Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1906-08-07
MILWAUKEE, AVENUE BANK
GOES TO THE WALL.
over A MILLION Deficit
Family Bank" With $4,2OO,OoO Of
$4,000 Depositors Money, Closed
by the Bank Examiner.

Chicago, August 6.-With a def
cit IN its accounts estimated close to
million dollars, and with the where-
/ abouts of two Of its highest officials
unknown to the authorities, the Mil
waukee State Bank, one of the larg-
est outlying banks in the city, was
today closed by the state bank exam.
iner, C. C. Jones.
The failure was responsible for the
death of one of the depositors and
the suicide of another man who a
month ago had placed the earnings of
his life in the institution for safe
keeping. In the excitement follow
ing the announcement of the failure,
}. G. Wiser, an official of the ROYAL
League, who had on deposit in the
bank, the funds of that institution.
fell dead of heart failure. Hnry X.
Opes, a small grocer, on hearing that
the bank had suspended payment.
went to the rear Of his store and shot
himself. He died a few minutes lat
er on being taken to the hospital.
Riotous scenes followed the an
nouncement of the failure and q large
force of police struggled all day to
keep an excited crowd Of depositors
nearly all of them foreigners, and
many of them women--from burst
ing in the doors of the institution.
The fact that the bank was on the
verge of failure was first revealed by
President Paul 0 Stensland, one Of
the absent officials. A letter to his
son, Theodore, who is vice president.
written from st. Paul, and received
here Saturday, started an investiga-
ton which brought about the sus-
pension. Another sensational fea-
ture of the affair was the disappear
ance of the cashier, Henry w. Her
ring, and the issuing of warrant for
his arrest on the charge Of embeszle-
ment. A message, ordering his arrest
was sent to every police station in
the city. 80
An examination of the books Of the
bank was begun quietly last Saturday
after the receipt Of the Letter from the
president. Acting upon instructions
contained therein, the vice president :
opened the deposit box and discovered
proofs that the banks funds were in
bad shape. President Potter, Of the
American Trust and Savings COM
pany, which acted as clearing agent
for the defunct institution, was called
into consultation. The state auditor
was NOTED and Immediately sent the
bank examiner to make full inves-
tigation. The shortage is estimated
between $75O,00O and 81, 600, 900. Dis
astrous speculation in real estate and
in the securities market is said to be
responsible for the failure. Members
Of the clearing house committee were
told that the most Of this amount was
wholly unprotected by adequate se-
curity
The institution was known as the
Family Bank" The Stensland
family, for years well known resi-
lnets Of the Northwest Side, owned
much of the stock and members Of
he family operated the bank. II
vas organized in 1891, with paid up
'apital Of $250,0OO, and succeeded
he banking firm Of Paul O. Stems
and & Co.
A statement by Vice President
'tensland today showed $1,051, 900 in
ash on hand. He said that the bank
'arried deposits of $4,2OO,OOO and
ad $4,000 depositors.
The Stensland bank was not a mem.
'er Of the clearing house, but clear
d through the American Trust and
savings company. The New York
correspondents Of the concern are
he Mercantile and Chase National
tanks.