South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-06-12
NO FUNDS TO MEET
DEMANDS FROM CITY
Secret Leakage of News That
Investigation Was Under
Way Caused Rapid With
drawaI of Million in deposits.

CHICAGO. June 12.-The LaSalle
st. Trust and Savings bank. common
ly known as the Lorimer bank. and
three other state banks affiliated with
that bank, We're closed today on orders
from the state auditor. James Brady.
J. NJ. Harkin, state examiner Of banks,
in a statement said that the Lorimer
bank had been under investi cation
since Jan. /, and that today's action
was taken TO prevent small depositors
as many OF the larger depositors had
| learned of the banks condition and
had already begun TO withdraw their
accounts.
The banks in addition TO the LaSaIle
st. Trust and Savings bank which
were closed were:
The Illinois State bank OF Chicago.
The Broadway State bank
The AShland-Twelfth State bank
The immediate closing of the bank
was precipitated. il was said. when a
demand was made today on the banks
of Chicago for $650,00O of city funds.
The bank was unable To meet the de-
mand and the bank examiner took
charge. The three smaller banks
cleared through the Lorimer iustitu-
ton and State Auditor Brady ordered
them closed also in order TO protect
Deposits of Five Millions
The last bank statement published
under oath on April 4. 1914, showed
that the LaSalle st Trust and Savings
bank had deposits OF $5,572, ,99Z.l5.
The capital stock of the bank is ST.
600, OCO, and the statement showed the
surplus at that time 10 be S343. .631.9T.
According 10 the statement S464.-
O12.23 had been invested in the bank
ing house and fixtures. The time
loans amounted TO $2.6O9. 366.93 other
resources footed up TO $3.841, 547.94.
Bank Examiner HaTkin in his state
ment said:
AN investigation Of the affairs OF
the LaSalle St. Trust and Savings bank
has been in progress since Jan 1. on
April !, William LOrimer and some OF
the other officers Of the bank were
called 10 Springfield for a conference
on the banks condition.
Then deposits began TO De with
drawn rapidly. one million dollars
was withdrawn shortly after April 1.
This convinced Us there was a leak
somewhere: that some one on the in
side had passed the word OF impend-
ing condition and large deposits were
being Withdrawn. Our office did not
want the little fellows 20 suffer, those
who trusted the bank, and 50 it was
closed.
I'VE found that the bank had not
much quick money on hand and was
unable 70 meet all its obligations That
is another reason for closing the insti-
tuition.
Has Enough Paper.
81 believe the bank has enough
paper TO pay all depositors If il can
be realized on"
News Of the closing Of the bank
spread rapidly and within a short
time after the official announcement
Hrfm n r.F h.
bank was blocked by hundreds Of per
sons, many Of whom were depOsitOrs,
who struggled 10 reach the closed
doors Of the bank. Several policemen
were called and stationed at the en-
trance and kept back the men and
women.
Inside the bank. William Lorimer.
former United States senator. presi-
dent Of the bank, G. b. Mundy, one OF
the vice presidents. and the other off,
GERS OF the institution, were IN eXeCu-
tive session. AS soon as the notice
was posted, the clerks and other en-
pIoyes quit work and attaches and the
bank examiners Office took charge
and went 10 work. There was large
crowd IN the corridors, mostly depos-
itors, but a majority or them lett
quietly.
Action Mas Expected.
The bank examiner action created
:
district. Bankers and men ON the out
side had expected somethlng of the
kind for months
The LaSalle institution was origin
ally organized as "a national bank bat
was changed 10 a state Institution
about year ago It's officers are
President, William Lorlmer.
Vice presidents. o.. B. Nlnday and
L. l. Bacchus.
Cashier. Charles G.. FOX
Assistant cashier Thomas MtDon-
aid.
Auditor. Frank II. Spohr
Counsel Elbridse Hanecy
Directors James r. Bennett, W. A.
Gardner. George %. Guuderson. T.. II.
lluuday. r. W. Zinser William Lori
mer. Elbrjdge Hauec5. Joseph Hook.
J. T Magner. Charles +. Ward. II. u.
Haney. Thomas Mcdonald. Charles G.
Fox and j.. l.. Bacchus-
NEW YORk--I.oxe--, for nfteen
years mascot Of the Long Island rail-
--.a ie re.H This r.r had "A hank