Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-02-17
NOTED LORIMER
K-WRECKING
CASE in COURT
Ex-senator Appears for Trial:
Legal Fight to Be Long
Drawn Out
Associated Press by Federal wir.lsssl

Associated Press oy federA. "IHeSsI
CHICAGO. H.. Feb. l1.-Wiitiam
Lorimer. former United States senator
from Illinois, attended court today on
the opening OF his trial. Ne is
charged with. wreckinge the La Sale
street hank. r.. .
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 Tor
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 meteortc career
as a financier and one OF the repubi1-
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. atty a
trial at Morris. III, the case having
been transferred from Cook County on
change of venue On petition of Nun
day. -. ''#
William Lorimer's rapid rise from
Chicago newsboy to a 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 a year after
Il L. - Il 81
Charles A. White, member Of the
legislature. who had voted for Lori
mer, made written confession under
oath that he had received a bribe for
his vote and that Jack pot" corrup-
ton fund had been used in the ses-
sion to influence legislation.
June y, 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 serious run on the bank
by depositors Harkin after 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 ana Savings Bank
and they also were closed. -.
June 10, 1914, the Chicago Title and
Trust CO., was appointed receiver for
the La Sale Street Trust and Savings
Bank. Receivers also were named for
several of the subsidiary banks 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. ~. =. -. IL.
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 Va
Huttig we're interested. ."s. -. i
As result or these investigations,
indictments were returned against
Lorinher,. Mnnday. 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 we're based
on the operation of the bank prior to
its conversion into a state institution,
October ~. 1914 '>- '''... -.