Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-10
Herring UNDER ARREST
CASHIER OF LOOTED CHICAGO
BANK TELLS STORY.

Declaring that he had never benefited a
single dollar by the wrecklng of the Mil
wauSee Avenue Bank, from whose funds
nearly $l,OCOOOO is missing, Henry w.
Herring. cashier of the ruined institution.
was arrested in Chicago yesterday after
The Stars report of the case closed.
lie will be refused bail until his connec-
ton with the disappearance of nearly ST.
COOUCO of the banks funds is cleared up
Paul o. Stensland. president of the defunct
institution, is still fugitive, and, al
though nearly one hundred detectives are
searching for the missing president his
whereabouts is a mystery
Herring was arrested two hours later
than the time he had announced for giving
himself up. He was taken at once to the
office of Chief OF Police Collins ana put
through a thorough examination as to his
knowledge of President Stenslands alleged
mismanagement of the institution. Herring
declared he did not know where President
Stensand was and that he had had no
communication with Stensland for more
than a week.
Denied Responsibility.
Herring strenuously denied any RESPONSE
biity for the failure of the bank. He
maintained that II he was guilty of break
ing the laws of Illinois President Stensland
was responsible.
State Bank Examiner Jones and Assist
ant States Attorney Olson were present
during the examination of Herring. Neither
they nor the police were satisfied with the
explanation given by Herring of his con-
nection with the collapse of the bank, and
Il was decided to refuse bail to Herring
until the failure had been further invest-
gated.
Receiver Fetzer reported to the superior
court yesterday that dividend OF at least
- per ceat would probably be declared
10 depositors in the bank within the next
two weeks. This. it is said, will be fol-
lowed by second dividend. although the
receiver last night was not in a position to
say how much of their savings the 22.0Oo
depostors would recover from the institu-
ton.
May Pay in Full.
At meeting of the board of directors OF
the bank in the afternoon resolution was
adopted appointing committee TO devise
ways and means to apprehend President
Stensland and to straighten out the affairs
of the bank The directors declare that
there will be found sufficient revenue from
the assets to pay all Gepostors in full
Herring has not been out of Chicago since
Monday morning. He left the city on Sat
urday, he declares, for days rest He
reached Chicago Monday morning, got on
a car and rode straight to the bank. When
the car stopped on the corner he jumped
of Just he reached the edge OF the
sidewalk he saw Il man FASTING the notice
of the closing of the bank on It's doors
Instead of ascending the steps he back
tracked and headed downtown.
Herring is insstent in his statement that
he had absolutely nothing whatever to do
with any speculation Of the banks funds
He asserts that. although cashier of the
bank. he was mercy a clerk for Stensland;
that all he did was to carry out Stens!ands
orders.
Suspicious Note Incidents.
lie declares that Stensand's instructions
were such that there was no way on their
face of determining that any crooked bust
ness was going on: it was only the Gull
mnation of several suspicious incidents
and the piling of note upon note to carry
on Stensiand's real estate operations that
finally made him morally certain that
thievery was rampant in the institution.
Herring sweaIs he has no knowledge of
Just how and when the notes said to be
furEe-'es were signed by Stensland.
Whenever Stensland needed money to
bolster up his operations, said Herring
'hc worked as follows:
Mr.. Stensland would come to my desk
and say to me. MIR. Herring. please make
ont Il 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 tlcm to him or sent them to
linn in tn" regular routine Of business
Later. generally the next day, they were
returned To me duly signed by various peo-
pie or ut least they had the alleged sigma
tures of various people.
MIR. Stensland then ordered me to place
them to the credit of his personal account
and would then draw checks on his person.
a. account for the various enterprises which
dragged him to ru n.
Aroused Cashiers Suspicious.
cd My suspicious We're aroused some time
ago. but | made up my mind that it was
MY duty to say something to Mr.. Stems
land about five weeks ago. The ininitude
of notes piled upon notes had worried me
so that l became sick from anxiety, and
! went away for few days rest During
this time | made up my mind to speak to
MIR. Stensland.
when I came back I walked into his
Office and said: This Indebtedness is get
ting too large. 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 | will have ii all fixed up shortly"
This talk with Herring evidently was the
thing that led stensland to make up his
mind to flee
Believe Stensland Has Fled to India.
A dispatch from Madison, Wis. says: 1t
Is reported that people who knew President
Paul q. Stensland of the Milwaukee Ave-
nue. State Bank of Chicago saw him in
Madison last Sunday; that he engaged a
carriage and met woman on street
corner three blocks from the apartments
Of his stepdaughter. Mrs. Inga Sandberg,
and that later the woman was left at the
same place. Mrs. Sandberg denies having
seen her father for week. Mrs Theodore
Stensland has been here for some time.
Others who knew Stensland are of the
hot ha ma