Omaha daily bee., 1915-09-28
CHAS. B. MUNDAY
PLACED ON TRIAL
Alleged Financial Genius of Lori
mer Chain of Banks Arraigned
at Morris, Ill.
HISTORY OF REMARKABLE DEAL

MORRIS. ILL.,, Sept. 27.-Charles
&. Munday, charged with conspiracy
to wreck the La Sale Street Trust
and Savings bank of Chicago, was
ready to be placed on trial here to-
day before Judge Samuel G.. Slough
of the circuit court. Attorneys from
both sides indicated that about a
week will be consumed in selecting
a jury.
The case was transferred from
Cook county to this, Grundy county,
as II was alleged by Munday that
Chicagoans were prejudiced against
him.
The charges which led to the indictment
Of Munday, who is said TO have ben tho
financial genius of the La Sale street
Trust and Savings bank of Chicago, form
!, one Of the most sensational chapters in
the banking history Of Illinois The bank
was organized by Mir. Mundsy and for
mer United States Senator william Lor-
inner. When the bank failed in June,
1911, there followed the collapse OF nine
other banks and trust companies Of the
So-callet, Lorimer-Nlunday string.
Fourteen Persons Indicted.
Fourteen persons were indicted last
winter. the chief OF them being Mr..
Mundey, the second vice president. and
Mr.. Locimer The state chose to prose-
cute Mr.. Munday frs. and. on his de-
clarine that his association with the po-
Hticai fortunes Of Mr.. Lorimer precluded
ga OH ~
venue TO this city was granted.
A grand jury at Chicago which con-
sdered the case for more than three
months. brought in a report last Oc-
tober in substance as follows:
The fourteen persons named in indict-
ments were alleged to have looted the
Lorimer- Munday institutions of almost
s2,5O0Ooo, with violation of practically
every banking law in the state.
1t was charged that assets of the La
Sale Street Trust and Savings bank had
been stolen TO organize other banks in
the BoTimer- Mundey chain; that checks
had been "kited" in carrying out the
program and that the parent bank had
been insolvent for some time prior TO
the collapse.
Valuable securities held by financial
institutions in which Lorimer, Munday
and associates became interested were
alleged to have been replaced by securi-
ties known TO be of worthless or doubt
ful character.
The twelve others indicted were off,
Gers Of the Lorimer-Munday banks,
namely, II. W. Huttig. Charles @. Fox,
Thomas Mcdonald John X Seagrave,
Edwin j Potts, Abraham Levin. Paul
Hazard, John H. Rife. Frank II. Novak,
Charles w. Novak, John b. DeHoney and
William Lorimer, tr. The trial of Mum
day Is expected to adduce testimony
bearing on all of the cases TO be tried
later.
worthless Checks Issued. -
Among the grand jury allegations
against Munday is one that he gave
worthless checks to L. Y. Sanders, for
mer governor OF Louisiana, one for $5O-
900 on the State bank of Smithboro. ILL.,,
and another for $3.50 on the Bank of
East Alton, Ill. which are said TO have
been cashed at the LaSalle Street Trust
and Savings Bank. The grand iurys
report alleges that Sanders with the pro-
ceeds purchased stock in a new Lorlmer-
Munday bank being organized as the
A. II. Hill & Co. State bank but A. Ii.
Hill is said to have grown suspicious OF
the solidity of the parent bank and to
have withdrawn his entire account.
The promotion Of the international
Trust and Savings bank is alleged to
provide further instance of reckless
firanciering. He is charged further with
having looted the Rosehill Cemetery
company.
Munday's Rise Remarkable.
Munday's rise in the business world
was remarkable. In ten years he won a
large fortune and an interest in eleven
banks and a dozen business concerns
He was horn and reared in Iitchfield
Ill. his father being a justice OF the
peace
The bankers first work was as n mes
senger for telegraph company, then as
an operator He became interested in
the grain market and began huvinc era
I'm a small way. In 1890 Munday left the
telegraph service and entered the firm Of
ID. o. Settlemire & Co. an elevator con-
Germ. Munday later came into control
of the business.
In 1902 he entered the banking business
Trust company, and later a chain OF
banks.
Munday first met Lorimer in 1907. When
the latter was elected senator, Munday
who was democrat, was active in his
interest
In 1909 Munday. with Lorimer and a
number OF the latter's friends organized
the La Sale Street National bank, which
later became the La Sale Street Trust
and Savings bank.