The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-08
Left Memoranda Showing How
Institution Was Looted.
BAREFACED FORGERY
He FaIsfhed the Names Of DI-
rectOrs and Stockholders.
Money Went for Speculation,
High Living and Women.

Chicago, aug o---AA0
Gays: nd
knocking than had been hinted preVl-
ouslv in connection with the collapse Oh
the Milwaukee Avenue State bank was
revealed last night when II became
plain that through barefaced forgery
President Paul o. Stensland had piun-
dered his own bank systema elcany
through a period Of years
'sThe question arose whether Cashier
Henry w Herring proited to any large
extent by this plundering- HIS 1rlenus
say he did not, though acknowledging
that he may have had knowledge OF
what Stensland was doing.
AT any rate. there has been discoV-
cred in President Stensland's own saIe-
" deposit d series of memoranda oe-
failing how the bank was looted
The amount thus taken from the
savings Of 22000 poor families as SET
down in Stensland's handwriting, Is 81,
OO3.OOO. The money went to support
Stensland's real estate speeulatlOhs, ms
'cO-opelative' building and business'aHo
his fine household in Irving park
According to the police, some OF II
also went latterly for iuNulles 1or q
certain woman or women IrIenas Ol
Stensland.
1T was intimated that when the bank
president fed he was accompanied py
divorced woman, who IS stun Win MN
The names forged are those OF III
rectors and stockholders in the BANK
and of persons associated with Stems
land in other business ventures.
.Wnd Cat Financiering.
wild cat" real estate hnanciering
in his Irving park subdivision Will be
disclosed, it was predicted To-Day, as
soon as J. E. Fetzer. receiver for the
wrecked bank. checks up on the mort
cages and notes given by hundreds Of
investors who hung on to the bubble,
let loose by the missing bank presl-
dent. A slump in value at TINS tlme
which is feared VIII come, would cause
much suffering and loss to owners. II
has been learned that loans have been
made on houses in that subdivision up
to within 0 per cent Of their top notch
value. The cash came from the saw
ings of deDositors Of the suspended
bank. Scores of houses we're con-
structed in the subdivision which were
declared at the time to be too ex-
pensive for the character of the sec
ton Loan houses were told at the
time that if they did not care to take
the security Paul o. Stensland stood
ready to furnish the money and at a
low rate of interest.
Today a woebegone crowd of de-
pOsitOrs continued to crowd around
the bank. AS on previous days the un-
fortunates. mostly working people,
came early and seemed determined to
remain Indefinitely. Police were on
hand to repress any tendency toward
disorder.
According to Charles Sommerkamp.
the caretaker of the Stenslal / home
President Stensland was at home in
Irving park between midnight last Sat
urday and a. m. Sunday. Sommer-
kamp stated positively that the missing
bank president was in the house Sat
urday night with several men and that
when he left he took with him a small
steamer trunk and a leather suitcase.
Evidence Is Conclusive.
Conclusive evidence has been un-
earthed by State Bank Examiner c. C.
Jones' that Paul o. Stensland. the
fugitive president of the Milwaukee
Avenue State bank, has been guilty Of
highly criminal acts in conducting the
business of the institution of which he
is the head. This was officially an
nounced by Mr.. Jones today At the
same time culpabiHty for the crimes
which have brought the far reaching
disaster on the northwest side is mar
rowing more and more to President
HteuSlaud Henry w. Herring the
missing cashier, who was declared to
be an embezzler of large sums of
money, is being. in measure. exon
Grated. because of the lack of direct
proof against him.
when I swore out the Warrant Fo,.
Mr. Stensland yesterday said M
Jones today. Il was perfectly assured
of the criminal nature of the acts Of
when the banker has been guilty.
Against Mr. Herring I have M 5iras+
evidence. I can not say as vet pre-
cisely how far the frauds operated nv
Stens1and have been carried but it is
= 10 q great iength-that is proved nv
{ papers already brought to light
Mr. Jones confirmed statements that
the frauds amount to over 81 900 600
Detectives were sent to NTfcbiga,, -
Gay IN pursuit Of Henry ". Herring
the fugitive cashier, who is said to
have been there. The police are said
to have received information last nfs,bt
that Herring had crossed the lake when
ne LETT Chicago and the officers viii
follow this trail. Receiver Fetzer saf5
today he was beginning a rigid inves+i-
cation Of the forged notes in co-opera-
non with Examiner Jones Tt win he
three or four DAYS. he said. before he
can get an adequate idea of the sit1a-
t,on- He said persons who alleee their
-islalures to have been forged would
De required TO furnish absolute nroof