The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-06-13
-FOUR ILLINOIS STATE
BANKS ORDERED CLOSED
Important, Which Has William
LOrimer as President.
RECEIvERsHIP MAY BE ASKED
Combined, the Institutions Have De-
posts OF SO, 1,807 and Reported
Cash Means OF 81 ,048, 0O2-State
Department In Charge.

Chicago. i'll. June 12.-Four state
banks. the most important having for
it's president. William Lorimer. un-
seated from the United States Senate.
were closed by the state Banking De-
partmcnt here to-day. Representatives.
OF the department Immediately began
an examination into the institution's
affairs Rumors were current that
recci"ership would he asked.
The four banks were the La Sale
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 La Sale
street bank was the main institution.
Combined. the banks have deposits Of
si.4ii.9a7. and reported cash means of
sl.6i3,G92
OF deposits $3.50, 600 consists Of city
funds. The bulk Of this amount $780,
Ooc' - on deposit with the La Sale
street Trust and Savings Bank
Daniel Harkin, chief bank examiner
VIII" 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
Bhnk open for business next week He
declared he sent examiners TO tho
smaller institutions az a precautionary
measure. tie insisted there was no
political phase TO the action OF his
department
La
Trust and Savings Bank by Harkin, two
months ago. disclosed he said, q GUAM
MY OF what he regarded az slow as
stts. state officials say the bank Of
hcials pleaded for time to change
thai condition. In the last three weeks
according TO iarkin and the cashier
OF the bank. there has been what was
termed mild run on the bank causing
depletion of about 81 900. 900 In de-
posts.
0FFICBRs DECLINE TO
COMMENT on SITUATION
Former United States Senator Lori
1ner. president. and G. b. Munday, vice
president. refused to comment on the
situation.
James b. Foi.ran. president Of the
FIRST National Bank. and chairman OF
the clearing house committed said.
The closing OF the La Sale 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 La Sale Street
Trust and Savings Bank Is not a
member of the Clearing House Also
citation. and has had none Of the priv
ileGas OF the clearing house"
state officials declared the financial
condition OF the La Sale Street bank
had caused them To fear tho possibility
OF a disastrous run.
The Ashland Twelfth Street State
Bank was the centre OF n 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 n
stone was thrown through a window.
and Il rush was made on the locked
door Policemen restored order.
'lr. Munday recently was named
among other defendants in two court
fctions--a suit Med by John II. Coyne
hFainst James J. Brady, State Auditor,
hnd AN application for Il receiver by
tie minority stockholders of tho Rose
I'M Cemetery Company.
In the Coyne suit, II was alleged
that Brady. Munday and c. r. Ward,
secretary 10 Loriiner, maliciously had
that the La sale street institution
made $4,000 contribution to some
same to Brady; and that following
I3rady's election, the bank made
further contribution OF $500 to the de-
Was TO be allowed to name certain
employees in the State Auditors Office.
In the Rose Hill Cemetery case. the
application for a receiver charged that
Nunday and others had caused diver
sion Of the assets of the, company.
,h ss Sa,sn s OF %hht me closing OF
in dollars was made by the examiner.
Recent reports TO the State Auditors
ounce pluccd the deposits AZ more than
S5.0o0.00o For the last three weeks.
according TO officials, there has been
n mild run the bank, and more
than 100000 of deposits have been
withdrawn. The smaller banks which
were closed were the Illinois State
Bank. OF Chicago: the Broadway State
Bank and tho Ashland and Twelfth
street state Bank. Daniel V. Harkin.
chief State examiner for Cook County.
who took charge of the banks, eX-
pressed the opinion that the smaller
banks would resume business in a few
weeks He said they were dominated
by men connected with the LA Sale
street institution. and were closed for
their own protection.
When 7 entered the bank" said Mr.
Harkin to-day. II did not mean to
take possession, but I very soon dis
covered that I must"
Although policemen were detailed to
the bank. there was no disorder. The
city OF Chicago had ss50.o00 on deposit
in the LA Sale Street Bank.