Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-09-22
NOMINEE DAVIS
(Continued from Space One)

propose to put in any additional
money. Much of the banks money
had been loaned to officers and direc-
tors and friends of LOrimer and his
associates.
1.-The new bank announced cap
ital and surplus of $1,250,00O. Under
the state banking laws of Illinois 1t
thereupon became necessary to snow
the State Auditor Of Public Accounts
that the new bank actually had ST.
100000 in cash. Lorimer's new bank
did not have $1,250.O00. Efforts were
made to obtain that amount in Chi
cago and New York and failed. Then
Banker Lorimer appealed to Banker
Dawes, head Of the Central Trust
Company. Here's what happened.
"On the afternoon of October Fl,
1912 Dawes turned over to Lorimer's
The agent of the State Auditor Of
Public Accounts counted it and is
sued certificate authorizing Lori
mer's bank to do business. Then the
sl,250.OOO was handed back to Dawes
Central Trust Company. All In one
afternoon The La Sale Street Trust
& Savings bank thus began business
with an advertised and certified capt.
tai and surplus OF $ 1,250,000, when as
a matter of fact there was nothing
in the flank to represent this sum.
You people of Chicago know how
long Lorimer's bank lasted. Within
go months 1t has been closed and
receiver appointed. It's assets were
found to be $2,000.000 less than need
ed to satisfy depositOrs, mostly little
folks. Three thousand of the depos-
itors were in the savings department.
In addition to the depositors large
number of small stockholders in the
bank lost their investment
THE part that Mr.. Dawes had
taken in this transaction became
known when the receiver. appointed
by the court, tried to find the $780,
600 of cash which had been exhibited
to the state auditors agent the day
the bank was given permission to do
business. So he brought suit in the
Cook county circuit court to hold
Dawes bank liable for the full ST.
100000.
THE court held that Dawes bank
must pay over to the receiver. for the
benefit Of the creditors. that $780,
900. with interest amounting in all TO
81. 437. S54:16. Dawes naturally APP
pea,ed and the case remained in the
courts until July II of this year. The
very day that Mr.. Dawes was NOM
mated, by long distance telephone
FROM the White House, for the office
of vice president. the supreme court
of Illinois handed down a final de-
cree in the case. Seven years of
lighting back and forth through the
courts had whitfield down the
amount that Dawes bank must pay
to S1OO.O0O. He had succeeded in
reducing his liability this much. but
never for a moment did he escape
the responsibility for his astounding
cheat upon the public.
80 much for the record of Mr..
Dawes. the banker. We now come
to his record as a general---as a gen.
cral OF the Minute Men of the Con-
stitution. In April. 1929. he had
conference at Miami. Florida. with
Attorney General Daugherty. He
came back to Chicago then and Or
ganized the Minute Men OF the Con-
stitution. Just how General Dawes
proposed to use his little army was
not made clear until he issued his
first call TO arms. 'Dhe first battle in
behalf of the Constitution ordered
by the general was here In Chicago
o year ago when he directed his
Minute Men to go to the polls and
vote for two judges. then up for re-
election. One Of those two judges
was the same who had been con-
cerned in the litigation over Dawes
bank.
Senator Wheeler previously had
reviewed the litigation which finally
resulted in reducing the liability Of
General Dawes bank to 100000.
''In his official call to the Minute
Men, General Dawes gave as his ex-
cuse the fact that certain labor lead
.crs had attacked two judicial cam
didates as injunction Judges This
was local election and you are all
doubtless familiar with the facts
Speaking of the labor leaders Cen
eral Dawes said:
"'They assume that the acts and