Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-06
CHICAGO BANK FAILURE
One of the Largest Outside
Downtown District.
CLOSED DOORS AFTER RUN
Police Required to Quell Turbulence
of Depositors.
AVE. STATE BANK
Deposits Said to Be in the Neighbor-
hood Of Three Millions-President
Now on Vacation.

CHICAGO. August 6.-The Milwaukee
Avenue State Bank one of the largest
banks outside of the downtown district, to-
day closed Its doors, following a run on the
institution. The first intimation of trouble
was the appearance at the bank of twenty
policemen. who had been dispatched to pre-
vent anticipated disorders, the police de-
partment having been notified officially that
one of the officers of the bank had alb
seconded.
The suspicion of depositors was aroused
by the sight of the policemen stationed in
front of the bank, and in a short time large
numbers of those who had money In the
bank appeared and demanded their depos-
Its. AT one time the run assumed the pro-
portions of a riot. but the turbulence of the
crowd was finally quelled by the police.
The news of the suspension spread rapid
ly, and soon several of the smaller banks
in the vicinity were besieged by depositors.
The Milwaukee Avenue State Bank was
organized in 1890 by Paul o. Stensland who
is president Of the institution. The capital
stock of the bank is $3.50, 600, and the sur
plus is given at $3.50 eco The deposits are
said to be in the neighborhood of $1,000
coo. large part of which. it is said is the
earnings OF working people. President
Stinsland is at present in st. Paul, Mimi,
where he went on a vacation.
Report at New York.
NEW YORK. August 6.--Accordfng to the
latest available reports, the Milwaukee
Avenue State Bank of Chicago had de-
posits of s3,61S, 100. Its paid-up capital was
S250.OOo. Its New York correspondents are
the Mercantile National Bank and the
Chase National Bank
Henry w. Herring, cashier of the bank,
is missing, and a warrant charging him
with embezzlement has been sworn out.
At the same time State Bank Examiner C.
c. Jones issued statement to the effect
that the whereabouts of three officers of the
bank Is unknown to him and that the bank
is without an official head.
During the absence of President Stensland
In Europe his son, Theadore Stensland,
has been in charge. Last Saturday he dis
covered that the bank was In serious con-
dition and gave notice to Cashier Herring
and other officials that further examina-
ton would be made this morning. Today a
notice was posted by Bank Examiner Jones
stating that the bank had been closed for
the purpose Of examination and the fnstftu-
ton Is now In the hands of the auditor of
state.
Main Patrons Poles.
The patrons of the bank are mainly Polish
working people who abound in that neigh
borhood. Since the closing of the Chicago
National Bank some time ago the Milwau-
kee Avenue Bank has cleared through the
American Trust and Savings Bank The
statement of the bank, issued under date of
June 10, 1908, gave liabilities at 81, GOT 457 /:
of this amount $3,475, ,190 was composed Of
savings deposits, and SS69. .891 was deposited
subjected to check and composed mostly Of
accounts of business men. Other liabilities
were: Demand certificates, $500: time GER
tificates, $30,622; certified checks, S., ,651 !;
cashiers checks, $48.9G7.
Onsetting the liabilities the bank state
ment shows that loans and discounts
amounted to $3.223, ,172 As far as now
known all OF this paper Is good. The bank
carried on hand at that time cash amount
ing to $2d5. .162, and had credits with other
banks Of $869 424.
Reports were general that the alleged de-
falcation would reach 10000 or more. Police
Inspector Shfppy received information frorn
a subordinate sent to the bank that one OF
the officials Of the institution had been
gambling on horse races. 1t is said that the
list OF depositors at the bank includes near
iy $1,000 persons. Theodore Stensiand said
that his father, Paul r.. Stensland, is in st.
Paul. where he has been for two weeks
He Is up there on his vacation" said the
son. II have teiegraphed him and he will be
at home not later than tomorrow =