4530. La Salle Trust and Savings Bank (Chicago, IL)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 12, 1914
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 936b4cde

Response Measures

None

Description

Articles from June–October 1914 describe the state examiner/auditor ordering the La Salle Trust and Savings Bank closed, appointment of a receiver, criminal prosecutions, and the bank remaining 'in the receiver's hands' (defunct). No mention of a depositor run in the provided pieces. I set the initial closing in mid-June 1914 (articles say 'closed last Friday' relative to June 17) and the receivership filing about June 17, 1914.

Events (3)

1. June 12, 1914 Suspension

Cause: Government Action
Cause Details: State auditor/examiner ordered closing after examination revealed mismanagement and large improper loans; action by state authorities to close the bank.
Newspaper Excerpt: Charges that the state auditor exceeded his rightful powers when he ordered the closing of the La Salle Trust and Savings bank last Friday were the basis of a suit...
Source: newspapers

2. June 17, 1914 Other

Newspaper Excerpt: Charges that William Lorimer and Charles B. Munday 'looted' the La Salle Trust and Savings Bank; criminal prosecution and indictments planned/returned; bank 'in the receiver's hands.'
Source: newspapers

3. June 17, 1914 Receivership

Newspaper Excerpt: A petition asking for a receiver for the La Salle Trust and Savings bank of Chicago, signed tonight by State Auditor Brady will be filed tomorrow in Chicago...receiver will prepare the record on which the prosecution will be based. The receiver will begin his investigation with the record of Bank Examiner Daniel V. Harkin, indicating that the loot in the La Salle Trust and Savings Bank...amounts to between $2,000,000 and $2,500,000.
Source: newspapers

Newspaper Articles (9)

1. June 18, 1914 The Cairo Bulletin Cairo, IL

Article from The Cairo Bulletin, June 18, 1914

Click image to open full size in new tab

Article Text

State Examiner Says Institution Loaned Its Officers Money on Insufficient Security. SUIT ALSO FILED BY CHICAGO SYNDICATE Mismanagement and Misappropriation of Funds Basis of the Action. Chicago, June 17.-Charges that the state auditor exceeded his rightful powers when he ordered the closing of the La Salle Trust and Savings bank last Friday were the basis of a suit filed in the Cook County Superior court asking for an accounting of the affairs of the bank and the appointment of a receiver for it if such action appeared necessary. Mismanagement and misappropriation of the bank's funds are also alleged in the suit against the officers of the closed bank, which was filed in the name of Gesiber L. Tarjan as receiver for a syndicate which was originally formed to buy and dispose of the stock in the Realty Realization Co. Springfield, 111., June 17.-A petition asking for a receiver for the La Salle Trust and Savings bank of Chicago, signed tonight by State Auditor Brady will be filed tomorCOW in Chicago. The petition is based on the examination of the bank's condition made during the past week by State Bank Examiner Daniel Harkin who was in conference till late tonight with Attorney General Lurcy and Auditov The report of Harkin revealed iat loans 1. were made by the bank to com panies controlled by Wm. Lorimer and C. G. Munday, president and vice president of the closed bank and their employes, totalling $1,573,000 the borrowers giving as security for the loans personal notes and securif ties which the state auditor said are worth not more than $301.00 are worth not more than $301,000.

