Lorimer bank - Chicago, IL

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: January 1, 1912*
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: ad1ff738

Response Measures

Full suspension

Description

The articles describe a run/scare connected to unfavorable publicity and business troubles (including the Muscatine strike and other stories) that led to the Lorimer bank's collapse and appointment of a receiver (William Niblack). By 1916 receivership was active and depositors awaited partial payment, so the bank failed and did not reopen. Dates of the original run are not precisely given in these clippings (the 1912 Muscatine strike is cited as a causal factor); receiver activity is reported in 1916.

Events (3)

1. January 1, 1912* Run

Cause: Bank Specific Adverse Info
Cause Details: Unfavorable newspaper notoriety about associated business affairs (Muscatine strike, Truax, Green & Co. allegations, Rosehill cemetery stories) created suspicion that turned into a run.
Newspaper Excerpt: The suspicion grew into a real scare and ended with a run on the bank.
Source: newspapers

2. July 8, 1916 Other

Newspaper Excerpt: Receiver Niblack of the Lorimer bank declared a 25 per cent payment to depositors probably will be made August 1; William Niblack, receiver Lorimer bank, sued Central Trust Co. in behalf of depositors.
Source: newspapers

3. July 8, 1916 Receivership

Newspaper Excerpt: William Niblack, receiver Lorimer bank, sued Central Trust Co. in behalf of depositors.
Source: newspapers

Newspaper Articles (4)

1. March 8, 1916 The Day Book Chicago, IL

Article from The Day Book, March 8, 1916

Click image to open full size in new tab

Article Text

BANK WRECKER COMES HERE FOR NEW START After ten months in the Monroe county penitentiary of New York, Henry Siegel, bank wrecker, is expected to arrive in Chicago late today and start business life over again. Siegel left Rochester last night on a Chicago-bound train. He gave newspaper men a statement that he is going to make another fortune, put himself in the multi-millionaire class once more and pay off his creditors. As a banker Henry Siegel had the same luck in New York as Billy Lorimer in Chicago, only worse. There were no suicides with the Lorimer bank smash in Chicago. When the bank run by Siegel in connection with the Siegel-Cooper department store of New York went bust, working class depositors lost over $2,500,000. Two losers killed themselves. Whatever business Siegel picks for his new career when he lands in Chicago, it is expected he won't go into the banking game. His past record would be against him in that field. His promotion of a bank would not be healthy for department store banks in general. And the big banking interests have already shown in the case of Billy Lorimer what they can do to a new banker they don't like. Eleven indictments were pending against Siegel when he got out of the penitentiary last week. Dis't Att'y Swann of New York was quoted in New York papers as saying he thought the Siegel bank depositors got a "raw deal" and he wanted to do something for them if he could. A wholesale immunity bath business was carried on in the courts, however. Several indictments were quashed and it is understood there will be no trial of Siegel on any of the U₀ hos nromicad he won't

2. March 28, 1916 The Day Book Chicago, IL

Article from The Day Book, March 28, 1916

Click image to open full size in new tab

Article Text

TOWA LABOR STRIKE PLAYED PART IN LA SALLE BANK WRECK A labor strike in an Iowa city was one of the causes behind the Lorimer bank wreck. Harry W. Huttig, a director of the Lorimer bank, was head of the National Button Mfrs. ass'n and owner of button-making plants in Muscatine, Iowa. Some 800 workers, mostly women and girls, were on strike against low wages in 1912. The high cost of financing the strike was told yesterday in Judge Dever's court by Chas. E. Ward, former secretary to Wm. Lorimer. Asked to tell the cause of the run on the La Salle bank, Ward said: "Unfavorable newspaper notoriety about a number of things that happened at that time. The first was the Muscatine affair, in which Mr. Huttig's notes. to bankers of that town caused them to attach certain of his securities." Ward said a string of stories run by the big downtown newspapers of Chicago threw suspicion on the La Salle bank. The suspicion grew into a real scare and ended with a run on the bank. After the Muscatine story came "the Truax, Green & Co. story, charging that the company was selling opium in violation of the federal law, and following that the Rosehill cemetery story was printed." When the Rosehill cemetery stories were printed with allegations discrediting Harry W. Huttig, the button-making magnate, and again later when the Lorimer bank went smash, Emmet Flood, organizer for the American Federation of Labor gave interviews to The Day Book saying it was a proper time to ask whether money paid by Rosehill cemetery lot purchasers for unkeen

3. July 8, 1916 The Day Book Chicago, IL

Click image to open full size in new tab

Article Text

the Lorimer bank has plenty of cash. Then Lorimer slips the cash back to Dawes and goes back to the La Salle Street Trust & Savings bank, which later goes bust. The $1,250,000 cash loaned by the Dawes bank to the Lorimer bank never left the inside walls of the Central Trust Co. building. William Niblack, receiver Lorimer bank, sued Central Trust Co. in behalf of depositors. Hiram Gilbert was attorney. If Judge Smith's decision holds through higher courts Lorimer bank depositors will probably get twice as much as previously expected. Niblack stated before court decision today depositors would be paid at least 25 cents on the dollar. This may be doubled through Smith decision. It's all up to higher courts now. Charles G. Dawes, the leading financier involved, is noted as an opera fan and a charity sport. Hardly a month goes by but Charlie Dawes breaks into the papers with some scheme for better music or better babies. His latest publicity came today wherein he is advertised as the treasurer of a fund for German war widows. Dawes headed the middle west flotation of war bonds for the allies. 0 LORIMER BANK LOSERS WILL

4. July 9, 1916 Rogue River Courier Grants Pass, OR

Article from Rogue River Courier, July 9, 1916

Click image to open full size in new tab

Article Text

Chicago, July 8.-Former Senator Lorimer announced today he had called a mass meeting of the depositors who lost through the failure of the Lorimer bank, to be held next Monday evening at the Second street armory. "I am going to spend the rest of my life paying those depositors," Lorimer announced. At the same time, Receiver Niblack of the Lorimer bank declared a 25 per cent payment to depositors probably will be made August 1.