Omaha daily bee., 1906-08-08
Police Believe that Both Missing officials
Are in Canada.
VICE PRESIDENT is UNDER ARREST
He is Charged with Accepting DEPOSITS
After Bank is Insolvent.
RAY OF HOPE FOR THE CREDITORS
Clearing House OmciaI Says Defunct
Institution VIII Probably Pay
Seventy Cents on the
Dollar.

CHICAGO, Aug. Theodore Ste "
vice president Of the Milwaukee A. "a
State bank. was arrested late this az
noon on a charge of violating the bankin.
laws of the state. Earlier in the day the
institution was placed in the hands OF
receiver and Paul o. Stenslano, president
of the bank and father of the vice presl-
dent. together with Cashier Herring were
ofacially declared fusitives from justice
and their printed descriptions placed In
the hands of the police throughout the
country. This action was taken ny the
authorities after developments today and
showed that the finances OF the falled IN
stitution were in a deplorable condition
and had been for a number of years BE-
sides the discovery of many irregularities
in the management of the bank II was
, also found that even the safety deposit
boxes owned and rented by the bank had
been tampered with and rihed.
The specific charge on which Theodore
stensland was arrested was that of hav-
ing accepted deposits at the bank when he
knew the institution to be insolvent. The
arrest was made in the office Of Chief OF
Police Collins when Stensland had gone
to confer with the head of the police de-
partment.
Later in the day Jacob ]. Kern, former
for the release of Theodore Stensland'
The promises held out yesterday that
the elder Stensland would appear in CHI
cago today were unfulhlled and it is tho
belief of the police, based upon dispatches
from several northern cities that ne mas
fed to Canada. Cashier Herring is thought
TO have reached the Dominion by another
route,
Raw of Hope for DepOsitOrs.
- The days developments were productive
of the arst ray Of hope for the depositors
who yesterday believed their savings OF
years swept away in the wreck. David n
ForEan vice president Of the First National
bank, ana one of those to whom the status
OF the defunct banks affairs has been laid
bare declared that probably 20 cents on
the dollar would be paid in the anal ad-
tustrnent.
The affairs OF the bank are said to be
IN almost hopeless tangle and new irregu-
larities are being disclosed as the examin-
ers 20 deeper into the books. President
Stensland loaned money to himself, II Is
alleged, by the subterfuge OF having en-
ploye5 sign the notes. Specific instances
came to light during the day of the lootins
OF safety deposit boxes.
The wherea bouts Of Vice President Theo
dore stensland, son OF the missing banker
was a mystery to the authorities until late
IN the afternoon, when Chief of Police
Collins got into communication with hin
by telephone and secured his promise &c
meet him in conference later.
The clearing house committee is sparinl
no effort TO bring the missing president 4
3ustice. Handwriting experts, it is said
will be put to work at once upon the cas-
to establish the seeming evidence o
forgery.
Belief that Stensland has made his escap
into Canada is supported by a report from
Superior Wis, that Sergeant OF Polio
Darwin scoon OF that city saw the missing
banker on a Duluth-Superlor car en- rout
10 Superior. Another dispatch frotn Su
per1or from Chief OF Police McKenna
tended to show that Stensland made hi
way to Canada by boat from Duluth
Cashier Herring is thought to have reache
the line by way Of Detroit
Notice by Police.
Assistant Chief OF Police Schuetler toda
personally took charge of the police guard
ing the bank. He soon sent a requisitio
70 Chief Collins for more policemen
large number Of additional policemen wer
promptly ordered to the vicinity.
The following message has been ser
broadcast over the country by the police
Arrest for embeZzlement Henry w Her
ing, cashier OF The Milwaukee Avenue Stat
State bank. Carpenter street and MiiwaI
kee avenue Forty TO forty-tive years, 81
feet two inches tall, 2I5 pounds, stout built
dark complexion, chestnut hair. dar
brown mustache, light suit
He IL good dresser. Send all informs
(slenedJ, INSPECTOR sHIPPY.
The cali for additional police was cause
by the fear that depositors and the
friends would storm the hank and prsclp
tate a riot when rumors spread that II
contents OF some OF the safety depos
vaults had been tampered with Person
with money in the vaults were said TO ha,
found their savings gone. These rumo
originated in the butcher shop Of OF
/. - l3laura, Marshhed avenue and Cornell
street Blaura said his sister had 5000
the vaults and when she went 10 get Il
money Il was gone. Other stories OF a
legged tampering with the contents OF Il
boxes were passed through the crowd al
helped to excite the DanKs patrons.
warrant Asked for stensIand.
Late Assistant Chief OF Police SchuetIe
with Inspector Shippy and Bank Examin
Jones went TO Justice Severson and ask
him to issue a warrant for the arrest
President stensland. The charge in 4
complaint Tor the issuance Of the warra
Is fraud
Justice Severson was not inclined TO iss
the WARRANT ana the three lctulueu 10 Z
bank empty handed II is expected that
warrant win be issued later in the day
Justice Severson or some other justi,
Bank Examiner Jones reiterated his stat
msnt that he could give no estimate Of I
amount OF the shortage.
II was learned today. that the peculatio
OF the banks funds began before the ye
1901. Al the beginning OF that year
shortage OF S25O,OOO is now said 10 have G
listed. II was also learned that Theodo
6tensland row has power OF attorney fro
his father. The son is said 10 have be
further authorized by stensland. sr. 70 d
pose of all properly, including real ests
belonSing to him (the father. In order
make good as far as possible the pecu
tiOnA Members OF the clearing hoJ