22744. Milwaukee State Bank (Milwaukee, WI)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
August 8, 1906
Location
Milwaukee, Wisconsin (43.039, -87.906)

Metadata

Model
gpt-5-mini
Short Digest
af70be44

Response Measures

Capital injected, Full suspension, Books examined

Other: Receiver appointed and bank assets sold to Assets Realization Company.

Description

Articles (Aug 8–10, 1906) report depositors crowding and large withdrawals (~$300,000 moved), the president Paul O. Stensland missing (fugitive) and alleged embezzlement, arrest of vice-president Theodore Stensland and cashier Hering, appointment of a receiver (J. E. Fetzer), and later authorization (Nov 1906) to sell the wrecked bank's assets. Sequence: depositor run → suspension/receivership → permanent winding-up/sale. Classified as run leading to suspension and permanent closure.

Events (4)

1. August 8, 1906 Receivership
Newspaper Excerpt
J. E. Fetzer, receiver for the wrecked Milwaukee State bank... Theo. Stensland ... arrested ... appeared in court ... hearing postponed until August 18.
Source
newspapers
2. August 8, 1906 Run
Cause
Bank Specific Adverse Info
Cause Details
Missing/fugitive president Paul O. Stensland and alleged embezzlement/looting of bank funds; discovery of improprieties and tampering of safety deposit boxes.
Measures
Large sum (reported more than $300,000) removed from the bank vaults to the National Bank of the Republic for safekeeping; police presence to control crowds.
Newspaper Excerpt
at one time this afternoon it appeared as if there would be serious trouble with the depositors, who swarmed around the doors of the failed bank... more than $300,000 was removed from the vaults of the institution
Source
newspapers
3. August 8, 1906 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank declared insolvent following the disappearance of president Paul O. Stensland and discovery of serious irregularities/shortages; receiver (J. E. Fetzer) placed in charge.
Newspaper Excerpt
receiver for the wrecked Milwaukee State bank... the suspended bank... the failed bank
Source
newspapers
4. November 2, 1906 Other
Newspaper Excerpt
Judge Brentano of Chicago has authorized the sale of the Milwaukee State bank, which was wrecked by its president, Paul O. Stensland, to the Assets Realization company for approximately $750,000.
Source
newspapers

Newspaper Articles (6)

Article from Waterbury Evening Democrat, August 8, 1906

Click image to open full size in new tab

Article Text

Wildcat Financiering. Chicago, Aug -"Wildeat" real estate financiering by Paul O. Stensland in his Irving park sub-division will be disclosed, it was predicted today, as soon as J. E. Fetzer, receiver for the wrecked Milwaukee State bank checks upon the mortgages and notes given by hundreds of investors who hung on to the "bubble" let loose by the, missing bank president. A slump in value at this time, which is feared will come, would cause much suffering and loss to owners. It has been learned that loans have been made on houses in that sub-division up to within 80 per cent of their top notch value. The cash came from the savings of depositors of the suspended bank. Scores of houses were constructed in the subdivision which were declared when building to be too expensive for the character of the section. 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. To-day a woe-begone crowd of depositors continued to crowd around the bank. Police were on hand to repress any, tendency toward disorder.


