State bank examiners began today estimating the value of the securities held by the La Salle Street Trust and Savings Bank and the three small neighborhood banks closed yesterday, possibly temporarily as a result of the suspension of the LaSalle Street Bank. A fifth neighborhood bank, the Calumet State Bank, was ordered closed today because a large portion of its resources were tied up in the La Salle Street Bank. Like the other small banks, the Calumet Bank may be reopened soon in a solvent condition. These facts stand out in connection with the closing of the banks by Daniel V. Harkin, chief state examiner for the Chicago district. Clearing House Not Affected. Closing of the banks has had no effect on other Chicago financial institutions, according to clearing-house officials. The La Salle street Bank was never admitted to membership in the Chicago Clearing House Association. Its suspension will affect only the few small banks which had their reserves tied up in it, it was said. The banks are: The La Salle Street Trust and Savings Bank, capital, $1,000,000. The Illinois State, capital, $200,000. The Ashland-Twelfth State, capital, $500,000. The Broadway State, capital, $200,000. The Calumet State (ordered closed today), capital, $200,000. The La Salle Street Bank had about $4,000,000 in deposits. Validity of about $1,200,000 of its collateral is said to have been questioned by the bank examiner. James B. Forgan, president of the First National Bank, and chairman of the clearing-house committee, said: "These banks are not connected with any Chicago clearing-house bank and we know nothing about them. The Chicago banking situation is better than it has been in years."
FOUR LORIMER BANKS CLOSED STATE BANKING DEPARTMENT ACTS AND MAY ASK FOR RECEIVERSHIP. Chief Examiner Takes Personal Charge of Largest Bank- May Re-open Next Week. 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 bank ing department here today. Representatives of the department immediately began a close examination into the institutions' affairs. Rumors are current that a receivership will be asked. The four banks were the La Salle Street Trust & Savings Bank. the Broadway State bank. the Illinois State Bank, and the Ashland Twelfth State Bank, known as the LorimerMunday chain of banks. The La Salle Street 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 $1,434,692. and reported cash means of 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 Street bank. Open Next Week. Chief bank Examiner Daniel Harkin who took personal charge of the down town bank and sent deputies to the smaller ones said late today that he expected to see the La Salle St., Trust and Savings bank open for business next week. He declared that he sent examiners to the smaller institutions as a precautionary measure. He insisted that there was no polltical phase to the action of his department. An examination of the La Salle Street Trust and Savings bank by Harkin two months ago disclosed. be said, a quantity of what he regarded as slow assets. The bank officials are said by state officials to have pleaded for a little time in which to change that condition. Mild Run on Bank. In the last three weeks. according to Examiner Harkin and the cashier of the bank. there has been what was termed a mild run on the bank. causdeposits. ing a depletion of about $1,000,000 in Former United States Senator Lorimer, president. and C. B. Munday, vice president, situation. refused to comment on the James B. Forgan, president of the First National Bank. and chairman of the clearing house committee. said: "The closing of the LaSalle Street Trust & Savings Bank should not have the slightest effect upon any other banks in the Chicago district."
6.June 13, 1914Bismarck Daily TribuneBismarck, ND
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BILL LORIMER BANK CLOSED FOR REPAIRS CHAIN OF CHICAGO INSTITUTIONS TAKEN IN CHARGE BY EXAMINER. MILD RUN FOR A WEEK Chicago, III.. Juhe 12.-Four state banks in Chicago, with aggregate deposits of $6,411,997 and reported cash means of $1,434,692, were taken in charge today by the state banking department, which closed the bank's doors to begin a close examination of their affairs. The four were: The LaSalle Street Truss and Savings bank. the Broadway State bank, the Illinois State bank and the Ashland-Twelfth State bank, known in financial circles as the Lorimer-Munday chain of banks. Lorimer's Banks. The LaSalle Street Trust and Savings bank, the president of which is William Lorimer, who was unseated from the United States senate, is the main institution, the three others being outlying banks, whose balances and reserves were carried to a great extent by the LaSaile Street bank. Chief Bank Examiner Harkin said he expected to see the LaSalle Street bank open for business next week. He insisted there was no political phase in the closing of the banks. For the last three weeks, it is said, there has been a mild run on the main bank.
