Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-06-12
Brady Scandal Disclosures
Starts a Run by Chi
cagO DepOsitOrs.
OVER MILLION DRAWN
Three Subsidiaries of Chicago
Concern Are Also in
Charge of State.

Chicago. Ill. June 12.-The La Sale
Street Trust and Savings bank of
which former Senator Lorimer is pres
,deut. was taken charge OF today by
= state bank examiner. No business
vas done in the bank today. and the
examiner reported conditions we're
sueh as to warrant c-Osing OF the
bank.
Wild run was started on the bank
,vo davs ago and today more deposi-
,ors were in front OF the institution.
announcement was made by the state
bank examiner that an examination OF
the banks subsidiaries would be taken
M By Lorimer in a conference Of the
directors OF the bank this morning.
The last monthly statement Of the
hank the capital stock was placed at
100000 and undivided profits $685.
600. stock was held at par. Deposits
were $4,000. 900: loans S4.3OO,OOO.
Later the bank examiners caused a
suspension of business in the Broad
way State bank. the Illinois State
bank and the Ashland & Twelfth bank,
three banks which were classed as
subsidiaries Of the la Sale street in
stitution.
Over Million Withdrawn.
The run on the bank was attributed
10 allegations made in connection with |
the suit Of John II. Coyne against I
State Auditor Brady. in which Coyne /
charged the La Sale street bank had 1
contributed to the Brady campaign .
fund. with the understanding II would /
be consulted regarding appointments 4
by the auditor.
It is roughly estimated that deposi-
tors IN the last three weeks have with
drawn more than a million.
The bank was organized by Lorimer
five years ago. It is not member Of .
the clearing house.
Last spring Harkin made an exami-
nation OF the LaSalle bank. he said to-
day. and called attention to the bank
officials to conditions he found.
Il found a lot OF assets in the bank
vaults l deemed slow and questiona-
bic" said Examiner Harkin. Recent
ly deposits dropped of alarmingly and
decided 10 make an investigation
City Refused Deposit
Examiner HarIzin said he did not be-
lieve the disclosures in the CoyRe-
Brady scandal had any bearing on
the financial conditions of the La Sale
street bank
A demand made today by the treas
1rer OF the city OF Chicago for $685.
o0O which the city had on deposit at
the La Sale bank was refused. Ac-
cording to Cashier Fox. the banks
present deposits are S3,9OO.OOO. The
board Of trade markets were made TO ,
reflect to some extent the troubles Of ,
he Lorimer banks.
Small Banks to Reopen. .
Examiner Harkin expressed the
pinion that the three smaller banks L
'Ould resume business in a few weeks.
ie said they were dominated by men c
onnected with the LaSalle institution I
nd were closed for their own protec- r
ion. William Lorimer. Jr.. is listed o
s the heaviest stockholder in the Illi- a
ols State bank c
Authorized by Brady.
Springfield. H.. June 12.-"The action -
Z Chief Examiner Harkins in closing =.
be La Sale Street Trust & Savings
ank OF Chicago was authorized by
ie, II in his opinion conditions war
2nted action said Auditor Brady.
Board Of Trade Firm Fails.
Chicago. Ill, June 12.-Notices post
Q on the board OF trade that the Sid
ey Logan company had failed 10 pay Il
debit balance at the clearing house. n
had been active on the bull side OF d
heat. :,