Los Angeles herald., 1906-08-10
HERING
UNDER ARREST
DECLARES HE TOOK NO PART
IN RoBBlNG BANK
President Of Wrecked institution at
Chicago still at Large, Although
Hundred Detectives Are
Hunting for Him
By Associated press.

BY Associated Press.
CHICAGO. Aug. 9.--Henry RI. Her
ing cashier OF the Milwaulkec Avenue
State bank, which closed it's doors
three days ago, was arrested today
and will be refused his release on bail
until his connection with the disap-
pearance of nearly $1,000,000 of the
banks funds is cleared up.
Paul o. Stensland, president Of the
defunct institution, is still fugitive,
and although nearly 100 detectives are
searching for the missing president,
his whereabouts is as much a mystery
as ever.
Herring was arrested this afternoon,
two hours after the time he had pre-
viously announced he would give him
self up. He was taken at once to the
office of Chief of Police Collins and put
through, a thorough examination as to
his knowledge of President Stenslands
mismanageme of the institution.
Herring declared he did not know
where President Stens1and was and
had had no communication with him
for over a week. The cashier strenu-
ously denied the charge that he him
self was partly responsible for the
failure of the bank.
Herring maintains that he is not
guilty of breaking the banking laws of
is responsible, as Herring in his exam
nation declared he never benefited a
single dollar by President Stensland's
peculiar system Of banking.
Explanation Unsatisfactory
Bank Examiner Jones and Assistant
United States Attorney Gleason were
present during the examination of
Herring. Neither they nor the police
officials wer satisfied with the explana-
tion given by Herring of his connection
with the collapse of the bank, and it
was accordingly decided to refuse bail
TO Herring until the affair had been fur
ther investigated.
Receiver Fetzer renorted to the Su
perior court today that a dividend Of
1t least 25 per cent would probably be
declared to depositors in the bank
within the next two weeks.
This, it is said, will be followed by
1 second dividend, although the re-
jeiver tonight was not in position to
state how much of their savings the
z, 600 depositors would recover from
he defunct institution.
At a. meeting of the board of direct |
,rs of the bank this afternoon a reso-
ution was adopted appointing COM
nittee to devise ways and means for |
lpprehending President Stensland and |
III dAS Oub iiiC cAlioilS VI IhS
,ank.
The directors declare that there will |
,e found sufficient revenue from the |
assets, ETC., to pay all the |
lepositors in full.
Receiver Appointed
The Chicago Title & Trust company |
vt IL O'Clock tonight was appointed re-
,eiver of the principal estate of Presi-
lent Stensland. The estate is valued
1t $500, 600. &H
Further examination of the banks |
,ookS disclose that in some cases 25
,er cent of the capital stocks had been
oaned to persons connected with the |
,ank.
1t is discovered that President Stems |
and had loaned the Paul o. Ssensland |
cal estate company 81, 300.Gd0.
The most startling discovery of |
fraudulent work was a "side" ledger |
which Cashier Herring took from a |
hidden drawer.
This he is said to have admitted to !
he investigators was kept from the /
tate bank examiner on his annual
'isitS.
In it. so far as investigation was
made tonight. were found entries of |
oans, practically without security ag- |
$191,000.