Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-08-10
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him morally certain that thievery was
rampant in the institution.
Last night Herring had the repOse and
calmness Of an innocent man, and the
story he told bore every superficial ev-
idence of being true.
Herring swears he has no knowledge
of lust how and when the notes said to
be forgeries were signed by Stensland.
"As a matter of fact" said Herring,
Eat this moment. 1 do not know they
are forgeries. The signatures were good
enough to deceive me-"
Whenever Stensland needed money to
bolster up his operations, he worked as
follows:
MIR. Stensland" said Mr.. Herring
would say to me: Mr.. Herring, please
make out q certain number of notes
Uhe number 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 him in the
regular routine of business. Later.
generally the next day. they were re-
turned to me duly signed by various
people, or at least they had the al
legged signatures OF various people.
Mr.. Stensland then ordered me TO
place them to the credit of his per-
sonal account, and then would draw
checks on his personal account for his
various enterprises which dragged hin
to ruin"
Did he ever utilize the names Of am
Of the employees on these notes."
Il know of only one instance. Be
cot nrtli
tor 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 to sign notes to
this amount and this paper was used
to conceal the Overdraft."
About five weeks ago l determined
to say something to Mr.. Stensland
about the infinitude of notes piled upon
notes. I walked into his office and
handed him a paper containing Est
Of notes footing up $3.50 900. which | have
reason to believe should not be among
the assets of the bank.
This Indebtedness is getting too
large | said, and it 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 that | will have it all fixe d
up shortly. / think | have buyer for
my Belmont avenue and River prop
erty; / am also almost certain of find
a purchaser for the SchultZe property
and If / can get possession of the whole
OF the Paul ID. Stensland subdivision, |
can sell it in a lump"
This talk with Herring evidently was
the thing that led Stensland to make
up his mind to skip. The next week
he spent q lot of time I'm the directors
room and in his own private office.
He worked not only during the day
time but late at night. He evidently
was casting up 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
rlndum in the box would be found 4
&, record Of his Indebtedness to the bank.
footing up s500,0 and also a statement
by Cashier Herring of further indebt-
edness of $4,000 which to quote the
letter. Herring says / owe the bank
Mr.. Herring admitted last night that
he had made out this statement and ii
was the one submitted by him to his
chief five weeks ago when he made a
demand on Stensland TO fix matters
up.
Another warrant charging violation
of the state banking laws, was sworn
out today for the arrest of Theodore
Stensland. vice president of the suS-
pended bank. Charles Habel, the COM
plainant charges that Stensland per-
mitted him to deposit $125 in the bank
on Saturday last when he (Stensland)
knew the bank to be insolvent. Stems
land was arrested last Monday on a
similar warrant. Inspector Shippy was
surprised when he was told that Herring
has been in Chicago since Monday.
"All can say" said Inspector Shippy
lis that If Herring shows himself to the
police he will be taken into custody
Bank Examiner c. c. Jones today
said that part of Cashier Hering's pub
lished defence is true. Other parts
Mr.. Jones said. he knew to be untrue
He declined to be more explicit. In
, spector Shippy today sent n detective
TO Barabee, Wis, to interview a woman
who Is said to be well acquainted with
the missing president, and is believed
by the police 10 have some knowledge
of Stensland's whereabouts.
Vice President Theodore Stensland
was taken into Inspector Shippy's Of
flee during the day and questioned foI
nearly an hour. Before entering the
inspectors office Mr.. Stensland declar-
ed that he has not heard from his
father and knows nothing of his
whereabouts.
The Chicago Title and Trust Co. a,
II o'clock tonight was appointed re-
ceiver Of the personal estate of Presi-
dent Stensland. The estate is valued
at 100000. The appointment was made
by Bankruptcy Referee Eastman. on
the petition of three creditors. 1t was
feared that because of Stensland's
fight from Chicago he would trans
fer 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.