The Democrat-sentinel. [volume] (Logan, Ohio) 1906-1935, 1906-08-09

sFV"s'sNeH w FSS' HssssN e"N
euritlss Gent II on the sheals-ons
psPosItor Dropped Dead and An
ether shst Himself After Hearing
~ the Failure.
Chicago. AUG. 7. - Many families
largely among working psoDls, will
isse heavily by the failure OF ths
Milwaukee Avenue State bank.
The fact that the bank was on the
verge OF failure was nrst revealed By
the president, Paul o. Stsnsland. one
Of the absent officials. A letter to bis
son Theodore, who is vice president,
written from St Paul and received
last Saturday. started the investiss.
ton which brought about the suspen.
sion. Another sensational feature OF
the affair was the disappearance OF
the issuing of a warrant for his ar
rest on charge OF embeKzlement. A
message ordering his apprehension
was sent to every police station in
the city.
The arst public intimstiOI that the
Of notice by the bank examiner
stating that the business was sus-
pended for the purpose Of making an
examination Of the banks affairs, and
that the institution was in the hands
of the state auditor. The news spread
rapidly throughout the entire north
west side of the city, where the bank
had been for years 4 popular depOs-
itory for funds saved by working
people.
The institution was known as q
family bank" The Stensland fam
| lily, for years we'll known residents Of
the northwest side, owned much OF
the stock, and members Of the family
operated the bank. 1t was organized
in 1891, and succeeded the banking
Arm OF Paul o. Stems, and i Com
pAny. 1t was launched with y paid
uD capital OF 3260,000. A ststem eut
made by the vice president showed
81 .051 coo ia cash on hand. He said
that the bank carried deposits OF
| s&.200.000. and had $4,000 depositorE.
The StenslaRd bank was not a mem
Der of the clearing house, but cleared
through the American Trust and Saw
ings bank The concarR's New York
correspondents are the Mercantile
and the Chase National banks.
Ar. Stensland was trusted implic.
itly by the people who placed their
savings In his care, and he had an
equally snviabls reputation for integ
rity among the bankers down town.
1t 10 evident, however. that the pub
lished statements OF the bank did not
show its true condition.
An examination of the banks az
falrs was begun after receipt OF the
letter from Stsnsland. Acting on in
structions contained therein, the vice
president. Theodore Stensland, opened
= deposit box and discovered proofs
that the banks funds were In bad
shape. President Potter of the Amer
loan Trust and Savings bank, which
acted as clearing agent for the de-
funct institution, was called into oOn-
sultAtisn. The state auditor was no.
tilted and Immediately sent the state
ksnk examiner to make . full inyes-
ugation.
The shortage is estimated to be be-
tween 1750,000 and 100000. Dis
astrous speculation In real estate and
lr hn nj nLnf 10 20
responsible. Members OF the clearing
house committee were told that most
of this amount was wholly unprotsct-
cd by adequate collateral.
Fictitious notes 10 the amount OF
500, 900 are said to figure In the story
notes listed az assets, II Is asserted,
have been found In the investigation
to have been taken up but Not can
ssled by their makers
No down-toSl bank is involved
with 1t In any way, and there 10 NO
chance OF = loss by them. The Nil
waukee Avenue bank had on deposit
at the American Trust = balance Of
Ss25, 900; at the Commercial National
a deposit OF 100000; with the First
National of Cleveland, o., a deposit
of 31S0,O09, aad other cash means to
make = total OF 3l.05l,0O0, being
about 20 per cent OF its total deposits.
The failure was responsible for the
death OF one Of the dspositors and led
to the suicide OF another mSH who =
month ago had placed his earnings
9 lifetime In the institution for safe
keeping. In the excitement following
shs announcement OF the failure. j.
@. Wiser. an oEiciAl OF the Royal
league, who had on deposit in the
bank funds OF that organisation, fell
dead OF heart failure. Henry KOspks,
q small grocer. on hearing that the
bank had suspended payment, went
10 the rear OF his store and shot him
Islf Ne died = few minutes later
while being removed to = hospital.
vaeatiSn Fer Psstmsstsrs.
Washington. Aug. T. = A leave or