New-York tribune., 1906-08-08
WARRANT FOR BANKER.
STENSLAND II FUGITIVE.
His Son Arrested-Sofety Deposit
Bores Tampered With.

Chicago. Aug. 7.-Theodore Stensland 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 placed in the
hands of receiver. and Paul o. Stensland pres
ident of the bank, and father of the vice-presi-
dent. together with Henry w Herring the CASH
| Ter. officially declared fugitives from JUS
tice and their personal descriptions were placed
/ in the hands OF the police throughout the coun-
/ try. This action was taken by the authorities
after investigation showed that the finances Of
| the institution in a deporable condi
| tion and had been for number OF years Be
sides the discovery OF many Irregularities in the
management of the bank, it also found that
even the safety deposit boxes owned and rented
by the bank had been tampered with and rihed.
The specific charge on which Theodore Stems
land was arrested was that of having accepted
deposits at the bank when he knew the institu-
ton to be insolvent The arrest made in
the office of Chief Collins, where Stensland had
| gone 20 confer with the head OF the Police De-
partment
LIQUOR DEALER OBTAINS WARRANT
The warrant for the arrest of the vice president
was sworn out by J. p. Straub. a liquor dealer,
who asserted that last Saturday he deposited
$3.50 in the bank and that Theodore Stensland.
as one of the officers of the institution, had
strauh contends that the vice president should
have Informed the officers of the bank not
to receive any deposits. but that this had not
been done and his money had been taken in
violation of the banking laws.
Later in the day Jacob J. Kern, a former
states attorney. signed bonds for $4,000 for the
release of Theodore Stensland.
The promises held out yesterday that Paul O.
stensland would appear in Chicago to-day were
not fulfilled and it is the belief of the police,
based upon dispatches from several Northern
cities. that he has fed TO Canada. Herring is
thought TO have reached the Dominion by an
other route.
The days developments were productive Of
the first ray of hope for the depositors. who
Yesterday believed that their savings of years
had been 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 has been laid bare, de-
clared that probably 20 cents the dollar would
be paid in the final adjustment
SAFETY DEPOSIT BOXES LOOTED.
The affairs Of the bank are said TO be in an al
most hopeless tangle. and more Irregularities are
being disclosed as the examiners go deeper into
the books Paul o. Stensland loaned money to
himself il is alleged, by the subterfuge or
having employees sign the notes Specific in
stances came TO light during the day OF the
Iooting Of the safety deposit boxes. One in par
ticular 20 which the attention of the police was
called. was that of Mrs. Lydia Herman. who de-
clared that $3.50 of her funds had been taken.
The clearing house committee is sparng no
effort 10 bring the missing president to justice.
Handwriting experts II is said. will be put to
work at once upon the case to establish the evil
dence of forgery.
Belief that Stensland has made his escape into
Canada is supported by a report from Superior
Wis that Police Sergeant Scoon Of that city
saw the missing banker on Duluth & Superior
car on his way to Superior Another dispatch
from Superior from Chief of Police McKennan
tended 10 show that Stensand made his way 10
Canada by boat from Duluth. Herring is thought
70 have reached the line by way of Detroit
The auditor of public accounts to-day gave
ont the following statement regarding the clos
I ing of the bank:
An examination of the Milwaukee Avenue
State Bank was made under the direction OF this
department with reference its condition on
Sentember / 1904 by w A. Heath. a high class
and experienced bank man, now Vice-president
of the Hibernan Banking Association OF Chi
cago This report shows healthy condltloh ana
no irregularities.
The last report of examina ton showed the con-
dition of the bank on November Ia. 1900, 1t was
made under the direction of this office by {. 4.
Jones' an examiner of twenty years experience.
The said report indicated n healthy and solvent
condition, the total assets being over S4,Op0poO
+ cash reserve almost S1eg0ND; capital, $3.50
0fso. surplus and undivided profits, S2S2 600; only
two excessive loans, only about $500 in over
drafts and very little past due paper. Nothing
IN the report indicated Irregularities
The last sworn statement rendered by the said
I bank In response TO a call from the auditor
showed Oh June - reserve strengthened and sur
plus Increased.
Not until Sunday. August D has the auditor
| had any intimation or knowledge Of 6ny irreSu-
liities in the affairs of the bank. The office has
/ . sufficient force of examiners who arc honest
and reliable and experienced in the work. The
examinations under the direction OF this depart
,@a1, ere thorough and are made, as required hy
law, once each year and more frequently a con-
ditions are such to indicate That additional
examinations are advisable or necessary