The daily morning journal and courier., 1906-08-07
FAILS FOR MILLION Milwaukee Avenue State Bank of Chicago Closed by State Bank Ex-
 aminer.
ONE DEP0SITOR SUICIDES
ANOTHER DROPS DEAD FROM
 THE EXCITEMENT.

RiOtous Scenes Attend the Announce
 ment of the Failure--Large Force of
 Police Struggle All Day to Prevent
 DepOsitOrs From Rushing the Doors
 Most of Them Working People Who
 Had Their LifC's Savings in the In-
 stitutiOn--Cashier Disappears and
 Warrant is Issued for His Arrest on
 the Charge of Embezzlement.
 Chicago, Aug. 6.-With deficit in its accounts of close to a million dol lars, and with the whereabouts of two of its chief officers unknown to the authorities, the Milwaukee Avenue State bank, one of the larger outlying banks of Chicago, was closed to-day by State Bank Examiner c. c. Jones,
 The failure was responsible for the death of one of the deposltors, and led to the suicide of another man, who month ago had placed the earnings of 8 life time In the institution. In the excitement following the announce ment of the failure, J, G. Visser, an of Nicer of the Royal league, who had on deposit in the bank funds of that or ganization, fell dead. Henry Koepke, B grocer, on hearing that the bank had suspended payment, went to the rear of his store and shot himself He died few minutes later.
 The bank had deposits amounting to about $4,0O0,000, and loans and credits to about the same amount.
 Riotous scenes attended the an- nouncement of the failure, and a large force of policemen struggled all day to keep an excited crowd of depositors, nearly all of whom were foreigners, and many of whom were women, from rushing the doors of the institution. The fact that the bank was on the verge of failure was first revealed by the president of the institution, Paul Q. Stenslad, in letter written from St Paul to his son. Theodore, who is vice president of the bank. The letter was received last Saturday, and it started the investigation which brought about the suspension.
 Cashier Henry w. tHerring disap- peared, and warrant was issued for his arrest on charge of embezzlement. The first public intimation that the bank was in trouble was the posting of a notice at the beginning of banking hours by Bank Examiner Jones, stat ing that business had been suspended for the purpose of making an exaniina- tlon of the banks affairs, and that the institution was in the hands of the state auditor.
 The news spread rapidly through the northwest side of the city, where the hank had been for years popular de- 1pository for funds saved by working people.
 Soon clamorous crowd gathered be- fore the doors and demanded admis- sion. Anticipating trouble, a score of policemen were sent to the bank. The people were permitted to file past the doors bearing the posted notce, and were compelled to keep moving. Only those having keys to safety deposit vaults were allowed to enter Many
 
 their savings were endangered. Visser to whom the shock proved fatal, was several blocks from the bank. Hearing the rumor he stepped into drug store, seeking particulars. He fell dead when assured that the bank had failed.
 An examination of the banks affairs was begun quietly last Saturday after receipt of the letter from President Stensland. Acting on instructions con- tained therein, Vice President Theodore Stensand opened 8 deposit box and eound proofs that the banks funds were in bad shape. President Potter of the American Trust & Savings bank, which acted as clearing agent for the defunct institution, was called into con sultation. The state auditor was in- formed, and he sent Bank Examiner Zones to make a full Investigation
 The shortage of between $750'OOO and S1, 100000 is said to be due to speeula- tiou in real estate and in the security market. Members of the clearing house committee were 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 statement made by Vice President Stensland to- day showed $1, ,O51 ,OO0 in cash on hand. He said that the bank carried deposits of S4,OO00OO and had 22,0O0 depositors. The concerns New York correspond ents are the Mercantile and the Chase National banks
 Two Killed in Wreck.