Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-08-09
DEPOSITORS WILL Be PAID
Property Of President stensland Turned
Over TO Receiver of Defunot Bank.
NEARLY SUFFICIENT TO PAY ALL CLAIMS

Almost Provokes a Riot-Distribu-
tion Of Money Will Begin
Tuesday.
CHICAGO Aug. s.-Theodore stensland,
vice president of the Milwaukee Avenue
State bank and son Of the fugitive presi-
dent Of that institution, has come to the
rescue OF the 1900 depositors and tonight
II is the general belief OF those who are
endeavoring 10 straighten out the affairs
Of the hank that there is an excellent
chance thar all those who have deposits ia
the failed institution will receive almost
dollar for dollar when a final settlement Is
made The improved condition OF the
banks affairs was brought about by young
Stensland who tonight announced that he
would turn over to Receiver Fetzor to-
morrow all the real estate and personal
property of Paul o. Stensland his father.
The son places a valuation Of S6O0OOO on
this collateral and he stated tonight that
he had full authority to make the transfer
of the property for the benefit of the de-
positors. Arrangements were made tonight
for a meeting tomorrow between Vice
President Stensland and Receiver Fetzer,
when the holdings of the father will be
placed in the hands of Receiver Fetzer
According to Stensland, the property Of
his father is of such a charH".er that II
can he easily realized on without any delay
President and Cashier Still Missing.
Paul o. Stensland president. and Henry
| w. Herring, cashier. are still at large and
! search for these fus.tives is being made
! all over :he country. Five thousand pic
| lures of the two officials are being pre-
J pared, with full descriptions Of both, and
/ these will be spread broadcast throughout
! the entire world. At one time this after
noon 1t appeared as if there would be
! serious trouble with the depositors who
! swarmed around the doors Of the failed
bank. While fully a thousand of the de-
positors shouted their protests over 100000
! was removed from the vaults of the institu-
| ton TO those of the National Bank Of the
/ Republic, where il will be held for safe
| keeping until next Tuesday, when it Is
! said distribution to the depositors will be
made. The removal of the money put the
crowd in an angry mood and 1t took big
police detail to keep the excited throng
from upsettng the patrol wagons which
were allied with bluecoats.
] A statement of the banks affairs is
promised for next Monday by Bank Ex-
| aminer Jones.
Theodore Stensland. who was arrested
yesterday on warrant charging him with
! a violation of the banking laws of Illinois,
! accompanied by his attorney and bondsmen,
appeared in court this afternoon and by
agreement the hearing was postponed until
August IS.
Money Sunk in Real Estate Deals.
wild cat" real estate financiering by
1 n III d., ,.lr b
division will be disclosed, it is predicted, as
soon as j. L. Fetzer receiver, checks up
the mortgages and notes given by hundreds
of investors who hung onto the bubble"
let loose by the missing bank president
A slump in value at this time, which is
feared will come, would cause much suffer-
ing and loss to owners.
1t has been learned that loans have been
made houses in that subdivision up to
within so per cent of their top notch value.
The cash came from the savings of de-
positors of the suspended banks. Scores
of houses were constructed in the sub
division which were declared at the time
to be too expensive for the character Of
the section. Loan houses were told at the
time that II they didn't care to take the
security Paul o. Stensland stood ready to
furnish the money and at a low rate Of
interest.
Today a woebegone crowd of depositors
continued to crowd around the bank. As
on previous days, the unfortunates mostly
working people, came early and seemed
determined to remain indefinitely. Police
were on hand TO repress any tendency to-
ward disorder
According to Charles Sommerkamp, the
caretaker of the Stensland home. Pres
ident Stensland, was at home in Irving
|; park between midnight last Saturday and
a. m. Sunday. Sommerkamp stated pos
itively that the missing bank president
was in the house Saturday night with
several men and that when he left he took
with him a small steamer trunk and a
leather suit case.
Evidence Against President.
Conclusive evidence has been unearthed
, by State Bank Examiner c. c. Jones that
! Paul o. Stensland, the fugitive president
; OF the Milwaukee Avenue State bank, has
been guilty Of highly criminal acts in con-
; Quoting the business of the institution of
which he is the head. This was officially
. announced by Mr.. Jones today. At the
same time culpabilty for the crimes
which have brought the far-reachng dis
aster on the northwest side is narrowing
more and more TO President Stensland
Henry W. Herring, the missing cashier
who was declared TO be an embezzler OF
large sums of money, is being in a meas
urs exonerated because of lack Of direct
? proof against him.
When l swore out the warrant for Mr.
Stensland yesterday" said Mr.. Jones to-
day Il was perfectly assured Of the Grim
inal nature of the acts of which the
banker had been guilty Against Mr.
Herring l have no direct evidence. / can,
q not say as yet precisely how far the
> frauds operated by Stensland have beer
: carried, but it is to a great length; thai
! is proved by papers already brought tC
= light"
Mr.. Jones confirmed statements that tht
frauds amounted TO over 100000.
= Detectives were sent to Michigan TO-DAY
: in pursuit Of Henry W. Herring. the fugi
!, tive cashier who is said to have beer
a there. The police are said 10 have received
information last night that Herring ha,
crossed the lake after he left Chicago an,
the officers will follow this trail. Receive
: Fetzer said today he was beginning a rigi,
investigation of the forged notes in co
operation with Examiner Jones. 1t will b.