The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-13
OTHERS IN ILLINOIS
MAY BE INVOLVED
Deposits of S8.OO0.OO0 Said
to Be. Tied Up in
Tanglc.
CITY AND CHARITABLE
BODIES ARE HARD HIT
Ext. s. senator Head of Par
ent COnccrn-Many POliti-
clans Are Stockholders.

clanS Are StOcknOlUcrS.
CHICAGO. June 1c.-It Is believed here
that criminal prosecution may follow the
closing to-day by examiners of the La
Sale Street Trust and Savings Bank. OF
which ex-United States Senator William
I.orlmer is president. and three associated
banks.
Chief Banl. Examiner Harkins and a
score OF assistants are busily engaged in
trying 10 unravel the financial tangle
which resulted in a run on the LA Sale
street bank
Mr.. Harkius said Il would be several
days before the actual state of affairs IL
known. IN round numbers the combined
deposit Liabilities aggregate between
100000 and Ss.0O0,O0O.
The La Sale Street Trust ana say.
ings Bank Is state institution located
In the heart OF the downtown district.
1t was established originally as national
bank by ex-senator Lorimer. Neither it
nor it's predecessor has ever been mem
Der Of the Clearing House.
The three other banks are located in
the outlying districts aud are known as
neighborhood banks. All of them car
ried their balances at the La Sale Street
institution and we're controlled by Off,
cials of the downtown Lorimer bank
More Banks May Close.
An immediate result of the closine Of
the four banks to-day In all probability
will result In two more outlying banks
in Chicago failing to open tomorrow.
Seven down-State banks are affected by
nterlock!ng directorates and the tying up
Of bank balances, carried by the Lorimer
main bank. The State Bank Examiner
tonight would express no opinion as to
the probable fate OF these down-State in
situations.
The members of the Clearing House
declare that the action taken by the State
Bank Examiner had no direct bearing ON
the banking situation OF this city. which
is declared to be perfectly sound
Leading Chicago bankers say they have
considered the Lorimer bank sore spot
in the local financial horizon for some
time. The La Sale National Bank in
its early history cleared through the Corn
Exchange National Bank and subse-
quently applied for membership in the
Clearing House Association.
Clears Its own Checks.
When the Clearing House examiner and
the Clearing House committee insisted
upon the elimination of certain of it's
assets which the Lorimer bank failed TO
do. membership was refused Since then
the La sale Street National Bank and its
successor. the La sale Street Trust and
Savings Bank have cleared their own
checks.
The action taken BY Chief Examiner
Harkns was decided upon last night
when he went into the La Sale Street
bank 10 examine its affairs, At meet
ing OF the directors To-Day the chief
examiner refused to allow the bank to
open url, rs additional cash was immedi-
ately provided.
Assistant Cashier Mcdonald said to-
night that Mr.. iarkns insisted that
81, 900. 600 must be IN hand in the next
two or three days, This amount not
being forthcoming the affairs of the
bank were taken in charge By the Bank
ing Department.
Developments tonight show that there
has been quiet withdrawal by deposit
tors for three weeks. These withdraw walls
aggregate more than $500, 900 and were
gradually becoming heavier They were
caused IN part, II is asserted by dis
closures in the affairs of "A large Gene
terry association In which the names Of
large stockholders OF the Lorim"r bank
were mentioned,
Marital TsngIe Figures.
The domestic tansle Of State Auditor
James j. Brady which brought into
prominence one OF his hackers, G.. H.
Munday, ylce-president and principal
stakeholder OF the Lorimer bank, is also
asserted TO have played 4, part In "A feel
ing OF uncasiness on the part of de-
nnsitnrs