2. June 18, 1914 The Sun New York, NY

Click image to open full size in new tab

Article Text

LORIMER BANK LOOT MILLIONS, IS CHARGE Attorney-General of Illinois to Begin Criminal Action at Once. EX-U.S.SENATOR IS ACCUSED State Examiner Says Loans Were Made to Partners on Unsecured Notes. CHICAGO. June 17.-William Lorimer and Charles B. Munday are charged with looting the La Salle Trust and Savings Bank of from $2,000,000 to $2,700,000, in the report filed to-day by Bank Examiner Harkin with State Auditor Brady. Criminal prosecution of both was decided upon following a conference between Mr. Harkin and Attorney-General P. J. Lucey this afternoon. Attorney-General Lucey will be in Chicago to-morrow to lay the basis for the proceedings against the officers of the closed bank. He will ask for the appointment of a receiver for the institution. setting forth in his petition the charges made by Harkin in his report. It is his intention to make the appointment of a receiver the first step in the criminal prosecution of the bank officials. The receivership will afford an opportunity for a more thorough investigation of the affairs of the La Salle Trust and Savings Bank than Mr. Harkin was able to make. It will also lead to a further search for collateral missing from the bank. The investigation will be of the most sweeping nature. Charge of Conspiracy. It is the intention of the Attorney-General to base criminal action upon a general charge of conspiracy to loot the bank and not upon any specific misdeed. In the mind of the Attorney-General the best evidence of the looting of the bank is the character of the loans it made. Following is a list of some of the transactions which were called to the attention of the Attorney-General by Bank Examiner Harkin in his report: A $120.000 loan to William Lorimer & Co. on a note secured by Southern Traction Company bonds. A $100,000 loan to J. P. Gallagher, William Lorimer's partner in the firm of Lorimer & Gallagher, on a note secured by the same bonds. A $160,000 loan to the Southern Traction Company. in which William Lorimer was interested, on its unsecured notes. A purchase of $350,000 of the bonds of the same company. A $180,000 loan to Lorimer & Gallagher on the notes of the firm. A $203,000 purchase of the bonds of the Illinois and Louisiana Land Company, of which ex-Gov. J. Y. Sanders of Louisiana is the head. Loans to Munday Firms. A $100,000 loan to Litchfield Mill and Elevator Company, controlled by C. B. Munday. A $125,000 unsecured loan to C. B. Munday & Co. of Litchfield, III. A $130,000 loan to Truax, Green & Co. This loan is secured in part by notes listed by the bank as worth $30,000 but to which Bank Examiner Harkin gave a valuation of $15,000. A personal unsecured loan of $125,000 to C. E. Ward, Lorimer's private secretary, at the time he was in the United States Senate and now a director in the Lorimer bank. A total of $1,573,000 is involved in these transactions, which are typical of a number of others. In his report Bank Examiner Harkin charged off more than $2,000,000 of the loans made by the bank as "desperate." He holds that only $2,000,000 of the assets of the bank are "good."

3. June 18, 1914 The Washington Herald Washington, DC

Article from The Washington Herald, June 18, 1914

Click image to open full size in new tab

Article Text

TO PROSECUTE LORIMER. Springfield, Ill., June 17.-Former Senator Lorimer and his banker-politician partner, C. B. Mundy, will be prosecuted criminally for looting the La Salle Trust and Savings Bank and correspondent banks. A petition for the appointment of-a receiver for the La Salle bank will be filed in the Circuit Court of Cook County tomorrow, and the receiver will prepare the record on which the prosecution will be based. The receiver will begin his investigation with the record of Bank Examiner Daniel V. Harkin, indicating that the loot in the La Salle street institution alone amounts to between $2,000,000 and $2,500,000.

