New Britain herald., 1916-02-17

National Bank was converted into La Sale Street Trust and Savings Bank, a state institution.
 The state bank assumed all liabili- ties and assets of the National, keep ing the same capital of $1,000,O00 and the same surplus of $250,O0O.
 Smaller Banks Organized.
 In the course of the next year, half a dozen smaller neighbOrhUod banks were organized in Chicago by Lori mer and Munday and became known as subsidiaries of the La Sale Street Trust and Savings Bank. In addition to these, Munday was interested in several doWnstate banks which had business dealings with the La Salle Trust and Savings Bank.
 June 12, 1914, Daniel V. Harkin, state bank examiner, appeared at the La Sale Street Trust and Savings Bank two hours before the regular time set for opening. Reports that the parent institution was insolvent had led to a serious run on the bank by depositors. Harkin after a brief examination of the banks affairs closed the institution. Within a few weeks all the subsidiary banks closed. The Munday downstate banks later felt the effect of the collapse of the La Salle Street Trust and Savings Bank and they also were closed.
 Receivers Appointed in 1914.
 June 19, 1914, the Chicago Title and Trust Co.,, was appointed receiver for the La Salle Trust and Savings Bank. Receivers also were named for several of the subsidiary banks. Meanwhile the United States District attorney and the states attorney of Cook County had begun an investi- gation of the banks affairs. Nu- merous business enterprises of Will liam Lorlmer and Charles B. Munday followed the bank into insolvency
 Investigation showed that the great CT proportion of the La Salle Street Trust and Savings Bank assets was made up of loans to enterprises in which Lorimer, Munday and Harry w. Huttig were interested
 Several Indictments Returned.
 As a result of these investigations, indictments were returned against Lorimer, Munday, Huttig and others by both federal and state grand juries. The federal indictments were rushed through in the summer of 1914 in order to get within the statute of limitations, for these charges were based on the operation of the bank prior to it's conversion into a state in stitution, October 22, 1914.
 The bulk of the state indictments were returned by the Cook County grand jury Oct. 31, 1912. These were against Lorimer, Munday, Huttig and other officers and employees of the bank and former officials of the state auditors office.
 Fourteen Persons Named.
 The fourteen persons named in the indictments were alleged to have loot ed the Lorimer-Munday institutions of nearly $2,50O,OOO, with violations of practically every banking law in the state.
 It was charged that assets of the La Sale Street Trust and Savings Bank had been used to organize the subsidiary banks, that checks had been "kited' in carrying out the plan and that the parent bank had been insolvent for some time prior to it's collapse.
 Case Was Transferred.
 States attorney Hoyne planned to iS oii 'hio ue1ellddnCS together. The defendants opposed this and entered motions for separate trials. When these were overruled by the courts, Munday asked for a change of venue on the grounds of prejudice and the case was sent to Morris, Grundv County, for trial.
 The Lorimer-Huttig case was ex pected to go to trial early in Janu- ary, 1916, and state's attorney Hovne planned to have one trial for all the defendants.