The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-08-10
CASHIER IS HELD,
BAIL IS REFUSED
Officers Are Not Satisfied With
Official Hering's Plausible
Explanations.
HE DISCLAIMS KNOWLEDGE
OF PRESIDENT STENSLAND
One Hundred Detectives Search
in Vain for the Fugi-
tive Banker.

ing, 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 disappearance
Of nearly -Sl,oo0,o0o of the bank 8
funds is cleared up. Paul o. Stems
land president Of the defunct institu-
ton, is still fugitive, and although
nearly one hundred detectives are
searching for the missing president, his
whereabouts is as much Of a mystery
as ever.
Herring was arrested this afternoon,
two hours after the time he had pre-
viously announced he would give him
self up. He was taken at once to the
office of Chief Of Police Collins and put
through n thorough examination rs to
his knowledge of President Stensland's
mismanagement Of the institution.
Denies Any CuIpability.
Herring declared he did not know
where President Stensland was and
| had had no communication with him for
over week. The cashier strenuously
denied the charge that he himself was
partly responsible for the failure of the
bank. Herring maintains that IL be is
guilty of breaking the banking laws of
| Illinois, President Stensland is respon-
sible, as Herring in his examination
declared he never benefited a single
dollar by President Stensland 8 peculiar
| system Of banking
Bank Examiner Jones and Assistant
| United States Attorney Gleason were
| present during the examination Of Her
! ing, Neither they nor the police Off
Gals were satisfied with the explana-
ton given by Herring Of his connection
with the collapse of the bank, and it
was accordingly decided to refuse bail
| to Herring until the matter had been
| further investigated
May Pay Twenty-Five Per Cent.
Receiver FetZer reported TO the SUI
perior court today that dividend Of at
least p per cent would probably be de-
clared to depositors III the bank within
tho 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 $4,000 depositors would re-
cover from the defunct institution
Al meeting OF the board of direc-
tors of the bank this afternoon n reso-
luton was adopted appointing a com
mittee 10 devise ways and means for
apprehendIng President Stensland and
Strengthening out the affairs of ths
bank, The directors declare that there
will be found a sufficient revenue from
the property assets, etc, TO pay all the
depositors in full.
Receiver is Appointed.
The Chicago Title G. Trust Company at
IL o'clock tonight was appointed receiver
of the principal estate OF president Stems
land. The estate Is valued at $500 900.
The appointment was made by Bankrupt
cy Referee Eastman on the petition of
three Of the creditors. IT was feared that
because OF Stensland's flight from Chi
H.. urol,l6
defeat his creditors.
AT midnight further examination of the
books by representatives OF the State, as
sisted by Cashier Herring, was postponed
until tomorrow. AT that time all the
available books had been examined, 9th
er books were in the vault which was
locked by timelocl1 and could not be
reached until morning. Assistant States
Attorney Olsen said many instances had
been found OF violation OF the State bank
ing laws, especially as 10 loans,
Just how far these violations extend
cannot be determined until tomorrow,
when securities given for the loans can
be examined.
Attorney Olsen said that in many in
stances more than 10 per cent. and in
more cases 20 per cent, OF the capital
stock had been loaned TO persons con-
nected with the bank.
The new addresses required by the de-
ClSlOD TO pS niSQ are the CQauBeS WHICH
have been reported to the company since
the Official list was prepared The only
difference between the company's present
record and The list filed at Albany Is la
these changes. which had not come to
the knowledge OF the company when the
list was filed"
Makes Plain Statement
4 Chicago paper today printed the
following account and statement OF
Cashier Herring;
While defending himself with the utmost
vigor, he made no wild accusations against
Paul o. Stensland; he simply told what he
said was a plain. unvarnshed statement OF
the rise of Stensland and his downfall
brought about by a mania for real estate
investments.
Mr. Herring swears he has no knowledge
of Just how and when the notes said to be
forgcries were signed By Stensland.
AS matter OF fact" said he. ''Gt this
moment | do not know they are torgerios,
The signatures were good enough 10 de-
Whenever stenslsnd needed money to
bolster UP his operations. he worked as fol-
MIR. steusland would come to my desk
said Mr.. Herring, and say 10 me. Mr., Her
Ing. please make out certain number OF
notes (the number OF which he would give
me} for these amounts He giving mo n
memorandum Of the amounts. | then made
out the notes and handed them TO him or
sent them to him in the regular routine
OF business Later generally the next day.
they were returned 10 me duly signed by
various people, or al least they had the al
lcged signatures Of various people.
''Mr Stcnsland then ordered me 10 place
them 10 the credit of his personal account;
and would then draw checks his personal
account for tho various enterprises which
dragged him 10 ruin.
Ibid he ever utilize the names OF any
OF the employees on these notcs?'
Employees Signed Notes.
Il only know OF one instance Before the
last report to the State Auditor thore wax