7.June 13, 1914The Pensacola JournalPensacola, FL
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BY ASSOCIATED PRESS. Chicago, June 12.-The La Salle Street Trust and Savings Bank, organized by William Lorimer five years ago when he was United States senator from Illinois, and of which he has since been president, was closed today by the state bank examiner. While rumors of financial trouble had been whispered of late, the actual closing of the institution was a surprise. Coincident with this action examiners 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 examiner. Recent reports to the state auditor's office 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
8.June 13, 1914The Barre Daily TimesBarre, VT
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LORIMER BANKS SHUT BY STATE Examiner Takes Charge of the La Salle Street and Three Subsidiaries in Chicago. Chicago, June 13.-The La Salle Street Trust & Savings bank, of which William Lorimer, former United States senator, is president, was taken in charge yesterday by the state bank examiner. The examiner reported that conditions were such as to warrant the closing of the bank. A mild run started on the bank two days ago, according to the secretary of the institution, and yesterday more and more depositors gathered in front of the institution. An hour after the arrival of the state bank examiner the bank was closed. Mr. Lorimer was in conference with the directors throughout the morning. In the last statement issued by the bank its capital stock was placed at $1,000,000; surplus, $250,000; undivided profits, $93,631; deposits, $5,058,586, and loans $4,363,398. Its stock then was held at par. Later in the day the bank examiner sent examiners to three banks in Chicago classed as subsidiaries of the La Salle street institution. The examiners at once caused a suspension of business in the three-the Broadway State bank, on the north side; the Ashland and Twelfth, in the West Side Ghetto district, and the Illinois State Bank of Chicago, in North Clark street. The Broadway State and the Ashland and Twelfth were organized within the year. Lorimer is listed as the heaviest stockholder of the Illinois State Bank of Chicago, which at the last report had deposits of $177,000 and a capital stock of $200,000.
9.June 13, 1914Arizona RepublicanPhoenix, AZ
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EXAMINER CLOSES CHAIN OF LORIMER BANKS Four Institutions With Deposits More Than $6,000,000 Are Suspended [ASSOCIATED PRESS DISPATCH] CHICAGO, June .-Four state banks in Chicago, with aggregate deposits of more than $6,000,000 and reported cash means of $1,400,000 were taken in charge by the state banking department which closed the banks doors and began an examniation of the banks affairs. The four are the La Sallee Street Trust & Savings; The Broadway State: The Illinois State and the Ashland-Twelfth State banks. known in official circles as the Lorimer-Munday chain of banks. An examination of the La Salle Street Trust & Savings bank by Harkin two months ago, disclosed, he said, a quantity of what he regarded as slow assets. The bank officials are said by state officials to have pleaded for a little time in which to change that condition. In the last three weeks, according to Examiner Harkins also the cashier of the bank, there has been what was termed a mild run on the bank, causing a depletion of about $1,000,000 in deposits. The La Salle Trust & Savings bank, the president of which is William Lorimer, unseated from the United States senate, was the main institution, the three others being outlying banks whose balance and reserves were carried to a great extent by the La Salle street bank. Chief Bank Examiner Daniels Harkin said tonight he expected to see the La Salle Trust & Savings open for busines next week. He declared that he sent the examiners to the smaller institutions as precautionary measures. He insisted there was no political phase in closing the banks. U
Chicago, June 15-It is believed here that criminal prosecution may follow the closing by examiners of the La Salle Street Trust and Savings bank, of which ex-United States Senator William Lorimer is president and three associated banks. Chief Bank Examiner Harkins and a score of assistants are busily engaged in trying to unravel the financial tangle which resulted in a run on the La Salle Street bank. Mr. Harkins said it would be several days before the actual state of affairs is known. In round numbers the combined deposit liabilities aggregate between $6,000,000 and $8,000,000. The La Salle Street Trust and Savings bank is a state institution located in the downtown district. It was established originally as a national bank by ex-Senator Lorimer. Neither it nor its predecessor has ever been a member of the clearing house. The three other banks are located in the outlying districts and are known as neighborhood banks. All of them carried their balances at the La Salle street institution and were controlled by officials of the downtown Lorimer bank.
11.June 16, 1914The Logan RepublicanLogan, UT
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Chicago in North Clark street. In financial circles it was reported that the Corn Exchange bank yesterday refused to allow the La Salle Street Trust and Savings bank to clear through it. The run on the bank was characterized by bank officials as mild and attributed to allegations made in connection with the suit of John H. Coyne against State Auditor Brady, in which Coyne charged in his declaration in a suit for damages that the La Salle Street bank had contributed to the Brady campaign fund and that the contribution had been made the basis of a claim that it should be consulted regarding appointments to be made by the state auditor.
12.June 24, 1914Grant County HeraldLancaster, WI
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BANK OPENED BY RECEIVER W. C. Niblack Takes Charge of LaSalle Street Trust & Savings at Chicago. Chicago, June 22.-William C. Niblack, receiver of the LaSalle Street Trust & Savings bank,' took possession of the institution and immediately the bronzed doors, closed since a week ago last Friday, swung open. The bank building will be open for six hours during the day from now on. This was determined by Mr. Niblack, who said he knew the 12,000 depositors who have money in the closed institution were anxious for information. This will be readily given by Mr. Niblack's assistants. Cashier Fox opened the vaults for the receiver and he then formally took possession.
