Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1915-12-29
VIM. L0RlMER TO GO TO
TRIAL ON BANK CASE
Continued from page u


then la m q telegraph operator in
his home town of Lilchficld, III. Later
h. became Interested III the grain bust
ness ami III 1910 came "a Chicago and
induced Lorimcr To- enter 4 bank with
him. May 10. 1910 the In Sale Street
National Bank opened itS doors with
William Lorimer. president and thuS.
y. Munday. vice president. The inSti-
tuition was denied full admission To the
Chicago Clearing House and for a time
operated ny clearing through another
bank.
October -. 1912. the La Sale street
National Bank was converted into la
Sale Street Trust and Savings Bank.
Il state institution.
he state bank assumed all liabilities
and assets Of the National. keeping the
sam capital Of II 900 600 and the same
surplus az S5fu mo
I'm the course of the next year, hall
\ dozen smaller neighborhoOd banks
were organized in Chicago by Lorimcr
and Munday and became known as sub
Sidiaricsc Of the La Sale Street Trust
and Savings Bank. In addition to these
Mundav was interested in several down
state banks which had business deal
ings with the La Sale Street Trust and
Savings Bank.
June l.. 1911. Daniel Y. Harkin. state
bank examiner. appeared az the Ia Sale
Street Trust and Savings Bank two
hours before the regular time set for
opening. Reports that the parent in
- s,,t;.. ,r,. ;n-n1x.pt h.I laI IN = SO
riOuS run on the hank bv dcpoSitor>.
IIalkin after a brief examination Of
the banks affairs closed the institution.
Within 4 few weeks all the subsidiary
banks closed. The Munday down>tatc
banks later felt the effect Of the collapse
Of the La Sale Street Trust and Say
ingS Bank and they also were closed.
June H. 1914. the Chicago Title and
Trust Co. was appointed receiver for
The I.a Sale street Trust and Savings
Bank. Receivers also were named for
several VI the subsidiary banks. Mean
while the United States District Attor
ncv and the states attorney If Cook
County had begun an investigation Of
the banks affairs. Numerous business
enterprises of William Lorimcr and
Charles y. Mundav followed the bank
into Insolvency.
Investigation showed that the greater
proportion of the La Sale Street Trust
and Savings Bank assets was made M
of loans f. enterprises in which Lori
mer. Munday and Harry w. lluttig were
Interested.
A. 4 result Of these Investigations in
dictmcnt> were returned against Lori
mer. Mundav. Huttig and others hN
- r-.- --I 80. a,.V.l stnE.. fElt
federal indictments were rushed thru
ia the summer OF 1911 in order 10 Get
within the statute of limitations. fnI
these charges were based ON the opera
item " the bank prior "a it, conversion
into a state institution. October -. 1911
The bulk Of the state indictments
were returned IN the Cook rolnty grand
Jury Oct. u. 1917. These were against
Lorimcr. Munday. Huttig and other Of
ficrrS aud employees of the bank and
former officials of the state auditors
office.
The fourteen persons named ~ the
indictments were alleged a. have loot
cl the Lorimcr- Mundav institutions If
nearly -. q 10000 with violations of
practically every banking law in state.
II was charged that assets Of the In
>rllr street Trust aud Savings Bank
had lrcu u~esl to organize the NuhSidi
ury hauE> that clerks had been .'kiscd''
in carving oui Inc plan and that the
parent bank h3d '"u in>olvcnt for
some iiui, prior n" ii~ nIlnpSc.
states attorrr, I%ln,nc PLANNED 81
Nv, all the defendants wv ecih"r. The de-
PENDANTS opposed this and entered M
ions Tor separate trials. when these
were uvcrrulcd I'M tn" courts. NuudlN
asked fer u change Of venue "n the
grounds W prejudice and the ease was
sent t. Norris. Grundv county Tor trial.
The Lorimrr-Ilu,tig case was expect
cd to 70 To trial early in January. 1916
and states attorney How're planned t.
have one trial for all the defendants.