4230. Broadway State Bank (Chicago, IL)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: June 10, 1914
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 8c6167ff

Response Measures

Full suspension, Books examined

Other: Multiple subsidiary banks were taken into custody by the state bank examiner after collapse of the parent La Salle Street Trust & Savings Bank; receiverships later requested.

Description

Broadway State Bank was one of the Lorimer–Munday chain. Newspapers report a mild run starting about June 10–12, 1914; state bank examiners took the banks in charge June 12 and suspended business; by June 30/July 1 receivership proceedings were being sought for Broadway. Thus a run preceded a state-ordered suspension and eventual receivership/closure.

Events (3)

1. June 10, 1914 Run

Cause: Bank Specific Adverse Info
Cause Details: Mild run triggered by disclosures about impaired/bad securities and ties to the failing La Salle Street Trust & Savings Bank and depletion of deposits.
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: State bank examiner D. V. Harkin (and deputies) took charge and caused suspension after finding bad collateral/slow assets and depletion of funds tied to La Salle Street Trust & Savings Bank.
Newspaper Excerpt: The LaSalle Street Trust & Savings bank ... was taken in charge by the state bank examiner. ... state bank examiners caused a suspension of business in three subsidiaries ... These were the Broadway State bank ...
Source: newspapers

3. June 30, 1914 Receivership

Newspaper Excerpt: Receivers for three banks. Hope for disentangling Lorimer institutions' affairs is given up... Indications are that receivers will be asked for the three institutions possibly to-morrow ... the Calumet State, Broadway State and Illinois State banks ... hope of solving the difficulties ... was abandoned to-night.
Source: newspapers

Newspaper Articles (15)

1. June 12, 1914 The Fargo Forum and Daily Republican Fargo, ND

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

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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.

2. June 13, 1914 The Wheeling Intelligencer Wheeling, WV

Article from The Wheeling Intelligencer, June 13, 1914

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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."

3. June 13, 1914 New-York Tribune New York, NY

Article from New-York Tribune, June 13, 1914

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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

4. June 13, 1914 The Broad Ax Chicago, Salt Lake City, IL

Article from The Broad Ax, June 13, 1914

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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.

5. June 13, 1914 Las Vegas Optic Las Vegas, NM

Article from Las Vegas Optic, June 13, 1914

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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.

6. June 13, 1914 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, June 13, 1914

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One Has Wm. Lorimer, Unseated Senator, As President= Deposits Rumors That a Receivership Will Be Asked 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 a close examination into the affairs of the institutions. Rumors are current that a receivership will be asked. The four banks were the LaSalle Street Trust and Savings Bank, Broadway State Bank, the Illinois State Bank and the Ashland-Twelfth State Bank, known as the LorimerMunday chain of banks. 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. Chief Bank Examiner Daniel Harkin, who took personal charge of the downtown bank and sent deputies to the smaller ones, said late today that he expected to see the La Salle Trust and Savings Bank open for business next week. He declared that he sent examiners to the smaller institutions as a precautionary measure. The state officials declare that the financial condition of the La Salle street bank had caused them to fear the possibility of a disastrous run.

7. June 13, 1914 The Chronicle=news Trinidad, CO

Article from The Chronicle=news, June 13, 1914

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I FIFTH CHICAGO BANK o CLOSED BY EXAMINER Chicago. June 13.-A fifth bank . was closed today by the state bank examiner in connection with the dh. o cleaure of conditions in the La Salle h 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 r hanks in Chkcago. P Two bank examiners from the 1 state auditor's office in Springfield " arrived today to assist in the examinI ation of the five banks now in the state banking department's hands. , William Lorimer, president or the Las Salle street bank was said to be 11 near a physical collapse from the " strain of the developments of the last twenty-four hours. 1 The bank examiners worked stead. ily on the books of the in Salle street V bank. the Broadway State bank. the Illinois State bank. the AshlandTwelfth State bank. and the State Bank of Calumet. f Approximately $4,000,000 of deQ posits are tied up in thes tate controlled institutions. Scores of children today besiered the State Bank of Calumet with n handbooks in hand. seeking money 1 which they had deposited for a Christmas fund. They crowded about the doors, but could not get their money. An echo of the closing of the La Salle Street Trust and Savings Bank WAR heard in the Federal court today when a receiver was appointed for the Southwest Savings Pank. owned by Lonis J. Krejel. The private bank. er had $4,000 deposited in the La Salle street vank and when he heard the bank was closed he suspended business. Krejel, however. declared he had sufficient means to meet the demands of his depositors. a

8. June 14, 1914 The Washington Herald Washington, DC

Article from The Washington Herald, June 14, 1914

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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.

