The Minneapolis journal., 1906-08-06
Milwaukee Avenue Institution Of
Chicago in Hands of State
Auditor. .
S3,oOo,Ooo IN DEPOSITS; .
.~.s SAVINGS OF TOILERS
Run Starts but Police Avert q
Riot-Cashier Sought as
Embezzler. -1t%,,

Chicago, Aug. 6.-The Milwaukee
Avenue State bank, one of the largest
banks outside of the downtown district,
and having deposits of more than 3d.
100000, closed its doors today Hollow
ing run on the institution. "A
The first intimation Of trouble was
the appearance at the bank of twenty
policemen who had been dispatched to
prevent anticipated disorders, the po-
lice department having been notified
officially that one Of the officers of the
bank had absconded. - -
aroused by the sight of the policemen
stationed in front of the bank, and, in
short time large numbers of those
who had money in the bank appeared
and demanded their deposits.
At one time the run assumed the pro-
portions of a riot, but the turbulence of
the crowd was finally quelled by the
police.
Runs on Other Banks.
The news Of the suspension spread
yapidly and soon several Of the smaller
hanks in the vicinity were besieged by
The Milwaukee Avenue State bank
was organized in 1890 by Paul 0. Stems
land, who is president. The capital
stock of the bank is $25O,OOO and tho
surplus is given at $25O,OO0. A large
part of the deposits, stated to be in the
neighborhood Of $3,000,0O0, is said to
be the earnings of working people.
Cashier Alleged Embezzler.
Henry W. Herring, cashier Of the
bank, is missing and a warrant charg-
ing him with embezzlement has been
sworn out. At the same time State
Bank Examiner G. G. Jones issued
statement that the whereabouts of three
off 0f ho hor l.
and that the bank is without an official
head.
~ During, the absence Of President
stensland, his son, Theodore Stems
land, was in charge. Last Sat
urday he discovered that the bank
was in a serious, condition and
gave notice to Cashier Herring and
other officials that he would make a
further examination this morning. To-
day notice was posted by. Bank Ex-
aminer, Jones stating that the bank had
been closed for the purpose of exa1niI,-
alton and that the institution was now
in the hands of the auditor Of state.
Gambling on Races. ..s.
Reports were general that the alleged
defalcation would reach $4,000 or
more. Police Inspector Shippey re-
ceived information from a subordinate
sent to the bank that one of the Of
fcials Of the institution had been gam
bling on horse races. - ...
It is. said that the list Of depositors
at the bank includes nearly $4,000 per
sons. -.
Theodore Stensland said that his
father, Paul 0. Stensland, is in St. Paul,
where he has been for two weeks. HHe
Is up there on his vacation,' said the
son; 81 have telegraphed him and he
Will be at home not later than tomor-
row. "a. 80,
The patrons Of the bank are mostly
working people who live in that neigh.
borhood. Since the closing of the Chi.
cago National bank some time ago, the
Milwaukee Avenue bank has cleared
thru the American Trust & Savings
bank. ..- ..,. =
Loan Paper All Good.
The statement of the bank, issued un
der date of June 10, 1906, gave liabil
tiles at $4,697 ,474 Of the amount
$3,l75, ,l95. was composed of saving de-
posits and $869,S91 was deposited sub
ject to check and composed mostly OF
the accounts Of business men. Othe1
liabilities are: Demand certificates
$1,000; time certificates, $30,822; certi
fed checks, $8,651; cashiers checks
$43,997.
Offsetting the liabilities, the banl
statement shows that loans and dis
counts amounted to $3,223,172. AS fa
as now known, all Of this paper is good
The bank carried on hand at that tim
cash amounting to $265 1852, and hat
credits with other banks Of 1860, ,424.