The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-07
President Stensland Disap-
pears-Peculations Be-
gun Before 1901.
.Depositors Keep Vigil at
Bank-Two Dead
After Failure.

chicago, Aug. 7.-SenSatiOnal devel-
opments have followed the closing of
the Milwaukee Avenue State bank yes
terday, and today the 10000 stockhold-
they will never realize upon the saw
ings they had deposited in the institu-
ton for safekeeping. Briefly stated,
the developments of the day are:
Systematic looting placed the bank
in its present condition.
Persons in a position to know place
the shortage. as high as $1,000,O00.
land and Cashier Herring.
Stensland last reported in Duluth
and thought to be on. the way to Can
ada. Descriptions of the missing Off
GERS have been sent to every city in the
United States. The charge is made
loot from the wrecked bank.
Paul O. Stensland, president, is
charged with knowledge of the pecula-
tions, which are said to have begun
before 1901.
| Stensland and Henry W. Herring,
cashier Of the bank, have disappeared
and friends believe, with the police,
that they have fed to Canada.
Mob Of distracted depositors keep
vigil at bank as result Of rumors that
pered with Police maintain order.
One depositor dead of heart failue
over, revelations of alleged footing, and
another man committed suicide when
he learned of the failure.
Paul o. Stensland, president of the
Milwaukee Avenue State bank, which
closed Its doors yesterday, will prob
ably be arrested as soon as he enters
Chicago or can be found.
Bank Examiner Jones', who closed
the bank yesterday, said today that
Mr.. stensland surely had guilty knowl-
edge of the looting Of the bank. The
10000 depositors in the bank are grad
ually losing hope of recovering the
$4,2OO,00O they entrusted to Stems
land 3 care.
4 Warrant Is Sought.
i, Assistant Chief of Police Schuettler
Il with Inspector Shippey and Bank Ex-
aminer Jones went to Justice Severson
and asked him to issue warrant for
the arrest of President Stensland. The
charge in the complaint asking for the
issuance of the warrant is fraud.
1 Justice Severson was not inclined to
issue the warrant and the three re-
, turned to the bank empty handed. It
; was expected, however, warrant
I.wou1d be issued later in the day by
i Justice Severson or some other Justice.
Bank Examiner Jones reiterated his
statement that he could give no esti-
; mate Of the amount of the shortage.
8 Looting Began Before 1901.
i It was learned today that the pecula-
lions of the bank 3 funds began before
the year 1901. At the beginning Of
that year a shortage of $250,0e0 is now
, learned that Theodore Stensland now
holds a power of attorney from his
father.
The son is said to have been further
authorized by Stensland, ST., to dispose
Of all property, including real estate,
! belonging to him (the father) in order
) to make good as far as possible the
} populations.
80 Think Officers in Canada.
Members of the clearing house com.
, mittee expressed their belief today
that both Cashier Herring and President
Stensland are now in Canada.
The rumor today that Theodore Stems:
land had also disappeared grew. out of
his failure to keep an appointment
with officials Of the police department
and search for him was instituted.
, Judge Brentano of the superior court
l today appointed John G. Fetzer re.
! ceiver for the closed bank. The bill of
complaint filed in court alleges mis-.
} management by officials.
Two Depositors Dead.
In the excitement following the an.
nouncement of the failure, J. G.. Wiser
;. an official Of the Royal League, who
: had on deposit in the bank, funds OF
that organization, fell dead Of heart
!, failure. ' Hal
Henry Koepke, a small grocer, on
: hearing that the bank had suspended
; payment, went to the rear of his store
: and shot himself. He died few min.
utes later while being removed to q
hospital. He had placed the earnings
of lifetime in the institution for safe
keeping.
Cashier OFF to Canada?
Another sensational feature of the
affair was the disappearance of the
d cashier. Henry W. Herring, and the issu
e ing of warrant for his arrest on 8
i charge Of ENLIGHTENMENT. A message
t ordering his apprehension was sent te
e every police station in the city.
Cashier Hernig, according to thu
: spector Shippey, left the city for Mich
t igan Saturday afternoon after having
+ withdrawn $1,000 from the bank fol
: personal expenses and his destination Il
said to be Detroit. Inspector Shippey
t thinks that Herring is heading for Can
s ada.
t Mr.. Stensland's real name was Olson
Y He was drygoods clerk, and adopted
the name of Stensland because of hi
e being native of region of Norway
Of that name.
> Depositors Watch Bank.
q There was crowd of several hun
j. bred working people around the banl
this morning. Notwithstanding that tn
doors were closed, and here was n,
prospect of receiving funds during tn,
day, the people persistently remained
\ by drilling rain.
u Assistant Chief of Police Schuettle
today personally took charge sof tn
police guarding the bank. He soon sen
d requisition to Chief Collins for NOR
e policemen They were promptly OF
= dered to the vicinity.
e. i.f The call of additional police wa
caused by the fear that depositors an