The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1906-08-10
The Milwaukee Avenue
State Bank in Chicago
Fails to Open its Doors.
Had Deposits of Over
$4, 100000.
Fictitious Notes Said TO
Aggregate S 100000
Have Been Found.
President and Cashier
Are Accused.

- -
Chicago August 6.-The Milwaukee
avenue state bank with deposits ag-
gregating over $4,000, 900 has failed.
When the time arrived this morn
ing for the opening of the bank 1t
was found that the president of the
bank was in Minnesota, the cash
iers whereabouts we're unknown and
the assistant cashier was found to be
in Europe. AS consequence the bank
failed 10 open for business and State
Bank Examiner c. c. Jones took
charge Of the institution.
ran'c Immediately followed in the
neighborhood which is almost entire
ly Inhabited by people of foreign ma
tjonality, largely Swedish, Norweg-
lans and Poles, nearly all of whom
from the small storekeeper to day la
borers deposited their savings In Ine
bank
The cause of the closing was said
to be gross malfeasance on the part
of two leading officers, President Pa
KEEL o. Stensland and Cashier H. w.
Herring The statement is made that
the bank was looted to the extent of
about 100000. This amount of fic-
tiClous Ectes is claimed to have b4en
found.
1t was stated today by member of
the clearing house committee that
the trouble was first revealed by the
president of the bank himself. He
is said to have communicated with his
son, Theodore from ST. Paul, stating
that the bank was insOlvent and why
it was insolvent. Acting on this clue
the son is reported to have notified the
state auditor, who Immediately sent
Bank Examiner Jones to make an ex-
animation.
SEARCH FOR CASHIER.
Word was received from President
Stensland this afternoon that he was
about to start home Meantime many
detectives we're searching for Herring,
who wes declared by his daughter
to have telegraphed that he was on
the way to the bank. He did not put
In an appearance, however.
1t was said late this afternoon that
Cashier Hering's accounts are short
$4,000. Herring is declared to have
got $1,000 Saturday
A warrant making the nominal
charge of embezzlement of $500, has
been sworn out and Herring is sought
by the police.
1t is not yet known what was done
with the money lost-whether the
amount was put in wildcat real estate
speculation or in the security market,
but members of the clearing house
committee were told that fully 100000
was wholly unprotected-was repre-
sent entirely by bogus notes.
Vice President Stensland, son of
the president of the bank, made the
following statement soon after a con-
ference with E. A. Potter, president
of the American Trust and Savings
bank and James B. Forgan, president
of the First National bank.
"The cash on hand is $1,O51, 900;
deposits s42OO,OOO and number of de-
positors $4,000"
BESIEGED THE BANK.
All day long mobs of depositors,
forming a motley crowd characteris-
tic of the region of which the bank
had been feature for years, besieged
the bank. A large number of police
prevented any outbreaks, in fact the
people do not yet believe they have
been defrauded out of their hard
earned savings. Their faith in Paul
0. Stensland the banks president is
not yet seriously shaken. He has
been leader among them so long,
his problty has never bsfore been
questioned and they still have faith
that what the son, Vice President
Theodore Stensland, says is true that
the bank is not insolvent, that the fact
OF the officers OF the bank happening
all TO be away at the same time was
simply coineident and that the bank
will be open again within few days.
Pank Examiner Jones will not con-
Am this optimistic statement, howev-
er. though he refused TO be quoted at
present.
A COMMON PRACTICE.
A man whose name is said to be J.
K0epke. after waiting several hours
In front Of the Milwaukee avenue
State bank for his savings. became de-
spondent and while on his way home
shot himself dead In the head. He
Was taken 70 St EliEabeth's hospiial.