The Globe-republican., 1906-08-09
bad BANK failure Al
Milwaukee Avenue State Bank Of
Chicago Closed and Its officers
Are Missing.
SHORTAGE ABoUTsl, 100000
The Institution Carried Deposits of
Over 100000 and Had $4,000
Depositors One of Whom
Fell Dead.

Chicago, Aug. with deficit
in its accounts estimated at close to
$1,000,000 and with the whereabouts
of two Of Its highest officials unknown
to the authorities the Milwaukee
Avenue State bank, one of the largest
outlying banks in the city, was closed
Monday. by State Bank Examiner G.
s. Jones.
The failure was responsible for the
death of one Of the depositors and led
to the suicide Of another man who
month ago had placed his earnings
Of lifetime in the institution for
safekeeping. In the excitement fol-
lowing the announcement Of the fail
ure ]. G. Wiser, an official Of the
Royal League, who had on deposit in
the bank funds of that organization,
fell dead Of heart failure. Henry
Koepke, small grocer, on hearing
that the bank had suspended pay
ment, went to the rear of his store
and shot himself. He died a few min
utes later on while being taken to q
hospital.
Riotous scenes followed the an
nouncement of the failure, and large
force Of police struggled all day to
keep an excited crowd of depositors-
nearly all Of them foreigners and
many Of them women-from bursting
in the doors of the institution. The
fact that the bank was on the verge
Of failure was first revealed by Pres
ident Paul o. Stensland, one of the
absent officials. A letter to his son,
Theodore, who is vice president,
written from st. Paul and received
last Saturday, started the investiga-
ton which brought about the sus-
pension. Another sensational feature
of the affair was the disappearance of
the cashier, Henry W.. Herring, and
the issuing Of warrant for his ar
rest on a charge of ENLIGHTENMENT. A
message ordering his apprehension
was sent to every police station in
the city.
An examination of the banks af-
fairs was begun quietly last Satur-
day after receipt Of the letter from
President Stensland Acting upon
instructions contained therein, Vice
President Theodore Stensland opened
a deposit box and discovered proofs
that the banks funds were in bad
shape. President Potter, of the
American Trust and Savings bank,
which acted as clearing agent for
the defunct institution, was called
into consultation. The state audi
tor was notified and Immediately sent
Bank Examiner Jones to make a
full investigation. The shortage is
estimated to be between $750,00O and
81 100000. Disastrous speculation in
real estate and in the security mar
ket Is said to be responsible. Mem
bers of the clearing house committee
were told that most of this amount
was wholly unprotected by adequate
collateral.
The institution was known as a
family bank" The Stensland fam
lily, for years well known residents of
the Northwest side, owned much of
the stock and members Of the family
operatol the bank. 1t was organized
in 1891 with paid-up capital of
s250,000 and succeeded the banking
firm of Paul o. Stensland & Co. A
statement made by Vice President
Stensland Monday showed $1,051, 900
in cash or hand. He said that the
bank carried deposits of $4,2OO,OOO |
md hfH $4,000 depositors. The
Stenslahd bank was not a member OF |
he Gearing house, but cleared |
hrouth the American Trust and Saw
ngs bank. The concerns New York
are the Mercantile
nd the Chase National banks.