The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-08-07
President and Cashier he
Institution areS$os.t
WILD SCENES ENTRANCE
Depositors clamor for Money After
Doors Had Been Closed and a
Heavy Reserve of Police
Is Sent to the Bank.

Chicago. August 6-With a deficit IN its
accounts estimated to reach close To
million dollars, and with the whereabouts
of two of its highest officials unknown
to the authorities, the Milwaukee Avenue
State hank, one of the largest outlying
banks in the city. was closed today by
state Bank Examiner C. c. Jones
The failure was responsible for the
death of one of the depositors and led to
the suicide of another man. who a month
ago had placed his earnings of life
time in the institution for safekeeping In
the excitement following the announce
ment of the failure. ]. G. Wiser an Of
fetal of the Royal league who had on
deposit in the bank funds of that organ
ization, fell dead of heart failure Henry
KoeplSe. small grocer, on hearing that
the bank had suspended payment. went
to the rear of his store and shot himself
He died a few minutes later while being
removed to hospital
Riotous scenes attended the announce
ment of tho failure and large force of
police struggled all day to keep an ex-
cited crowd of depositors, nearly all of
them foreigners, and many of them wom-
en-. from rushing the doors of the in
sttution
The fact that the bank was on the verge
OF failure was first revealed hy President
Paul o. stensland one of the absent Of
ficials a letter to his son. Theodore, who
is vice president written from St Paul
and received here last Saturday, started
the investigation which brought about the
suspension.
Cashier Also Disappears.
Another sensational feature of the af-
fair was the disappearance of the cashier
Henry " Herring, and the issuing of
warrant for his arrest on p charge cf sin
a messaze ng his APP
+s s~nt to e,r police sta
lfol. ne city.
The first public intimaton that the bank
was in trouble was the posting of a no
tice at the beginning of banking hours
by Bank Examiner c. c. Jones, that the
business had been suspended for the pur-
pose of making an examination of the
banks affairs. and that the institution
was in the hands of the state auditor.
Soon clamorous crowd gathered before
the doors and demanded admission. An
ticipating trouble a score of police was
sent to the scene. The people were per-
mtted to fight past the doors bearing the
posted notice, but were compelled to keep
moving. Only those having keys to safety
deposit vaults were allowed to enter.
Many burst into tears when they found
that their savings were endangered or
lost. Wiser to whom the shock proved
fatal, was several blocks from the bank
a~f.. I. 1,a rt1 IT, !,
drug store seeking particulars. He fell
dead when assured that the bank had
failed.
Examination Began Saturday.
An examination of the banks affairs
were begun quietly last Saturday after
the receipt Of the letter from President
Stensland. Acting upon instructions con.
tanned therein, Vice President Theodore
Stensland opened a deposit box and dis
covered proofs that the banks funds
were in bad shape.
President Potter of the American Trust
and Savings bank which acted as clear
ing agent for the defunct institution. was
called into consultation. The state audi
tor was notified and Immediately sent
Bank Examiner Jones to make full In
vestigation.
The shortage is estimated to be between
S50.000 and 81, 100000. Disastrous specua-
tion in real estate and in the securities
market is said to be responsible Mem
bers of the clearing house committee were
told that most of this amount was wholly
unprotected by adequate collateral
Known as Family Bank.
The institution was known as a fam
lily bank The stensland family for
years we'll known residents OF the North
west side owned much of the stock ana
at.er-- .f ~
bank IT was organized in 1891 and sue
ceeded the banking firm of Paul o.
Stensland & Co. It was launched with a
paid up capital Of s25000o.
statement made by Vice President
Stensland today showed 81. .50O.000 in cash
on hand. He said that the bank carried
deposits of $4,2oO.0O0. and had 1900 depos-
itors The stensland bank was not a
member of the clearing house, but
cleared through the American Trust and
Savings bank.
The concerns New York correspondents
are the Mercantile and the Chase Ma
tional banks. The last report of the Mill
waukee Avenue bank was made on June
49, 1t is as follows
Resources.
Loans and discounts, s3.22s.172.72.
Overdrafts. 81 .325.72.
Stocks and bonds, S3oD, D,9lS.3 49,
Real estate and safe deposit vaults,
se75.66s.ss.
Current expenses, 81 ,477.34.
Curren Exchanges for clearing house,
S71. .202S5
Checks and other cash items. s3,s15.40
Cash on hand. s265,1621s
Due from banks. $685., 1882.
Collections in transit, S25,312.3.
Total. s4,6s7 474sO.
Liabilities.
Capital stock paid in s250.000.
Surplus fund, s250.000
Undivided profits, s61 $685..
Dividend profits, ss1.866S5
Dividends unpaid, s150
Savings deposits subject to notice. s3,175,-
1881
individual deposits subject to check.
$S69591.S3.
Demand certificates of deposits. 81 200
Time certificates of deposit, sl3O,S22.02
Time certificates of deposit, si30 82202
Certified checks. $S.651.75.
Cashiers checks outstanding. s43,997 Is
Total. s4.6a7,474so.
Trusted implicitly BY Depositors.
Mr.. Stensland was trusted implicitly by
the people who placed their savings in
his care and he had an equally enviable