Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1906-08-10
Arrested Officer Must Explain
His Connection With DiSap-
pearance of Million Dollars
Before Release,
PROTESTS INNOCENCE
OF ANY WR0NGD0ING
Receiver Gives Out Glad News
that Milwaukee Avenue De-
poSitorS May Expect Early
Dividend of % Per Cent,

~
Chicago, Aug. 9.-Henry w. Herring,
cashier of the Milwaukee Avenue
Slate bank, which closed It's doors three
days ago, was arrested today and will
be refused his release on bail until MS
connection with the disappearance of
nearly $1,00O,00O of the bank funds is
cleared up. Paul o. Stensland, presi-
dent of the defunct institution, is still
fugitive, and although nearly 100 de-
tectives are searching for the missing
president his whereabouts is as much
of mystery as ever
Herring was arrested this afternoon
two hours after the time he had pre-
viously announced he would give him
self up. He was taken at once to the
office of Chief of Police Collins and
put through a thorough examination
as to his knowledge of President stems
lands mismanagement of the institu-
tlon. Herring declared he did not know
where President Stensland was and
had no communication with him for
over a week. The cashier strenuously
denied the charge that he himself was
partly responsible for the failure Of
the bank. Herring maintains that If he
is guilty of breaking banking laws "
Illinois, President Stensland is respon-
sible, as Herring In his examination de-
clared he never benefited single doi-
lar by President Stensland's peculiar
system of banking.
Bank Examiner Jones and Assistant
States Attorney Gleason were present
during the examination of Herring.
Neither they nor the police officials
were satisfied with the explanation
given by Herring of his connection with
the collapsed bank, and it was accord
ingly decided to refuse bail to Herring
until the matter had been further in
vestigated
Receiver Fetzer reported to the su-
perior court today that a dividend Of
at least 20 per cent would probably be
declared to depositors in the bank
within the next two weeks. This, 1t is
said, will be followed by second div
idend, although the receiver tonight
was not In a position to state how
much of their savings the $4,000 de-
posltors would recover from the de-
funct institution.
At meeting of the board of di-
rectors of the bank this afternoon q
resolution was adopted appointing a
committee to devise ways and means
for apprehending President Stensland
and Strengthening out the affairs of the
bank. The directors declare that there
will be found a sufficient revenue from
the property assets, etc. to pay all de-
positors in full.
The Chicago Title and Trust com
pany at II O'Clock tonight was ap-
pointed receiver of the personal
estate of President Stensand. The
estate is valued at 100000. The ap-
pointment was made by Bankruptcy
Referee Eastman on the petition of
three creditors. 1t was feared that
because of Stensland's flight from
Chicago he would transfer his estate
and defeat his creditors.
At midnight further examination of
the books by representatives of the
state, assisted by Cashier Herring was
postponed until tomorrow.
At that time all available books had
been examined. Other books were in
the vault which was locked by time
lock and could not be reached until
tomorrow. Assistant States Attorney
Olsen said many instances had been
found of violation of the state bank
liiB laws SopNCidily dS " iodiios
Just how far these violations extend
cannot be determined until tomorrow,
when securities given for the loans
can be examined.
Attorney Olsen said that in many
cases more than 10 per cent and in
some cases 25 per cent of the capital
stock had been loaned to persons con-
nected with the bank. 1t was discov-
cred that Paul o. Stensland had loan
ed the Paul o. Stensland Real Estate
company s1,300,000. Four loans
amounting to $4,000 had been made
to as many persons. who, II Is said,
are clerks in the Milwaukee avenue
cooperative store, one of President
Stensland's ventures,
The most startling discovery OF
fraudulent work was side" ledger
which Cashier. Herring took from a
hidden drawer. This, he is said Ia
have admitted to the Investigators
was kept from the state bank examin-
er on hisannual visit to the concern. IL
1t. so far as the investigation was
made tonight were found entries OF
loans practically without security ag'
gregatlng $4,000.