The daily morning journal and courier., 1906-08-08
BANKS VICE PRESIDENT
 TAKEN INTO CUSTODY
FIRST ARREST AS RESULT OF CHICAGO INSTITUTIONS
 FAILURE

Theodore Stensland Charged With ViO-
 Iating the State Banking Laws--Paul
 0. StensIand, Ills Father, and Cashier
 Herring Officially Declared Fugitives
 from Justice--DeveIopmen Reveal
 DeplOrabIe COnditiOns--Even Safe-
 Deposit Boxes RifIed.
 Chicago, Aug. 7.-Theodore Stensland, vice-president of the Milwaukee Ave- nue State bank, was arrested late this afternoon on charge of violating the banking laws of the state. Earlier in the day the institution was placed in the hands of a receiver, and Paul O. Stensland, president of the bank and father of the vice-president, together with Cashier Herring. were officially de- clared fugitives from justice and their personal descriptions placed in the hands of the police throughout the country. This action was taken by the authorities after developments to-day had shown that the finances of the fail- ed institution were in a deplorable con- dition, and had been for number of years. Besides the discovery of many irregularities in the management of the bank, 1t was found that even the safety deposit boxes owned and rented by the bank had been tempered with and rifled.
 The specific charge on which Theo- dore Stensland was arrested was that of having accepted deposits at the bank when he knew the institution to be ln- solvent. The arrest was made in the office of Chief of Police Collins, where Stensland had gone to confer with the head of the police department.
 The warrant was sworn out by J. F. Straub, a liquor dealer, who declared that last Saturday he deposited $S5O in the bank, and that Theodore Stensland, as one of the officers of the institution, had knowledge then that the bank was insolvent. Straub contends that the yice-president should have notified the acting officers of the bank not to re- ceive any deposits, but that this had not been done and his money was talk en in violation of the state banking laws
 Later in the day Jacob J. Kern, former state attorney, signed bonds for $5 1000 for the release of Theodore Stens- land.
 The promises held out yesterday that the elder Stensland would appear in Chicago to-day were not fulfilled, and it is the belief of the police, based upon dispatches from several northern cities, that he has fled into Canada. Cashier Herring, sought on a similar warrant, is thought to have reached the Dominion by another route.
 The days developments were produc- tive of the first ray of hope for the de- positors who yesterday believed their savings of years swept away in the wreck. David R. Forgan, vice-president of the First National bank, and such of those to whom the status of the de- funct banks affairs has been laid bare declared that probably seventy cents on the dollar would be paid in the tinal ad- justment.
 The affairs of the bank are said to be in an almost hopeless tangle, and more Irregularities are being disclosed as the examiners go deeper into the books. President Stensland loaned money to himself, it is alleged, by the subterfuge of having employees sign the notes Spe- eific instances came to light during the day of the footing of the safety deposit boxes, One in particular, to which the attention of the police was called was that of Mrs. Lydia Herman, who de- olared that $150 of her funds had been taken.
 The clearing house committee is spar ing no effort to bring the missing pres ident to justice Handwriting experts it Is said. will be put to work at once upon the case to establish the evidence of forgery.
 Belief that Stensland has made his escape into Canada is supported by 6 report from Superior. Wis, to the effec that Sergeant of Police Darwin scoon of that city saw the missing banker on a. Duluth and Superior car en route to Superior. Another dispatch iron Superior, from Chief of Police McKen nan. tended to show that Stensanc made his way to Canada by boat iron Duluth. Cashier Herring is thought t have reached the line by way of De troit.