The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-09


DUN in the box would be found a record
Of his indebtedness to the bank, foot
ing up S500. 600. and also a statement by
Cashier Herring of q further indebted
ness OF $3.50, 600, which to quote the let
ter, Herring says I owe the bank
Mr.. Herring admitted last night that
he had made out this statement, and
it was the one submitted by him to his
chief five weeks ago. when he made
demand on Stenslaud to hx matters
stenland did not act in any unusual
manner prior to his departure, betray-
ed no anxiety, and carried on business
in the same old autocratic way that al
ways had marked his business methods,
but all the while he was getting ready
for his flight.
Evidence which may lead to the
prosecution of the directors for re-
sponsibilfty for President Stensland'
81. .O03. 900 theft by forgery is among the
general developments touching the
mulcted Milwaukee Avenue State bank
It developed that the directors OF the
institution neglected to en-
force such precautions as would have
made impossible Stansland's operation
in fictitious paper directly under their
noses. Stensland never was required
to account fer the vast amount OF
money which apparently was being
borrowed by small tradesmen in the
neighborhood, and by small deposltors
in the bank. In view Of the distress
brought to the 22,000 poor savings de-
poSitors by mismanagement, RESPONSE
bility of the directors will be
made the subject of an investigation
1t is expected that the evidence will
be laid before States Attorney Healy
as soon as Receiver Fetzer and Bank
Examiner Jones can complete their re-
port.
One of the results of Hering's reap
pearanee will be that the cooperative
store said to have furnished channel
for dissi ipating nearly $1,000 Of the
banks funds win be closed. Receiver
John c. Fetzer said this morning that
he will ask Instructions Of Judge
Brenatow on the disposition of the
stock in the store Another develop
ment expected today Is that the estate
of the fleeing bank president of an
estimated value of 100000 will be
decided to the receiver by Theodore
Stensland.
''I am collecting the assets of the
bank, not running business enter
prises," said Receiver Fetzer today. $50
the store will be closed. The 100000
in cooperative store bonds mentioned
by Cashier Herring we're discovered in
the banks vault yesterday"
Receiver Fetzer declared that the
first statement of cash in hand at the
bank was 100000 too high. It was
said there was $1,05O,0OO cash in
sight. Instead there IS only about
$75O,0oo
loss Mr.. Fetzer explained. ''but there
were many items carried on the banks
books as cash that were not so in
reality
Another warrant charging violation
of the state banking laws was sworn
out today for the arrest of Theodore
Stensland, vice president of the sus-
pended bank. Vice President Stems
/ land will not be arrested on this war
rant today, according to the police.
7 -I~rFr,
charges Stensland with violation of
the banking laws inasmuch as he per-
mitted him to deposit $125 in the
bank on Saturday last when Stems
land knew the bank to be insoivert
StensIand was arrested last Monday
on similar warrant
Bank Examiner Jones, in an inter
view wherein he declared that only a
bank examiner who was a mind reader
could have foreseen the impending
crash, said that part of Cashier Her
icg's published defense he believed to
/ be true. Other parts he said he knew
to be untrue. He declined to be more
explicit. He pointed out that Herring,
as cashier, was under heavy bond.
| while Stensland. the president, was
not; as far as Mr.. Jones has been able
/ to learn.
Inspector Shippy today sent de-
! tective to BarabOo, Wis. to interview
/ a woman who is said to be well ac-
Quainted with the missing president
and who is believed by the police to
have some knowledge of his where
abouts.
Vice President Theodore stensland
was taken into Police Inspector Ship
py's Office during the day and ques-
| toned for nearly an hour.
A enographer and notary public
were present during the interview Be
fore entering the inspectors office Vice
President Stensland was asked con-
concerning his father
He declared that ne has not heard
from him and knows nothing of his
| wherea bouts.
Although the police had fully expect
ed Cashier Herring would appear at
o'clock this afternoon to place himself
under arrest, at 1 80 O'Clock none of the
stations had reported his arrest.
AppEAIo IN pnncrMEIT