gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a5a645ed5d9409a1
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Full suspension, Books examined
Clearinghouse involved: Yes
(loan, examination, or other measures)
Events (5)
1.May 7, 1910Chartered
Source
historical_nic
2.October 21, 1912Voluntary Liquidation
Source
historical_nic
3.June 15, 1914Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors withdrew funds after revelations of bad loans, alleged fraud, and declining deposits tied to Lorimer-Munday enterprises.
Measures
Bank officers attempted public reassurance; no specific liquidity support measures described.
Newspaper Excerpt
Big Withdrawals Reported. ... The day at the LaSalle bank was marked by the presence of Vive-President Munday, who prophesied the early reopening of the institution with no loss to anybody.
Source
newspapers
4.June 16, 1914Suspension
Cause
Bank Specific Adverse Info
Cause Details
State examiner found depleted assets, alleged improper loans and insolvency leading to the bank being ordered to suspend.
Newspaper Excerpt
Bank Examiner Harkin ... closed the LaSalle street bank. ... closed banks are safe. A report has been spread that the bank will only pay 40 cents on the dollar.
Source
newspapers
5.June 18, 1914Receivership
Newspaper Excerpt
Attorney General Lucey today applied for a receiver for the LaSalle Street Bank ... petition called bank insolvent and intimated fraud. Receiver $2,500,000 bond approved by Judge Windes.
Source
newspapers
Newspaper Articles (21)
1.June 17, 1914The Day BookChicago, IL
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THE LORIMER BANK TROUBLE Bank Examiner Harkin intimated he might ask receiver for LaSalle street bank. State Auditor Brady refused to talk about Harkin's report. State's Attorney Hoyne says he will not interfere unless actually called upon to do so. "I've received no complaints from depositors," he said. Bank Examiner Harkin will present report on Lorimer-Munday banks to State Auditor Jim Brady today. All city funds deposited in the closed banks are safe. Bonding companies sending checks. A report has been spread that the bank will only pay 40 cents on the dollar. Depositors of the Illinois State Bank met in Callahan & Callahan's law office to discuss plans for reorganization. May join clearing house. William H. Tholen, Jr., cashier of Illinois State Bank, asserted that Wm. Lorimer, Jr., paid for all his shares. Attorney General Lucey arrives today.
2.June 17, 1914Rock Island ArgusRock Island, IL
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Crowds about the LaSalle Street Trust and Savings Bank after it was closed, and its president, former Senator Lorimer. bank in Chicago has included the ormanufacturing. Bonds and securities Chicago, Ill., June 17.-Assurances of these various concerns were ganization of several small neighborby C. B. Munday, in financial hood banks, whose deposits and balstuffed into the strong box of the ontrol of the LaSalle Street Trust ances remained with the downtown LaSalle Street Trust and Savings Savings bank, and by William bank. bank. Much of the good assets of "The situation was further comLorimer, its president, that the instithe bank were hypothecated or sold ution will yet be saved from wreck, plicated," said the banker, "by the to meet the speculative crisis in the aroused confidence in the deposismall banks lending money to the Munday affairs. who late last week, when the enterprises with which Munday has Last April he was notified to rebeen connected. He was the domiiclosed its doors, believed their place the "slow" assets with some nant figure at the bank so far as the avings had been swept away. live ones. Evidently this was a difThe scandal in the state auditor's other bankers of Chicago had any ficult job. The run following the ffice caused the crash in the Munrelationship with the bank. Brady scandal forced the action. The bank was not a member of the "Thus when the jam comes the ay-Lorimer banks last week. State small banks are unable to realize on auditor James J. Brady was sued, Clearing House association, and their commercial paper, the central breach of promise by Mrs. Louise though it frequently applied for adbanks is unable to realize either on its Kuhns, whom he had married coinmission, the application was as freto the state law. The suit led own paper, loaned to the same comquently denied. mercial or industrial enterprises, or charges that the office was conA member of the clearing house ucted for the benefit of spoilsmen. the small banks' paper, and we have said: "Just prior to the ejectment of William Lorimer from the United was charged that the LaSalle bank a failure. That whole plan is what ontributed $2,500 to the Brady camwe call kindergarten banking. An States senate on charges reflecting fund. on his election the LaSalle Street overland of bad paper." For months it had been known The failure of a trolley running National bank was organized. Lorifrom