The Barre daily times. (Barre, Vt.) 1897-1959, 1906-08-10
That Refugee Bank Man Was
a Plunger
PLAYED RACES BY SYSTEM
Once President Stmsland and His Com
tanions Bet $4,000 in One Day
to Win SEQ, ,ooo--Arrest of Cash
N ier Herring in Chicago.

Chicago, Aug. To- In addition to the
discovery Of private ledger kept by
President Stensland Of the wrecked Mil
waukee Avenue state bank, in which
was concealed record Of Slol,oo0 Of
savings deposits, another sensational
book came to light during the examina
tion Of Cashier Herring at the bank last
night.
This book contained Stensland's turf
transactions. II appears he was one
Of coterie Of plungers who systemati-
cally played the races. One day they
bet SIS, 900 to win 100000. Their
horse won, but the book contained the
record of numberless losses.
Cashire Herring was arrested yesterday
afternoon, two hours later than the
time he had announced for giving him-
self up. He was taken to the Offices
of Chief Of Police Collins and put
through an examination as to his knowl-
edge Of President stensland's alleged
mismanagement ofs the institution. Her
ing declared he did not know where
President Stensland was and that he
had had no communication with stems
land for more than week.
Herring strenuously denied any re-
sponsibility for the failure Of the bank
and maintained that if he was guilty
of breaking the banking laws Of the
state Of Illinois, President StensIand
was responsible Herring declared he
never had benefited single dollar by
President Stenslands system Of bank
ing.
State Bank Examiner Jones and AS
sisfant States Attorney Olsen were
present during the examination. Meth
er they nor the police were satisfied
with the explanation given Of Hering's
connection with the collapse of the bank,
and it was decided TO refuse bai to
Herring until the failure had been f,irth-
er investigated.
Receiver Fetzer reported to the su-
perior court yesterday that a dividend
Of at least 25 per cent would probably
be declared to depositors in the bank
Nithth NiiI sHNAb wv NttN7s
Herring Tells Good Story.
Last night Herring had the repose and
calInness of an innocent man, and the
story he told bore every superficial evi-
dence OF being true.
Herring swears he has no knowledge
of Just how and when the notes said
to be forgeries were signed by stems.
land.
sAs matter OF fact said he, "at
this moment do not know they are for
geries. The signatures were good enough
to deceive me"
Whenever Stcnsland needed money to
bolster up his operations, he worked as
foll0wss
eMr. Stenslandn said Mr.. Herring,
s.would say to me- Mr.. Herring, please
make out a certain number of notes
1.-THE number OF which he would give
me) for these amounts, giving me a
memorandum of the amounts | then
made out the notes and handed them
to him or sent them in the regular rou
tine of business. Later, generally the
next day, they were returned to me
duly signed by various people, or at
least they had the alleged signatures Of
various people.
"Mr. Stensland then ordered me to
place them to the credit Of his person
al account and would then draw checks
ON his personal account for the varir
GUS enterprises which dragged him TO
ruin"
@Did he ever utilize the names of any
of the employees on those notesgY
81 know of only one instance. BE.
fore the last report to the state audi
tor there was an oserdraft of $4,000
which had TO be taken care Of III some
manner lie got two employees Of the
cooperative store to sign notes to this
amount, and this paper was used to
conceal the oyerdraft.
About five weeks ago, determined
to say something about the matter 20
Mr.. Stensland. The notes piled upon
notes. / walked into his office and hand.
ed him q paper containing 4 list Of
notes footing up to s350,OO0, which /
have reason to believe should not be
among the assets of the bank.
e'Tbis indebtedness is getting too
large said, and it ought to be fixed
up in some other way, or the bank
will be in trouble.
He sat for moment and then said !.
sYes, know, but ! have every reason
TO believe will have II all fixed up
shortly. think | have buyer for
nv Belmont avenue and River property;
/ am also almost certain Of finding a
purchaser for the Schutze property.
and If / can get possession Of the whole
of the Paul 0. StensIand subdivision,
ean sell II Ia a lump"
This talk with Herring evidently was
The thing that led Stensand to make
up his mind to skip. The next week
ID spent lot Of time IN the directors
room and III his private Office.