Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-08-07
MILLION DEFICIT
Forces Strong Chicago
Bank to Close Doors.
President and Cashier Of Nil
Waukee Avenue Bank Missing &.
A Deposition Dies From Shock Another
Shoots Himself .-Riotous Scenes.

Cnlc3SO, Aug. 6.-With deficit in its
accounts of close 10 81 100000 and with
the whereabouts of two of it's chief Off
GERS unknown to the authorities the
Milwaukee Avenue State Bank, one
of the largest outlying bank in Chi
cago, was closed today by State Bank
Examiner Z. c. Jones. The failure
was responsible for the death of one of
the depositors, and led to the suicide Of
another man, who O month ago had
placed the earnings of a lifetime in the
institution. In the excitement follow
j. G. Wiser. an officer of the Royal
league who had on deposit in the bank
funds Of that organization, fell dead.
Henry kocpke, grocer. on hearing
that the bank had suspended. went to
the rear of his store and shot himself
He died a few minutes later. The bank
had deposits amounting to about 81,
900, 900 and loans and credits to about
the same amount.
EiotOus scenes attended the an
nouncement of the failure and a large
force of policemen struggled all day tc
keep an excited crowd of depoSitOrS
nearly all of whom were foreigners, and
many of whom We're women, from
rushing through the doors of the in
stitution. The fact that the bank was
on the verge of failure was first re-
vealed by the president of the institu-
ton. Paul O. Stensland, in a letter
written from St. Paul to his son Theo-
dore, who is vice president of the bank
The letter was received last Saturday
and it started the investigation which
brought on the suspension.
Cashier Henry w. Herring disap-
pcared and n warrant was issued for
his arrest on a charge of embeZZlement
The first public intimation that the
bank was in trouble was the posting
of notice at the beginning of bank
ing hours by Flank Examiner Jones,
stating that business had been SuS-
pended for the purpose of making an
examination of the banks affairs and
that the institution was i'm the hands
of the state auditor.
The news spread rapidly through the
northwest side of tie city, where the
bank had been for many years a pop
ular depository for funds by work
ing people. Soon a clamorous crowd
gathered before the doors and de-
manded admission. Anticipating trou-
bic. a score of policemen were sent to
the bank. The people were compelled
to keep moving, and only those hav-
ing keys to safety deposit vaults We're
allowed to enter.
An examination of the banks affairs
was begun quietly last Saturday fter
the receipt of the letter from President
Strenslnd. Acting on instructions con-
tainel. therein. Vice President Theodore
Stensland opened a deposit box and
found proofs that the banks funds
were in bad shape. President Potter of
the Anne rCan Trust and Savings Bank
who acted As clearing agent for the lie
funct institution, was called into con-
sultation. The state auditor was in
formed and he sent Bank Examiner
Jones to make a full investigation.
The shortage of between $3.50, 900 and
81 900. 900 is said to be due to specula =
ton in real estate and in the security
market. Members of the Clearing
House committee We're told that most
Of this amount was unprotected by
adequate collateral.
The Stensland family owned much OF
the bank stock and members of the
family operated the bank. A state
ment made by Vice President Stems
land today. showed $1.051,OO0 in cash
and had $4,000 depositors.
\ warrant has been sworn out charg-
ing Herring with cmbezzlement. The
police tonight said they believed tina,
Herring was in Detroit.
Fictitious notes to the amount Of
100000 are said to figure in the bank
troubles