The news-democrat. (Providence, R.I.) 1906-1909, 1906-08-08
VICE PRESIDENT
Of FAILED BANK
UNDER ARREST

Chicago Aug. s.-Theodore stensland,
vice-president Of the Milwaukee Ave-
nue. state bank, was arrested late yes
terday afternoon on charge OF violat-
ing Me banking laws OF the state.
Earlier In the day the institution
was placed In the hands of a receiver
and Paul o. Stensland. president of the
bank, together with Cashier Herring
were officially declared fugitives from
justice and their personal descriptions
placed In the hands OF the police
throughout the country.
This action was taken by the au-
thorities after developments had shown
that the finances OF the failed institu-
tion were in a deplorable condition and
had been for number OF years. Be-
sides the discovery of many irregulari-
ties In the management. IL was found
that even the safety deposit boxes own
ed and rented by the bank had been
tampered with and rihed.
The specific charge on which Theo-
dore Stensland was arrested was that
OF having accepted deposits at the bank
when he knew the institution 10 be in
solvent. The arrest was made In the
Office Of Chief OF Police Collins, where
Stansland had gone to confer with the
head OF the police department.
The warrant was sworn out by j. r.
Straug. a liquor dealer, who declared
that last Saturday he deposited $3.50
in the bank and that Theodore stems
land. as one OF the officers of the in
stitution, had knowledge then that the
bank was insolvent.
Straub contends that the vice-presi-
dent should have notified the acting
officers OF the bank not TO receive any
deposits, but that this had not been
done, and his money was taken in viola
tion OF the banking laws.
Later in the day Jacob j. Kern. for
mer state attorney. signed bonds for
5000 for the release OF Stensland.
The promises held out Monday that
the elder Stensland would appear in
Chicago yesterday were not fulfilled,
and IL is the belief OF the police, based
upon dispatches from several northern
cities, that he has fled TO Canada.
Cashier Herring, sought on similar war
rant is thought to have reached the
Dominian by another route.
The days Developments were pro-
ductive OF. the first ray OF hope for the
depositors who Monday believed their
savings OF years were swept away In
the wreck. David r.. Forgan. vice.
president OF the First National bank,
and such OF those TO whom the status
OF the defunct banks affairs had been
laid bare. declared that probably 20
cents on the dollar would be paid In
the final adjustment.
The affairs OF the bank are said 10
be in an almost hopeless tangle and
more Irregularities are being disclosed
as the examiners go into the books.
President Stensland loaned money 10
himself. IL is alleged. by the subterfuge
of having employees sign the notes.
Specific instances came TO light dur
ing the day of the looting of the safety
deposit boxes. One In particular, 10
which 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 10 bring the missing presi-
dent to justice. Handwriting experts
IL is said. wifi be put To work at once
upon the case TO establish the evidence
of forgery.