4. June 19, 1914 The Fairmont West Virginian Fairmont, WV

Article from The Fairmont West Virginian, June 19, 1914

Click image to open full size in new tab

Article Text

Lorimer Loots Bank, Millions "Gone is Charge ATTORNEY GENERAL OF ILLI NOIS TO BEGIN CRIMINAL ACTION AT ONCE. STATE EXAMINER SAYS LOANS WERE MADE TO PARTNERS ON UNSECURED NOTES. CHICAGO, III., June 19. - WilHam Lorimer, ex-United States sena tor, and Charles B. Munday are 1 charged with looting the La Salle 1, Trust and Savings Bank of from $2,000,000 to $2,700,000. in the report filed today by Bank Examiner Har kin with State Auditor Brady. Crim inal prosecution of both was decider upon following a conference he tween Mr. Harkin and Attorney General P. J. Lucey this afternoon. Attorney General Lucey will be in Chicago tomorrow to lay the basis for the proceedings against the offi cers of the closed bank. He will ask for the appointment of a receiver for the institution. setting forth in his petition the charges made by Harkin in his report. It is his intention to make the appointment of a receiver the first step in the criminal prosecution of the bank officials. The receivership will afford an opportunity for : more thorough investigation of the )affairs of the La Salle Trust and Savings Bank than Mr. Harkin was able to make. It will also lead to :: further search for collateral missing from the bank. The investigation wil be of the most sweeping nature. Charge of Conspiracy. It is the intention of the attorney general to base criminal action upon a general charge of conspiracy to loot the bank and not upon any specific misdeed. In the mind of the attorney general the best evidence of the looting of the bank is the character of the loans it made. Following is a list of some of the transactions which were called to the attention of the attorney general by Bank Examiner Harkin in his report: A $120,000 loan to William Lorimer & Co. on a note secured by Southern Traction Company bonds. A $100,000 loan to J. P. Gallagher. William Lorimer's partner in the firm of Lorimer & Gallagher. on a note secured by the same bonds. A $160,000 loan to the Southern Traction Company. in which William Lorimer was interested, on its unsecured notes. A purchase of $350,000 of the bonds of the same company. A $180,000 loan to Lorimer & GalTagher on the notes of the firm. A $203,000 purchase of the bonds of the Illinois and Louisiana Cand Company, of which ex-Gov. J. Y. Sanders, of Louisiana, is the head. Loans to Mundav Firms. A $100.00 loan to Litchfield Mill and Elevator Company. controled by C. B. Munday. A $125,000 unsecured loan to C. B. Munday & Co., of Litchfield. III. A $130,000 loan to Truax. Green & Co. This loan is secured in part by notes listed by the-bank 15 worth $30,000 but to which Bank Examiner Harkin gave a valuation of $15000. A personal "unsecured loan of $125,000 to C. E. Ward. Lorimer's private secretary. at the time he was in the United States senate and now a director in the Lorimer bank. A total of $1,573,000 is involved in these transactions, which are typical of o number of others

5. October 9, 1914 Evening Public Ledger Philadelphia, PA

Article from Evening Public Ledger, October 9, 1914

Click image to open full size in new tab

Article Text

LORIMER INDICTED WITH ASSOCIATES IN CHICAGO BANK Charged With Misapplication of Funds, Lending on Unsecured Notes and "Wild-cat" Methods of Financiering. CHICAGO, Oct. 9.-William Lorimer, voted out of the United States Senate on the ground that he had been illegally elected, and J. P. Gallagher, associated with the ex-Senator in the Lorimer & Gallagher Construction Company, are under Federal Grand Jury indictment here today on charges of misapplication of funds of the La Salle Street National Bank. The bank was the forerunner of the La Salle Trust and Savings Bank, now in receivers' hands. Lorimer was president of the national bank and president of the State institution into which the former was reorganized under the Illinois State laws. Other indictments were also returned against C. B. Munday, vice president of the bank; Charles G. Fox, cashier, and Thomas McDonald, assistant cashier, who are charged with making false entries. Lorimer's bond was fixed at $15,000, and Galiagher's at $10,000. The others were also admitted to bail. The charges include misapplication of funds, lending money on unsecured notes and to ocers of the bank, and lending its cash resources on collateral classed as "wild cat" securities.

6. October 9, 1914 The Sun New York, NY

Click image to open full size in new tab

Article Text

LORIMER AND. FOUR OTHERS ARE INDICTED Chicagoan and Associates Accused of Violating National Banking Act. HIS BOND FIXED AT $15,000 CHICAGO, Oct. 8.-William Lorimer was indicted to-day by a Federal Grand Jury on a charge of misapplication of funds of the La Salle Street National Bank. the forerunner of the La Salle Trust and Savings Bank, which is now in the receiver's hands. Mr. Lorimer was president of the nation bank and president of the State institution into which it was reorganized under the Illinois State laws. J. P. Gallagher, associated with Lorimer in the Lorimer & Gallagher Construetion Company, was also indicted, charged with aiding Lorimer in the misapplication of the funds. The indictments were returned before United States Judge Carpenter. Other indictments were also returned against C. B. Munday, vice-president of the bank: Charles G. Fox, cashier, and Thomas McDonald, assistant cashier, who are charged with making false entries. They had already been indicted on this charge. The true bills recite incidents in the alleged mismanagement of the bank before October, 1912, when the old national bank went out of existence. It is alleged that Lorimer participated in violations of the national banking act. Judge Carpenter fixed the bond of Mr. Lorimer at $15,000 and that of Mr. Gallagher at $10,000. The three other defendants are now at liberty on bonds fixed when they were originally indicted. Investigation by the Grand Jury of the books of the old La Salle bank revealed many irregularities, for which Lorimer and his associates are held responsible. Charges against them include misapplication of funds, lending money on unsecured notes, lending to officers of the bank and lending the bank's cash resources on collateral classed as "wildcat" securities.