9. June 15, 1914 The Madison Daily Leader Madison, SD

Article from The Madison Daily Leader, June 15, 1914

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CORIMER'S BANK CLOSED BY STATE Chicago Institution in Hands of Examiners. DEPOSITS OF FIVE MILLION blod ni Official in Charge Says That Its Con dition Is Such as to Warrant Action Taken-Mild Run in Effect for Sev. Past. eral Days Chicago, June 13-The La Salle Street Trust and Savings bank, of which former Senator William Lorimer is president, was taken in charge by the state bank examiner. No busi ness was done in the bank during the day and the examiner reported that conditions are 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 bank, and more and more depositors had gathered in Front of the institution, which is a few, doors from the Board of Trade building. An hour after the arrival of the state bank examiner the doors of the bank were closed. In the last statement issued by the bank its capital stock was placed at $1,000,000, with a surplus of $250,000 and undivided profits of $93,631. Its stock was then held at par. The statement gave the deposits as $5,058,586 and placed the loans at $4,363,398. The state bank examiner announced that he had sent examiners to three banks in Chicago classed as subsid. iaries of the La Salle street institution, The examiners 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.

10. June 16, 1914 The Sun New York, NY

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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.

11. June 16, 1914 The Washington Herald Washington, DC

Article from The Washington Herald, June 16, 1914

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ANOTHER BANK CLOSED. Sixth ofMunday-Lorimer State Institutions "Blows Up." Chicago, June 15.-The sixth of the chain of Munday-Lorimer State banks was closed today. It was taken charge of by examiners from the State auditor's office this morning. The bank was the State Bank of Marine, capitalized at $25,000. The Barine Bank is the first of the string of down-State banks dominated by Munday and the La Salle Street Bank to close. The list of banks closed, following the crash of the La Salle Street Trust and Savings Bank, now stands: La Salle Street Trust and Savings Bank, AshlandTwelfth State Bank, State Bank of Illinois, Broadway State Bank, State Bank of Calumet, and the State Bank of Marine. In addition to these the Southwest Savings Bank, a private institution, of Chicago, has gone into the hands of a receiver. The officers of this bank has funds on deposit in the Munday-Lorimer Bank. and this made a receivership imperative.

12. June 19, 1914 The Ocala Banner Ocala, FL

Article from The Ocala Banner, June 19, 1914

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FOUR CHICAGO BANKS IN TROUBLE The four Chicago state banks that have been closed by the state comptroller will add to the business depression. One of the said banks has for its president William Lorimer, the lately deposed United States senator. 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 $1,643,692. Of deposits $966,000 consists of city funds. The bulk of this amount, $650,000 is on deposit with the LaSalle Street Trust and Savings Bank. An examination of the LaSalle 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 is termed a mild run on the bank, causing a depletion of about $1,000,000 in deposits.

13. June 20, 1914 The Theocrat Zion, IL

Article from The Theocrat, June 20, 1914

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A TRIANGLE of politics, a woman, and bad banking are declared to be responsible for the wrecking of a string of banks in Chicago since our last issue. The banks, which at this date it is estimated will return 25 cents on the dollar to depositors, are four in number: LaSalle St. Trust & Savings, Ashland - 12th, Broadway State Bank, and Illinois State Bank. The institutions were founded and run by William Lorimer, ex-U. S. Senator from Illinois, and C. B. Munday, who has made a phenomenal leap in "high finance" within a period of a few years. Lorimer took a seat in the United States senate from the I1linois legislature in 1909. The following year, charges were brought against him to the effect that the election of Mr. Lorimer to the senate had been procured by corruption, and he lost his seat July 14, 1912. It was in 1910 that the La Salle St. National bank opened its doors, with Senator Lorimer as its first president. The fall of the string of banks was precipitated by a woman's suit against State Auditor Brady, which brought about disclosures. National bank officials say the closing of the banks will have no general effect on other Chicago banks.

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

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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 11, 1914 Albuquerque Morning Journal Albuquerque, NM

Article from Albuquerque Morning Journal, July 11, 1914

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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.