The Minneapolis journal., 1906-08-10
Examiners Kept OFF Scent
-StensIand's Plot, Her
ing Ayers. ''7
Growing Evidence Points to
Colossal Frauds-Cash-
ier Fears Mob: ...'..
STENSLAND STILL FREE.

STENsLAND STILL FREE.
Chicago, Aug. 1O.-Paul @: Stenslan6,
fugitive president Of the milwaukee,
Avenue State bank, is still free, despite
the assertion Of the police that thoT
had ''lina' on him anG would have
him in custody soon. ...:&.,
Special to The Journal.
Chicago, Aug. 1O.-Why the bank
examiners of Illinois were not suspi-
cious Of the management of the Mil
waGkee Avenue State bank has been
explained, in measure at least, by
the discovery of secret books in hid
den drawers, containing, so it is as
faced robberiess PauF&O.-3 Stensland
stands accused of pcrpetrating.
Henry, W Herring, cashier of the
bank, who was arrested late yesterday
afternoon, when he failed to give him
self up as he promised, has shed light
on peculiar habits Of fStensland that
lead mapv to. believe that before the
Investigation is ended. the. most colos-
sal and vicious fraud in the history
of Chicago will be barred. 49, : :,
.., Still Says He Is Innocent.
Herring still maintains that; he is in
nocentp of looting the bank, declaring
the puppet5 of .Stensland. Defending
the charge that he might have. .averted
so serious a termination of affairs by
taking the suspicious he says, were
aroused. an. his. mind long ago, to some
responsible authority, Herring declares
THAT oStenslaHd s methods were . so
clever that even he was deceived. g
directing the, invcstiga ton for more
evidence against etensland. Each
hour brings new revelations of, appar-
ent frauiis and wanton disregard for
the depositors who had intrtiSted their
savings to the. fugitive president. =.
Cooperative Store in Court.
outside companies with which stems
land is identified was talser today,
when a petition in involuntary bank
ruptcv was filed against the Milwau-
kee Avenue Cooperative store by at
tOrrcvs representing a State street de-
partment store. The petition was filed
before Judge Bethea and arrange
ments were made by him to appoint a
receiver under the order as soon as
possible.
Notice was given the store today by
an attorney representing three New
York creditors that he intended to
take similar action, but in view of the
fling of the petition by the local con
cern. it is now probable that the New
York creditors will Join the petitioners
now before the court .-..-.
May Squeeze 'sLittle Fellows
The stockholders of the Milwaukee
Avenue store number 5000 persons
many of them workingmen, holders OF
shares of $40 each. The individual.
liability Of these shareholders, it is
claimed, is a mooted point, and it may
be that the court will hold that the
creditors of the company hdvc re
coarse upon the individual property. OF
them all.
Henry W. Herring, cashier Of the sus
pended bank was today taken to tbs
institution he is alleged to have helped
ruin. He was taken to the bank by
two detectives, and every precautio1
was used to get him inside the build
ing without the knowledge Of the sew
eral hundred persons who were arounC
the building.
Herring Fears Ruined Mob.
Herring fears personal violence at tn,
hands Of the angry depositor3. many
of them enraged to a danger state a
the result of financial ruin in the crasl
OF the bank. None observed the pres
ence of Herring at the bank today, bu
a mob of the wronged people is con
stantly on hand and extreme caution
will be necessary to spirit Herring ava
without trouble. ''.r
Notes aggregating 100000, most 0
them believed by Assistant States AT
torney, Harry Olson to be forgeries
were discovered in the bank with tn
assistance of Herring. --...., -..
The investigations, which was con
Quoted by Mr.. Olson and State BAN
Examiner c. c. Jones, also brought t
light excessive loans, loans. of thor
sands of dollars to $15 week clerk
in the Cooperative Dry Goods store
and $198,O00 Of poor peoples saving
which were never credited in til
bank s books, but which were tabulate
in separate account and used by tn
fugitive president, Paul 0. ,Stenslant
as pin money. a--. ..s:e- .-aa -. .,
Fears Colossal Frauds. l.!
Herring was: not as willing. to go int
detail as it had been expected he woult
after having offered to surrender hin
self, and in many instances. he had@t t
be closely questioned to bring out whs
he knew. One document found ind
Gated that the fugitive banker owne
the racehorse General Bragg, and the
he lost heavily backing his favorite 0
the track. ~...a - -:.st = RI $500
"The notes we found bear the name
in the city, said Attorney Olson afte
the Investigation. "They are so prom
inent, in fact, that I believe most {
@s the papers are absolute forgeries. v
brought to. light many criminal act
and ! believe one of the worst cases
bank wrecking in: the history of I'll
@ city will be brought to light before "
are thru a
Have "Line'' on Stensland. s
!. Herring was admitted to bail late la
night, but asked protection from tt
a police, which was furnished him.
Continued on 2d Page, 4th Column.