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The Kirby bank failure in Chicago, has precipitated one of the biggest sensations any failure of the kind ever developed in the state. Chicago pap era this morning plainly charged Mrs. Kirby with apparently being cognizant of the workings of her husband and apparently being a party to his schemes which broke the bank. Because of the positive statements made by the Chicago Press, including comparisons of the former Waukegan woman to Cassie Chadwick and the insinuations of forgery, etc., and be cause of the great interest manifested by Waukegan people in the case, ex tracts from Chicago papers today are of interest“ Inter Ocean. The Inter Ocean said: Did the mind of a woman, clever in the tricks of finance, inspire and carry out the remarkable series of money juggling that came to a climax recent ly, in the failure of the Kirby Savings bank? This woman is Mrs. Margaret Kirby, wife of the banker. Whether she actu ally is a second Cassie Chadwick, or she is what she claims—a lov ing wife and mother who allowed her husband's insane ambitions to direct her better judgment—has not yet been determined. The spectators were startled yes terday when evidence was introduced that purported to show Mrs. Kirby to be an adept in bank “kiting” and even in forgery. It was alleged she would make out checks, payable under an assumed name and to the order of a fictitious person or firm, and that her husband then would forge the names of the payees and cash the checks. But during this testimony the smile on the face of the woman never dis appeared. She whispered chattily with her counsel and during the most dam aging parts of the evidence would turn in her seat apparently to study the gowns of the women in the room. Tribune, The Tribune said. Forgeries, fake bank accounts, and financial manipulations that resulted in a loss of $10,000 to another private bank—the Slavic-American—formed the testimony of witnesses yesterday. It also was shown that the insanity plea of Dr. Kirby, head of the defunct institution, had not been discussed up to noon of the day he was adjudged insane in Judge Owens’ court on Nov. 1st. Testimony of Joseph F. Triska, head of the Slavic-American bank, practi cally shattered the story of Mrs. Mar garet Kirby, to the effect that the banker-physician was swindled out of the bank’s funds by a gang of “wire tappers” and confidence men. Triska declared he had conferences with both Dr.and Mrs. Kirby after he discovered a $10,000 check given him by Dr. Kirby was worthless, and that Dr. Kirby “confessed” he lost the money specu lating on the stock market. “Dr. Kirby called me up on the tele phone Oct. 29,” he asserted. “He ask ed me for $10,000 in $1,000 bills and said he would send me his check for it. I did so.” ‘The witness them stated that his messenger brought the $10,000 from the downtown bank to the Kirby bank and received a check for it. This was the money which Mrs. Kirby took with her in a taxicad to the Blackstone, “Did you have any other conversa tion with Dr. Kirby?” “Yes, at 5 in the afternoon when I returned to my bank I found both Dr. B. Sentry in my private office waiting for me. “Judge Lantry said; ‘I suppose you were teary cod tame as I said that I had so discovered. Both Dr. and Kirby then said every thing I be fixed up by the next day. I told them I wanted better as: ‘ sidigne 304 ° with Mrs. Mary Durkin, her mother. I heard he say. ‘Now » I want you to “Did you meet Dr. Kirby again?” “Yes, the next day, Dr. Kirby and Attorney Lantry, were at the Kirby bank when I called there in regard’ to the note. Then we went to Mr. Lan try’s office, where we met Mrs. Dud kin and Mrs. Kirby. Mrs. Durkin told me she wouldn't sign any note unless she could be assured it would straight en out the doctor’s affairs once for all. Mrs. Kirby urged, her mother not to sign any note unless Dr. Kirby was cleared of all other matters,” “At these various conferences with Dr. Kirby and his wife did anyone.say ing about Dr. Kirby being an in sane man?” Judge Landis asked. “No, sir. Nothing like that was men tioned. Dr. Kirby walked as erect as I do, and there was nothing to show he was insane.” Alexander J. McAllister, a paying contractor, was shown numerous checks indorsed with his name. He declared he had not signed them and that they were forgeries. The checks varied in amounts from $500 to $1,000, and were signed “Mrs. N. 8. Lamb,” the name Mrs. Kirby admitted she used in opening several bank accounts. Chicago, Nov. 19—The insanity plea of William T. Kirby was to be the target of lawyers for the Central Trust company, receiver, and for the creditors of the bank today before Judge Landis, Dr. J. C. Belham. 1757 West Fifty- First street was to be the first witness after the defense of the banker's wife had been concluded. The attorneys for the prosecution expect Dr. Belsam to testify that he was offered inducements if he would swear that Dr. Kirby was insane, so that the banker might be sent to a sanitarium. Through the physician’s testimony the motive was to attack the insanity adjudication as fraudulent for the purpose of procuring immunity from criminal prosecution. Dr. Belsam, it was declared, was told that he would receive his sav ings, dollar for dollar from the Kirby banks and that relations who were at 80 depositors would receive similar consideration if the physician would attest to an insanity petition. A subpoena for Dr. Kirby was in the hands of U. S. Marshal Hoy or ave the banker to appear before Judge Landis Nov. 25, to answer to the petition of involuntary bankruptcy Attorneys for Mrs. Kirby announced that ‘they had ‘completed the intro duction of testimony excepting to por tions of an amended answer to the contempt order against Mrs. Kirby, which attacked the jurisdiction of the court. The exceptions were promptly sustained by Judge Landis.
Newspaper Details
Libertyville Lake County Independent and Waukegan Weekly Sun
Libertyville, Illinois, US
Fri, Nov 22, 1912
Page 15
Full Page
Clipped by
Emilie B.
USA 22 Dec 2025
Other Publications Near Libertyville, Illinois
Libertyville Lake County Independent and Waukegan Weekly Sun
Libertyville Independent
Libertyville Lake County Independent
