The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-08
BANK OFFICIALS
FLEE TOCANADA
Warrants Are Out for the
President and Cashier
70 PER CENT WILL Be SAVED
David r. Forgan Thinks Many of the
: Banks Securities Are Good-The
Safety Deposit Boxes
Robbed.
70 PER CENT WILL Be SAVED

Chicago August Theodore stems
land. vice president of the Milwaukee
Avenue State Bank was arrested late
this afternoon on a charge of violating
the banking laws of the state Earlier in
the day the institution was placed in the
hands of a receiver, and Paul o. STEMS
land. president of the bank, and father
of the vice president. together with Cash
Ter Herring were officially declared fugi-
tives from justice, and their personal de-
scriptions placed in the hands of the
police throughout the country. Besides
the difficulty of many Irregularities in
the anagement of the bank, IT was
also found that even the safety deposit
boxes. owned and rented by the bank,
had been tampered with and rfled.
The specific charge on which Theo STEMS
land was arrested was that of having ac-
cepted deposits at the bank when he
knew the institution to be lnsolvent The
arrest was made in the office of Chief
of Police Collins, where stensland had
gone to confer with the head of the po-
lice department.
Accepted Deposits On Saturday.
. The warrant for the arrest of the vice
president was sworn out by ]. p straub.
a liquor dealer. who declared that last
Saturday he deposited $3.50 in the bank.
and that ATheodore stensland. one of tho
officers of the, institution. had knowledge
then that the bank was insolvent Later
in the day Jacob il Kern. former states
attorney, signed bonds. for $4,000 for the
release of Theodore stehsand.
Paul stensland the miihapaire pres-
dent of the Milwaukee Avebue State
Bank, was officially declared today a
fugitive from Justice With his perAanal
description ~ the hands of the police
everywhere, and his bank in the hands
of a receiver, hourly developments showed
a deplorable state OF finance existing
over term of years. II was discovered
that even the safety deposit boxes Of
the institution had been rifled The
promise held out yesterday that the elder
| Stensland would appear in Chicago to-
day, was unfulhled
| Thought to Have Reached Canada.
Cashier Herring sought on a similar
warrant, is thought to have reached Cam
ada. The days developments We're like
wise productive of the first ray of hope
for the depositors who yesterday be-
lieved their savings of years were 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 probably 20 cents ON
the dollar would be paid in the final adj
justment.
The affairs of the bank are said to be
in an almost hopeless tangle new irregu-
larities being disclosed as the examiners
land loaned money to himself It is alleged
! by having employees sign the notes.
! Specific instances came to light dur
! ing the day of the lootng of safety de-
! posit boxes. One in particular to wfiiea
| the attention of the police was called.
! was that OF Mrs. Lydia Herman. who
/ declared that $3.50 of her funds had been
| taken
The clearing house committee is SPAR
| ing no effort to bring the missing prcsi-
dent to justice Handwriting experts. 1t
Is said. will be put to work at once upon
| the case to establish the evidence of for
gerry.
Saw Banker Yesterday.
Belief that Stensland has made his es-
cape into Canada is supported by re-
port from Superior, Wis. that Sergeant
of Police Darwin S. Coon of that city saw
the missing banker on a Duluth-Superlor
car en- route to Superior. Another dis
patch from Chief of Police McKenan at
Superior tended to show that Stensland
made his way to Canad by boat from Du-
luth
Cashier Herring Is thought to have
reached the line by way of Detroit.
Forgan Makes Statement.
David r. Forgan. vice president of the
First National bank of this city. today
called '1nhuman" the circulation of stories
to the effect that small depositors of the
stensland bank will lose all of their saw
ings
II am prepared to say that no matter
how much bad paper is found there"
said Mr. Forgan. "the depositors will get
at least s. per cent and maybe rs per
cent of their money.
''There is over 100000 in cash avail
| able now and that is more than 30 per
cent of the savings account. With my
information / am prepared to say that
more than rs per cent will be available.