The Barre daily times. (Barre, Vt.) 1897-1959, 1906-08-07
GREAT BANK FAILURE
CAUSES TWO DEATHS
Milwaukee Avenue State Bank Of Chi
cago Is Short About a Million
Dollars-0ne Depositor Kills
Himself.

Chicago, Aug. with q deficit IN
its accounts of close to a million dollars
and with the whereabouts Of two Of
its chief officers unknown to the author
tiles, the Milwaukee avenue state bank,
one Of the larger outlying banks Of Chi
cago, was closed yesterday BY State
Bank Examiner C. G. 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 the earnings of
a lifetime IN the institution. In the ex-
citement following the announcement of
the failure, j. g. Wiser, an officer Of
the Royal league, who had on deposit
IN the bank funds Of that organization,
fell dead.
Henry Koepke, grocer, on hearing
that the bank had suspended payment,
Went to the rear Of his store and shot
himself, He died few minutes later.
Riotons scenes attended the announce
Tnent Of the failure and large force
Of policemen struggled all day TO keep
an excited crowd Of depositors, nearly
all Of whom were women. from rushing
The fact that the bank was on the
verge Of failure was first revealed bv
the president Of the institution, Paul
20. Stensland in letter written from
st Paul to his son, Theodore, who Is
vice president Of the bank. The letter
was received last Saturday, and it
started the investigation which brought
about the suspension Of Cashier Henry
IN. Herring, who had disappeared, and
q warrant was issued for his arrest on
a charge Of embczzlement
The first public intimation that the
bank was in trouble was the posting
Of notice at the beginning Of banking
hours by Bank Examiner Jones, stating
that business had been suspended for
the purpose of making an examination
of the banks affairs and that the IN
stitution was in the hands OF the state
auditor.
The news spread rapidly through the
northwest side Of the city, where the
bank had been for years a popular de-
pository for funds saved by working
people.
Soon a elamorons crowd gathered be-
fore the doors and demanded admission.
Anticipating trouble, a score Of police
men were sent to the bank The peo-
pie were permitted to file past the doors
bearing the posted notice and were com
pclled to keep moving. Only those who
had keys to safety deposit vaults were
allowed to enter Many burst into tears
when they found that their savings were
endangered. Wiser, to whom the shock
proved fatal, was several blocks away
from the bank. Hearing the huinor he
stepped into drug store, seeking par
ticulars He fell dead when assured
the bank had failed.
An examination Of the banks affairs
was begun quietly last Saturday after
The receipt Of the letter from President
Stensland. Acting on instructions con-
tanned therein, Vice President Theodore
Stensland opened deposit box and
found proof that the banks funds were
in bad shape President Potter Of the
American trust and savings bank, which
acted as clearing agent for the defunct
institution, was called into consultation.
The state auditor was informed and
he sent Bank Examiner Jones 10 make
a fill investigation. The shortage OF be-
tween S750,000 and 81 100000 is said
10 be due to speculation III real estate
and IN the security market. Members
Of the. clearing house committee we're
told that most Of this amount was un-
protected BY adequate collateral.
The Stensland family owned must Of
the bank stock and members Of the
family operated the bank. a statement
was MADE by Vice President Stensland
yesterda, showing $l.o5l 900 in cash on
hand He said that the hank carried de.
posits Of $4,ooo,O0o and had 22,000 de.
positors.