The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-10
Evidence Found That President
of Closed Chicago Bank
Lost Much of DepOsitOrs' Money
at the Races.
Herring is SUSPECTED
Police Slow to Believe Stensland
Guilty of All FOrgeries.
Admission of Embezzlement
Made by Cashier.

Chicago, Aug. 10.-In addition to
the discovery of a private ledger, kept
by President Paul o. Stensland of the
wrecked Milwaukee Avenue State
bank, and in which was concealed a
record of $4,000 of savings bank de-
posits, another sensational book came
to light during the examination of
Cashier Henry W. Herring, after his
arrest, by Assistant States Attorney
Olson, at the bank last night. This
book showed Stensland in a new role.
The book showed that the missing
president, in company with a coterie
Of friends, was a heavy plunger on the
/ races. It contained memoranda of tn e
campaigns on the turf. One day Stems
land and his companions bet $4,000
to win 100000 on a horse called Cen
eral Bragg. The animal won. There
were lots of losings, however, to offset
this big winning.
This shows said Herring, as he
brought the book from its hiding place,
that I m not the only fellow around
here who followed the ponies
The authorities are chary of repos-
ing implicit confidence in Hering's
statement that he did not forge the
names on certain notes and by implica-
ton insinuating that StensIand did. The
reason is this:
For the last two or three years
I
feet His nerves have given him a lot
OF trouble and so poor has been his
control of them that his hands have
shaken as if he had the palsy
No wavering penman could do the
high grade forgery that has been GO
ing on.
The actual securing of money on bad
paper always was put through Al noon.
when the paying teller was out at
lunch Then Herring would enter his
cage. take the money and leave a debit
slip on the hook.
This is what happened on July 2S.
Herring admits that he took $1,000
from the paying teller's drawer put
the money in his pocket and put on
the spindle a slip charging the sum to
& mythical I'm bach" No such per
son exists so far as is known and the
transaction was a plai ncase of embez-
element.
In the case of the money borrowed
by Stensland from the bank. Herring
said that Stensland had Instructed him
/ to make between 100000 and $780,
| 600 in forged notes. signed chiefly with
1 the names of prominent patrons of
the bank. This he said he did, under
/ Stensland's specific direction Also, at
Stenland's dictation, he cared for these
notes and credited interest on them
1 from time 20 time
He said he also was directed by
/ Stensland to keep them carefully away
from the eyes of the note teller. in
order that notices should not be sent
to the bank patrons whose names were
/ forged and who would thus be ap-
prised of the crime.
Those who listened to Hering's story
were State Bank Examiner c. G Jones
Assistant States Attorney Harry Olson
Assistant States Attorney James Bar
bour Assistant Superintendent of Po-
lice Schuettler, Police Inspector
4 Shippy. Attorney Joseph Weisenbach
representing Receiver John c. Fetzer.
and a squad of detectives.
One of the Investigators remarked
that Stensland left $1,000, 600 in his
bank and other banks where he could
have reached for it quickly had he
been so inclined At any rate he could
have put in his pocket just before he
left about 100000 in cash and nobody
would have been the wiser until he was
! far away But it seems that he had a
theory that so long as he gave note.
even if it was forged, he was giving a
sort of value received" and he per
suaded himself this was not stealing.