The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-08-08
Of Enormous Size Exploded in
Chicago Real Estate Circles
by Absconding of Banker
Stensland.
BIG LOANS MADE
ON IRVING PARK
Realty From Dep0sit'r'' Money
Crash Comes With Banks
Failure.

o o o o o o o o o o o y @ o o o o o
o Chicago, Aug. S-"Wildcat" o
o real estate financeering by Paul o
o y. Stensland in his Irving Park o
o subdivision will be disclosed It o
Q was predicted today rs soon as ]. o
. E. Fetxer, receiver for the wreck. o
o ed Milwaukee Avenue State bank, o
. checks up on the mortgages and O
. notes given by hundreds Of in. o
o. yesters who hung on to the "bHb. o
. bleo let loose by the missing bank o
Q president. o
o The slump IN the value at this .
o time, which Is feared will come, o
o would cause much suffering and o
o loss to owners. 1t has been learn. o
o ed that loans have been made on o
o houses In that subdivision up to .
o within eighty per cent Of top 9
o notch value. The cash came from .
. the savings of depositors Of the o
o suspended bank. Scores Of houses o
o were constructed in the subdiyi. o
Q sion which were declared at the o
Q time to be too expensive for the o
Q character Of the section. Today o
. wOe.begOne crowds Of depOsit0rs o
. continued to crowd around the O
o bank rs on previous days. The o
o unf0rtunates, mostly working o
o people, came early and seemed .
o determined to remain indefiniate. o
o ". The police were on hand to .
o repress any tendency toward dis. o
. order. .
o s>$~~>~ 90 - . o o o Q
Paul o. Stensland. the millionaire
president of the Milwaukee Avenue
State bank. was oficially declared to
be a fugitive from justice. With his
personal description in the hands Of
the police everywhere and his bank
in the possession of receiver. hourly
developments showed q deplorable
state of finances extending over term
of years. 1t was discovered that even
the safety deposit boxes Of the in
stitution had been rifled.:
The promises held out that the
elder Stensland would return to Chi
cago were unfulfilled and it is the be-
lief of the police, based on dispatches
from several northern cities. that he
has fed into Canada. Upon his failure
to return, a warrant was issued for
his arrest. charging embezzlement and
violation Of the Illinois banking laws.
Cashier Herring, sought on similar
warrant, is thought to have reached
the Dominion by another route.
Yesterdays developments were likS-
wise productive of the first ray of hope
for the depositors who believed that
their savings of years had been swept
away in the wreck. David R. Forgan,
vice president of the First National
bank and one of those to whom the
status of the defunct banks affairs has
been laid bare. declared that possibly
20 cents on the dollar would be paid
in the final adjustment.
The affairs of the bank are said to
be in an almost hopeless tangle. ir-
regularities being disclosed as the ex-
aminers 60 deeper into the books.
Conclusive evidence has been un-
earthed by State Bank Examiner C. C..
Jones, that Paul o. Stensland, the
fugitive president of the Milwaukee
Avenue State bank has been guilty of
highly criminal acts in conducting the
business of the institution of which
he is the head. This was officially an
nounced by Mr.. Jones today at the
same time. the culpability for the
crimes which have brought far-reach-
ing disaster on the northwest side is
narrowing more and more to Presi-
dent tSensland. Henry w. Herring, the
missing cashier who was declared to
be an embezzler of large sums of
money, is being in a measure exon
Grated because of the lack of direct
proof against him. when l swore
out warrant for Stensland yester-
day." said Mr.. Jones today. II was
perfectly assured Of the criminal ma
ture of the acts of which the banker
has been guilty. Against Mr.. Herring
I have no direct evidence" Jones con-
flrmei the statements that the frauds
amount to over 81, ,000, 900.