Article from Omaha Daily Bee, August 8, 1906

Click image to open full size in new tab

Article Text

Officials Are in Police Believe that Both Canada. Missing IS VICE ARREST UNDER PRESIDENT Devosits Accepting He is Charged After Bank with is Insolvent. THE OF FOR RAY HOPE CREDITORS Says Defanct Clearing House will official Probably Pay Seventy Institution Cents on the Dollar. Theodore CHICAGO. Aug. of the Milwaukee late this af president arrested the banking vice bank, was of violating the day State on & charge Earlier the in hands of noon laws of the state. placed Stensland, in president institution was Paul O. the vice presi- were and father of Hering, of receiver the bank and with Cashier from justice in dent, together declared red descriptions fugitives through placed the the officially their printed the police taken by and and hands of action was today in country. the This developments of the failed inauthorities that after the finances a deplorable of years. condition Bestitution showed been were for a number of many bank it was sides and had the management discovery of the safety deposit had in the that even the by the bank also found and rented rifled. boxes owned with and which Theodore of hay been tampered charge on was that he The specific was arrested at the bank when The Stensland accepted titution deposits to be office insolvent. of Chief gone of confer knew ing the was institut made in the Stensland police had deJ. Kern, arrest Police Collins with when the head of the a former $5,000 partment. to the day signed Jacob bonds Stensland for Later attorney in of Theodore vesterday that state's for the promises release held would out appear it in is Chi- the the The elder were based upon and dispatches he has to belief cago today of the police, northern cities, Hering that is another thought have fled from to several Canada. reached Cashier the Dominion by Depositproductive route. Ray of developments Hope for for were the depositors of savings status who of The the yesterday swept day's first ray away of believed in hope the of the their wreck. whom First the David National R. years president laid Forgan. vice one of those affairs to has been cents on the dollar bank, the and defunct bank's that probably the 70 final adbe bare, of declared would be paid in said to justment affairs of the tangle bank and are new examin- irreguens go The almost hopeless delectosed books. as the President money of having larities in are deeper being into the to himself. it emStensland by loaned the subterfuge notes. Specific the instances looting light boxes. ployes alleged, sign the during the day of Theocame of safety to reabouts deposit of Vice President missing banker. late whereabo of the until The Stensland, son the authorities Chief of Police dore mystery to when with him was the a afternoon, communica ation his promise to telephone conference in Collins got into and secured later. sparing by committee is meet The him in clearing bring house the missing experts. president it is said, case to no effort Handwriting to upon the of establish his has justice. will be put to work the seeming at once evidence escape made from forgery. Belief that is Stensland supported by a report of Police into Superior Canada Wis of that that city Sergeant saw car the en missing route Darwin Scoon Duluth-S Superior dispatch from Subanker or on a Another Police McKennan his to Superior Chief of Stensland made Duluth perior from to show that boat from reached tended way to Canada is by thought to have Hering of Detroit. Police today the Cashier line by Notlee way by Police. Schuetler guardAssistant took Chief charge of of sent the police a requisition Chief personally the bank. He for soon more policemen. were ing Collins Additional policemen sent large to number of to the vicinity been promptly following ordered message has by the police Her The country W. broadcast over embezzlemaukee the Henry Avenue Stat Arrest for the Mil Milwaukee Milway ing. bank cashcomplainant, of Carpent street forty-n Ave and stout years, build st: kee State bank. inches Forty tall. chestnu to 275 mounds. tnut hair, dar feet dark two complexion light suit Send all informa He in Chief was by brown tion to mustache a good COLLINSPECTOR dresser police SHIPPY cause their (Signed) for additional and a tate some The the call would fear storm that rumors depositors the bank spread and that precipt deposit with had friends riot when of the safety Personal vaults contents of been tampered were said to ha rumor vaults with money in savings the gone. shop These of Ott P found their in the butcher avenue and Cornel $200. when of Blaura. originated Blaura Marshfield said his she sister went had to get th stories street. the vaults was and gone. Other the contents of th money leged tampering it with through patrons. the crowd boxes were excite passed the bank's Stensland. helped to Asked for Schuetle Inspector Warrant Chief of Police Bank Examine Late Assistant Shippy and Severson and aske arrest th with went to Justice warrant for the in for the complaint Jones, him President to issue Stensland. a issuance The of charge the warran to issu inclined is fraud. Severson was not returned to Justice and the three expected that the warrant handed. It is the day or bank empty- will be issued some later in other his justic state warrant Justice Severson Jones reiterated estimate of th ment Bank that Examiner he could shortage. give no peculation It was funds that amount of earned the today began that before the the year shortage of the bank's beginning of said to have It was also of 1901. A of the $250,000 is learned now that Theodor froz power attorney bee isted. Stensland now The has son is said to have sr., to di his father. authorized by Stensland. including real order estal further all property, father), in belonging far as pose of to him (the possible the pecula hour tione make good Members as of the clearing Twe Par


