Los Angeles herald., 1906-08-08

@ 65 per cent and may be rs per cent G,
O of their money" @
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BY Associated Press
CHICAGO, Aug. 7.-Theodore Stems
land, vice president of the Milwaukee
Avenue State bank, was arrested late
this afternoon on a charge of violating
the banking laws of the state.
Earlier in the day the institution
was placed in the hands of a receiver,
and Paul o. Stensland president of the
bank and father of the vice president
together with Cashier Herring, were
officially declared fugitives from JUS
tice and their personal descriptions
were placed in the hands of the police
throughout the country.
This action was taken by the author
tiles after developments today had
shown that the finances of the failed
institution were in a deplorable con-
dition and had been for a number of
years.
Rifle Deposit Boxes
Besides the discovery of many irreg-
ularities in the management of the
| bank 1t was also found that even the
safety deposit boxes owned and rented
| by the bank had been tampered with
and rifled.
The specific charge upon which
| Theodore Stensland was arrested is
| that Of having 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,
| where Stensland had gone to confer
| tnytfh fla fnff In - aarnt
| Later in the day Jacob Kern, for
mer states attorney signed bonds for
$4,000 for the release of Theodore STEMS
land
. Father In Canada n
| Promises held out yesterday that the
elder Stensland would appear in Chi
cago today were unfulfilled. and it Is
the belief of the police, based on dis
patches from several northern cities,
that he has fled to Canada. Cashier
| Herring is thought to have reached the
| Dominion by another route.
| The days developments we're pro-
ductive of the first ray of hope for the
| depositors, who yesterday believed
| their savings of years to have been
swept away in the wreck. David R.
Forgan, vice president of the First
National bank and one of those to
whom the status of the defunct bank
affairs had been laid bare, declared
that probably 20 cents on the dollar
would be paid in the final adjustment
The affairs. of the bank are said to
be In an almost hopeless tangle, and
new Irregularities are being disclosed
as the examiners go into the books.
- Loans to Himself
President Stensland loaned money to
himself it is alleged, by the subterfuge
of having employees sign the notes.
&C. .-ka 10 Itnrk1f 6tTrf fFtr
the day of the looting of the safety
boxes.
| The whereabouts of Vice President
| Theodore Stensland, son of the missing
| banker was a mystery to the authori-
ties until late in the afternoon, when
Chief of Police Collins got into commu-
nication with him by telephone and Sc
cured his promise to meet him in con-
ference later.
Handwriting Experts
The clearing house committee is
sparing no effort to bring the missing
president to Justice Handwriting ex-
perts, 1t is said, will be put to work
at once upon the case, to establish the
seeming evidence of forgery.
Belief that Stensland has made his
escape into Canada is supported by
report from Superior, Wis, that Ser
geant of Police Darwin Secon of that
| city saw the HllSSlllB DdllhSI Oll a Luz
luth and Superior car en- route to
Superior
Another dispatch from Superior,
from Chief of Police McKennan, tend
ed to show that Stensland made his
way to Canada by boat from Duluth.
Cashier Herring is thought to have
reached the line by way of Detroit.
Stockholders Confer
The largest stockholders of the bank
held a consultation today and decided
that If an assessment is necessary they
will be ready TO make payment. The
Illinois law calls for an assessment of
100 per cent on all state bank stock IN
case the assets of the bank are INSULT
cient to meet the liabilities. This will
mean that there will be $250,000 cash inn
mediately available to meet the de-
mands of depositors. Detectives for the
American Surety company are search
ing for the missing president ana
cashier.
Surety Men Search
s. S. Hartshorn, chief of the surety
company's detectives, said that the
company held a $4,000 bond on Herring
which runs to the corporation and not
to President Stensland personally.
I'VE are seeking both men," said
Hartshorn, but l can't understand
ed for so large an amount and the di-
reetors know nothing about it,"
Mrs. Harry Graboolski drew from the
safety deposit department of the bank
1886 today for safe keeping" She had
the money in her possession but a few
minutes when she was robbed of her
nurse I'm a street car, The rObber es-