Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-02-17
LORIMER .
BANk-WRECkING
CASE in COURT
Ex-senator Appears for Trial;
Legal Fight to Be Long
Drawn Out :.
[Associa..d Press By Federal wirsl.ssl

| CHICAGO, H.. Feb. I7.-WilIiam
Lorimer, former United States senator
| from Illinois, attended court today on
| the opening of his trial He is
charged with wrecking the La Sale
street hank
The opening day shows that the
case will be hard-fought and it is esti-
mated that it will take three weeks to
complete the jury.
The indictment of William Lorimer
and Is of his business associates for
conspiracy in connection with the fail
ure in Chicago in June. 1914. Of the
La Sale Street Trust and Savings
Bank, and the subsequent closing of
nine other banks and trust companies
controlled by the Lorimer-Munday Co
terie, ended Lorimer's meteorlc career
as a financier and one of the republi-
can dictators of Illinois. Charles b.
Munday, said to have been directing
influence In the Lorimer-Munday
string of banks, was found guilty Of
conspiracy November 10, 1875, aftE a.
trial at Morris. ILL.,, the case having
been transferred from Cook County on
change of venue ON petition of Mum
day.
William Lorimer's rapid rise from
Chicago newsboy to seat in the Unit
ed States senate and his fall when his
seat was declared vacant on the
ground that his election had been pro-
cured by fraud and bribery, form an
interesting chapter in the political his
tory of Illinois. Nearly year after
Lorimer's election tc the senate,
Charles A.. White, member of the
Legislature, who had voted for Lori
mer, made a written confession under
oath that he had received bride for
his vote and that lack pot" corrup-
ton fund had been used in the ses-
sion to influence legislation.
June II, 1914, Daniel v. Harkin,
state bank examiner, appeared at the
La Sale Street Trust and Savings
Bank two hours before the regular
time 5et for opening. Reports that
the parent institution was insolvent
had led to serious run on the bank
by depositors Hafkin 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
Sale Street Trust and Savings Bank
and they also were closed.
June IS, 1914. the Chicago Title and
Trust Co.. was appointed receiver for
the la Sale Street Trust and Savings
Bank. Receivers also we're named for
several Of the subsidiary hanks. Mean
while the United States district attor-
ney. and the states attorney of Cook
county had begun an Investigation Of
the banks affairs. Numerous business
enterprises of William Lorimer and
Charles B. Munday followed the bank
into insolvency.
Investigation showed that the great
er proportion of the La Sale Street
Trust and Savings Bank assets was
made up of loans to enterprises in
which Lorimer. MundaY and Harry W.
Huttig were interested.
AS a result or these investigations
indictments we're 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 linn
itations, for these charges were based
on the operation of the bank prior to
its conversion into q state Institution,
October %. 1914.