The Sentinel=record., 1914-06-13
LORIMER BANKS
 ARE CLOSED
ACTION TAKEN SMACkS SOM E. WHAT OF POLITICS ALTHOUGH
 THIS IS DENIED.
Closing of Banks Will Not Affect Other Chicago Institutions as They Were Not Members of the Clearing House.

Chicago, June 12-Four state banks, the most important having for it's president William Lorimer. un- seated from the United States sen. ate, were closed by the state banking department here today. Representa- tiyes of the department immediately began investigation into the institu- tions' affairs. Rumors were current that receivership would be asked.
 The four banks were the LaSalle Street Trust and Savings bank, the Broadway State bank, the Illinois State bank and the Ashland Twelfth Street State bank, known as the Lorimer-Munday chain of banks. The LaSalle Street bank was the main in- stitution. Combined, the banks have deposits of $6,411,9 ,997, and reported cash means of $1 ,434, ,692.
 Of deposits $966,000 consist of city funds. The bulk of this amount. $6o0,000, is on deposit with the La Sale Street Trust and Savings bank.
 Daniel Harkin, chief bank exam iner, who took personal charge of the downtown bank and sent deputies to the smaller ones, said he expected to see the LaSalle Street Trust and Savings bank open for business next week.
 He declared he sent examiners to the smaller institutions as a precau- honary measure. He insisted there was no political phase to the action of his department.
 An examination of the LaSalle Street Trust and Savings bank by Harkin two months ago disclosed, he said, a quantity Of what he regarded as slow assets. State officials say the bank officials pleaded for time to change that condition. In the last three weeks, according to Harkan and the cashier of the bank, there has been what was termed a mild run on the bank, causing a depletion of about Sl,000,000 in deposits.
 Former United States Senator h~RA AhiNir Pi C0thtAAs anu As b. Al ull- day, vice president, refused to con- ment on the situation.
 James B. Forgan, president of the First National bank and chairman of the clearing house committee, said
 The closing of the LaSalle Street Trust and Savings bank should not have the slightest effect on any other banks in the Chicago district. The banks are not associated with other downtown banks. The LaSalle Street Trust and Savings bank is not a member of the Clearing House Asso- citation and has had none of the priyl- leges of the clearing house."
 State officials declared the finan- cial condition of the LaSalle Street bank had caused them to fear the possibility of a disastrous run.
 The Ashland-Twelfth Street state bank was the center of a riot when it's depositors learned of the closing.
 Men and women clamored for their money. Refusal was met by excited cries. and before the police arrived stone was thrown through a vim dow and rush made on the locked door. Policemen restored order.
 MT. Munday recently was named, among other claimants, in two court actions-a suit filed by John II. Coyne against James J. Brady, state auditor, and an application for re- ceiver by the minority stockholders of the Rose Hill Cemetery Company.
 In the Coyne suit it was alleged that Brady, Munday and C. E. Ward, secretary to Lorimer, maliciously had devised a scheme to oust Coyne as q bank examiner The petitil charged that the LaSalle Street institution made a $2500 contribution to some unknown person who delivered the same to Brady, and that following Brady's election, the bank made a further contribution of $500 to the defendant, in consideration of which it was to be allowed to name certain employees in the state auditors office.
 In the Rose Hill Cemetery Com pany case the application for re. ceiver charged that Munday and others had caused diversion of the assets of the company.
 
 TEACHERS OF HOT SPRING