Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-08-11
TELLER COMMITS SUICIDE
BmplOys Of Wrecked Chicago Bank Shoots
Himself Through the Head.
HALF MILLION IN FORGED PAPER FOUND
Latest Estimate Places the Amount
of the shortage at Two Mil
uons-Co-operative store
is Closed.

Slhle DAnks WHICH 1hlWu ldsA NAbhNosf N'iN
for some time assistant receiving teller
in addition to his other duties, shot and
killed himself tonight at his home, $40
North Carpenter street. Criticism by
neighbors and life long friends who ac-
cused him OF share in the downfall OF
the bank is believed to have driven
Kowalsld to his death.
Knowalski had complained bitterly of the
suspicion Of his friends and declared that
unless his character was speedily cleared /
he would take his own life,
Kowalski's relatives assert their firm be-
lief that he was innocent of any knowledge |
Of the Encouragement of the bank by Pres
ident stensland. When the bank failed |
Kowalsk had 500 of his own money on
deposit in the institution and his imme- /
date relatives nearly $4,000. Had the |
teller known of Stensland's defalcations, |
they assert. he would at least have noti- |
fed his relatives and would have taken his |
own money out OF the institution
The dead teller, who was thirty years
old had been with the bank for thirteen |
years.
Half Million In Forged Notes.
While the search for Paul o. Stensland !
the missing president. is being extended to
all parts Of the country, Cashier Herring |
who was arrested yesterday, spent today |
with the states representatives and Bank !
Examiner Jones in examining the banks
collateral in an effort to determine how
much the president is short in his ac-
counts. After an all days search forged
notes aggregating more than $4,000 were
found and are now in the possession of
the states attorney, who will use them
in the prosecution of the officials respon-
sible for their utterance. From state
ment issued today by Herring regarding
loans made by Stensland as banker. to
himself and the shortages found by pre-
vious investiga tions II is asserted tonight
that when a final adjustment of the af-
fairs Of the bank is made it will be found
that President Stensland's defalcations will
aggregate nearly 100000.
Close stensIand'a Concerns.
The first step in the dissolution of outside
companies with which Paul o. Stensland is
identified was taken when a petition in
involuntary bankruptcy was filed against
| the Milwaukee Cooperative store by attor-
neys representing State street department
store The petition was filed before Judge
Bethea and arrangements were made by
! him to appoint a receiver under the order
as soon as possible Notice was given the
Cooperative store today by an attorney
representing three New York creditors that
he intended to take similar action, but I'm
view of the fifing of the petition by the
| local concern 1t is now probable that the
| New York creditors will join with the petit
| TONERS now before the court. The stock
! holders of the Milwaukee Avenue store
number 5000 persons, many of them work
men holders of shares of so each. The in
dividual liability of the shareholders, il is
claimed. is mooted point and it may be
! that the court will hold that the creditors
Of the company have recourse upon the in
dvidual property OF them all.
Henry W. Herring, cashier Of the sus-
pended bank. was today taken to the insti-
tuition he is alleged to have helped ruin
He was taken to the bank by two detec-
tives and every precaution was used to get
him inside the building without the knowl-
edge of the several hundred persons who
were around the place. Safe inside the
bank, Cashier Herring Immediately began to
direct the authorities around TO the diner
ent vaults and secret places.
Opposition to Receiver
Application for the appointment OF re-
celver for the Milwaukee avenue store met
strong opposition. An attorney for Re
| cever ]. c. Fetzer declared that the MIL
waukee Avenue State bank had large
interest in the concern and that Receiver
Fetzer desired to complete his investiga-f
fton before any action which would tie up
the assets of the store be taken. The case
was continued until next Tuesday
Frank B. schmitt was appointed special
master in chancery in the litigation re-
! sultng from the suspension of the Milwau-
kee Avenue State bank by Judge Brentano
in the superior court today. Mr.. Schmitt's
! appointment was made at the request OF
4 MIR with
the court asking for the appointment.
! An intervening petition was also filed in
the same court by the Polish National Al
lance of North America. which organiza-
tlon has deposited in the bank. II is
claimed, more than $4,000 The court was
asked in the petition to allow the alliance
TO become a party complainant to the
receivership proceedings and officers in
the alliance expressed 10 Judge Brentano
their confidence In Mr.. Fetzer as receiver.
Find 'FOrEery Nest
Assistant States Attorney Olsen found
what is termed a regular forgery nest
while going through the books and papers
of the Milwaukee Avenue State bank with
Cashier Herring and State Bank Examiner
Jones today. The nest" was composed of
two envelopes filled with hand blank
forms The blank forms contained sigma
lures which had been traced from the
regular depositors book. According 70 Mr.
Olsen. these were ready to be filled I'm for
any amount which would be charged to the
account of the person whose name was
signed. The other envelope contained notes
running up to thousands of dollars with
the names Of many prominent business men
attached. The authorities will endeavor TO
discover whether or not these names were
forged The notes were found hidden in
President Stensland's vault.
F. S. Peabody and F. r. Herpold were
two Of the men who went 20 the bank
and. with Cashier Herring looking on, gave
absolute proof that two pieces of the paper
found were forgeries Police Inspector
Shippy, who was present during the in
vestlgation, said:
THE thing is a good deal worse than
had supposed. We have proved that $780,
900 worth of the paper are absolute for
geries. One note for $4,000 bearing the
signature of F. s. Peabody was examined
by Mr., Peabody, who declared il was not
his signature"
Mr. Peabody had heretofore insisted that
the only note he was concerned in was one
for nOOOo The HerpOld forged note was