The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-02-17

Charles II. Wulte, q hioAHD0A W
legislature, who had voted for Lori
mer, made a written confession I'M
der oath that he had received a bribf
for his vote and that a "jack pot
corruption fund had been used In the
session to influence Legislation.
Lorimer was born in Manchester
England, in 1851, the son of Pres
byterian minister who emigrated
with his family TO this country and
settled in Chicago when yound Lori.
mer was nine years old. He sold
newspapers on the streets of Chicago
drove laundry wagon and became a
street car driver before entered poll
tics. He served twelve years In Con.
gress before he was elected a United
State. senator, May 26. 1908.
Munday was a messenger boy ana
then became a telegraph operator IN
bis home town Of Litchfield, III. La
ter he became Interested in the grain
business, and in 1910 came to Chica-
20 and induced Lorimer to enter a
bank with him. May 10, 1910, the La
Sale Street National Bank opened
Its doors with William Lorimer, pres
ident, and Charles B. Munday vice
president. The institution was de
MED full admission to the Chicago
Clearing House and for time Oper-
ated by clearing through another
bank.
October %, 1912. the La Sale
Street National Bank was converted
into the La Sale Street Trust and
Savings Bank, state institution.
The state bank assumed all labil-
tiles and assets Of the National, keep
ing the same capital, $1.OOO,OOO, and
the same surplus, $250,0O0.
In the course Of the next year, hall
a dozen smaller neighborhood banks
were organized in Chicago by Lori
mer and Munday and became known
as subsidiaries OF the La Sale Street
Trust ana Savings Bank. In addition
to these, Munday was interested IN
several down state BANKS which had
business dealing with the La Sale
Street Crust and Savings Bank.
June -, 1914, Daniel V. Harkin.
state bank examiner, appeared at the
La Sale Street Trust and Savings
Bank two hours before the regular
time for opening. Reports that the
parent institution was insolvent had
led to a serious run on the bank by
depositors. Harkin, after a brief ex-
animation of the banks affairs closeo
the institution. Within few weeks
all the subsidiary banks closed. The
Munday down state banks later felt
the effect Of the collapse OF the La
Sale Street Trust and Savings BANK.
Receivers also were named for sever
al of the subsidiary banks. Mean
while the United States district at
torney and the states attorney OF
Cook county had begun an investl-
cation of the banks affairs. Numer-
Gus business enterprises Of William
Lorimer and Charles B. Munday fol-
lowed the bank into insolvency.
Investigation showed that the
greater 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 of these investigations
indictments were returned against
I.orimer, Munday, Huttlg and others
by both federal and state grand
jurles. 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 state institution, October 22,
1914.
The bulk of the state indictments
were returned by the Cook county
grand jury October FL. 1912. These
were against Lormer. Munday, Hut
tig and other officers and employees OF
the bank and former officials oil the
state auditors Office.
The fourteen persons named IN
the indictments were alleged to have
looted the Lorimer-Munday instltu-
tions of nearly $2,500,O0O, with vio-
lations of practically every banking
law in the state.
1t 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
insolyent for some time prior to the
collapse.
States Attorney Hoynes planned
to try all the defendants together.
The DEFENDANTS opposed this and en-
tered 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,
Grundy county, for trial.
The Loriner-Huttig case was ex-
pected to go to trial early in Janu-