The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1906-11-15
The Steel Ball Corporation, Of
Kenosha, is Mixed in Stems
land Bank Failure
THEY BORROWED $4,000
The Steel Ball Company Was Organi-
zed Here in 1897 BY Kenosha
Citizens, But Never Trans
acted any Business Here

A Kenosha corporation is to play
an important part in litigation, fol-
lowing the closing of the Milwaukee
avenue bank in Chicago, as it is now
learned that Paul O. Stensland, presi-
dent of the wrecked bank, was one of
the chief hackers of ''The Steel Ball.
company, a company formed in this
city for the purpose Of engaging in
the manufacture of steel balls and
other machinery.
The company which is now figuring
in the case to the extent that its officers
may be summoned before the grand
jury was organized here by Attorney
G. r. Mcdowell in the fall of 1867,
and the incorporates we're all Ken
osha men. These men stated that
they simply acted as incorporators of
the company, aud that the business
of the company was not at any time
under their direction or guidance.
The charter of the company which is
now on file in the office of the register
of deeds here, shows that it was or
ganized with a capital stock of $780,
600, and to ali intents and purposes
Kenosha is still the place of the prin-
cipal Office of the company notwith-
standing the fact that the company
never did a cents worth of business
in the city.
Stensland was given to understand
that if he did not continue to hand
ovar rr1onou ~ r,4v, +La h,,c;uacc IF Al a
factory he would lose all the money
| that had gone before that the Steel
Ball company would fail if his support
were withdrawn, and the whole status
of the financial proceeding would be
disclosed to the irreparable injury Of
the Milwaukee Avenue. State bank.
Whether this can be constructed in
to obtaining money by threats is a
question for the states attorney and
the grand jury to decide. That it will
be decided this week is reasonably
certain.
The officers of the Steel Ball COM
pany are:
President William D. Tilden.
Treasurer. l.. Graham.
Secretary G. Hill.
All are Chicago men.
Notes of the face value of over
$50, 900 given by the concern to the
bank for borrowed money and over
drafts is another matter that has been
occupying the attention Of the states
attorney and his handwriting experts.
~
whether any sof these notes were spu-
rious. He went into considerable de-
tail as to the manner in which they
were given to him in exchange for
the banks cash.
! The disuse of the bicycle was the
primary reason for the straits in
which the Steel Bali company found
itself several years before the failure
| of the bank. When the concern was
in the climax of its prosperity, with
all the orders it could fill and al1uring
prospects, its president, Mr.. Tilden,
went to paul o. Stensland to rent a
building owned by the bank The
corporatian rebuilt the building, made
other improvements and gave the
bank mortgage for $1,000, which
subsequently was reduced to $4,000
From that time on the Steel Ball
company was an incubus. Each of
the three officers borrowed $4,000 and
put up their stock in the company as
collateral. Then there was fourth
loan of $4,000 for the company. It
was represented to Stensland THAI the
concern soon would be making mill
lions of dollars, that it had patent
rights in England that were worth an
| incalculable sum. A cable message
from London was shown to the banker
in support of this last claim, and it
looked wonderfully good, Stensland
| thought.
Then the public suddenly relegated
the bicycle to the scrap heap. It
no longer was fashionable. Steel
balls were drug on the market. The
bank now began to send its good
money after bad. Had it refused to
advance any more money it would
have saved over 100000, but Stems
land was made to believe that patent
oiler and other things, the patents of
which were controlled by Mr.. Tilden
and his associates, would recoup him
for all his losses. One day the trust
ing Mr.. Stens1and went to-an auto
mobile show to make private inquiries
regarding this oiler.
The Steel Bali company began to
overdraw its account three years ago,
and to satisfy the directors of the
bank il gave as many as fifty or sixty
notes at one time or another-repre-
senting a total, apparently, of $3.50,
1000 Stensland felt uncertain about
these notes. He could not find the
names of the makers in any mercantile
agency's reports, but his fears were
quieted by Tilden and Graham and
Hill, who told him that the notes we're
given ''by private parties.
Miss Lena Olson WIS pleasantly SUR
prised on Saturday evening. Games
were played, and later refreshments
were served. AT late hour the young
people left for home, wishing her God
Ispeed on her Journey TO her new