13.June 27, 1914Iron County NewsHurley, WI
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State Attorney Maclay Hoyne of Chicago appointed assistants to take charge of the criminal prosecution of former Senator William Lorimer, C. B. Munday and the other wreckers of the LaSalle Street Trust & Savings bank. Evidence indicates that deposits were received after Lorimer and Munday knew the bank was insolvent. W. C. Niblack, vice-president of the Chicago Title & Trust company, was appointed receiver of the bank.
Grand Rapids's most baffling murder mystery, the Thompson triple tragedy, when gunmen killed Ed Smith, J. N. Thompson and Paul Townsend, receiving $2,200 worth of diamonds, was cleared by an alleged confession made by Walter "Vepper" Lawrence to Prosecutor Phelps.
Fire which for a time threatened the entire city destroyed half of the business section of McClure, O., a town of 2,000 inhabitants. The loss was $70,000.
14.July 7, 1914Omaha Daily BeeOmaha, NE
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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.
15.July 9, 1914Perrysburg JournalPerrysburg, OH
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came a state institution, with Paynter's balance due dumped into the state bank, as shown by accountants for Receiver Niblack, have found the following figures:
June 2, 1913—Paid $4,477.97.
September 10, 1913—Paid $7.500.
Also $88.42.
November 3, 1913—Paid $5,000.
May 25, 1914—Paid $10,000.
June 2, 1914—Paid $2,083.61. This balanced the original account and wiped the slate clean. On the same day, however, Paynter borrowed a fresh $2,676.45. This was ten days before the bank closed. This amount is still unpaid. In his statement Mr. Paynter said it will be paid on demand.
District Attorney Wilkerson's investigation of the LaSalle Street Trust & Savings bank promises to be one of the most thorough inquiries ever conducted into a national bank scandal. Assistant District Attorney Joseph B. Fleming and Garfield Charles and Special Agent Hiram Kadish, an expert bank accountant, are in charge of the work of inspecting the bank books, gathering evidence of alleged misappropriation of funds, and are preparing a record for grand jury action.
16.July 16, 1914The ReviewHigh Point, NC
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Receiver for Lorimer Banks. Chicago.-Receivers were asked for three of the Lorimer-Munday string of small banks. These banks closed with the failure of the parent bank, the LaSalle Street Trust and Savings bank.
17.July 16, 1914The CommonwealthScotland Neck, NC
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Receiver for Lorimer Banks. Chicago.-Receivers were asked for three of the Lorimer-Munday string of small banks. These banks closed with the failure of the parent bank, the LaSalle Street Trust and Savings bank.
18.August 19, 1914The Day BookChicago, IL
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HOPE TO OPEN LASALLE BANK At a meeting held in the offices of W. C. Niblack, receiver for the LaSalle Street Trust and Savings Bank, yesterday a proposition to close up the receivership of the bank and to re-open it with new officers and directors was made. It was decided to ask Att'y Gen. Lucey and State Auditor Brady to make a fifty per cent assessment on the capital stock of the bank and then allow its opening. Mr. Munday and his friends insist
19.January 21, 1915The Idaho RecorderSalmon, ID
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# Depositors Will Lose.
Chicago. — The defunct La Street Trust & Savings bank, of William Lorimer was president be lucky to pay 42 per cent outstanding liabilities, according testimony given by William C. Ni receiver for the bank, in an action its dissolution brought by State tor Brady.
20.April 9, 1915Americus Times-RecorderAmericus, GA
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FORMER SENATOR LORIMER MUST ANSWER CHARGES BANK WRECKING (By Assoiated Press. CHICAGO, III., April 9.-William M. Lorimer, former United States senator from Ililnois, and other officials of the defnuct LaSalle Street Trust and Savings Bank, must stand trial on charges of conspiring to wreck that institution, under a d'ecision rendered in the criminal court today. A motion on behalf of the defendants to quash the indictment was overruled after arguments were submitted. Lorimer first attained notoriety several years ago when h ewas ousted from the senate after charges of coreral years ago, when he was ousted by an investigating committee, and since then has been much in the public eye. He was formerly looked upon as the republican political "boss" of this state, and was at the head of 2. chain of banks extending into almost every community of size or influence in Illinois. The LaSalle Street Trust and Savings Bank was the parent institution of numerous smaller banks, nearly all of which went into liquidation after the Chicago institution closed its doors. Losses running into many millions are alleged to have been sustained through the failure, and investigation of the affairs of the LaSalle Street bank, it is stated, revealed startling evidence of fraud and corruption among the officials.
