The Minneapolis journal., 1906-08-09

about by mania for real estate in
vestments.
q Mr.. Herring swears he has no knowl-
edge of just how and when the notes
said to be forgeries were signed by
Stensland.
7 Gas a matter of fact said he, cat
this moment I do not know that they
are forgeries. The signatures were good
enough to deceive me. ....
N Whenever Stensland needed money
to bolster up his operations he worked
as follows:
! How Stensland Worked.
"Mr. Stensland would come to my
desk,'' said Mr.. Herring, "and say, to
me: sMr. Herring: please make out
Of which he would give me) for these
amounts Che giving me a memoran.
dun of the amounts). I 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 returned to me duly
signed by various people, or at least
they had the alleged signatures of
yariSps Il %s ggfoppsssnd ggfoples: then ordered me- to
place them to the credit of his personal
account and would draw checks on his
personal account for the various enter
prises which dragged him to ruin.'
HDid he ever utilize the names of
any of the employees on these notes7'
"I only know of one instance. Be
fore the last report to the state auditor
there was an overdraft of .$26,OOO
which had to be taken care OF in some
cooperative store, which was the chief
milestone around his neck, to sign notes
for this amount, and this paper was
used to conceal the overdraft.'
Spoke to stensland.
q "When did you first become suspi-
cious that something was wrongi?'
s "My suspicious were aroused some
time ago, but I made up my mind that
It was my duty to say something to
Mr.. Stensland about five weeks ago.
The infinitude of notes piled upon notes
had worried me so that became sick
from anxiety, and I went away for q
few days rest. During this time I
made up my mind to speak to Mr..
Stensland.
"When I came back I walked into
his office and said: Now, Mr.. Stems.
land, you know this indebtedness-' ~
"Were you more specific as to this
indebtedness9' -
( "No; he knew what meant, for
handed him paper containing list Of
notes footing up $530,000, which !
have reason to believe should not be
among the assets Of the bank.
This Indebtedness is getting too
large I continued, sand it ought to
be fixed up in some other way, or the
bank will be in trouble.
Z Admitted Conditions Grave.
ttu. .4 e. .,.n,.,4 ,,l +bor
said: yes, I know, but I have every
reason to believe I will get it all 6xeG
sup shortly. I think I have buyer fol
my Belmont avenue and River property
4 am also almost certain Of finding s
purchaser for the Schultz property, ane
If I can make dicker with Watson ant
get possession of the whole of the Pau
%. Stensland subdivision, I can sell il
in lump. Don't worry, it will all bt
taken care of.
GA moment later he said: 4 have
shad an offer for my Elmwood cemetery
stock, but I dom think it is enough
and will hold it for better price -
2 This talk with Herring evidently wa
the thing that led Stensland to mak'
sup his mind to skip. The next weel
sshe spent lot of time in the directors
room and in his own private office
docking the door so that he could no
gbe interrupted.
: He worked not only during the day
slime, but late at night. He evidentl,,
was casting up the amount he ha
stolen and preparing the documen
(which was found in his safety deposi
sbox last Sunday. In the letter whic
shis son received and which brought O.
sthe crash, he stated that in the memo
Frandum in the box would be found
record of his Indebtedness to the bank
ole ctof
sment by Cashier Herring of furthe
Indebtedness of $530,0O0, which, t
squote the letter, "Hering says l ow
Sthe bank
3 Stensland as Autocrat.
s According to Mr. Herring, Stenslan
awas the autocrat Of the bank. He di
&as he pleased. and practically did a
sthe business himself.
j. There is one thing that shows Stem
sland really did 90 up north. Sevel
steen days ago letter came to tt
sbank addressed to Theodore Stenslan
Sand it bore the postmark of Royalto
sMinn.
I In a statement to the pubic Herin
Hsays in part:
TIn reading carefully the differel
@accounts Of my duplicity in looting tt
milwaukee Avenue State bank, thin
sly. In explanation I will state ,th'
! I have been employed with the aboN
amentioned bank for nearly seventee
syears in the capacity Of paying ar
sreceiving teller, assistant cashier, al
Z at present as cashier. During tn
whole period Mr.. Paul o. Stensla1
awas the sole controlling person, and
under his instructions. did from tin
ato time place notes which were hand!
- rs ho nj RI cred
I. or turned over to the Milwaukee Av
fnue Cooperative store, also amounts
Rbe placed to real-estate account. IN
smatter has been going on for over t.
gyears and was an inheritance fro
+ q former administration Of the bank
A TO Close cooperative Store.
One of the results of Hering's rea
spearance will be that the cooperate
Store, said to have furnished a chan1
sfor dissipating nearly $500, 900 Of t
SJohn G. Fetzger said this morning tn
She will ask instructions of Judge b
ritane on the disposition of the stock
the store.
Another development expected !
aday is that the estate Of the feei
Sbank president, of an estimated val
sof 100000, will be decided to the
sceiver by Theodore Stensland, his st
IT am collecting the assets Of t
abank, not running business enterpr
ses,o said Receiver :Fetzger today. -
athe store will be closed. The $4,000
gco-operative store bonds mentioned
aCashier Herring were discovered in t
bank g vault yesterday.
Only $75O,OOO in Sight.
/ u Receiver Fetzger declared that t
first statement of cash on hand at t
L.