Newspaper Page Text
- j r'f -tri ! ""tsc
CENTRAL TRUST CO. SUED FOR $1,250,000 BY
RECEIVER OF LORIMER BANK
Behind the La Salle Street bank
smash and the -wrecldngf Billy Lor
imer as a bank president stood some
body that made the flim-flam respect
able up till time of closing.
Somebody had to fix things outside
the bank so the bank could make a
showing of much cash and resources.
Who is this somebody?
The Central Trust Co. had. a hand
in "a case of fraud," according to
statement of Judge Windes yesterday
when it loaned the Lorimer bank $1,
250,000 for a few minutes while the
state bank examiner was in town,
provided creditors' allegations are
W. C. Niblack, receiver for Lorimer
bank, and people who lost most of
their handy cash when the bank blew
up are pushing suit in Windes court
to force Central Trust Co. to pay over
to the bank's creditors the $1,250,
000 through which the LorimeV bank
plugged the holes of its deficits on
paper and went on running.
"I think from the facts alleged in
the bill as to transactions between the
Central Trust Co. and the La Salle
Street bank and its officers that it is
clearly a case Of fraud, if those alle
gations can be supported by proof,"
was Judge Windes statement yester
day. "Our case looks favorable," said
Receiver Niblack. Pinal hearing on
cross-bills filed by Central Trust Co.1
attorneys may not come for a year
or more. If creditors are in the end
able to force payment of the $1,250,
000, it will be several years before it's
done with in courts.
Charles G. Dawes, president Cen
tral Trust Co., -will be a leading wit
ness for the defendants. He is ex
pected to tell how and why he be
came a financial crony of Billy Lori
mer and Charlie Muhday. The actu
al technical transfers of the'deal were 1
made by William Dawes, cashier, and
brother of Charles G.
The alleged flim-flam came off
when ten Lorimar bank stockholders
signed notes for $1,250,000. Dawes
institution then loaned these ten m"en
$1,250,000 on these notes. v
Some of the note-signers were
financially flatter than a pancake. It
was safe for Central Trust Co. to let
them have the cash, however, be
cause the cash never passed beyond
the doors of Central Trust Co.
It was counted by the bank exam
inter as Lorimer bank cash. Then it
was tumbled back into Central Trust
Co. vaults. The ten notes were can
celed. The bank examiner could truthful
ly write in his report he had that day
counted $1,250,000, which on the face
of records belonged to the Lorimer
Directors of Central Trust Co. are
A. J. Earling, Arthur Dixon, Charles
T. Boynton, Alexander H. Revell, S.
M. Felton, Theodore W. Robinson,
Chandler JB. Beach, Z. G. Simmons,
Howard G, Hetzler, Max Pam, H. A.
Langhorst, A. Uhrlaub, A. R. Barnes,
Walter H. Wilson, George Woodland,
Joseph E. Otic, Burton F. Peck, Jas.
W. Stevens, W. O. Johnson, R. Floyd
Clinch, William C.Royden, C. B. Sco
ville, Charles G. Dawes, Landon C.
Rose, A. M. Johnson.
Charles G. Dawes was once con
troller of U. S. treasury and is one
of the favorite speakers of big busi
ness clubs on such subjects as pros
perity, national integrity and the
need for confidence in the financial
On the importance of confidence
as a factor in finance, Dawes is eas
ily the most eloquent orator in the
middle west Nobody but Frank
Vanderlip holds a candle to him in
banking circles when it comes to
pointing the need for public confi
dence in. banks.. '