Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-03-15
PROSECUTOR IN
LOR|ME R CASE
STATES CHARGES
Former United States Senator
Is Accused Of Conspiracy
and EmbezzIenent in Han
ding Bank Funds,
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lnf MORNING. JOURNAL SPECIAL LEASED HirEl
Chicago March if.--Wlliam Lori
mer. whose seat in the United States
senate was declared vacant on the
grounds that If was the result Of po-
litical crime, today listened 10 re-
eita of his alleged financial crimes.
The recital was by William a. Hol-
ly assistant states attorney, who told
d jury in Judge Devers branch of the
criminal court that the defendant was
with conspiracy and embczzle-
ment IN connection with the failure Of
the Ia Sale street Trust and Savings
bank IN Chicago two years ago.
LOrimer Remains Calm.
Mr.. Lorimer remained impcrturbed
throughout the denunciation He ap-
pearcd little changed since the days
when Illinois called him the blonde
boss and a legislature alleged to have
been corrupted by him sent him to the
upper house NJ Washington.
Mr.. Holly said that testimony which
was not adduecd at the trial Of G. y.
Munday. senior vice president Of the
bank, who WAS convicted on similar
would be introduced during
The present hearing.
Trusted Mundas's Management.
Iormcrs defense. IL is said, would
be based largely on the contention that
Mr. Lorimer although president Of the
trusted the business to Mr..
Munday and was himself absent much
Of the time
IN The course Of his address Mr.
Holly said that two months after the
formation Of the bank Alderman Mi
chael Kenna, OF the First ward, who is
widely known as "Hinkey Dink, po-
litical partner Of Alderman Bath
House" John Coughln, was appealed
to to do his banking with the Lorimer-
house
Appeal to kenna.
The appeal for Kenna business was
based largely, Mr.. Holly said. on the
statement that the bank was not
member of the clearing house assoc
'iation, and that consequently the IT,
naneial affairs OF its customers were
secret
Mr.. Lormer started the La Sale
street National bank IN 1910 when he
was Ia the United States senate, Nh
Holly related
BAD Paper ia Bank
We shall contend. said Mr. Holly.
that Mr. Lorimer was in a position to
influence the national bank examiner.
There was large amount of bad pa
per In the bank. The owners were
political friends Of the then senator
Bank officials made no effort 10 get
I'D OF this paper, but instead the bank
changed its charter from the national
o the state form and became the La
Sale street trust and Savings hank
Mr. Holly said that the first act of
was committed in making
his transformation lie said that MI
.orimer although Without that
amount of money on deposit, gavel
notes for an aggregate OF S1,250,000i
o the Ia sale Street bank in return
Mr. l.urimer received cashier
heck FOR S1.2500O0 which he depos-
ted with the Central Trust company,
md The latter sent that much curren-
y to the new state bank.
Funds Were JuggIcd.
Not a cent was paid in" said Mr.. /
Holly, "hut when the state bank cx-
,miner came he found the capital
took, this self-same 81 250000 on
land The examiner counted the
money. gave his approval and de-
larted. Then the money WAS sent back
o the Central Trust COMPANY"
Albert Fink, attorney for Mr. Lori I
ner interrupted to ask if Mr.. Holly
honght that Charles c. Dawes, prcsi-
lent Of the Central Trust company,
nd former comptroller of the curren-
" was a party to the conspiracy.
The jury can decide whether he
Fas u party to the conspiracy, or was
imply Nictimzcd 10y MIR. Lorimer re-
lied Mr. Holly
The prosecutor went into detail of
oans made by the la Sale bank to
Enterprises of Mr.. Lormcr, Mr.. Mum
ay and Harry ". Huttig. the cashier
When the bank failed June II, 1915
he prosecutor said that Of outstand-
ng loans of $3,3o0.0o0, S2,lQ0.e00 had
een loaned to enterprises OF three Of
icets named.
The Lorimer Lumber company, the
PROSECUTOR stated. was financed SO far
IS The defendant Was concerned by a
heck for $4,000 on his bank at a
lime when his account Was already
Nerdrawn 10y $1,000