La Salle Street Trust & Savings Bank

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

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

Click image to open full size in new tab

Article Text

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 A rough estimate of the amount withdrawn by depositors is $1,000,000.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 12, 1914 Las Vegas Optic Las Vegas, NM

Article from Las Vegas Optic, June 12, 1914

Click image to open full size in new tab

Article Text

3 OTHER INSTITUTIONS GO STATEMENT OF THE FINANCIAL LOSS WITHHELD BY THE STATE OFFICERS CANNOT WEATHER THEISTORM SMALLER BANKS INVOLVED WILL PROBABLY REOPEN SHORTLY Chicago, June 12.-The La Salle Street Trust and Savings bank, or ganized by William Lorimer five h years ago, when he was United States y senator from Illinois, and of which he has since been president, was closed today by the state bank exam. a iner. y While rumors of the financial trout bles had been whispered of late the n actual closing of the institution was e a surprise. Coincident with the closb ing of the La Salle street bank state a examiners were sent to three state b banks which had heavy deposits with e the larger institution. No statement of what the closing of the bank ac e tually means in dollars was made by a the examiners. Recent reports to the b state auditor's office placed the depo= sits of the La Salte street bank at more than $5,000,000. Following the closing of the ban doors there was a crowd assemb! in front, but there was no disord A policeman was detailed to star guard, but there seemed to be 10 $ call for his services. Daniel V. Harkin, chief state bank examiner for Cook county, explained $ that he had not intended to close the I bank when he entered it today. "I did not mean to take possession," he said, "but I soon discovered I must It looked extremely doubtful if the bank could continue to weather the situation. At present I cannot say whether the bank will ever resume operations. The three smaller banks will, I believe, resume business in al short time." The La Salle Trust and Savings Bank was not a member of the Chicago Clearing House association. According to the cashier, Charles C. Fox, the bank deposits mad been over $3,+ 900 000. Mr. Harkin said he did not believe the disclosures in the Cyone+ Brady scandal had any bearing upon the financial condition of the bank. The city of Chicago had $250,000 on deposit. City Treasurer Flynn at tempted to withdraw the funds follow. ing the rumor that the bank was in trouble. He was refused by the cashder, who told him Hu funds could be paid out while the bank was in charge of the bank examiner.

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

Article from The Wheeling Intelligencer, June 13, 1914

Click image to open full size in new tab

Article Text

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."

4. June 13, 1914 The Sun New York, NY

Click image to open full size in new tab

Article Text

SIONITH NI OTHERS MAY BE INVOLVED Deposits of $8,000,000 Said to Be. Tied Up in Tangle. CITY AND CHARITABLE BODIES ARE HARD HIT Ex-U. S. Senator Head of Parent Concern-Many Politicians Are Stockholders. CHICAGO. June 12.-It is believed here that criminal prosecution may follow the closing to-day 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 Sav. ings Bank is a State institution located in the heart of 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 officlais of the downtown Lorimer bank. of More Banks May Close. An immediate result of the closing of u the four banks to-day in all probability P will result in two more outlying banks in Chicago failing to open to-morrow. a Seven down-State banks are affected by P interlocking directorates and the tying up a of bank balances. carried by the Lorimer main bank. The State Bank Examiner to-night would express no opinion as to 0 the probable fate of these down-State inu stitutions. 1 The members of the Clearing House .1 declare that the action taken by the State O Bank Examiner had no direct bearing on O the banking situation of this city, which B is declared to be perfectly sound. S Leading Chicago bankers say they have considered the Lorimer bank a sore spot in the local financial horizon for some time. The La Salle National Bank

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

Article from The Broad Ax, June 13, 1914

Click image to open full size in new tab

Article Text

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.