East St. Louis loaned Mr. Munmer stated at that time that he mong bankers that the LaSalle treet bank was a "lame duck." At day with $500,000 in bonds for which hoped to found a business for his last examination it was found no market could be found. sons. This afterward became the the bank had been loaded down When the LaSalle National was orLaSalle Street Trust and Savings "dead" paper. ganized hundreds of state and city bank. Since then I should say that Besides his banks, Munday was inLorimer has been a passive presipoliticians subscribed for the stock rested in ten or twelve industrial at $125. They exchanged it when dent, and the management of the oncerns. These included a grain the bank was reorganized. Now they bank has been largely in the hands usiness, trolley line building and are thinking. of C. M. Munday. The policy of the
3.June 17, 1914Grant County HeraldLancaster, WI
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PLANS TO PROBE BANK FAILURE Attorney General of Illinois to Get Report. TWO MORE BANKS CLOSED Calumet of the Lorimer-Munday String in Hands of State Examiner-Private Institution Fails to Open Its Doors. Chicago, June 15.-Attorney General Patrick J. Lucey will take a hand today in the Munday-Lorimer LaSalle Street bank failure. Representing the state of Illinois as its prosecutor-inchief, Mr. Lucey will accompany State Auditor Brady to Chicago to receive the report of Bank Examiner Daniel V. Harkin concerning the internal affairs of the collapsed institution. From Springfield it was learned that Attorney General Lucey will assume direct legal charge of the bank muddle, without recourse to the office of the states' attorney, although it was said to be the feeling that the state's attorney would not place any obstacle in the way of the state officers in any proceeding that might be undertaken. It is understood that the attorney general's authority may extend to the calling of a special grand jury, the presentation of such evidence as may be obtained, and the prosecution of any indictments which might be returned. Big Withdrawals Reported. A report from downstate was that the Len Small-Ed Curtis combination, with a bank at Grant Park, had withdrawn its deposit of $250,000 from Mr. Lorimer's bank since June 1. A story from Springfield during the evening was that the Marquette Insurance company, which had carried a balance in the LaSalle bank of approximately $40,000, had been fortunate enough a few days ago to get out of the bank all but a measurably small part of its deposits. The day at the LaSalle bank was marked by the presence of Vive-President Munday, who prophesied the early reopening of the institution with "no loss to anybody." State Bank of Calumet Closes. The State bank of Calumet, 10758 South Michigan avenue, one of the Lorimer-Munday string, went into the custody of a deputy of Bank Examiner Harkin, and took its place with the Broadway State, Illinois State and Ashland-Twelfth State in the list of "subsidiary" banks which are suspended pending completion of the examination of the LaSalle. W. C. Coleman, assistant examiner, announced that the Calumet bank was in good condition and would pay dollar for dollar. He said he expected it to resume business within a few days. Southwest Bank Shuts. An hour later the Southwest Savings bank, a private concern at 4010 West Twenty-sixth street, was closed through an involuntary bankruptcy petition filed in the federal court. Louis J. Krejel, the owner, had $4,000 in cash at the Lorimer-Munday institution, and when he couldn't get it he had to shut up shop. Its deposits ran around thirty-five thousand dollars. United States District Attorney James H. Wilkerson was directed by Federal Judge Carpenter to investigate thoroughly the conditions surounding the suspension of the LaSalle Street bank, with the purpose of conserving a deposit of $136,700 of trust funds in a bankruptcy proceeding against the Kellogg-Mackay company, secured only by a $50,000 bond issued by the Illinois Surety company. Bank Examiner Harkin, while entirely pessimistic regarding the LaSalle Street bank, continued to be hopeful concerning the chances of the smaller banks involved to reopen.
4.June 18, 1914Bryan Daily Eagle and PilotBryan, TX
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BANK DISCLOSURES ARE STARTLING High Handed and Crooked Methods Cause Receiver to Be Applied For. [By Associated Press] Chicago, III., June 18.-Attorney General Lucey today applied for a receiver for the LaSalle Street Bank, of which former Senator Lorimer was president. The petition said the bank listed bonds worth nine hundred thousand dollars, but were really worth only a quarter of a million. Of three million dollars of loans, it was said a million and a half have no value. Cash items listed as a hundred and thirty-seven thousand dollars were found to be only thirty-two thousand. The petition alleges large loans improperly secured were made to the Lorimer enterprises.
