New-York tribune., 1906-08-12
BANK WARRANTS ISSUED
TALE OF LOOT GROWS.
Chicago Directors on Rack-Deposi-
tors Denouaace Dead Teller.

AuACaSCs aug. A1--Ien warrants IN tle MIL
waukee Avenue State Bank case were issued
this afternoon by Judge Kerstern. The first two
warrants charge conspiracy to cheat and de-
fraud the bank OF money. property and goods.
Paul o. Stensland. Henry w. Herring, Theodore
Stensland and divers other persons as yet un-
known" are named in the first two warrants.
The next two warrants are against Henry w.
Herring, and charge perjury in regard TO a re-
port made and sworn TO by him for the State
Auditor in January and April, 1906 on the con-
dition Of the bank The next two warrants
charge larceny of $1,000 and $3.50, and name
Henry w. Herring. Five cases Of forgery are
charged against Paul o. Stensland and Henry
w. Herring. II is alleged that Paul o. Stensland
and Herring forged the name Of M. C. Bartholdy
to two notes for $4,000 each the name OF NJ. A
Labuy TO one note for $500. the name Of Mar
Gus Kirlseby TO one note for $4,000, and the
name OF S. Herhold to note for $4,000.
Judge Kersten fixed Hering's bond at s6s, 900.
Herring appeared in court in charge of a deputy
sheriff. His attorney. John COburn. pleaded
with the court to reduce the amount Of the bond,
declaring that he would not be able to obtain so
large bond before Monday and in consequence
his client would have to go to jail
"The court must also consider the gravity OF
the alleged offence OF Herring and 1 cannot see
how can make the bonds any lower" Judge
Aersten replied. Hering's wife and daughter
were present in court The prisoner was taken
TO the county Jail and assigned to a cell.
The states attorney summoned peremptorily
last night three Of the principal directors of the
bank. who were called upon to explain condi-
tions which indicate that another line of rob-
berries was being carried on independently of the
gigantic swindle already discovered.
The directors who responded TO the summons
were Frank r. Crane and Marius Kirkeby An
officer was sent for NJ. A. La Buy, another
director, but he could not be found
Crane was submitted to a hot examination by
Assistant States Attorney Olson in the presence
of Inspector Shipp- and Assistant Chief of Po-
lice Schuettler He denied all knowledge of the
forgeries.
Did you ever attend a meeting Of the execu-
tive committee OF the board?" asked Mr. Olson
Of Crane
NO, sir. never did," replied the director.
The director was asked If a note for 1000
dated April a. 1906 was genuine. He replied
that it was He said that he had borrowed a
total of $4,000 from the bank, the said $4,000
note being the last transaction of the series He
is indebted TO the bank for the whole amount at
present.
LARGE LOANS ON SMALL SECURITY
The security which Crane gave the bank for
this $4,000 in loans consisted of forty shares Of
West Chicago Street Railway stock valued at
$2,4O0. He was asked it, director of the
bank, he did not consider that pretty slim Sc
curity for a borrower to put up. He did not
think So
The assistant State Attorney then produced
the books of the bank. showing that the divi-
dends on Cranes stock were not paid to. him
but to an account in the bank known as 400"
This was one of stenslands personal accounts.
Crane refused to answer further questions along
this line. The director said he was worth
100000
KirkebY was questioned the same subjects.
He was a member Of the loan committee, to-
gether with Stensland and his son. He was
supposed to pass on the loans. but he admitted
to the State Attorney that he left the greater
part Of that responsibility to the president.
Among other papers examined last night was
a check for $4 700 which bore signature ex-
cept one made with a rubber stamp. no name
being attached in its place. bearing only the
address. mo. 200 Milwaukee avenue" This had
been handled by Herring. according to his own
admission. and had been handed in by Presi-
dent Stansland. who obtained the amount of the
check in cash.
The police were summoned to keep order at
the inquest into the death of Frank KowalslNi
the teller of the bank. who shot himself yester-
day.
The feeling of some of the depostors was so
great that the dead teller was cursed as his
body lay in the parlor of his home. The wreath
on the door of the house was torn down and
its flowers scattered by the angry men.