Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-10
BANK DISCLOSURES
ARE STARTLING
Further Details of Looting of
Chicago Bank.
WHAT BECAME OF ITS FUNDS
Cashiers Revelations of Loose Finan.
ciering.
WHAT BECAME OF ITS FUNDS
Cashiers Revelations of Loose Finan-
'TENSLAND PLAYED THE RACES
Discovery Of Sensational Books Con
tanning Important Facts for the
Official Examiners.

OmC4d1 EAdu1ueIS.
CHICAGO, August 1O.-In addition to the
discovery Of private ledger kept by Presi-
dent Paul o. Stensland of the wrecked Mil
waukee Avenue State Bank. and in which
was concealed.a record of $191 600 Of saw
ings bank deposits, another sensational
book came to light during the examination
of Cashier Herring by Assistant States At
torney Olson at the bank last night. This
book showed Stensland in a new role. The
book contained memoranda which showed
that the missing president, in company
with coterie of friends, was heavy
plunger on the races. One day Stensland
and his companions bet $4,000 to win $780,
GOO on horse named General Bragg. The
animal won. There were lots Of losings how
ever, to offset this winning.
This shows" said Herring as he brought
the book from its hiding place, that I'm
not the only fellow around here who fol-
lowed the ponies
The authorities are chary of reposing i'm
plicit confidence in Hering's statement that
he did not forge the names on certain notes
and by implication insinuating that Stems
land did.
The reason Is this: For the last two or
three years Stensland has not been physic-
ally perfect. His nerves have given him a
lot OF trouble, and so poor has been his
control Of them that his hands have shaken
as II he had the palsy. No wavering pen
man could do the high-grade forgery that
has been going on.
Today Herring will be confronted with the
crooked signatures and questioned point
blank about each one.
How Money Was Taken.
he oof,,
per always was put through at noon when
the paying teller was out at lunch. Then
Herring would enter his cage, take the
money and leave debit sip on the hook
This Is what happened on July Is Herring
admits that he took 1,OO0 from the paying
tellers drawer, put the money in his pocket
and put on the spindle a slip charging the
sum to a mythical "Umbach."
No such person exists so far as Is known.
In the case of the money borrowed by
Stensland from the bank, Herring said that
Stensland had instructed him to make be-
tween 100000 and 100000 in forged notes,
signed carefully with the names of promi-
nent patrons of the bank. This, he said, he
did under Stenslands specific direction.
Also, at Stensiand's dictation, he cared for
these notes and credited interest on them
from time to time. He said he also was
directed by Stensland to keep them care
fully away from the eyes of the note teller
in order that notices should not be sent to
the bank patrons whose names were forged
and who would be thus apprised of the
crime.
Who Heard Hering's Story.
Those who listened to Herings story were
State Bank Examiner c. c. Jones, Assistant
States Attorney Harry Olson, Assistant
States Attorney James Barbour, Assistant
Superintendent of Police Schuettler, Podce
Inspector Shippy, Attorney Joseph Weisen-
bach, representing Receiver John c. Fet-
ger, and squad of detectives.
One of the investigators remarked that
Stensland left 100000 in his bank and
other banks where he could have reached
for it quickly had he been SO inclined. At
any rate he could have put in his pocket
just before he left about s2OO,OOO In cash
and nobody would have been the wiser until
he was far away. But 1t seems that he had
q theory that SO long as he gave note,
even If ii was forged one, he was giving
a sort of value received" and ne per-
suaded himself this was not stealing.
Bankruptcy Proceedings Instituted.
The first step in the dissolution Of outside
companies with which Paul O. Stensland,
the missing president Of the Milwaukee
Avenue State Bank Is identified, was taken
today when petition in involuntary bank
ruptcy was filed against the Milwaukee
Avenue Cooperative Store. by attorneys
represepting 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
A~t.~ -fv- .tyo- h,,kt d.
view Of the fling of the petition by the
local concern, 1t is now probable that the
New York creditors will join with the pc
titioners now before the court.
The stockholders of the Milwaukee Ave-
nue. store number 5000 persons, many of
them Workingmen, holders of shares of $40
each The Individual liability Of these
shareholders. 1t is claimed. is a mooted
point and 1t may be that the court will
hold that the creditors Of the company have
recourse upon the individual property Of
them all.
Henry w. Herring. cashier of the suspend
ed bank, was today taken to the institu-
tior he Is alleged to have helped ruin.
He was taken to the bank by two detectives
and every precaution was used to get him
inside the building without the knowledge
Of the several thousand people who were
around the place. Safe inside the bank,
Cashier Herring Immediately began to direct
the authorities around to the different
vaults and secret chests.
Opposition to Receiver.
Application for the appointment of a re-
ceiver for the Milwaukee avenue store met
with strong opposition. An attorney for
Receiver John C. Fetzer declared that the
Milwaukee Avenue State B9nk had a large
|, interest In the concern and that Receiver
Fetzer desirAd to complete his, investiga-
tfon before any action which would tie up
the assets of the store be taken. The case
was continued until next Tuesday.
The personal estate of President Stems
In the hands of a receiver, William c. Nib
lack vice president OF the Chicago Title
and Trust Company, being appointed re-
ceiver in bonds of 100000.
Frank P. Schmidt was today appointed
special master in chancery In the litigation
ha of %ho