5.June 19, 1914The Day BookChicago, IL
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LA SALLE STREET BANK MESS Att'y Gen. Lucey will probably call special grand jury to investigate La Salle Street Bank crash. Lorimer and Munday will have chance of testifying before this jury if they waive immunity. Lucey's application for receivership will be heard today. In his petition he called bank "insolvent" and intimated fraud. The Tribune is already boosting a couple of men for job of receiver. Lucey says he has no choice. Three more receivers named for Chas. B. Munday enterprises. State will investigate all surety companies. Munday resigned as treasurer of Rosehill Cemetery.
6.June 20, 1914The Day BookChicago, IL
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ACTION SOON IN BANK MESS Ass't State's Attorneys Chas. C. Case, Jr., and George C. Bliss have been appointed by Hoyne to handle Lorimer bank case. Receiver $2,500,000 bond approved approved by Judge Windes. It is rumored that evidence has been found by Hoyne that will show bank took deposits two days after becoming insolvent. C. B. Munday predicted LaSalle street bank would re-open. Hoyne will investigate withdrawal of $374,000 by Marquette National Fire Insurance Co. from bank three days before the closing. Munday is interested in company. State's attorney will ask County Board for $20,000 special appropriation for this case. Lorimer quit Southern Traction Company. Receiver appointed for firm of C. B. Munday of Litchfield, Ill.
7.June 22, 1914The Tacoma TimesTacoma, WA
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SPOILS LIFE FOR THIS I.AD SENSATIONAL INVASION OF HIGH FINANCE BY COUNTRY LAD ENDS IN RUIN WHEN C, B. MUNDAY'S BANKS FAIL IN CHICAGOPARTNER OF LORIMER. CHICAGO, June 22-Olimax of the career of C. B. Munday, one time poor messenger boy, and now high financier in the highest: A million dollars of public funds of the city of Chicago, caught in the sensational crash of a string of "political" banks, small depositors' savings to the extent of $3,000,000 more tied up; politicians runing to cover, and rumors of scandal involving high Illinois officials. Starts As Messenger. C. B. Munday's get-rich-quick career was begun as a country town telegraph messenger. Munday, wizard of politicofinancial banking, was born In Litchfield, III. First he became a messenger boy, and hung around the railway station. His first upward step was to the position of telegraph opera tor. He heard the big men talking over the wires about deals in stocks, bonds and grain. Enters Business. Thus was the field of his future revealed to him. He enterea the grain business and then entered a grain elevator concern, and soon owned it himself, as well as elevators in a dozen other towns. He added a bank to his possessions, and inti me he had established banks in nine other small towns in Southern Illinois. It just chanced that William Lorimer of Chicago was planning at the same time to break into realms of higher finance in the United States senate. Munday, with power among the Southern Illinois democrats while ped them into line for Lorimer, republican. And their votes elected Lorimer. A year later Wiltdam Lorimer's LaSalle street bank was formed-and Munday was called up to Chicago to be its vice president. The bank had hardly opened its doors before William Lorimer was forced out of the senate, charged with playing high finance too well, in entering it. Edges Out Lorimer. C. B. Munday, meanwhile, was gradualy edging Lorimer out of his own bank. He bought a controlling interest in it, and began to establish outlying banks, which served as "feeders" for his main institution. The Lorimer-Mnday banks Indulged in their operations unmolested. Then the state bank examiner came to the Munday bank, ano looked into Its vaults. He found that all the cash that should have been there had been removed, to
8.June 23, 1914Evening Times-RepublicanMarshalltown, IA
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CLASH OVER BANK MUDDLE. State's Attorney of Illinois Blocked in Effort to Sorutinize Report. 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 at least temporarily today by the refusal of James J. Brady, state auditor, to turn over to Hoyne a copy of the report of Bank Examiner Daniel V. Harkin. Hoyne declared that the report was a public record and that he could enforce its production. Three large deposits claimed as privileged were planned to be formally demanded today from the receiver of the LaSalle Street Bank. They were Marquette National Fire Insurance Comany, $374,000, in securities; Fred A. Busse, former mayor of Chicago, $136,000, as trustee for the Kellogg-Mackey Company, and J. J. Brady, state auditor, $16,000 in state funds.
