Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-11
A MASTER HAND
IN BANK WRECK
New Trails of Crookedness Re-
veaIed by Probe
INTO CHICAGO INSTITUTION
Astounding Revelations of Systematic
Looting
UNDER NOSES OF DIRECTORY
A Director Admitted He Never Knew
Of Any Meeting Held to Pass
Upon Loans.
INTO CHICAGO INSTITUTION
Astounding Revelations Of Systematic
Looting
UNDER NOSES OF DIRECTORY

| august LII he ulSCoNciy YES
| terday of new trails of crookedness run
ming through the mulcted Milwaukee Ave-
nue. Bank led the states attorney to sum-
mon peremptorily last night three of the
principal directors in the affairs of the in
stitution. They were called upon to explain
| conditions which Indicate that another line
| of robberies was being carried on independ-
| emily of the gigantic swindle already DIS
| cussed.
The directors who responded to the sum-
mons were Frank Crane and Martius Kirk
eby. An officer was sent for M. A. LaBuy.
| another director, but he could not be To-
Gated. Director Crane was submitted to a
| hot examination by Assistant States At
| torney Olsen In the presence of Inspector
| Shippy and Assistant Chief of Police Schuet-
| Ter. He denied all knowledge Of the for
geries perpetrated by Stensand.
Did you ever attend a meeting Of the
executive committee Of the board?' asked
Mr.. Olsen of Crane.
mo. sir; never did," replied the dl-
rector.
Did you ever know the executive COM
mittee to meet?"
"It never met so far as I know" admitted
| Crane.
did you ever pass on loans or do any
| thing else to further the interests of the
| bank?' pursued the prosecutor.
mo, SIR" said Crane.
Director Borrowed Money.
The director was shown note for $1,000
dated April last and asked II the sigma
| ture was genuine. He replied that it was
He said that he had borrowed a total of
$25,O ,O00 from the bank. the said $4,000 note
being the last transaction of the series.
He is Indebted to the bank for the whole
| amount at present.
The security which Crane gave the bank
! for this $25,OO0 in loans consisted of forty
shares Of West. Chicago street railway
/ stock valued at 81, 400. He was asked IT,,
as director Of the bank, he did not con-
slider that pretty slim security for a bor-
rover to put up. He did not think SO.
The assistant states attorney then pro.
duced the books of the bank. showing that
the dividends on Cranes stock were not
paid to him. but to an account in the bank
! known as 400" This was one of Stems
answer further questions along this line.
| The director declared that he Is worth
500 600.
Left Responsibility to President.
Director Marius Kirkeby was questioned
| on the same subjects. He was member of
the loan committee. together with Stems
| land and his son. He was supposed to pass
| on the loans, but he admitted to the state s
] attorney that he left the greater part OF
that responsibility to the president
| Among other papers examined last night
was check for 81, 700. which bore no sig
| nature except one made with a rubber
stamp, no name being attached In It's place,
bearing only the address 100 Milwaukee
| avenue"
according to his own admission and had
| been handed in by President Stensland, who
obtained the amount of the check In cash.
Police to Keep Order at Inquest.
| Police were today summoned to keep or
| der at the inquest into the death Of Frank
Kowalski teller of the Milwaukee Avenue
State Bank, who shot himself yesterday
evening at his home.
The feeling of some Of the depositors In
| the defunct bank was so great that the
! dead teller was cursed as his body lay IN
| the parlor of his home. The wreath on the
| door of the house was torn down and It's
| flowers scattered by the angry men,
| Police Sergeant Hamilton, detailed at the
| coroner's inquest 1orced the oisturpels my
| at the door to prevent any person from en-
| tering the house.
Directors on the Grill.
The directors of the Milwaukee Avenue
| State Bank were put on the grill in today s
| examination Of the banks affairs. They
were examined as vigorously as was Cash
ier Henry W. Herring yesterday. Six de-
tectives were sent to bring In the directors
soon after the inouisitors had arrived at
the bank today.
Stensland Lately in Fort Worth.
ST. LOUIS, August ia special to the
Post dispatch from Fort Worth, Tex.
says: Paul o. Stensland. president OF the
defunct Milwaukee Avenue State Bank OF
Chicago, was lately in Fort Worth, &C
cording to Henry A. Adams, fomer Chi
cago commission broker. who believes
Stensland to be on the way to Mexico.
Adams said he travelled all the way from
New Orleans to this city with Stenslano
without knowing the bank had failed. Not
| until Adams read the account Of 1t in q
| local paper did he suspect that Stenslano
was fleeing. Adams says Stensland claimed
to be going to Mexico on trip into the
| mountains for his health. When asked
| how his bank was progressing he declared
II to be in a most prosperous condition.
The police departments Of all border