The daily morning journal and courier., 1906-08-10
CASHIER OF FAILED
 CHICAGO BANK CAUGHT
HERRING ARRESTED TWO HOURS LATER THAN HE SET FOR
 SURRENDERING.

Declares He Does Not Know Where
 President stensland is--Has Had No
 Communication With Him for More
 Than a Week-Denies Responsibility
 for FaiIure-Officials Not Satisfied
 With His Explanation and He IS Re-
 fused Bail.
 Chicago. Aug 9.-Henry W. Herring, cashier of the Milwaukee Avenue State bank. which closed it's doors three days ago, was arrested in Chicago to-day. He will he refused bail until his con- nection with the disappearance of near ly $1, 1000, GOO of the banks funds is clear ed up. Paul o. Stensland, president of the defunct institution, is still 1ugi- tive, though nearly one hundred detec- tives are searching for him.
 Herring was arrested this afternoon, two hours later thar the time he had announced for giving himself up. lie was taken to the office of Chief of Po- lice Collins ad put through an examin- ation as to his knowledge of President Stensland's alleged mismanagement of the institution. Herring declared he did not know where President Stensland was and that he had had no communi- cation with Stensland for more than a week.
 Herring strenuously denied any responsibility for the failure of the bank and maintained that if he was guilty of the banking laws of Illinois, President Stensland was responsible. Herring declared he never had benefited a single dollar by President Stensland's system of banking.
 State Bank Examiner Jones and As sistant States Attorney Olson were present during the examination. Neither they nor the police were satisfied With the explanation given of Hering's con- nection with the collapse of the hank, and it was decided to refuse ball to Herring until the failure had been fur ther investigated.
 Receiver Fetzer reported to the SUI perior court to-day that dividend of at least 25 per cent. would probably be declared to depositors in the bank with in the next two weeks. This 1t is said will be followed by a second dividend, although the receiver tonight was not in a position to say how much of their savings the 22,0OO depositors would re- cover.
 At a meeting of the board of directors of the bank this afternoon a resolution was adopted appointing a committed to devise ways and means to apprehend President Stensland and to straighten out the affairs of the bank. The direc- tors declare that there will be found a sufficient revenue from the assets to pay all depositors in full
 At the conclusion of the examination of Herring at police headquarters, he was taken to the bank where with Bank Examiner Jones and Assistant States Attorneys Fake and Olson, a thorough investigation of the banks af- fairs was started. Herring promised to show all records of notes and trans actions whereby the bank was defraud- ed. The examination will occupy the night
 Fort William, Ont, Aug. 9. = The steamer American, reported last night to have on board President Paul o. Stensland of the failed Milwaukee avenue state bank. of Chicago, arrived at Port Arthur this morning and clear ed four hours later for Royal Island. The Port Arthur police department de- clares that it has not received instruc- tions to arrest Stensland nor bee nin- formed that he is coming this way