9.June 24, 1914The Day BookChicago, IL
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THE BANK MESS United State's Att'y Wilkerson today entered the Lorimer-Munday bank mess and has two assistants going over the books of the old LaSalle Street National Bank. Receiver Niblack discovered loan of $b,000 to Ald. John Coughlin. The alderman sent check for interest on note. State auditor may be asked to appear before the grand jury. No witnesses appeared before Cook county grand jury today, but Hoyne announced four would appear on Friday. Att'y Gen. Lucey defended Brady in not closing bank at time Harkin made his first report. "The law clearly gives bank the right to time, before action is taken," said Lucey. Investigation will be made of loan of $2g,000 by LaSalle Bank to E. K. Kelley, with which amount he became director of Ashland-Twelfth Bank. Rumored that LaSalle Street Bank was in ba dcondition at time it liquidated from national. to state bank and that several former federal officials will be caught in mess. It is openly hinted that many Taft men aided Lorimer "get by." Reported that long ago $750,000 loans were made without security. $200,000 more said to have been dumped into Florida lands. While federal action was pending, State's Attorney Hoyne sprung surprise when he opened up grand -jury action. A summons was secured on Bank Examiner Harkin and the latter is said to have told a sensational story
10.June 27, 1914Lower Coast GazettePointe a La Hache, LA
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STOCKHOLDERS ARE JOINT DEFENDANTS CHICAGO PETITION ASKING RECEIVER FOR LORIMER BANK SAYS OFFICERS LIABLE. OFFICERS WERE NEGLIGENT Attorney-General Bases His Request Upon Report of the State Examiner Regarding Cause of Closing Institutions. Chicago.-Naming all stockholders as party defendants, asking the court to enforce their stock liability, adding that the officers and directors of the bank were culpably negligent and therefore were liable to depositors and creditors for all losses sustained, the petition filed here asking for the appointment of a receiver for the LaSalle Street bank, was scheduled to be heard in court here. Two petitions for a receiver were filed. The first, filed by Desidor L. Tarjan, as receiver for a syndicate having deposits in the bank, Judge O'Connor, in superior court, refused to consider. The second petition was filed by Attorney-General Patrick J. Lucey. i The petition was based on the report f of the state examiner, showing a dee pleted condition of the bank's assets. be Based on the report of D. V. HarS kin, the bank examiner, who closed the t LaSalle street bank, the petition recites that the institution was "wholly 0 and irretrievably insolvent," and that e immediate appointment of a receiver g was necessary to conserve the remain. e ing assets. S Particular attention was directed to 0 loans made to various Lorimer-Munday n enterprises which the examiner found g were largely financed by the LaSalle street bank, and to which, according d to the petition, large loans improperly secured were made.
11.June 27, 1914The Seattle StarSeattle, WA
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ELSEWHERE Women lawyers of Illinois organize bar association. Battleship Kansas will carry body of Senor Don P. Ezequiel Rojas, minister of Venezuela, who died at Atlantic City, to La Guayra. Final conference report authorizIng sale of battleships Idaho and Mississippi to Greece, filed in senate. Maj. Gen. Leonard Wood will go to New York, to assume command of the Eastern department of the army. Special U.S. grand Jury will probe affairs of defunct La Salle Street National bank, at Chicago. Work of reorganizing the dry goods firm of H. B. Claflin Co., which went into receivers' hands at New York, under way. Merchants and jobbers promise support Gen. G. N. Whistler, who invented smokeless powder, died at Pensacola, Fla. America's exports exceeded its Imports in the past year by $653,000,000. President will appoint I. N. Morris, Chicago packer, minister to Sweden or Denmark. Diving, George L. Clark, formerly well-known athlete, struck his head on a rock and was killed at Willets, Cal.
12.June 28, 1914Evening StarWashington, DC
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PROBE OF CLOSED BANK Chicago Institution Accused of Profiting From Use of Worthless Paper. CHICAGO. June 27.-Investigation of events preceding the change of La Salle Street National Bank to a state institution will be the keynote of the government's inquiry into the closed bank's affairs, District Atterney Wilkerson said tonight. Charges have been made. to federal offi-. cials that good securities were substituted for worthless paper in the vaults of the national bank to enable It to pass the last inspection of government exam-. iners. These securities were withdrawn. as soon as the examiners left the bank, it is alleged. Before time for another examination the bank forfeited its national charter and became a state institution. Uneasiness caused by the failure of the five Lorimer-Munday banks is believed to be the cause of a run late today on the North Avenue State Bank. By 9 o'clock about $15,000 in small accounts had been withdrawn. Business men in the neighborhood expressed confidence in th institution and endeavored to reassure depositors lined up in front of the paying teller's window.