21.February 11, 1916Evening Public LedgerPhiladelphia, PA
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LORIMER BANK TRIAL ORDERED TO PROCEED Demurrers Overruled and Fraud Charges Will Be Aired in Court CHICAGO, Feb. 11.-If the Central Trust Company played the part In the La Salle Bank reorganization which it is alleged to have taken, there is no doubt fraud was committeed, according to a ruling today by Judge Windes. All the demurrers entered to the suit for the recovery of the money were overruled by the Judge. The trial will now proceed. The Central Trust Company is charged by William C. Niblack, receiver for the La Salle Street Bank, with having been a party to the transactions by which the La Salle Street National Bank was reorganized into the La Salle Street Trust and Savings Bank, a State institution, which subsequently failed. The capital stock of the national bank had been entirely lost, the receiver alleges, and a subscription list was prepared and a plan devised for obtaining a State certificate authorizing the new bank to do business without paying in any part of the new capital and surplus. This was accomplished, the bills allege, by the action of 10 men, including William Lorimer, Charles B. Munday and H. W. Huttig, in giving their notes to the national bank for $125,000 each. The Court said: "With these notes in its possession the La Salle Street National Bank gave its banker's check for $1,200,000 to the Central Trust Company, receiving a like amount in cash. This money was exhibited to the State bank examiner to satisfy him that the new bank's capital had been paid up and then returned to the Central Trust Company."
22.February 17, 1916Bisbee Daily ReviewBisbee, AZ
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sidiary banks closed. The Munday down-state banks later felt the effect of the collapse of the La Salle Street Trust and Savings Bank and they also were closed. June 19, 1914, the Chicago Title and Trust Co., was appointed receiver for the La Salle Street Trust and Savings Bank. Receivers also were named for central of the subsidiary banks. Meanwhile the United States District attorney and the state's attorney of Cook County had begun an investigation of the bank's affairs. Numerous business enterprises of William Lorimer and Charles B. Munday followed the bank into insolvency. Investigation showed that the greator proportion of the La Salle Street Trust and Savings Bank assets was made un of loans to enterprises in which Lorimer, Munday and Harry W. Huttig were interested. As a result of these investigations indictments were returned against Lorimer, Munday, Huttig and others by both federal and state grand juries. The federal indictments were rushed through in the 'summer of 1914 in order to get within the statute of limitations, for these charges were based on the operation of the bank prior to its conversion into a state institution, on October 22, 1914. The bulk of the state indictments were returned by the Cook I County grand jury Oct. 21. 1912. These were against Lorimer, Munday, Huttig and other officers and employees of the bank and former officials of the state auditor's office. The fourteen persons named in the indictments were alleged to have loot. ed the Lorimer-Munday institutions of nearly $2,500,000, with violations of practically every banking law in the state.
23.May 5, 1916The Washington HeraldWashington, DC
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LORIMER TO RUN AGAIN. First to Pay Bank Depositors, Then Seek Senate Seat. Chicago, May 4.-William Lorimer is again a candidate for the United States Senate. Acquitted last midnight of charges of embezzlement and conspiracy, in connection with the collapse of the La Salle Street Trust and Savings Bank, of which he was organizer and president, the ousted United States Senator today began to whip his business affairs into shape pre-
24.July 8, 1916Rock Island ArgusRock Island, IL
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# BANK HELD LIABLE
# IN LORIMER DEAL
Circuit Court Judge Smith Renders
Decision Against Central Trust
Company for $1,250,000.
Chicago, July 8.—A decision making the Central Trust company of Illinois, a Chicago bank, liable for $1,250.000, with interest from Oct. 21, 1912, in connection with the failure of the La Salle Street Trust and Savings bank, was handed down today by Judge Frederick A. Smith in the circuit court. On the date mentioned, the La Street institution changed from a national to a state bank. According to testimony William Lorimer, its president, to comply with a law requiring that the capital and surplus of a state bank must be paid in cash, then asked Charles G. Dawes, president of the Central Trust, to cash a check for $1,250,000.
This, according to the testimony, Mr. Dawes agreed to do and the Central Trust cashed the check, drawn on the La Salle Street National bank. The money was given to Mr. Lorimer and he turned it over to the state bank examiner, who gave it back to Mr. Lorimer with a certificate of the bank's incorporation as a state bank. Mr. Lorimer then returned the money to the Central Trust and received his check, and the La Salle Trust and Savings bank was organized.
This transaction, Judge Smith held illegal and on it held the Central Trust company liable. The suit against the Central Trust was brought by William C. Niblack, receiver for the Lorimer bank.