6. June 13, 1914 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, June 13, 1914

Click image to open full size in new tab

Article Text

Rumors Current Say Receivership May Be Asked for Institutions MEN AND WOMEN CLAMOR FOR MONEY Policemen Forced to Restore Order in Chicago-Lorimer Refuses Comment-$6,411,997 in Deposits Involved 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 an examination into the Institutions' affairs. Rumors were current that a receivership would be asked. 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 $1,434,692. Of deposits, $966,000 consists of city funds. The bulk of this amount, $650,000, is on deposit with the LaSallee Street Trust and Savings bank. Daniel Harkin, chief bank examiner, who took personal change of the downtown and sent deputies to the smaller ones, said he expected to see the La. Salle Street Trust and Savings bank open for business next week. He declared he sent examiners to the smaller institutions as a precautionary measure. He insisted there was no political phase to the action of his men. Slow Assets Action of the LaSallee 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 a time to change that condition. In the last three weeks, according to Harkin and the cash. ier of the bank, there has been what was termed a mild run on the bank causinis a depletion of about $1,000,000 in deposits. Former United States Senator Lorimer, former president, and C. B. Munday, refused to comment oa the situation. James B. Forgan. president of the First National bank and chairman of the Clearing House committee. said: 'The closing of the LaSallee Street bank f should not have the slightest effect on any other banks in the Chicago district. The banks are not associated with other downtown banks. The LaSallee Street Trust and Savings bank is not a member of the Clearing House association, and has had none of the privileges of the clearing house.' State officials declare the financial condition of the LaSalle Street bank had caused them to fear the possibility of a disastrous run. The Ashland-Twelfth Street State bank was the center of a riot when its depositors learned of the closing. Clamor for Money Men and women cramored for their money. Refusal was met by excited cries and before police arrived a stone was thrown through a window and a rush $ was made on the locked door. Policemen restored order. The financial condition of the four banks, taken from the report to the state e auditor June 1, follows: t LaSallee Street Trust and Savings bank: Loans and discounts. $4,254,119; cash means, $1,003,469; capital. surplus and undivided profits, $1,343,631; deposits, $5.472,992 y Illinois State bank: Loans and dist counts, $340,395; cash nveans, $193,430 cape ital. surplus and undivided profits, $230,916; r deposits, $424,894. e Broadway State bank: Loans and dis1 counts, $269,852 cash means, $159,151; capital, surplus and undivided profits, $251.020: deposits, $228,429. Ashland-Twelfth Street State bank: Loans and discounts. $346.220: cash means, $278,640; capital and surplus, $505,681. < Mr. Munday recently was named among other defendants in two court actions a suit fled by John H. Coyne against, James J. Brady, state auditor, and/an application for a receiver by the minority stockholders of the Rose Hill Cemetery company n In the Coyne suit it was alleged that n (Continued on Page Nine.)

7. June 13, 1914 Bismarck Daily Tribune Bismarck, ND

Article from Bismarck Daily Tribune, June 13, 1914

Click image to open full size in new tab

Article Text

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.

8. June 13, 1914 The Evening Herald Albuquerque, NM

Article from The Evening Herald, June 13, 1914

Click image to open full size in new tab

Article Text

FIFTH BANK GOES DOWN IN LORIMER EXPLOSION Former Senator Said to Face Physical Collapse as Result of Disclosures of Past Twenty-Four Hours. [By Leased Wire to Evening Herald.] Chicago, June 13.-A fifth bank was closed today by the state bank examiner in connection with the disclosure of conditions in the La Salle Street Trust and Savings bank. This bank, the State Bank of Calumet, ac. cording 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 auditor'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 twenty-four 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 controlled institutions. Scores of children today besieged the State Bank of Calumet with bankbooks in hand, seeking money 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 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 1 the bank was closed he suspended business. Krejci, however, declared he had sufficient means to meet the demands of his depositors.

9. June 13, 1914 The Times Dispatch Richmond, VA

Article from The Times Dispatch, June 13, 1914

Click image to open full size in new tab

Article Text

FOUR*ILLINOIS STATE BANKS ORDERED CLOSED Investigation Into Affairs of Most Important, Which Has William Lorimer as President. RECEIVERSHIP MAY BE ASKED Combined, the Institutions Have Deposits of $6,411,997 and Reported Cash Means of $1,648,692-State Department in Charge. Chicago, III. 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 here to-day. Representatives of the department immediately began an examination into the Institution's affairs. Rumors were current that receivership would be asked. The four banks were the La Salle Street Trust and Savings Bank, the Broadway State Bank, the Illinois State Bank and the Ashland-Twelfth Street State Bank, known as the LorimerMunday chain of banks. The La Salle 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 La Salle Street Trust and Savings Bank. Daniel Harkin. chief bank examiner, who took personal charge of the downtown bank and sent deputies to the smaller ones, said he expected to see the La Salle Street Trust and Savings Bank open for business next week. He declared he sent examiners to the smaller institutions as a precautionary measure. He insisted there was no political phase to the action of his department. An examination of the La Salle 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 was termed a mild run on the bank, causing n depletion of about $1,000,000 in deposits. OFFICERS DECLINE TO COMMENT ON SITUATION Former United States Senator Lorimer, president, and C. B. Munday, vicepresident, refused to comment on the situation. James B. Forgan, president of the First National Bank, and chairman of the cleàring-house committee, said: "The closing of the La Salle Street Trust and Savings Bank should not have the slightest effect on any other banks in the Chicago district. The banks are not associated with other downtown banks. The La Salle Street Trust and Savings Bank 18 not a member of the Clearing-House Assoclation. and has had none of the privileges of the clearing-house." State officials declared the financial condition of the La Salle Street bank had caused them to fear the possibility of a disastrous run. The Ashland-Twelfth Street State Bank was the centre of a riot when its depositors learned of the closing. Men and women clamored for their

