New-York tribune., 1906-08-10
CHICAGO CASHIER HELD.
says HE rs INNOCENT.
Describes HOao Fugitive President
Wrecked Bank.


r.sa to-day he viii be refused bail until his
connection with the disappearance OF nearly
ynn00eO Of the banks funds is cleared up.
ssarly one hundred detectives are searching for
p,ul O. s,ensland. the fugitive president of the
tsnk-
Herring was arrested this afternoon, two hours
,s.er than the time he had announced for giving
pmself up He was taken at once TO the Office
n the chief of police and was put through a
.horough examination as to his knowledge OF
preeident Stenslands alleged misnanagement OF
.be institution. Herring declared he cid not
know where President Stensland was and that
hs had had no communication with him for more
shan a week
Herring strenuously denied any responsibility
.Or the failure Of the bank. He maintained that
% he was guilty OF breaking the banking laws
n Illinois. President Stensland was responsible.
ve said he never had benefited a dollar by
President Stenslsnd's system Of banking.
The State Bank Examiner and Assistant
states Attorney Olson were present at the ex-
animation of Herring. Neither they nor the
n6ice were satisfied with the explanation given
ly Herring of his connection with the collapse
of the bank.
Receiver Fetzer reported 10 the Superior Court
.o-day that a dividend OF at least % per cent
rr0bablF NOulQ De QeclareG 10 QepOSllOrS Ia the
hank within the next two weeks. This. it was
ssid. win be followed by second dividend. al
though the receiver tonight was not in a posi-
don 10 say how much of their savings the $4,000
6spostors would recover from the institution.
Al meeting Of the board Of directors OF the
hank this afternoon a resolution was adopted
appointing a committee to devise ways and
means 10 apprehend President Stensland and to
stTaghten out the affairs of the bank. The
directors declare that there viii be found suffi-
cient revenue from the assets to pay all de-
posiors in full.
Herring has not been out of the city since
Monday morning. The Tribune" in predicting
lis arrest to-day said:
The Police Department can call in its circu-
lars take its detectives off the trail and rest as
sured in the belief that at l O'Clock to-day, or.
rather. one minute after 1 o'clock, Mr.. Herring
will be in the custody of Inspector Shippy.
Herring intends TO give himself up, and is abso-
lutey confident that in a short space OF time he
can show 10 the satisfaction Of every one con-
oened that he had no part in robbing the $4,000
depositors of the wrecked institution.
From until II o'clock last night reporter
ana the cashier sat on bench in one OF the
cflys parks. In these two hours Mr.. Herring told
ihe story OF mis- connection with the bank from
ne time of his employment seventeen years ago.
until he closed his safe last Saturday.
The cashier does not think he can be correctly
oescribed as a fugitive from justice. II has been
kaleu mat ne ran away from town last Satur-
osy and various surmises as TO his whereabouts
have been put forward by the police.
AS matter Of fact, when Herring left the
city on Saturday he simply went up the lake
ior days rest. He reached Chicago Monday
morning, got on car and rode straight to the
bank. When the car stopped on the corner he
Jumped off, carrying his heavy grip Just as he
reached the edge of the sidewalk he saw a man
Fasting the notice Of the closing of the bank on
SIS doors. Instead OF ascending the steps, he
lacktracked and headed downtown.
The pasting of the notice on the window proved
The elimination Of suspicious aroused in his
mind six or eight weeks ago that things in the
This suspicion was intensified by the unex-
planned prolongetion Of the ten days absence
that President Stensland said he was going to
take when he left three weeks ago last Sunday.
and suspicion became certainty when he saw
ne mob Of :Teazied depositors around the
banks door.
Herring thought ne would like few hours TO
mink affairs over before he jumped into the
fnend.
Ir. Herring is insistent in his statement that
ne mad absolutely nothing whatever to do with
any peculation Of the banks funds. He swears
Ie mas not profited one penny by the irregu-
Lough cashier OF the bank he was merely a
cerk for Stensland: that all he did was TO carry
oLt Stensland's orders
Mnle defending himself with the utmost vigor
ne H made 40 wild accusations against Paul o.
sitensiand; re simply told what he said a
stensand and his downfall brought about by a
mania for real estate investments.
NJ suspicious We're aroused some time ago. -
e said. but ] made up my mind that it was
~ dlLy 70 say something to Mr. Stensland
about five weeks ago The inflnitude OF notes
pAeo upon notes had worried me so that ] be-
SeIne se sick from anxiety. and went away for a
-eN Gays rest. During this time I made up my
minG 10 speak 70 Nr. Stenslsnd-
When J came back walked into his Office
Sne saiq: Now Mr. Stenslsnd you know this
.aIuepleeness Is getting too large. and il ought
% oe Ikea ~. or no hank will he in trouble"
=, ms tax with Herring evidently U'as the thing
iaat leo Stensland 10 make up his mind TO skip.
me next week he spent a lot of tirne in the
directors room and in his own private office,
1ckng the door so that he could net be inter-
Supted
ono of the results Of Herings temperance
VIII be that the cooperative store said TO have
furnished a channel for dissipating nearly $780,
VVe Of the banks funds will be closed. Receiver
'ohn C. Fetzer said this morning that he will
ask Instructions Of Judge Brentano on the dis
position Of the stock in the store Another de-
velopment expected to-day is that the estate OF
NE fleeing bank president, Of an estimated value
O 0eooa, viii be decided TO the receiver by
Theodore Stensland.
ENloence which may lead to the prosecution
u me banks directors was among the general
OeFeopnents yesterday.
developed that the directors Of the institu-
Noh neglected 10 enforce such precautions as
0-u nave made impossible Stenslands opera
'NS IN fictitious paper directly under their
S.a Sor - stensland never was required TO account
~ '4e vast amount Of money which apparently
Deiyble-.ss ibl..s borrowed by small tradesmen in the
bank N "s sihall depositors IN the
sWo rbo,,.S y. SHe distress brought to the twenty
xnanaeer,e-,N p9or savings depositors by mis-
s7-iI fe rnas fespons.bi bility Of the directors
The grand Jury. "a an i"Nef'lisalloH ny
II is expected that H.
% %Delote states Attorney Healy as soon &C re-
celNer Fetzer and Bank Examine ganeH 90 car
complete their report ''ii'iieI JONES ca"
After Heting's examination a. r,a,; H.,
quarters he was taken 10 the bank vberd ter,