The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1906-08-07
Big CHICAGO
BANK FAILS
Defect Said to Reach Nearly
a Million.
SPECULATION THE CAUSE
Officials Have Fled and One
Ruined Deposition Has Com.
mitled Suicide.

CHICAGO, Aug. with a deficit In
Us accounts of close to Sl.OOOOOO and
with the whereabouts of two of It's
chief officers unknown 10 the authori-
ties, the Milwaukee Avenue State
bank. one OF the larger outlying banks
In Chicago. was closed by State Bank
Examiner c. c. Jones. The bank had
deposits amounting TO about Si.OOO0OO
and loans and credits TO about the
same sum.
The failure was responsible for the
death Of one of the depOsitOrs and led
10 the suicide of another man who a
month ago had placed the earnings Of
a lifetime In the institution. In the
excitement following the announce
ment OF the failure j. c. Wiser, an of
hcer of tile Royal league who had on
deposit In the bank funds Of that or
ganlzation. fell dead. Henry KOepke,
a grocer. on hearing that the bank had
suspended payment, went to the rear
Of his store and shot himself. lie died
a few minutes later.
Riotous scenes attended the an
nouncemeut Of the failure, and large
force Of policemen struggled all day to
keep an excited crowd Of depositors,
nearly all of whom were foreigners
and many of whom were women, from
rushing the doors Of the institution.
The fact that the bank was on the
verge Of failure was first revealed by
the president of the institution, Paul
o. Stensland, in a letter written from
ST. Paul TO his son Theodore. who 10
was received last Saturday. and il
started the investigation which brought
about the suspension.
Cashier Henry w Herring has dis
appeared, and warrant has been is
sued for his arrest on a charge OF EN-
beZzlement.
The first public intimation that the
bank was in trouble was the posting
of notice az the beginning OF bank
ing hours by Bank Examiner c. c.
Jones stating that business had been
suspended for the purpose of making
an examination of the banks affairs
and that the institution was in the
hands Of the state auditor.
The news spread rapidly throughout
the entire northwest side OF the city,
where the bank had been for years Il
popular depository for funds saved by
working people. Soon clamorous
crowd gathered before the doors and
demanded admission. Anticipating
trouble. a score of policemen were sent
TO the bank. The people were permit
ted to file past the doors bearing the
posted notice and We're compelled to
keep moving Only those having keys
to safety deposit vaults were allowed
to enter. Many burst into tears when
they found that their savings We're en-
dangered
After receipt of tho letter from Pres
ident Stensland and acting on instruc
tons contained therein, Vice President
Theodore Stensland opened a deposit
box and discovered proofs that the
banks funds were in bad shape. Pres
ident Potter of the American Trust
and Savings bank, which acted as
clearing agent for the defunct iDstitu
ton, was called into consultation. The
state auditor was informed, and he
sent Bank Examiner Jones to make a
full investigation. The shortage Of be-
tween $4,000 and Sl.00000O is said
to be due to speculation in real estate
and in the security market Members
of the clearing house committee We're
told that most of this amount was UNI
protected by adequate collateral. The
Stensland family owned much of the
bank stock.