13.July 2, 1914The JeffersonianThomson, Atlanta, GA
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# THE JEFFERSONIAN
The cold cruelty of this intereference in a State election will be more apparent to you when I tell you that John N. C. Stockton has been a consistent Jeffersonian Democrat all his life, has battled against Special Privilege and Corporation Rule throughout his career, and loyally supported Woodrow Wilson, for the Presidential nomination, in the belief that Wilson, also, was a Jeffersonian.
The papers that are "prostrate at the feet" of the Italian priest, Joseph Sarto, made a joyous noise when William flopped, from whatever he had been, to popery.
It's a part of my business to read these funny sheets, that are periodically issued by the editors of the order of "Prostrate at your feet."
I have to keep up with 'em, you know. The Editor who won't read what the other fellow is saying, is a hidebound ass.
Well, Sir, it was enough to make a sick doctor smile, to see how these Roman Catholic editors took on, over the conversion of William Lorimer.
William himself put forth a pious statement to the effect that he had been making of $260,000 trust funds of bankrupt estates deposited with the La Salle Street Bank.
The Government and State officials seemed to believe tonight that the first step to be taken when the report of the bank examiners is turned over to the State Auditor tomorrow would be the filing of an application for a receiver for the La Salle Street Bank. Federal and State inquiries with a view of criminal prosecution of the persons responsible for the condition of affairs would naturally follow, they said.
Mr. Harkin said that the further he and his assistants went into the affairs of the La Salle Street Bank the more convinced they became that there was little hope of anything better than a complete crash.
Without giving out any figures, Mr. Harkin said that he had received the reports of his subordinates, who had been placed in charge of the "little" banks of the Mundy-Lorimer string, and that he could say nothing more than to express a hope that everything would turn out all right.
Mr. Harkin refused to say anything about the deposits that had been drawn out of the La Salle institution during the month. It is known that since the last bank call in April the deposits have dwindled from over $5,000,000 to less than $3,000.000.
The examiner declined to make any statement as to the condition of the La Salle Street Bank's assets with respect to notes and securities.
"That will have to come from Auditor Brady, after my report is turned over to him," he said.
14.July 2, 1914The Tabor IndependentTabor, SD
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RECORDS IN BANK SCANDAL MISSING Chicago, June 29.-United States District Attorney Wilkerson and State's Attorney Hoyne are today searching for important documentary evidence bearing on the failure of the LaSalle Street Trust & Savings bank which are said to have disappeared from the office of the State Auditor James J. Brady. One of the documents is a report of a state bank examiner alleged to show that the Lorimer-Munday bank was in a shaky condition. The missing documents are wanted for use before grand juries. Chicago, June 29.-Federal grand jury inquiry into the conduct of the LaSalle Trust & Saving bank while it was a national institution, was set today for July 13, it was announced at the office of the United States district attorney. Depositors of the four small state banks in this city which were affiliated with the LaSalle Street bank and which closed at the same time as the Main Lorimer-Munday institution will all be paid in full, it was made known today by Daniel V. Harkin state bank examiner. The vault of the LaSalle State bank was scheduled to be opened today by the receiver. It was closed since it was sealed by Harkin when he ordered the bank to suspend. In the vault are about $40,000 in currency, it is said, and about the same sum in memoranda of cash withdrawn by Lorimer and Munday on their personal marker slips.
15.July 3, 1914The Birmingham Age-HeraldBirmingham, AL
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LASALLE BANK VIOLATED LAWS Chicago, July 2.-Government accountants today reported they had discovered the LaSalle Street National bank violated the national banking laws in September, 1912, by not having the required amount of deposits on hand. In that month, the accountants said, deposits were approximately $3,000,000 and the books show the cash on hand was $230,000. The law requires that the bank keep 25 per cent of deposits in its vaults. It is expected receivers will be appointed Monday for the four neighborhood banks which failed with the LaSalle street institution.
