Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-19
FOUND DEFICIT
FULLY A MILLION
Report of Examiner in Looted
Chicago Bank Case.
MAY EXCEED THE AMOUNT
An Astounding Series of Bold For
geries Shown.
THINKS EMPL0YESWERE POSTED
A Daring Exhibit of Theft and Per-
jury Unexampled in the History
of American Banking.
THINKS EMPLoYEswERE POSTED

SPRINGFIELD. H., August 1s-Bank
Examiner Jones in a report to the stats
auditor of public accounts on the Nf,wa,,.
hee Avenue State Bank of Chicago, given
10 the press today, estimates the total de-
talcations through the manipulation of the
aHairs OF the bank by President Stensland
10 De Sl,OOO.0OO and possibly more Exami-
her Jones says the closing Of the bank WAS
.he consumption OF a career the most
remarkable in the history of banking.
AT the examination of the bank Noyeu-
per TO- 100, everything appeared to be
prosperous and satisfactory but II has
since developed that In the figures wer.
many questionable and forged notes the
exact amount of which nobody but the
president or cashier can determine.
examiner Jones says he is of the opinion
Kn,,1ai., MI Alsherg, the chief clerk; Frank
Sho"aiskl the assistant paying teller who
mas since committed suicide; John GuIlfn-
SKIN, the receiving teller, and without douht
t IrnerS OF the employees of the bank had
knowledge of many things which were Mt
dlvulged by the directors to him. -''
Mr.. Jones declares that Cashier Herring
~ ,noc !" wearing 10 the statement of January 30
tfSs o,a perJuTed himself to the extent OF
sIo7,s59, and in the April statement to the
amount of $202,1 ,123. He declares thai the
executive committee and the examinine
committee of the bank never acted in an
dnna
sach member of the two committees would
nave found his forged note in the assets
cashier Herring, he says denied forging
tI sne notes and failing to implicate President
EI.sIHsiaho, gave MIN to understand that an
itaian named Demario, employed in tha
oank' mad been the guilty party and that
Stensiand had given this man Sc U;0. State,.
Attorney Healy has been told that Demario
is now in Italy. ~
Stensland Paper Worthless.
MT Jones finds that the Steel Sail Com.
pany Obligations to the bank aggregates
slso,oeo, and that they will not nav 10 CAM.
ON the doiiar. The Steel Ball conn,r,, s.s.
one OF the Stensiand enterprises. The
" S.ensiand paper aggregates s145Ooo ac.
Soia!ns 10 the examination of Mr. Jopas
ana the paper Of the Milwaukee Av.n,o T'
operative. Store and its rami6oa.,e 20
U1Her Stensland concern) the sum oY era 90
Inc capital stock of the bank ambmu,,
,',os. ~ sIoooV. and the surplus and undividaS
pfonts or S300,O00 are wiped out IA th eo
Is still a deficiency of s45O ooo It mere
Whlch carried this deficiency were forreS
tonable. ei was Ques-
Three hundred thousand dollars. wo-,h ..
Stenslands subdivision notes w,a- l ~ "
under the head of real estate" In forr,ar
examinations these notes were aIways
SHOWN minus the matured coupon. and M
aet 10 vas always informed that the inter-
Go. haa Deen paid. Now he finds that this
was not the case, and that the coupons had
peen put INTO a package and kent in the
CASHIERS special box and never exhibited ~
'nT T, eAaMiher on previous examinations.
Inc report says that examinations az fha
DanK In years passed have always shown
lt 10 De IN hne condition, and that the last
examination showed absolutely no susni.
c1ous circumstances. Mr. Jones considarS.
one of the most remarkable exsmnies 81
banking that frauds on such a scale co,iS
be concealed. So~ao