Omaha daily bee., 1906-08-07
EJECT CLOSE TO MILLION DOLLARS
Whereabouts Of President and Cashier Un-
known to Authorities
.oSIEG CAUSES PANIC AMONG VICTIMS
Large Force Of Police Necessary - Keep
People from Breaking Doors.
DEPOSITS OVER FOUR MILLIONS
Money supposed to Have Been Lost iA
Speculation In Real Estate
and securities-Man
Drops Dead.

Drops Dead.
CHICAGO. Aug 6-with a deficit in ita
accounts estimated close to 100000 and
with the whereabouts Of two of it's hiRh-
est officials unknown to the authorities,
the Milwaukee Avenue State bank, one OF
the largest outlying banks In the city, vas
closed today by State Bank Examiner c.
c. Jones.
The failure was responsible for the
death of one Of the depositors and led
TO the suicide Of another man who a
month ago had placed his earnings Of a
lifetime in the institution for safe keep
ing. In the excitement following the
announcement Of the failure J. G. Wiser.
an official of the Royal League, who had
on deposit in the hank funds of that or
ganization, fell dead Of heart failure
Henry Koepke. a small grocer, on hear
ing that the bank had suspended payment
went to the rear of his store and shot
himself. He died a few minutes later
while being removed to a hospital
Riotous scenes followed the announce
ment Of the failure and large force of
police struggled all day to keep excited
crowd of depositors-nearly all OF them
foreigners and many Of them women
from bursting in the doors Of the institu-
tion. The fact that the bank was on the
verge OF failure was first revealed by Pres
ident Paul o. Stensland, one OF the abb
sent officials. A letter to his son Theodore.
who is vice president, written from ct.
Paul and received last Saturday, started
the investigation which brought about the
suspension. Another sensational feature OF
the affair was the disappearance Of the
cashier, Henry w. Herring, and the issuing
l. gl,aV Of
embezzlement. A message ordering his
apprehension was sent to every police sta
ton in the city.
Riotous Crowd Gathers at Door.
The first public announcement that the
bank was I'm trouble was the posting Of a
notice at the beginning Of banking hours
by Bank Examiner c. G. Jones, stating
that business had been suspended for the
purpose of making examination of the
banks affairs and that the institution
was In the hands of the state auditor.
The news spread rapidly throughout the
entire northwest side OF the city whero the
bank has been for years a popAar de-
pository for funds saved by working peo-
pie. Soon a clamorous crowd gathered
before the doors and demanded admis-
mission. Anticipating trouble a score Of
police was hurried to the scene. The peo-
pie were permitted TO ME past lne uOOIo
bearing the posted notice and were COM
PEELED to keep moving. Only those having
Keys to safety deposit vaults were al
lowed to enter. Many burst into -Fears
when they found that their savings were
endangered or lost Vissey, to whom the
shock proYdd fatal, was sseveral blocks
from the bank. Hearing the rumor he
stepped intQl a drug store seeking partic-
ulars. He Yell dead when assured that
the bank had failed. .
Bank Examiner CALLED.
An examination Of the banks affairs was
begun quietly last Saturday after receipt
OF the letter from President Stensland.
Acting upon instructions contained therein
Vice President TheodoreHStensland opened
deposit box and discovered proofs that
the banks funds were I'm bad shape. Presl-
dent Potter of the American Trust and
Savings bank. which acted clearing
agent for the defunct institution, was
called into consultation. The state auditor
was notified and Immediately sent Bank
Examiner Jones TO make a full investiEa-
ton
The shortage is estimated to be between
$3.50 0OO3 and 100000. Disastrous specuIa-
ton in real estate and in the security
market is said TO be responsible. Members
Of the clearing house committee were told
that most of this amount was wholly un-
protected by adequate collateral.
Deposits over Four Millions.
The institution was known as family
bank. The stensland family, for years
we'll known residents Of the northwest side
owned much ,of the stock and members
of the family operated the bank II was
organized in 1891 with paid up capital
Of $4,000, and succeeded the banking firm
~ GtRnHtand q
made by Vice President Stensland today
/ showed $.O51 900 in cash on hand He said
that the bank carried deposits OF $4,000
and had 22,OO0 deposltors. The stensIand
bank was not a member OF the clearing
house, but cleared through the American
Trust and Savings bank the concerns
New York correspondents and the Mercan-
tile and the Chase National banks
Last Statement of Bank.
The last report OF the Milwaukee Avenue
bank was made on June 10. II is as folIows:
RESOURCES