7. January 7, 1915 The Cairo Bulletin Cairo, IL

Article from The Cairo Bulletin, January 7, 1915

Click image to open full size in new tab

Article Text

J. B. BLACKMAN HARRISBURE MAN SUED FOR $30,000 By Receiver for Iorimer Bank at Chicago-Was Candidate for Congress ? Years Ago. It was learned yesterday that sait for $30,000 hind been started against Jame il Blackman, a widely known politician at Harrisburg, 111., by Willard C. Niblack receiver for the La Salle Trust and Savings bank. Blackman formerly was president of the Saline Trust and Savings bank at Harrisburg and has been active in state politics for many years. He was a candidate for conspess two years ago. Receiver Niblack said that the suit was brought against Blackman as the guaranter of notes which had been given the La Salle Trust and Savings Dank by the Partin Manu facturing Company. an automobil assembling company The company failed to pay the notes and the re ceiver held the guarantor respon sible. Notes Amount to 20,000. The amount of the notes was $20,000. according to Mr. Nihlari and the additional $10,000 in the suit was for costs and damages. Blackman is said to have lost considerable money through his deals with the Lerimer-Munday bank and the actomobile company. That with a heavy expenditure on a rampaign for congress two years ago, has greatly decreased his wealth, it is reported In Harrisburg. He resigned as president of the Saline Trust and Savings bank six months ago and has since been engaged in the real estate business. Said Suit Would Ruin Him. Blackman is said to have made the statement that the suit brought against him by Niblack would ruin him financially Politically, Blackman was allied with the Lorimer wing of the Republican party. Then he jumped to the Densen faction and has been strong in Southern Illinois politics.

8. September 25, 1915 New-York Tribune New York, NY

Article from New-York Tribune, September 25, 1915

Click image to open full size in new tab

Article Text

LORIMER IS ACCUSED AGAIN IN BANK CASE Cross Bill Charges Improper Use of $1,250,000. Chicago, Sept. 24.-An echo of the crash of the La Salle Trust and Savings Bank, the institution of which William Lorimer was president, came to-day with the filing of a cross bill in the Circuit Court seeking the recovery of $1,250,000 alleged by the receiver of the defunct La Salle Street bank to have been manipulated knowingly in an improper manner. The action is against the Central Trust Company of Illinois and ten individuals. The bill alleges that when the La Salle Street National Bank, the first Lorimer banking venture, was about to withdraw from business and the La Salle Trust and Savings Bank was about to be organized, ten stockholders of the state bank, including William Lorimer, C. B. Munday, H. W. Huttig and others, each gave his note to the La Salle Street National Bank for $125,000, a total of $1,250,000. With these notes in its possession, the bill alleges, the national bank gave its banker's check to the Central Trust Company of Illinois, for which they received in cash $1,250,000. This money was exhibited, it is charged, to the state bank examiner to satisfy the state officials that the capital stock and surplus of the state bank had been fully paid up as required by law. After the La Salle Trust and Savings Bank had received the state auditor's certificate permitting it to commence business, the cross bill alleges, the fund was returned to the Central Trust Company in exchange for the $1,250,000 check.

9. April 16, 1916 The Sun New York, NY

Click image to open full size in new tab

Article Text

LORIMER STOCKHOLDERS PAY. Receiver to Make Them Restore Dollar for Dollar, Bank's Losses. CHICAGO, April. 15 Stockholders of the wrecked La Salle Trust and Savings Bank are to. be asked by Receiver William C. Niblack to pay dollar for dollar, an assessment to the amount of par value of their stock, according to a statement made by the receiver to-night. He expects to make the formal demand next week. Judge Windes to-day ratified an arrangement by which the receiver exchanged with William Lorimer, Jr., & Co. that company's $75,000 note for $50.000 worth of claims against the bank. William Lorimer's ignorance of the affairs of his bank was set forth again to-day while He was on the stand in his own defence. He placed responsibility for most of the bank's actions on Charles B. Munday. convicted vice-prestdent of the institution.