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

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FIVE MILLIONS IN SAVINGS BANK CLOSED IN CHICAGO SENATOR LORIMER'S BANK AND THREE BRANCHES PUT OUT OF BUSINESS. (By Associated Press.) CHICAGO, June 12.-The Lasalle Street Trust and Savings bank, of which former United States Senator Lorimer is president, is in charge of the state bank examiner. Today the examiner reported the condition was such as to warrant closing . A mild run started several days ago. The last statement showed the capital stock to be $1,000,000, with a surplus of $250,000, undivided profits $93,000, deposits $5,000,000, assets $4,000,000. Three subsidiaries were also closed.

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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."

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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.

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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

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WILL PROSECUTE BANK OFFICERS Chicago, June 12.-Criminal prosecution is expected to follow the closing today 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 heart of the downtown district. It was established originally as a national bank of ex-Senator Lorimer.

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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

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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.

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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.

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FINDS ASSETS ARE MISSING BIG SUMS LISTED IN LORIMER'S BANK ARE NOT FOUND WHEN VAULTS ARE OPENED. Chicago.-Conditions of a grave and startling character were uncovered by Bank Examiner Daniel V. Harkin in pressing his investigation of the suspended La Salle Street Trust and Savings bank, of which former Senator Lorimer was president. The discoveries were such as to de-

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PLANS OF INVESTIGATING ATTORNEYS ARE SUSPENDED Chicago, June 23.-Plans of State's Attorney MacLay Hoyne for the Investigation of the suspension of the LaSalle Street Trust and Savings Bank and others of the Lorimer-Munday string of state banks were brought to a halt today at least temporarily, today by the refusal of James J. Brady state auditor, to turn over to Hoyne a copy of the report of the Bank Examiner Daniel V. Harkin.

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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.

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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.

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WHAT THE COUNCIL DID

Passed an order requesting Judge Windes to force the receiver of the LaSalle Street Trust and Savings Bank to furnish the finance committee with information that would disclose who received the split interest paid by the bank on city money.

Passed an order regulating booths in saloon back rooms. Partitions must be so low that unobstructed view can be had of interior.

Ousted George Weston as city's representative on board of supervising engineers, charged with regulation of local transportation. Weston blamed for bad service, but some aldermen also censured the mayor for delaying action for two years.

Passed order to expend $1,000,000 in improving police stations and $500,000 for fire houses.

Proposed ordinance to allow erection of buildings on Michigan avenue 260 feet high sent to building committee.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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-

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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