New-York tribune., 1906-08-11
BANK TELLER SUICIDE.
BLAMED FOR FAILURE.
4SteHsIaHd's Shortage May Reach
$4,000. -Many Notes Forged.

Chicago. Aug 1O-Frank KOwalski. for Eve
years paying teller Of the Milwaukee Avenue
State Bank, which failed last Monday. shot and
killed himself tonight at his home in North
Carpenter street. Criticism by neighbOrs ana
friends. who accused him Of share IN the
downfall of the bank. it is believed. drove
Kowalski to suicide.
The Of his trouble was reached las.
night. when a woman he had known for years
accOsted him on the street and accused him OF
being responsible for the failure OF the bank
Speaking Of the incident later in the evening.
kowalski complained bitterly Of the suspicious
OF his friends and declared that unless his
character was speedily cleared he would take
his own life.
Kowalskfs relatives assert their firm belle.
that he was innocent Of any knowledge as TO
the mismanagement OF the bank by President
stensland. When the bank failed. KOwalsEd
had 500 Of his own money on deposit ln the
institution. and his immediate relatives had in
the bank nearly $4,000 KOwalski. who was
thirty years old. had been with the bank for
thirteen years, beginning as an office boy.
Herring. the cashier, who was arrested yester-
day. spent to-day with the states attorneys
examining the banks collateral. IN an effort 20
determine the shortage in accounts. After an
ali day search forged notes aggregatIng more
than $J0OOOO were found and are now in the
them in the prosecution of persons responsible
for their utterance. From statements made to-
day by Herring regarding loans made by Stems
land to himself and the shortages found by
previous Investigations. It is asserted tonight
that when a final adjustment of the affairs OF
the bank is made it will be found that President
Stenslands alleged defalcatiOns will aggregate
nearly S2.OOOOOO-
So gigantic was the total of frauds unearthed
the conclusion that the whole matter ought 20
be taken out of the justice courts at once and
carried into a court OF record With this end
in view. it was reported that steps were taken
to obtain bench warrants for the arrest OF He
ring and Theodore StensIand-
MORTGAGES MAY BE WORTHLESS.
Receiver Fetzer made the following statement
this afternoon:
There are 81. 100000 worth Of mortgages. the
value Of which we know nothing about. Con-
sldering the developments of the day In regard
to the other securities. il is doubtful II theSe
mortgages will prove good
Application for the appointment Of a receiver
for the Milwaukee avenue store met with strong
opposition. An attorney for Receiver Fetzer de-
clared that the Milwaukee Avenue State Bank
had a large interest in the concern and that Re-
ceiver Fetzer desired to complete his investiga-
tion before any action which would tie uD the
assets of the store be taken. The case was con-
tinued until next Tuesday.
The personal estate Of President Stensland.
valued at SJO0OOO has been placed in the hands
of William c. Niblack. vice-president OF the Chi
cago Title and Trust Company. appointed re-
ceiver in bonds of S1OOOO0
Frank p Schmidt was to-day appointed special
master in chancery in the litigation resulting
from the suspension Of the Milwaukee Avenue
State Bank. Mr.. Schmidt's appointment was
made by Judge BrentanO. of the Superior Court
at the request OF Receiver Fetzer. who filed a
petition with the court asking for the appoint
ment. An intervening petition was also filed in
the same court by the Polish National Alliance
of North America, which organization has de-
posted in the closed bank. Il is claimed more
than $4,000 The court was asked IN the Pc
titiOn TO allow the alliance 10 become a party
complainant to the receivershiD proceedings.
officers of the alliance expressed 70 Judge Bren-
tano confidence in Mr.. Fetzer as receiver
Assistant State Attorney Olson found at the
bank to-day what he termed a regular forger's
nest" This discovery made by Attorney
Olson he was going through the books and
papers of the bank with Cashier Herring and
State Bank Examiner Jones. The nest was
composed of two envelopes filed with notes and
blank forms. The blank forms contained sigma
lures which had been traced from the regular
depOsitors' signature book. According to Mr..
Olson these We're ready to be filled in for any
amount the sum 10 be then charged to the ac-
count of the person whose name was signed.
The other envelope contained notes running up
To thousands OF dollars. with the names Os
many prominent business men attached The
authorities will endeavOr TO discover whether or
not these names were forged The notes were
found hidden in President Stensland's private
vault.
GIVE PROOF OF FORGERIES.
Francis s. Peabody and F. Herhold were two
Of the men who went 10 the bank and. with
Cashier Herring looking on. gave absolute proOt
that two pieces of the paper were forgeries.
Police Inspector Shippy who was present dur
ing the investigation said:
The thing is good deal worse than 7 had
s11nposed we have proved that 100000 worth
for SI0NNO bearing the signature Of =. S. kSa-
body was examined by Mr. Peabody, who de-
clared it not his signature
Mr. Peabody had heretofore insisted that the
only note he was concerned in was one for
$4,000 The Herhold forged note was for
$1O90O.
In addition to the discovery OF a private
ledger. kept by President Paul o. Stensland Os
the wrecked Milwaukee Avenue State Bank. and
in which was concealed a record Of $191.O00 o.
savings bank deposits. another sensational book
came 10 light during the examination OF Cashier
Herring by Assistant States Attorney Olson al
the bank last night. This book showed stems
land in a new role, The book showed that the
missing president in company with q cOterie or
friends was a heavy pIunger ON the races ~
contained memoranda Os the campaigns on ne
turf one day Steusland and his cOlnPsll..o-. .
I.