10. June 13, 1914 Arizona Republican Phoenix, AZ

Article from Arizona Republican, June 13, 1914

Click image to open full size in new tab

Article Text

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

11. June 14, 1914 Arizona Republican Phoenix, AZ

Article from Arizona Republican, June 14, 1914

Click image to open full size in new tab

Article Text

WITHDRAW $1,000,000 [ASSOCIATED PRESS DISPATCH] CHICAGO, June 13.-Deposits in the La Salle Street Trust and Savings bank decreased over $1,000,000 by withdrawals of large accounts between June 1 and June 12. according to Daniel Harkin, state examiner. The bank, the president of which is William Lorimer, the unseated United States senator, was closed yesterday by the state. Alderman Merriam announced he is going to inquire what "influence" caused the Lorimer bank to carry the maximum of city deposits for two years while no municipal funds were deposited in other banks.

12. June 24, 1914 Grant County Herald Lancaster, WI

Article from Grant County Herald, June 24, 1914

Click image to open full size in new tab

Article Text

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, 1914 Iron County News Hurley, WI

Article from Iron County News, June 27, 1914

Click image to open full size in new tab

Article Text

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, 1914 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, July 7, 1914

Click image to open full size in new tab

Article Text

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, 1914 Perrysburg Journal Perrysburg, OH

Article from Perrysburg Journal, July 9, 1914

Click image to open full size in new tab

Article Text

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, 1914 The Review High Point, NC

Click image to open full size in new tab

Article Text

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, 1914 The Commonwealth Scotland Neck, NC

Article from The Commonwealth, July 16, 1914

Click image to open full size in new tab

Article Text

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, 1914 The Day Book Chicago, IL

Article from The Day Book, August 19, 1914

Click image to open full size in new tab

Article Text

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. April 9, 1915 Americus Times-Recorder Americus, GA

Article from Americus Times-Recorder, April 9, 1915

Click image to open full size in new tab

Article Text

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.

20. February 17, 1916 Bisbee Daily Review Bisbee, AZ

Article from Bisbee Daily Review, February 17, 1916

Click image to open full size in new tab

Article Text

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.

21. May 3, 1916 Rock Island Argus Rock Island, IL

Article from Rock Island Argus, May 3, 1916

Click image to open full size in new tab

Article Text

LANDIS ASKS PROBE OF SURETY COMPANY Chicago, May 3. --- Federal Judge Kenesaw M. Landis has requested United States Attorney Charles F. Clyne to investigate the alleged neglect of the Illinois Surety company, which recently applied for and obtained a receivership in the superior court of Cook county, to make good a $50,000 surety to the federal government covering deposits in the defunct La Salle Street Trust and Savings bank, and to make good a surety for a like amount in a large number of Chinese cases. Attorney General Lucey yesterday asked Superior Judge D. E. Sullivan to remove James Hopkins from the receivership to which he has been appointed and name a new receiver.

22. May 5, 1916 The Washington Herald Washington, DC

Article from The Washington Herald, May 5, 1916

Click image to open full size in new tab

Article Text

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-

23. July 8, 1916 Rock Island Argus Rock Island, IL

Article from Rock Island Argus, July 8, 1916

Click image to open full size in new tab

Article Text

# 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.

24. July 22, 1916 The Day Book Chicago, IL

Article from The Day Book, July 22, 1916

Click image to open full size in new tab

Article Text

# LA SALLE STREET BANK TO PAY # 70 CENTS ON THE DOLLAR The La Salle Street Trust & Savings bank will eventually pay at least 70 per cent of the claims against it, providing litigation is favorable. Depositors of this Wm. C. Lorimer bank which went to the wall-forced by big La Salle street banks to die because they feared a rival, says Lorimer-will get a dividend of 25 per cent, Aug. 14. This will be the first payment made to them. John F. Jelke, pres. of the Jelke oleomargerine corporation, yesterday mailed to Receiver Niblack a check for $25,006.95, his share of the 100

La Salle Street Trust & Savings Bank (Chicago, IL)

Episode Information

Metadata

Response Measures

Events (4)

Newspaper Articles (24)

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Episode Information

Metadata

Response Measures

Events (4)

Newspaper Articles (24)

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Article Text

Bank runs are almost always and everywhere a deterioration of bank fundamentals.

Flag Article for Review

Flag Episode for Review