New-York tribune., 1906-08-07
BANK DEFICIT MILLION
DEATH AND SUICIDE.
Cashier Charged zoith Embe@SIement
Police Protect Chicago Institution.

Chicago. Aug. 6--The Milwaukee Avenue State
Bank. one of the larger outlying banks in Chi
cago, was closed to-day by State Bank Exam
iner c. c. Jones' with a deficit in its accounts of
close TO a million dollars and with the where
abouts of two of it's chief officers unknown
to the authorities.
The failure was responsible for the death Of
one OF the depositors asI6ss stsiutssss on
another man who month ago had placed the
earnings of a lifetime in the institution. In the
excitment following the announcement of the
failure ]. c. Wiser 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 suspend
ed payment went TO the rear OF his store and
shot himself He died a few minutes later.
The bank had deposits amounting to about
100000 and loans and credits of about the
same amount.
Riotous scenes attended the announcement Of
the failure and a large force of policemen strug-
gled all day to keep an excited crowd of de-
positors. nearly all Of whom were foreigners
and included many women from rushing the
doors Of the institution
The fact that the bank on the verge of
failure was first revealed by it's president, Paul
o. Stensland, in a letter written from st. Paul
20 his son Theodore who is vce-pTesident of
the bank The letter received last Satur-
day. and it started the investigation which
brought about the suspension
The cashier Henry w. Herring, disappeared.
and a warrant issued for his arrest on a
charge of embezzlement.
The first public intimation that the bank was
in trouble was the posting of notice at the
beginning of banking hours by Bank Examiner
c. c. Jones that business had been suspended
TO allow an examination of the banks affairs
and that the institution was in the hands of the
state Auditor.
WISER 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 affairs was be
gun quietly last Saturday, after receipt of the
letter from President Stensland Acting on
Instructions contained therein, Vice-Presdent
Theodore Stensland opened deposit box and
found proofs that the bank in bad condition.
President Potter of the American Trust and
Savings Bank. which acted as clearing agent for
the defunct institution. called into consulta-
ton The State Auditor was informed and sent
Bank Examiner Jones to make full investiga-
ton. The shortage Of nearly 81 100000 is said TO
be due to speculation in real estate and in the
security market. Members of the Clearing House
committee told that most of this amount
was unprotected by adequate collateral
The Stensland family owns much of the bank
stock, and members OF the family operated the
bank A statement made by Vice President
stensland to-day showed 1851 600 in cash on
hand, and said that the bank carried deposits Of
81 100000 and had 22,O0O depostors The insti-
tutions New York correspondents are the Mer-
camille and the Chase National banks
c. c. Jones, State Bank Examiner. tonight
said
From what l have discovered ! am of the
opinion that of the officers of the insti-
tuition responsible for the necessity of sus-
pending business. l believe / have found enough
TO Justify me in making the statement that there
has been some Juggling of the banks funds.
and that Cashier Herring is not the only one that
is involved.
At the office Of the Mercantile National Bank
one of the New York correspondents OF the MIL
waukee Avenue state Bank Of Chicago. it was
said yesterday that the institution had sub
stantial balance there.