The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-06-14


Chicago, June ia fifth state bank.
the State Bank of Calumet was closed
today by The. state bank examiner in
connection with the disclosure Of con
ditions N the Lzsaue Street Trust <
Savings bank According 70 the ex-
amlner. the state Bank Of Calumet
was the last in the chain Of what were
known as the string Of Loriner- Mum
day banks in Chicago. In addition
another state bank was forced to en-
dure & run and 4, private bank vent
into the hands Of a receiver.
Two examiners from the state audi
tors Office arrived today to assist IN
tha examination Of the FIVE banks now
in the departments hands.
William Lroriu1e~, president Of the
La. Sale street bank. was said to be
near physical collapse from the
strain Of the developments C6 the last
twenty -four hours.
Tire examiners worked steadily on
the books OF the LaSaIIe Street bank,
the Broa dvay state bank the Illinois
State bank the Ashland Twelfth State
bank and the State Bank Of Calumet.
Approximately $4.G00.000 Of deposits
are tied I'D IT the Institutions.
Deposits N the State Bank % Calu-
met amounted to S144.92493. according
TO its latest report. Its capital stock
Scores of children were depositors
in this institution. They had organ
lied a Christmas fund" Early today
bank books N hand, they crowded
about the doors, but Of course could
not get their money
Daniel y. Harkin, state bank exam
1ner, said:
THE Calumet bank has considerable
money on deposit in the LaSalle street
bank. We gave it an opportunity to
seek assistance elsewhere, and this was
refused
An e1no Of the closing of the La
Sale street bank was heard in the
federal court when . receiver was ap-
pointed today for the Southwest Saw
ings bank, owned by Louis J. Krejoi.
The privare banker had 81 900 depc&it-
ed in the LGSaIle street bank and when
ne heard that was closed, he suspend
ed business. Kreloi declared that he
had sufficient means to meet all de-
mands.
Depositocs in the International Trust
and Savings bank, 4 state institution,
in the North side residence district. in
a steady stream withdrew their money.
The hank officials. who with examiners
had gone carefully over the securities
last night. met all demands. Down
town banks supplied the institution
with currency. More than $4,000 of
the funds Of the International concern
We're deposited in the LaSaIIe street
bank. but its securities were said to
be ample.
FACTS STAND OUT.
These facts stand out in connection
with the closing of the banks:
Closing Of the banks has had no
effect on other Chicago financial in
stitutions. according to clearing house
officials. The. LaSalIe street banks
suspension Will affect only the few
small banks which had their reserves
tied UP in it. it was said. The banks
are.
The LaSaIle street Trust & Savings
bank, capital $1o00.OG0
The Illinois State, capital 100000.
The Ashland Twelfth State, capital
S5000 coo
The Broadway State. capital 5000
600
The Calumet state Cordered closed
today, capital 100000.
The LaSalIe Street bank had about
100000 in deposits, Validity Of
about $1,20o,o00 of its collateral is
said to have been questioned by the
bank examiner.
LORIMER is PRESIDENT.
William Lorimer. whose seat in the
United States senate was declared il
legal. is president Of the LaSalIe Street
bank. He and his sons own, however,
but $50 of its shares.
c. B. Munday, president Of the bank
owns 2,616 of its shares and is declared
10 be its leading spirit.
Munday has interests in a score Of
undertakings ranging from banks to
cemetery com npanies.
Daniel y. FEarkin. chief state exam
liner for the Chicago district. said the
direct causes Of the LaSalIe street
banks -roubIs were failure TO dispose
Of half million dollars in securities
Of the Southern Traction company and
cash advances Of nearly 100000 made
to the Lorlner- Gallagher Construction
company. which had the contract for
building the Southern Traction road.
line which was building IN the rerul-
Continued on Page Nine.