The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-06-13
d g'lafiEftrLE a +. 7
FOUR. BANKS CLOSED
IN CHICAGO YESTERDAY
2|r4>-a-- ,s.i ,,ii
DOORS LOCKED TOLA SALE
TRUST G. SAVINGS BANK
BY STATE.EXAMINER
Big Institution and Subsidiary
Banks Suspend-Three May
Resume Business Later
BY STATE EXAMINER
(By Associated Press ,

(By Associated Press
Chicago, June12.-Four State banks,
the most important having for its
president William Lorimer, unseated
from the United States senate. were
closed today by the state banking de-
partment here. Representatives of the
department Immediately began an in
vcstigation. Rumors were current
that rcceivcrship would be asked.
The four banks were the La Sale
Street Trust and Savings Bank. the
Broadway States Bank, the Illinois
State Bank and the Ashland-Twelfth
Street State Bank, known as the Lori
mer- -Munday chain of banks The La
Sale Street institution was the main
bank. Combined the banks have de-
posits of $6.411,997 and reported cash
means of $1,643,69:
or deposits, S966,00O consists of city
funds. The bulk ,of this amount, $780,
600 is OH deposit with the La Sale
Street Trust and. Savings Bank.
Daniel Harkin, chief bank examiner,
who took personal charge of the down
town bank and sent deputies to the
smaller ones, said he expected to see
the La Sale Street Trust and Savings
Bank open for business next week.
lie declared he sent examiners to the
smaller institutions as a precaution-
| ary measure. He Insisted there was
no political phase to the action of his
department
An examination of the La Sale
Stree. Trust and Saving Bank by Har-
kin two, months ago disclosed, he said,
4. quantity of what he regarded as
flow asseis. state, officials say the
bank oifcinls pleaded for time to
change that condition. In the last
three week. according to HaTkin and
the cashier. of the hank, there has
been what was .ternel "a mild run sor,
tnS bfsn tan Sing q depletion OF about
$1.0oo;060 in deposits. u.
Former United States Senator Lori
| mer, president, and C. B. Munday, vice
president, refused to comment or the
| situation.
| James B. Forgan. president Of the
First National Bank and chairman of
the Clearing House Committee, said ::
"The closing Of the La Sale Street
Truft and Savings Bank should not
have the slightest effect on any other
banks are not, associated with other
down town banks. The La Sale Street
Trust and Savings Bank is not men,
Der Of the clearing house association
and has none Of the privileges of the
clearing house."
State officials declared the financial
condition Of the La Sale Street Bank
had caused them to fear the possibility
of a disastrous run.
The AshlandTwelfth Street State
Bank was the center OF riot when
its depositors learned Of the closing.
Men and women clamored for their
money. Refusal was met by excited
cries and before the police arrived n
stone was thrown through window.
| rush was made on { .ie locked door.
Policemen restored order.
No statement of what the closing
of the LaSalle Street Bank actually
means in dollars and cents was made
by the examiner. Recent reports to
the State auditors Office placed the
deposits at more than $5.000.000.' For
the laft three weeks according to the
officials, there has been mild run
| on the bank and more than $I.0OO000
! of deposits has been withdrawn.
The smaller hanks which were clos
ed WEIR, the Illinois State Bank of
Chicago. tho Broadway State Bank
| and the Ashland and Twelfth Street
State Bank. Daniel v. Harkin, chief
state examiner for Cook county, who
took charge 0f the banks. expressed
tho opinion. that the smaller banks
would resume business in few weeks.
He said that they were dominated by
men connected with the LaSalle Street
institution and were closed for their
own protection
when entered the bank" said Mr..
Harkin today, II did not mean to take
possession. but soon discovered that
must.
Mr.. Munday recently was named
among other defendants in two court
| actions-a suit filed by John II. Coync
against James J. Brady, State auditor;
and an application for receiver by
the minority stockholders OF the Rose
Hill Cemetery Compny.
In the Coyne suit 1t was alleged that
Brady. Miinday and G. E. Ward. ,secre-
tary to Lorimer. maliciously had de-
vtsed scheme to oust Coyne as a
bank examiner. The petition charged
THAI the LaSal,E Gtheet ,institutto on
made a $2,500 contribution to some un-
known person, who delivered the same
to Brady; and that following Brady's
election, the bank made a further con-
tribution Of $500 to the defendant, In
conBfdefHtion Of which 1t was to be
allowed to name certain employees in
the Statett taditor's Office.
In the Rose Hill Cemetery case, the
application for a receiver charged that
|Munday and others had caused a d.
(. version of.the assets of the company.