Bank of Smithboro (Smithboro, IL)

Episode Information

Episode UID
70159071374
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
7015907 routing
Routing Number
70-1590
Start Date
June 19, 1914
Location
Smithboro, Illinois (38.896, -89.341)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7bc2bef9620084f3

Response Measures

None

Description

Receivers were appointed by federal court in connection with the La Salle Street Trust collapse.

Events (2)
1. June 19, 1914 Receivership
Newspaper Excerpt
Federal Judge Humphrey appointed receivers for ... the Bank of Smithboro and the Bank of East Alton, Ill.
Source
newspapers
2. June 19, 1914 Suspension
Cause
Government Action
Cause Details
Federal judge appointed receivers for the Bank of Smithboro following collapse/receivership proceedings tied to the La Salle Street Trust & Savings Bank affairs.
Newspaper Excerpt
receivers for the Bank of Smithboro ... appointed after the concerns had filed voluntary petitions in bankruptcy.
Source
newspapers

Newspaper Articles (5)
1. June 19, 1914 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, June 19, 1914

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Article Text

GRAND JURY MAY PROBE WRECK OF LORIMER BANK Chicago, June 19-Financial diffculties engulfed four more down-state institutions of C. B. Munday, executive head of the collapsed La Salle Street Trust & Savings Bank, when Federal Judge Humphrey appointed receivers for the Litchfield Mill & Elevator Co. at Litchfield, of which J. C. Munday is president; C. B. Munday & Co., the Bank of Smithboro and the Bank of East Alton, III. Action in the Federal court in Springfield came coincidently with the filing of a receivership petition in the Circuit Court of Judge Thomas Windes in Chicago to close up the affairs of the wrecked La Salle Street Bank. The petition was filed biy AttorneyGeneral Patrick Lucey, in it allegations are made by the State Auditor and bank examiners that indicate a ruthless dissipation of the assets of the bank, involving heavy losses to the depositors and creditors of the bank, as well as an utter disregard of the banking laws of the state. The revelations, if borne out, point to grand jury investigation of the management of the defunct bank. The receivers for the down-state institutions were appointed after the concerns had filed voluntary petitions in bankruptcy. Judge Windes deferred action on the petition to appoint a receiver until tomorrow morning to permit of a conference with the attorneys in a similar action pending in another court.

2. June 19, 1914 The Sun New York, NY
Article from The Sun, June 19, 1914

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Article Text

LORIMER DEPOSITS GUARANTEED IN EAST Charles J. Heath of N. Y. Insurance Department Investigates Failed Banks. 4 MORE CONCERNS CLOSE Bills Filed Charge Systematic Looting and Ignoring of Law. CHICAGO, June 18.-Financial difficulties enguifed four more down-State institutions of C. B. Munday. executive head of the collapsed La Salle Street Trust and Savings Bank, to-day when Federal Judge J. Otis Humphrey at Springfield appointed receivers for the Litchfield Mill and Eievator Company at Litchfield. of which J. C. Munday is president : C. B. Munday & Co., the Bank of Smithboro and the Peoples Bank of East Alton, III. It deevloped also that deposits of the closed banks had been guaranteed by Eastern surety companies, and Charles J. Heath of the New York Insurance Department arrived here to-day to take part in the investigation. Action in the Federal court came coincidently with the filing of a receivership petition in the Circuit Court in Chicago to close up the affairs of the wrecked La Salle Street bank. The petition was filed by Attorney-General Patrick Lucey. In it allegations are made by the State Auditor and bank examiners that indicate a dissipation of the assets of the bank, involving heavy losses to the depositors and ceditors of the bank, as well as a disregard of the banking laws of the State. The revelations. if borne out, point to Grand Jury investigation of the management of the failed bank.

3. June 20, 1914 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, June 20, 1914

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Article Text

MORE BANKS SEEM TO BE IN HOT WATER Springfield. III., June 19. A state bank examiner today was sent to Rethalto. III. Auditor Brady said the request came from officers of the Farmers State bank. of which C. B. Munday was president until a week ago. The Sangamon Loan & Trust Company of this cHy was today appointed receiver for C. B. Munday & Co., of Litchfield by Judge Humphrey in the United States district court on application of the company. C. B. Munday & Co. hold controlling interests in the banks of Smithboro and the People's Bank of East Alton. for which receivers have heretofore been appointed.

4. June 20, 1914 The Bennington Evening Banner Bennington, VT
Article from The Bennington Evening Banner, June 20, 1914

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Article Text

CHARGE LORIMER WITH CROOKED BANK DEALS Attorney General Claims Crim inal Code Was Violated INSTITUTION LOST $2,700,793 Receivership Proceedings Make Trouble for Three More Chicago Financia Concerns Chicago, June 18.-Direct charges that William Lorimer and Charles B. Munday violated the criminal code as officials of the La Salle Street Trust and Savings Bank, resulting in a prob able loss of $2,700,793 in the funds of the institution, were made today by Attorney General Lucey, following the filing of his petition for the RDpointment of a receiver for the bank. The receiver will be named tomorrow. The filing of the receivership petition was followed by financial difficulties for three more down-State institutions of C. B. Munday, executive head of the La Salle Street Bank. Receivers were appointed for the Peo ple's Bank of East Alton, and the Bank of Smithboro, owned by C. B. and J. G. Munday, and the Litchfield Mill and Elevator Company, also a Munday property. A thorough investigation of the financial condition of the bonding and surety companies doing business in Illinois was instituted today by State Insurance Superintendent Potts. The inquiry is a direct result of the disclosure in the closing of the La Salle Street Bank that bonding and guaranty companies are issuing bonds to guarantee the money of depositors in banks. The petition for receivership, a syn opsis of the report of Bank Examiner D. V. Harkin, alleges that the affairs of the La Salle Street Bank were conducted in an "illegal, fraudu lent, and unsafe manner" and that its directors were "grossly and culpably negligent in the performance of their duty." The basis fd: the proposed criminal action against Lorimer and Munday is laid in paragraphs which bristle with figures. One of these paragraphs charges that loans of $832,209.40, carried on the books of the bank in various guises, were really all made to the Southern Traction company, but were covered up on the books, "for the purpose of evading the statute which limits the total 11ability of any person to 15 per cent of the amount of the capital stock of the banking association."

5. June 20, 1914 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, June 20, 1914

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Article Text

CLOSES ANOTHER BANK Illinois Examiner Still After the Lorimer-Munday String. Springfield, Ill., June 19.-The Farmers' bank of Bethalto, Madison county, was today closed by John J. Scullens, a state bank examiner, on orders from State Auditor Brady. The closing was simply a precautionary measure, according to the auditor, as reports show the bank in good condition. C. B. Munday was president of the bank until a week ago. The Sangamon Loan and Trust company of this city was today appointed receiver for C. B. Munday and Company by Judge Humphrey in the United States district court on application of the company. C. B. Munday and Company hold controlling interests in the Bank of Smithboro and the People's bank of East Alton, for which receivers have heretofore been appointed. Lorimer Resigns. Danville, ILL, June 19.-William Lorimer of Chicago today resigned as trustee of the Southern Traction company of Illinois. The road, which is operated partly by electricity and partly by steam, runs out of East St. Louis. William E. Trautman, former federal attorney for this district and a heavy stockholder in the line, was named as Lorimer's successor by F. M. Wright, United States district judge.