Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-06-18
BANK FUNDS LOANED
70 TWO OFFICERS
LoRIMER AND MUNDAY USED De.
PosiTs TO PROMOTE PRIVATE
coNcERNs.
ATTORNEY GENERAL APPLIES
TO COURT FOR RECEIVER
Official Invssti cation Reveals Depleted
Condition Of Assets Of Lasails Street
Trust and Savings 6ank-Approxi.
matsIy 100000 Charged OF From
Available Assets.

trust ana savings 6ank-ApPeoxl.
matsIy 100000 Charged or From
Available Assets.
Chicago, June 1S.-Application for a
receiver for the LaSalle Street Trust
and Savings Bank, the Lorimer- Nun
day bank, was made today by Attorney
General P. j, Lucey, in the Cook coun-
ty circuit court.
The petition was based on the report
OF the state bank examiner showing a
depleted condition of the banks assets.
HopelessIy lnsolvsnt.
"Hopelessly insolvent' was the ver-
dict Of State Auditor James j. Brady
and Attorney General Patrick ]. Lucey
after they had considered the report Of
Bank Examiner Daniel v. Harkin con-
corning the condition Of the LaSalle
Street Trust and Savings Bank.
Criminal proceedings. II any, are to
be had under the direction uf attorney
General Lucey. This matter will be
determined by further disclosures Of
the inner affairs of the LaSalle Street
and allied banks after the receiver gets
into the matter.
1t is learned that the possibility of
an indictment of any of the bank Of
ficials depends entirely upon the ques-
ton as to whether it can be proved any
of them were directly interested in the
companies that were the suspended
banks heaviest customers.
$4,000, 900 Assets Charged OF.
Approximately $4,000, 900 in question:
able securities Is charged of from the
banks available assets In the report Of
Bank Examiner Harkin.
Tho $4,000 includes about $780,
900 Of bonds Of the Southern Traction
Company. the East st. Louis electric
road constructed by the Lorimer-Gal-
lagher Construction Company.
K Another 100000 represents approx
imately the rest Of the Southern Trac-
tion Company securities which w6fe In
the banks posDesaion later than last
January. and which may be In the pos
Foession Of the Mundey -Lorimer string
Of smaller banks, now held by the state
auditor. and for which they may have
showed real money ana negotiable So
curities into the loop bank.
About q million dollars Of the stun
In the charged OFF, column represents
bonds and other evidences of indebted
ness Of the companies in which Vice
President Munday Is supposed to have
a greater or less interest,"
"FriendIy" Loans 31,s73 900.
The report Of Examiner Harkin re-
veals loans" made by the bank to
companies controlled by William Lor-
rimer and c. B. Munday. president and
vice president Of the closed bank, to
companies they controlled and to their
employees totaling $1,573.000. AS secur-
ity for these loans personal notes and
securities which the state auditor says
are worth not over $4,000, are held by
the bank.
In list labeled doubtful" IL the ir-
rigation. construction, reclamation, and
development company paper of the
Lorimer- Munday combination.
The loans which Lorimer and Mum
day are said to have made to their
own interests with no security except
as noted are:
William Lorimer, Jr., & Co, $4,000.
]. P. Gallagher, $780, 00O
Southern Traction Company, $3.50. 900.
Lorimer & Gallagher Construction
Company, $160,000. 4
Southern Traction Company (bonds
bought), $350,0O0.
Illinois, Land COMPANY.
(bonds bought). $203.000.
Litchfield Mill and Elevator Com.
psny. 100000.
g. B. Munday Co., grain brokers',
S125.ooo.
Truax-Greene & Co.. $3.50, 900.
G. E. Ward (Lorimer's secretary,
$125.0oo. =, Z. :.
The William Jorimer, Jr., e. Co. and
the j. H. Gallagher company, offer as
security bonds OF the Southern Trac-
tion Company.
The Louisiana Project is promoted
by G. b. Munday and J. Y. Sanders.
former governor Of Louisiana. who u
Munday's attorney in the present case.
In the bank, according to Harkin.s
report. was found approximately s35!-
900 In regular money. Z. Other items
1900, 900 in Transit.
brought the immediate cash RESOURCES
to about $4,000.
An important item which Ia to have
the immediate consideration Of the re-
ceiver and his legal advisers ana the
particular consideration OF Attornev
General Lucey is one for somethinr
like 100000. This Is the "in tran,it..
figure. It represents largely the trans
actions in progress between the loon
bank and the smaller banks now closed.
The receiver is to be asked TO take
immediate cognizance OF the Item car-
ried as an asset covering the bank
building now occupied bv the Ia Sale
Street Bank. The building figures ~
about s450000 in its assets. Examiner
Harkin had not the time to follow IN
the history Of this particular transac-
ton. What Is wanted by the state
authorities Is information az to wheth-
er the building has been bonded srd
IL liability rather than an asset me
books would indicate that interest ha.
been paid BY the bank upon what wo,,ld
appear to be q MORTGAGE on the hank
building for about 100000,
Fish Merchant Sutelds
3nrlingt tom Tune 1S.--A., ~ risrS !.
man. 80 years old. committGd suicide,
here BY shooting himseaf thru the II y
Is - -