Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-06-16
STATE EXAMINER MAKING FRUIT.
LESS SEARCH FOR coLLAr-
ERAL BONDS.
TO LAY FACTS BEFORE
ILLINOIS ATTORNEY GENERAL
Securities in Vaults at Time Of Late
Examination Can Not Be Found and
Examiner Hints at Criminal Proseeu-
tion-Depositors May Lose rs Per
Cent and Stockholders Entire Capital.


Chicago. June 16.-Onicials Of the
state banking department today con-
tinued their examination Of the records
in the LaSalle Street Trust and Saw
day. Particular attention was paid by
D. v. Harkin. chief bank examiner. to
search for collateral which secured
notes found in the bank.
No estimate OF the value Of the se-
curities in the banks vaults has been
made by the examiners, who expected
to make preliminary report to p. ].
Lucey. attorney general OF the state, on
his arrival in Chicago today or to-
morrow. The report, 1t was declared,
would also show what securities, II
any, had been transferred as collateral
from the LaSalle Street Bank to the
Broadway State Bank, the Ashland
Twelfth State Bank. the Illinois State
Bank and the State Bank Of Calumet.
smaller institutions in what was known
as the Lomimer- Munday chain, Of
banks which were taken in charge by
state officials after the Lasal1e Street
Bank was closed.
Chicago, June ia report on the
results of his examination CT the La
Sale Street Trust and Savings Bank
was expected to be made today by
Daniel Harkin. state bank examiner. to
Attorney General Lucey. However.
Harkin's detailed report on the condi-
ton Of the bank. he said. could not be
presented to the state auditor until to-
morrow. He said his report was de-
layed by his search for collateral.
1T will be my duty TO lay the facts
before the attorney general at once"
said Harkin.
Bonds and Securities Missies.
Mr.. Harkin will report 20 the attor-
tney general, among ether things. these
findings:
4 rhat .hss has bsen unable to locate in
the bank vaults substantial part Of
the bonds and securities, questioned by
him in January, and now listed as part
Of the suspended banks assets. Mere
receipts. for large quantities Of this
collateral could be found when the
vaults were unsealed.
That he has found ono note for $780,
900, given by w. A. Nellie. which was
carried in the tellers cage Of the bank
as amounting to but $12,500, and that
the collateral furnished by McHie has
disappeared. He went to zee McHie
about the note. McHie freely admitted
he owed the institution 350. 1000 and was
prepared to pay 1t. He asserted he had
paid interest on the $4,000 last month
and he supposed the collateral to be
safe in the possession of the bank.
That "other matters" including the
$4,000 worth Of bonds Of the South
ern Traction Company and advances
made to the Lorimer- Gallagher Com
pany, the Southern Traction Company,
and to the long line Of interests" rep
resented by c. B. Munday. require the
most minute and Immediate attention
OF the attorney general as the chief law
officer Of the state OF Illinois.
Depository Loss 7b Per Cent.
Does Is per cent represent a fair
estimate Of what the depositors will
be able to recover after all is said and
done?" Harkin was asked.
"That Ii more than would give for
a depositors claim" was Mr.. Harkin:s
first answer.
II such an estimate from the bank
examiner is an indication OF what will
be the hnal figure. financial experts
surm.scd the stockholders of the bank
face a total loss, plus what may be re-
covered from them on the double re-
sponsibility" theory.
, Moreover. the $4,000. 900 Of deposits.
estimated to be held by the bank on
the morning that the bank examiner
took possession. will scale down to
about $75O.0o0 in recoverable value.
The direct question that Bank Ex-
aminer Harkin expects to put up TO the
attorney general as q text" for Inn
mediate action 10:
What has happened TO the missing
million and a half?''
Munday Claim Discounted.
state officials and men qualified to
be spok kesmen for Chicago finance took
no stock In the repeated claim made by
Vice President Munday that . syndi-
cate was being organized with $1,000
900 in cash behind 1t to take over the
sffairs Of the LaSalle street bank and
.hat Vice President Munday ana Pros
ident Lorimer are ready and willing ia
retire.