Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1924-10-03
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MIR. DAWES AND THE LORI.
MIR BANk

Mr. Dawes may lay claim TO the
Biblical virtue Of a man "who swear.
eth TO his own hurt yet ehangeth not" F"
When his part In the Lotlmer bank
incident is cited, as II Is cited by the
state Federation Of Labor. Mr.. Dawes
might tfuthtully say. II still continue
10 stand for aud by the courts though
/ haven't fared particularly we'll at
their hands,
For the rest the incident Is not to
Mr.. Dawes credit. The facts as stated
in the declaration adopted by the state
federation are correct. |, contains
the thought, II not the language Of
the supreme court. What the Central
Trust Co, Mr.. Dawes bank did, was
10 furnish William Horace Lorimer
81, $4,000 which WAS counted by a
state bank examiner as the properly
OF the la S,,lle Street Trust and
Savings bank which lorlmef organ.
lied when his La Sale Street National
bank was going on the rocks. The law
requires that TO begin business state
bank must have capital stock and sur.
plus on hand with no liabilities.
Mt, Lorimer did not haze the money
50 be fesorted 10 the simple expedient
Of getting II from Mr.. Dawes, Taking
with him Rife, the bank examiner
~ the state auditor and enc Of the
directors Of the new institution Lori.
mer vent To the Central Trust com
pany, The supreme ccurt record tells
the rest:
There Sl,260.000 in currency was
delivered to Lorimer by the cashier
Of the Central Trust Co. Rife count.
cd the money aud returned il to Lori.
mer together with the auditors Ger.
tifcate authorizing the trust and saw.
ings bank to commence business as 8
bank, Lorimer handed the money
back TO the cashier, who returned the
e7shier's check, indorsed by the Cen.
tral Trust Co. without recourse.
When the La Sale Street Trust &
Savings bank was closed by the state
auditor, as IT was two years later,
with assets insufficient by $4,000, 900
TO meet the claims Of depositors and
creditors the receiver brought suit
against the Central Trust Co, Mr..
Dawes bank, on the grounds that IL
had received funds belonging TO The
defnnct institution and refined them
without authority of law.
The case went to the circuit court
which found the Central Trust Co.
liable to the amount of 81 ,as7, ,Sbi.l6.
The defense set up the plea that the
whole transaction was done and car
ried out by William X. Dawes, cash.
ier of the Trust company under the
authJrl.y and direction of Charles G..
Dawes without the knowledge of the
board of directors and that the acts
done by them, the Daweses, were be-
yond their authority.
The Supreme court took a different
view, and held the Trust company
responsible. 1t swept away the teehn-
cal defense that the auditor had
counted the money and had satisfied
himeslf that ii was all there, the
opinion drily remarking that "of
course, the auditors agent was not
brought there to satisfy himself that
there was that much money in some
bank in Chicago, and of course no
Dou9 lHouRHl 80.
However, the supreme court held
that the Central Trust Go. was only
liable for the amount TO which the
capital stock of the National bank
was impaired at the time of the trans.
fer TO the state bank and the case
went to a master in chaneery for a
Of the value of assets
The only possible moral defense
that Mr.. Dawes could offer was that
he did not know the law Of the state.
a plea that the court said was inn
material, or that he did not know the
Of the Lorimer bank, and .,
would be a libel on Mr.. Dawes
ability as a banker to say that he did
not know what everybody knew.
Mr.. Dawes can be relieved Of the
charge OF fascism which the state
federation brings against him. His
minute mems" organization was, az
he explained il, an attempt by non
partizan effort 10 get good men into
office. The unions conceived 1t to be
an attempt 10 establish the omen shop,
a thing which Mr.. Dawes ii claimed.
But Mr.. Dawes enjoys no special i'm
munities. As a candidate he must
expect attacks, and in reeiting the
Lorimer bank incident the state fed
Grafton has hit him in a Vulnerable
spot.-Decatur Herald.