Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-09

on Stenslahd's real estate speculations that
finally made him morally certain that
thevery was rampant In the institution.
Herring is a heavy Set stold Individual. He
absolute control He has a good, square.
honest face. with gray. unwinkins eyes that
look you through and through. Last night
he had the repose and cafmness OF an inno-
cent man, and the story he told bore every
superficial: evidence Of being true.
While defending himself with the utmost
vigor he made no wild accus atoms asaihst
Paul o. Stensland. He simply told WHAT
he said was a plain. unvarnfShed statement
of the rise of Stensland and hi2- DOWNFALL
brought about a mania for real estate IN
vestments. Mr.. Herring swears he mas no
knowledge of just how and when the notes
said to be forged were signed by stems
land. LAS matter Of fact. SAID he' at
this moment I do not know they are for
geries. The signatures were good enough
to deceive me-
Whenever Stensland needed money to
bolster up his operations he worked as fol-
lows:
Mr. stensland would come to my desk
and say to me: MIR. Herring. please make
out a certain number of notes the num-
Der of which he would give mel for these
amounts, he giving me memorandum OF
the amounts. then made out the notes and
handed them to him or sent them to MIN IN
the regular routine of business. Later, gen.
orally the next day. they were returned to
me duly signed by various people. or at
least they had the alleged signatures OF va
rious people.
Mr. Stensland then ordered me to place
them to the credit Of his personal account
and then would draw checks on his per-
sonal account for the various enterprises
which dragged him to ruin
did he ever utilize the names OF any
of the employees on these notes?"
II only know of one instance. Before the
last report to the state auditor there was
an overdraft of $4,000 which had to be
taken care of IN some manner. He got
two employees of the cooperative store.
which was the chief milestone around his
neck to sign for this amount, and this
paper was used to conceal the overdraft."
when did you first become suspicious
that something was wrong?"
My suspicious were aroused some time
ago, but l made up my mind that 1t was
my duty to say something to Mr.. Stems
Land about five weeks ago. The infnltuoe
of notes piled upon notes had worried me
so that 1 became sick from anxiety and
went away for a few days rest. During
this time I made up my mind to speak to
Stensland.
when came back 1 walked into his
office and said. Now. Mr.. Stensland. you
know Of this Indebtedness"
Were YOU more specific as to this in
debtedness?'
mo, he knew what meant for handed
him paper containing list of notes foot
ing up $53OOOO, which have reason to be-
lieve should not be among the assets OF the
bank.
This indebtedness Is getting too large.
I continued. and 1t ought to be fixed up In
some other way or the bank will be In
trouble
He sat for a moment and then said. Yes.
] know. but have every reason to believe
I will have 1t all fixed up shortly. think
have buyer for my Belmont avenue and
River property:I am also almost certain Of
finding purchaser for the Schultze prop
erty (which is right across from the banD,
and If I can make a decker with Watson
nd pat n0SSaSSiOp of the yphnla of the Paul
o. Stensland subdivision can sell 1t in a
lump. Don't worry; 1t will all be taken
care Of
"A moment later he said: I have also an
offer for my Elmwood cemetery stock. but
] don't think 1T is enough and will hold 1t
for a better price,"
This talk with Mr. Herring evidently was
the thing that led Stensland to make up his
lot of time in the directors room and in
his own private Office. locking the door so
that he could not be interrupted. He
worked not only during the daytime. but
the amount he had stolen and preparing the
document which was found in his safety
deposit box last Sunday. In the letter
which his son received and which brought
on the crash he stated that in the memo
randum in the box would be found a record
OF his Indebtedness to the bank. footing up
$5OO.OOO and also a statement by Cashier
Herring of a further Indebtedness Of $780,
OOO which. to quote the letter, Herring
says 1 owe the bank"
Herring admitted last night that he had
made out this list and 1t was the one sub
mitted to his chief five weeks ago when he
made demand on Stensland to fix matters
up. Stensland did not act in any unusual
manner prior to his departure betrayed
no anxiety and carried on business in the
same old autocratic way that had always
while he was getting ready for his flight.