Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1914-06-18
POLITICIANS
CAUGHT IN CRASH
OF CHICAGO BANK

and former federal, state and county
officials and former aspirants for gov
srncr and other offices, are included in
the list of stockholders of the LaSalle
Street Trust & Savings bank, which
was closed by the state bank examiner.
yesterday.
The stockholders list reads like g
political directory, and shows at a
glance why the Lorimer financial in
%stituticn has been known as a political
bank.
| The brief but spectacular career Of
the LaSalle street bank is interviewer
with the political happenings of the
last four years. The political and per
sonal fortunes of some of the promi-
nent politicians of Chicago and Illinois
have gone up or down with the sue
cesseS and viciSsitudeS of the bank
headed by William Lorimer.
Mr.. Lorimer had held his seat in the
United States Senate for nearly a year
when the LaSalle Street National
bank, which later became a state bank,
opened its doors. His election at the
Legislature had taken place on May 26,
1909. The bank was opened in May,
1910.
Lorimer Charged Plot.
On the last day of April, 1910, at a
time when the bank was in process of
organization, the confession of Charles
A. White that he had been paid $1,000
for voting for Lorimer was published.
The sensations which, followed that
publication Jared the political and
financial world and delayed somewhat
the opening of the bank. Mr.. Lorlnler
a year later, when on the 'wltness
stand before the Investigating commit
fnn op tl,n Initial States Spn1ff
charged thai the exposure was part of a
plot to ruin the bank.
The immediate cause of the run on
the bank which forced its suspension
yesterday was due to the run started
after John II. Coyne, campaign man
ager for James j. Brady, state auditor
of Illinois, had filed a declaration with
the superior court in support of a de
famation suit for $50, 900, charging that
campaign contributions were made the
basis of claims to dictate the appoint.
ment of subordinates in the office or
Brady.
Coyne named c. b. Munday, vice
president of the LaSalle street bank,
and G. f. Ward, also connected with
the bank; Roger Sullivan, democratic
boss and senatorial candidate, and
Edward Tilden. as contributors to the
bank, he alleged, gave Brady $500 Ito
procure the retention of l.. l.. Baochus,
chief of the banking and loan depart
ment of the auditors offce
Brady's Marital Row.
Brady is now being sued for $50. 900
breach of promise by his wife, who for
merly was Mrs. Kuhn. Mrs. Kuhn and
Brady were married the day following
the granting of a divorce to Mrs. Kuhn
from her former husband. The Illinois
law provides a Divorce cannot marry
within a year. A second ceremony
would be necessary to legaliHe the
marriage of Brady and the former Mrs.
Kuhn. The woman alleges Brady will
not consent to the second ceremony.
cruelty and that his attitude toward
her is largely influenced by certain
politicians. Brady formerly was "A
bartender.
Fifth Bank Closed.
A fifth bank was closed today by the
state bank examiner in connection
with the disclosure of conditions in
the LaSalle Street Trust & Savings
bank. This bank. the State Bank Of
Calumet, according to the bank exam
liner. completes the chain of what were
known as the string of Lcrimer-
Munday banks in Chicago.
Two bank examiners from the state
auditors office, in Springfield, arrived
today to assist in the examination OF
the five banks now in the state banking
departments hands.
William Lorimer, president of the La
Sale street bank, was said to be near
q physical collapse from the strain of
the developments of the last "a hours.
The bank examiners worked steadily
on the books of the LaSalle street
bank, the Broadway State bank, the
Illinois State bank, the Ashland
Twelfth State bank and the State
Bank of Calumet.
..-4 1.L "a mn nnn .c 49,
are tied UP in the state controlled in
situations.
Checking UP Assets.
State bank examiners began today
estimating the valu of the securities
held by the closed La Sale Street Trust
and Savings bank and the three small
neighborhood banks closed. possibly
temporarily, as a result of the suspen-
sion of the La Sale street bank.
These facts stand out in connection
with the financial situation caused by
the closing yesterday of the banks by
Daniel V. Harkin, chief state examiner
for the Chicago district.
Closing of the banks has no effect on
other Chicago financial institutions,
according to high authority here. The
La Sale street bank was never adj
mitted to membership in the Chicago
Clearing louise association. Its sus-
pension will affect only the few small
banks when mad their reserves tied up
in it, it was said.
The banks closed are:
The La Sale Street Trust & Savings
bank; capital, $1,000, 900.
The Illinois State: capital, 5000, 900.
The Ashland Twelfth State; capital,
$500, 600.
The Broadway State; capital, 5000
900.
The La Sale street bank has about
$4,000 900 in deposits. Validity of about
81, 200. 900 of it's collateral is said to
have been questioned by the bank ex-
aminer.
Rise of Munday.
William Lorimer, unseated United
States senator, is president of the La
Sale street bank. He and his sons
own, however. but 800 of its shares. c..
b. Munday, vice president, owns 1850
of it's shares and is declared to be it's
leading spirit. Munday has interests in
"a score of undertakings, ranging from
banks to cemetery companies. A de-
cade ago he was a telegraph operator.
James b. Forgan, president of the
First National bank, and chairman Of
the clearing house committee, said:
These banks are not connected with
any Chicago clearing house banks and
know nothing about them. The
Chicago banking situation is better
than it has been in years"
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