The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-04-21
Lorimer Bank Case.


Springfield, ILL.,, April 21.-Recov-
cry of a million and quarter dol
lars, the capital and surplus OF
the defunct LaSalle Street Trust
& Savings bank, from the banks
former board Of directors, including
the "non-active" directors, was
provided for this morning, when
the supreme court handed down
a decision in the suit by the Cni-
cago Title & Trust company.
The eight "non-active" directors
who are held equally with the ac-
tive directors are James E. Ben
nett, George o. Gunderson, Thom-
as J. Magner, Joseph Hook, William
A. Gardner, Elbridge Hanecy, Pat
rick NJ. Hanney and Harry w. Hat
tig.
Charles B. Munday, who was vice
president of the bank, and who is
now serving a term in the peni-
tentiary for his part in the banks
failure, heads the active directors
who are held. They include W:i-
liam Lorimer, Thomas Mcdonald,
Charles E. Ward and Charles G..
Fox.
The case was reversed and re-
manded with directions.
Directors of the LaSalle Street
bank were also held liable for the
100000 Of the charges. The su-
preme courts opinion in the case,
was in mart as follows:
The charges contained in the
amended bill were that these de-
PENDANTS (non-active directors)
gave no supervision and made no
I inquiry whatever, notwithstanding
they were directors of the bank
and had knowledge Of the incompe-
tency and dishonesty of Lorimer
and Munday and their fraudulent
misuse of the funds Of the. bank.
| To say that such a charge in a bill
is not sufficient to hold directors
liable, il so proven, would be 10
render indeed hazardous the depos-
it of money in banks.
! Were we to hold that directors
of a bank are required only to ex-
ercise slight care or that when
elected as directors they may be-
come what is characterized by the
appellate court as inactive" men,
bers of the board, who may give
no attention whatever to the busi-
ness of the bank, but may be mere
"figureheads," few persons would
be willing to deposit money with
or take stock in such corpora
tions.
"It is matter Of common
knowledge that men Of strong finan.
cial ability are asked to serve as
directors of banks because Of the
feeling of security which the pub
lie will have from their connection
with the corporation.
i I'VE are Of the opinion that the
amended bill states a good cause
of action as to all the defendants
For error in holding otherwise, the
judgment Of the appellate cour1
and the decree Of the superior court
are reversed and the cause re
manded to the superior court will
directions to overrule the demur
rer."
Effect Of school decisions Of thu
supreme court this morning, OF
300 community high school dis
tricts in Illinois. is problematical
The decisions were handed down
, one upholding the election il
Thomasboro. Champaign county
and reversing and remanding tn,
case, and the other holding tina
the Chatham district in Sangamol
county is entirely invalid.
j Bars Peggy's Boy.
\ Springfield, H., April 2i.-Henr,
: Anthony Marsh. reputed son o
Henry Field Of Chicago and tn
-iLondon chorus girl. Peggy Marsh
} is not entitled to inherit any Of tn
l Marshal Field millions. The su
: preme court SO decided this morn
: ing in ruling that the Marsha
E Field will specifically exempts fron
! inheritance any illegitimate of
, spring.
Springfield Ill.,. April 21.-Re
! versing the twice repeated decision
| in the lower court, the suprem
: court this morning gave DR.. Lii
liam Hobbs Of Chicago anothe
. chance to prove her innocence 9
: the death of Aida Christophersor
The court sent the case back for
D new trial.
o DR.. Hobbs was convicted Of hav
1 ing caused the death Of Aida Chris
e topherson by abortion. and wa
t sentenced to 10 years In the Jolie
penitentiAry. DR.. Hobbs was COT
{ victed by two juries, one in Jul.
1917, and again in December, 1S1!