Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-08-19
REPORT ON BANK FAILURE
Examiner Jones Says shortage in Chicago
Failure is Over Million.
FUGITIVE BANKER MAY &c IN CANADA
Detectives from subway, y. C., Are
shadowtaE n Man VINO Answers
Description Of Paul o.
StenaIand.

SPRINGFIELD, ILL.,, Aug. 1s.--Bank Ex-
aminer Jones, in his report to the auditor
of public accounts on the Milwaukee
State bank of Chicago. which was re-
ceived by the auditor today, estimates the
total defalcations through the r1anipula-
lions by President Stensland to be $1,000
600 and probably more. He says the clos
ing of the bank was the contamination
Of a career the most remarkable, and in
his opinion, the most conspicuous in tho
history of banking. On his examination
of November is, 1895, everything appeared
TO he satisfactory, but 1t has since devel-
oped that in the figures were many ques-
tionable and forged notes, the exact
amount of which nobidy but the president
or cashier can determine. He is of tho
opinion that Mr.. Aisberg, the chief clerk
Frank Kowalski, tho assistant paying
teller. who has since committed suicide;
John Gullinskin, the receiving teller, and
Mr.. Esdohr, the paying teller, and with
out doubt, others of the employees of the
bank had guilty knowledge of many things
which were not divulged by the directors
to him Mr.. Jones declares that Cashier
Herring. In swearing to the statement of
January so, 1905, perjured himself to the
extent OF $lS4,SSs, and IN the April state
ment 10 tho amount SaVh,lSo. ne ue-
clares that the executive committee and
the examining committee of the bank
never acted in an official capacity and
that had they done so each member of the
two committees would have found his
forged note in the assets.
Cashier Herring, he says, denied forging
the notes and. failing to implicate Presi-
dent Stensland, gave him to understand
that an italian, named Demarto, employed
In the bank, had been the guilty party
and that Stensland had given him $4,000.
States Attorney Healy learns that Dennario
is now in Italy.
Mr.. Jones fnds that the Steel Ball obli-
cations aggregated $4,000 and that they
will not pay 10 cents on the dollar
SPOKANE, wash, Aug. 1S.-Shadowed
by detectives, a nervous middle-aged man,
left Boundary, B. c., by stage this morning
to go into the mountain mining camps up
holding his statement that he Is Mr..
Montgomery, mining man from Los
Angeles. BY officials here he is believed
to be Paul o. stenslsnd. the fugitive presi-
dent Of the Milwaukee Avenue State bank
of Chicago.
Montgomery arrived at Midway, B. c., a
week ago, accompanied by handsome
brunette about Is years Of age, whom he
man. middle-aged. a tribe gray and some
what nervous.
Comparison of pictures Of stensland and
the woman who is believed to be with the
banker. strengthened the belief that Mont
gomery was the fugitive.
A message was sent to the Chicago au-
thorities asking for a detailed description
OF the banker and II this corresponds
the Midway police proposed to take
Montgomery into custody this mornins,
but at II o'clock no description had ar
rived.
Montgomery declared his intention OF
going into the. hills and left Midway BY stage
this morning accompanied by his COM
panions The Canadian authorities decided
they. would not be justified ina arresting
him and let him proceed. -, a6i'G'r's
The chief Of police OF Midway srates that
the Officers ara still shadowins him, how
ever, and can capture him II he is the
man wanted 49, =, ~
During his stay at Midway. Montgomery
appeared to have plenty. of money and to
be in no hurry to inspect mines, acting
like a man Of leisure. He played cards,
went fishing and made himself. "guod
fellow" but always appeared very nerv-
GUS ,s.....
For several days man who suspected
him to be the banker has been shadowing
him, joining In his games and fishing with
him. Failing to secure an accurate de-
scription, the amateur detective came to
Spokane for further informatio and yea
terday telegraphed from this city, calling
for Montgomery's arrest. The authorities,
however, were not satisfied and preferred
to await more detailed information. Should
the suspect prove to be the man wanted. It
is said to be almost impossible for him to
escape.
/ CHICAGO, Aug. ls-Theodore stensland.
vice president of the Milwaukee Avenue
State bank, charged with violating the state
banking laws. failed to appear before JUS
tice severson m police court today. The
case was continued until August %.
The 20, 900 deposltors In the bank, reused
by the entry Of a dozen more lawyers
into the fight over the assets OF the wrecked
bank. have organized and will hold q mass
meeting tomorrow to demand protection
against local complications they fear.