Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-08-08
WARRANTS|SSUED
For President and Cash.
Ter Of the Chicago Bank,
Vice Pres. StenS|and Arrested
Later Released on Bonds.
Said that Dsposilors Will Realize 10 Per
Cent. Of Their Money.

Chic; 60 Aug. 7.-Theodore stems |
land, vice president of the Milwaukee |
Avenue State Bank. was arrested late |
this afternoon, on Il charge of violating |
the banking laws of the state. Earlier |
in the day the institution was placed i'll |
the hands of d receiver, and Paul q. |
Stcnsand, president of the bank, and |
father of the vice president, together |
with Cashier Herring, were officially |
declared fugitive S from justice and |
their personal descriptions placed i'll |
tho hands of the police throughout the |
country. This action was taken by the |
authorities after developments today |
had shown that the finances of the |
failed institution were in deplorablc |
condition and had been for number
of years Besides the discovery of many |
irregularities i'll the management of
the bank, it was found that even the
safety deposit boxes owned and rented
u, the bank. had been tempered with
and rtled.
The specific charge on which Theo-
dore Stcnsland was arrested was that
Of having accepted deposits at the bank
when he knew the institution TO be in
solvent. The arrest was made in the Of
fee of Chief of Police Collins. where
Stcnsland had gone to confer with the
hcad of the police department.
The warrant was sworn out by j. p.
Straub. Il liquor dealer. who declared
that last Saturday he deposited $3.50 in
the bank and that Theodore Stensland
as one of the officers of the institution.
had knowledge then that the bank was
instlvont. Straub contends that the
Vice president should have notified the
| acting officers of the bank not to re-
Cei:c any deposits, but that this had
not been done ana his money was taken
| in violation of the banking laws.
Later i'll the day Jacob j. Kern. Il
| former states attorney. signed bonds
| Tor $4,000 for the release of Theodore
| StcnSland.
The promises held out yesterday that
| the elder Stensland would appear in
| Chicago today were not fulfilled and it
10 the belief Of the police, based upon
| dispatches from several Northern
| cities. that he has fled to Canada.
| Cashier Herring sought on a similar
| warrant is thought to have reached
the dominion by another route.
The police department today sent
| broadcast throughout the United
| States message given a description of
| President Stensland and asking for his
| arrest. The message was as follows:
Look out for and arrest for violation
of the Illinois State Banking law.
Paul G. Stcnsland, about - years old
} feet or 10 inches in height, blue
lcycs about 200 pounds in weight. In
dcrstand he has shavcn his beard and
has smooth face. He is stout built
land wore when last seen light suit and
straw hat. He is Of light complexion.
tending to sandy. He was last heard
from at Duluth. Send all information
to Chief of Police Collins.
| (SigncD
"GEORGE NJ. SIIIPPEY.
| Inspector of Police.
The following message has been sent
out by the police:
ARREST for cmbczzlomcnt, Henry w.
Herring. cashier of the Milwaukee Ave-
nue. state Bank. Complainant MilNau-
kec Avenue State Bank. Forty tu
fortv-livc years old. six feet two inches
tan. 10 pounds. stout build. dark com
plcAion chestnut hair. dark brown
mustachc. light suit. He is good
dresser Send all information to Chief
Collins"
John o. Fclzcr was today appointed
receiver for the closed bank The bill
of complaint filed in court alleged mis-
management by officials. The court
fixed the bond of Receiver Felzcr al
: 81 100000
The days developments were produCtiv.
Of the first ray Of hope for the dc2ositors
= who yesterday believed their savings y
" | years We're swept away in tho wreck
David r. Forgan, vice president of tn
. | First National Bank and such of thos
. to whom the status Of the defunct barl
D had been laid bare, declared that prob
!. ably 20 cents on the dollar would be pait
: lin tho final adjustment.
J. Tho affairs of the bank are said to b
T. in an almost hopeless tangle. and NOR
. irregularities are being disclosed as tn
!. examiners go deeper into the books
Z. iTrcsidcnt Stcnsland loaned money t
himself it is alleged. by the suhtcrfug
OF having employees sign the notes.
Specific instances came to light durin
/, the day of the looting OF the safety dc
IS post boxes. One in particular to wilic
: | the attention of tn" police was Gale
- was that Of Mrs. Lydia Herman. who dt
Is clared that $40 of her funds had bee
=. taken.
Id The Clearing House committee is spa1
ing no effort to bring the missing pres
dent to Justice. Handwriting experts,
H. is said. will be put 70 work at once up1
!, the case to establish the evidence
FL forgery.
to David r Forgan. vice president Of Il
=! First National Bank of this city. call'
hn sinhuman'' the circulation of stories
il" the effect that small depositors of Il