16.October 9, 1914The Richmond VirginianRichmond, VA
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CHARGE LORIMER WITH MISUSE OF FUNDS OF BANK Former Senator From Illinois Indicted by Federal Grand Jury for La Salle Bank Failure Chicago, Oct. 8.-William Lorimer was indicted late today by a federal grand jury on a charge of misapplication of funds of the La Salle-Street National bank, the forerunner of the L Salle Trust and Savings bank, which is now in the receiver's hands. Mr. Lorimer was president of the national 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 Construction company, was also indicted. charged with aiding Lorimer in the misapplication of the funds. The indictments were returned before Federal Judge Carpenter. Other indictments were also returned against C. B. Munday, vicepresident of the bank; Charles G. Fox, as cashier. and Thomas McDonald, assistant cashier, charged with making false entries. Judge Carpenter fixed the bonds of Lorimer at $15,000 and those of Gallagher at $10,000. The three other defendants are now at liberty on bonds fixed when they were originally indicted.
17.November 4, 1915Wood County ReporterWisconsin Rapids, WI
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FORGAN STOOD BY MUNDAY. Chicago Financier Says He Did All in Power to Avert Failure. Morris, III., Oct. 29.-James B. Forgan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared he did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution; despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.
18.November 5, 1915Northern Wisconsin AdvertiserWabeno, WI
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FORGAN STOOD BY munday. Chicago Financier Says He Did All in Power to Avert Failure. Morris, Ill., Oct. 29.-James B. Forgan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared he did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution, despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.
19.November 6, 1915The L'anse SentinelL'anse, MI
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FORGAN STOOD BY MUNDAY Chicago Financier Says He Did All in Power to Avert Failure of LaSalle Street Bank. Morris, III., Oct. 29.-James B. For. gan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared be did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution, despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.
20.December 3, 1915The Jasper Weekly CourierJasper, IN
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FORGAN STOOD BY MUNDAY Chicago Financier Says He Did All in Power to Avert Failure of LaSalle Street Bank. Morris, III., Oct. 28.-James B. Forgan, president of the First National bank of Chicago, in testifying at the trial of Charles B. Munday, charged with bank wrecking, declared he did all in his power to avert the financial ruin of William Lorimer and Munday while the LaSalle Street National bank was on the road to destruction. Forgan warned them several times, he testified, and even when this advice was unheeded he stood by them and succeeded in prolonging their affiliation with the Chicago Clearing House association. Forgan went so far as to say that his bank might help liquidate the Lorimer-Munday institution and thus save the depositors' money. Forgan proved a valuable witness for the prosecution, despite efforts of the defense to show he was responsible for a "run" on the Lorimer-Munday bank just before it failed.
21.September 22, 1924Daily Kennebec JournalAugusta, ME
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NOMINEE DAVIS DIRECTS HIS FIRE AGAINST DAWES Chicago, III., Sept. 20 (A. P.)Opening his campaign in the middle west, Senator Wheeler of Montana, vice-presidential candidate on the third ticket, in a speech here tonight turned his guns on Charles G. Dawes, the running mate of President Coolidge. Senator Wheeler focused his attack on General Dawes on the noted Lorimer bank failure and on the organization of the Minute Men of the Constitution, which has been charged by its critics as being an opponent of organized labor. Prefacing his remarks with a statement that if the public did not know his own record it was "no fault of the republican national committee" Senator Wheeler plunged into his attack on General Dawes. "Every statement I shall make will be based either on court documents. on printed statements of the candidate himself, or on other public records easily obtainable by any one who cares to verify my assertions," Senator Wheeler began. "Mr. Dawes' political philosophy, his view of the relation of the people to their government, helps to explain certain events of his career and certain of his recent activities. It helps to explain how he could lend himself to a fraudulent banking transaction that robbed 4,000 Chicago citizens of their savings; it helps to explain why he organized the little political army which he calls The Minute Men of the Constitution. "In 1902 Mr. Dawes organized the Central Trust Company of Chicago. with himself as president. Some years later another bank was organized in Chicago, the La Salle Street National Bank. At its head was one William Lorimer, who had retired from the United States Senate in somewhat the same manner that Newberry. of Michigan, retired two years ago. Lorimer's bank began business in May. 1910. Examiners of the Chicago Clearing House Association refused to grant it membership in the Clearing House Association. The directors agreed, on the demand of the United States Comptroller of the Currency. to do certain things to strengthen the bank's condition, but failed to keep their promise and by October 12, 1912, the bank was in a bad way. "Lorimer and his associates then decided to change their national bank into a state bank, to be known as the La Salle Street Trust and Savings Bank. They proposed to turn over the assets of their national bank to the new bank. along with its liabilities. of course. but they did not (Continued on Page 2-Col. 3)
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
