Arizona republican., 1906-08-10
THE CASHIER
 SHAMELESS
Not Responsible He Says
 for the Collapse
President Stensland Alone PrOfited by His Peculiar Banking System.

Chicago. Aug. 9.-Henry w Herring
 cashier of the Milwaukee Avenue
 State bank. which closed it's doors
 three days ago, was arrested today and
 will be refused his release on bail
 until his connection with the dfsap-
 pearance of nearly S1.0OO,000 of the banks funds is cleared up. Paul O.
 Stensland, president of the defunct in
 stitution is still a fugitive and all
 though nearly 100 detectives are searching for the missing president, his whereabouts is as much a mystery as ever.
 Herring was arraigned this afternoon
 two hours after he had previously an- nOunced that he would give himself up. He was taken at once to the office of Chief of Police Collins and put
 through a thorough examination as to
 his knowledge of President Stensland's
 mismanagement of the institution.
 Herring declared that he did not know where President Stensland was and had not been in communication with him for over a week. The cashier strenuously denied the charge that he l himself. was partly resonsfbIe for the failure Of the bank. Herring maintains that if he is guilty of breaking the banking laws of Illinois, President Stensland is responsible as Herring i in his examination declared he never benefited q single dollar by Prtsi- dent Stenland's peculiar system of banking.
 Bank EXaminr Jones and Assistant ! States Attorney Gleason were present during the examination of Herring. Neither they nor the police officials
 were satisfied with the explanation given by Herring of his connection with the collapsed bank. and it was accord | ingly decided to refuse bail to Herring until the matter has been further fn-
 vestigated
 Receiver Fetzer reported to the su- perior court today that a dividend of at least 25 per cent would probably be declared for the depos,tors in the bank within the next two weeks This. it | is said. will be followed by a second dividend, although the receiver tonight
 was not in a position to state how
 much of their savings the 22,O0O de-
 positors would recover from the de-
 funct institution
 At q meeting of the board of direc-
 tors of the bank this afternoon a reso-
 lution was adopted appointing a com
 mittee to devise ways and means for experimenting President Stensland and
 strengthening out the affairs of the
 bank. The directors declare that there
 will be found a sufficient revenue from
 the property. assets, etc. to pay all the
 depositors in full
 The Chicago Title & Trust company at II o'clock was appointed receiver of
 the personal estate of President Stems Ian Tf.1 .A-N,
 The appointment was made by Bank ruptcy Referee Eastman on the peti- ton of three of the creditors. It was feared that because of SStenslands flight from Chicago he would transfer his estate and defeat his creditors.
 At midnight a further examination Of the books by representatives of the state, assisted by Cashier Herring. was postponed until tomorrow. At that time all available books had been ex- amined. Other books were in the vault. which was locked by a time lock and could not be reached until tomorrow. Assistant States Attorney olsen said many instances had been found of vio- latiOn of the state banking laws, espe- cially as to loans. Just how far these violations extend cannot be determined until tomorrow, when the securities 5ANGiA AOl AAAC lOcllo Cctll UC GAdIulIleu.
 Attorney Olsen said that in many in stances more than 10 per cent, and in some cases 25 per cent. of the capital stock had been loaned to persons con nected with the bank. It was discov- cred that Paul O. StensIaud had loaned the Paul o. Stensiand Real Estate company S1.30O,0OO. Four loans amounting to $91 900 had been made to as many persons, who, it is said, are clerks in the Milwaukee Avenue Co., operative store, ono of President Stems lands ventures
 The most startling discovery of fraudulent work was a side ledger, which Cashier Herring took from hid den drawer. This, he Is said to have admitted to the investigators. was kept from the state bank examiner in his annual visit to the concern. In it, so far as the investigation was made to- night, were found entries of loans