The Penn's Grove record., 1906-08-10

Chicago.-With a deficit in it's ac-
counts of close to $1,OO0,OO0, and
with the whereabouts of two of it's
chief officers unknown to the authori-
ties, the Milwaukee Avenue State
Bank, n of the larger outlying
banks in Chicago, was closed by
State Bank Examiner C. C. Jones.
In the excitement following the an
nouncement of the failure, ]. G.. Wis
ser an officer of the Royal League,
who had on deposit in the bank
funds of that organization, fell dead.
Henry Koepke, a grocer, on hearing
That the bank had suspended pay
ment, went to the rear of his store
n shot himself. He died a few
minutes later.
The bank had deposits amounting
to about $4,000, 900 and loans and
credits to about the same sum.
Riotous scenes attended the an
nouncement of the failure, and a
large force of policemen struggled
all a to keep an excited crowd of
depos1tors, nearly all of whom were
foreigners, and many of whom were
women, from rushing the doors of
the institution.
The fact that the bank was on
the verge of failure was first revealed
by the President of the institu-
ton, Paul o. Stensland, in a letter
written from st. Paul to his son.
Theodore, who is Vice President of
the bank.
After the investigation began
Cashier Henry w. Herring disappear
ed and a warrant has been issued for
his arrest on a charge of embezzle-
ment.
The news spread rapidly through
out the entire northwest side of the
city, where the bank had been for
years a popular %depositary for funds
saved by working people. Soon a
ciamorous crowd gathered before the
doors and demanded admission. An
tlclpating trouble. a score of police
men were sent to the bank. The peo-
pie were permitted to file past the
doors bearing the posted notice and
were compelled to keep moving. Only
those having keys to safety deposit
vaults were allowed to enter. Many
burst into tears when they found
their savings were endangered. Wis
d. ser, to whom the shock proved fatal,
was several blocks from the bank.
Hearing the rumor, he stepped into
a drug store, seeking particulars.
He fell dead when assured that the
bank had failed.
An examination of the banks af-
fairs was begun quietly last Satur-
day, after the receipt of the letter
from President Stensland. Acting on
instructions contained therein, Vice
President Theodore Stensland opened
a deposit box and discovered proofs
that the banks funds were in bad
shape. President Potter of the
American Trust and Savings Bank,
which acted as cleariSg agent for the
Milwaukee Avenue State Bank, was
called into consultation. The State
Auditor was informed, and he sent
Bank Examiner Jones to make a full
investigation. The shortage, of be-
tween $750,0O0 and $1,000 900, is
said to be due to speculation in real
estate and in the security market.
The Milwaukee Avenue State Bank
was organized in 1890 by Paul o.
Stensland" The capital stock of the
bank is $25O,000 and the surplus is
given at $250,000. The S~tensland
family owned much of the bank
stock, and members of the family op-
Grated the bank. A statement made
by Vice President Stensland to-day
showed $~1,051,O00 in cash on hand.
He said that the bank carried depos-
it's of ~$4,200,000 and had $4,000 de-
positors.