Article from Los Angeles Herald, August 9, 1906

Click image to open full size in new tab

Article Text

DEPOSITORS MAY BE PAID IN FULL BANKER STENSLAND'S SON MAKES OFFER Latter Agrees to Turn Over $600,000 Wort. of Real Estate-Fugitives' Recent Acts Laid Bare . @ By Associated Press. . DULUTH, Minn., Aug. S.Two Duluth men claim to have seen . Paul o. Stensland. the Chicago . fugitive bank president, within the . past twenty-four hours and in the . opinion of the police and Pinker- . ton detectives who came here from . Chicago, the much wanted man is O aboard the steamer America which . left here for Port Arthur. Canada, . M today. The Canadian officials have been . notified and before the passengers . are allowed to depart a thorough D 3 search will be made for Stensland. (i) By Associated Press. CHICAGO, Aug. 8.-Theodore Stensland, vice president of the Milwaukee State bank and son of the fugitive presidentaof that institution, has come to the rescue of the 22,000 depositors and tonight it is the general belief of those who were endeavoring to straighten out the affairs of the bank that there is an excellent chance that all those who have deposits in the institution will receive almost dollar for dollar when a final settlement is made. The improved condition of the bank's affairs was brought about by young Stensland, who tonight announced that he would turn over to Receiver Fetezer tomorrow all the real estate and personal property of Paul O. Stensland, his father. The son places a valuation of $600,000 on this collateral, and he stated tonight that he had full authority to make the transfer of the property for the benefit of the depositors. Fugitives Still at Large Paul O. Stensland, president, and Harry Herring, cashier, are still at large and search for these fugitives is being made all over the country. Five thousand pictures of the two officials are being prepared, with full descriptions of both, and these will be spread broadcast throughout the entire world. At one time this afternoon it appeared as if there would be serious trouble with the depositors, who swarmed around the doors of the failed bank While fully a thousand of the depositors shouted their protests more than $300,000 was removed from the vaults of the institution to those of the National Bank of the Republic, where it will be held for safe keeping until next Tuesday, when it is said distribution to the depositors will be made. The removal of the money put the crowd in an angry mood and it took a big police detail to keep the excited P throng from upsetting the patrol o wagons, which were filled with bluecoats. A statement of the bank's affairs is promised for next Monday by Bank Examiner Jones. Theo. Stensland, who was arrested yesterday on a warrant charging him with violation of the banking laws of Illinois, accompanied by his attorney and bondsmen, appeared in court this afternoon and by agreement the hearing was postponed until August 18.


Article from The Topeka State Journal, August 10, 1906

Click image to open full size in new tab

Article Text

HERING IN THE BANK. He Points Out Vaults and Secret Chests. Chicago, Aug. 10.-The first step in the dissolution of outside companies with which Paul O. Stensland, the missing president of the Milwaukee State bank is identified, was taken today when a petition in involuntary bankruptcy was filed against the Milwaukee Avenue Co-operative store by attorneys representing a State street department store. The petition was filed before Judge Bethea and arrangements were made by him to appoint a receiver under the order as soon as possible. Notice was given the cooperative store today by an attorney representing three New York creditors that he intended to take similar action, but in view of the filing of the petition by the local concern it is now probable that the creditors will join with the petitioners now before the court. The stockholders of the Milwaukee avenue store number 6,000 persons, many of them workmen, holders of shares of $10 each. The individual liability of these shareholders, it is claimed, is a mooted point and it may be that the court will hold that the creditors of the company have recourse upon the individual property of them all. Henry W. Hering, cashier of the suspended bank, was today taken to the institution he is alleged to have helped ruin. He was taken to the bank by two detectives and every precaution was used to get him inside the building without the knowledge of the several hundred persons who were around the place. Safe inside the bank, Cashier Hering immediately began to direct the authorities around to the different vaults and secret chests.


Article from The Pioche Weekly Record, November 2, 1906

Click image to open full size in new tab

Article Text

NEWS SUMMARY A hurricane which swept over south western Japan on the 24th destroyed several coral fishing boats According to the present program President Roosevelt will stop at San Juan, R. R., on his way back from Panama Over 200 soldiers of the garrison at Cronstadt have been arrested on the charge of being members of the revo lutionary organization Tom Crompton, a negro, was lyched near Centervile, Miss. It is alleged that he confessed that he murdered Ely Whitaker, a farmer The Bank of Jamestown. in Moni Missouri,, was entered se- by who blew open the teau robbers, county, safe, cured $2,700 and escaped. The bodies of three miners who had died by inhaling gas were found as the day shift of miners went to work in the James Mullen mine No. 1, near Philadelphia. Charles Hutehinson an old man who lived in a cabin at Alpine, Cal., and who had been missing for several days, was found dead about three miles from his cabin. A board of bishops of the Metho dist church, in session in Rochester, N. Y., decided to raise $700,000 to rebuild churches destroyed by the San Francisco earthquake hundred chaffeurs employed the New York comby Three Transportation public elecpany, which operates 250 tric cabs, went on strike last week for an increase in wages. More than a dozen persons were injured and it is believed that one or more lives were lost in a fire which destroyed the Chamber of Commerce building in Kansas City. William E. Hammond of Wilming a ton, Dela., has been left $8,000 by stranger whom he befriended some years ago while running as a news agent on the Delaware railroad. While the second torpedo boat flotilla was in Newport waters recently to for target practice, it is reported have excelled any previous marksmanship by a torpedo flotilla of the havy. Judge Brentano of Chicago has authorized the sale of the Milwaukee State bank, which was wrecked by its president, Paul O. Stensland, to the Assets Realization company for approximately $750,000. Two farm hands were murdered near Bristol, Minn. Their bodies were discovered in a hayloft a mile northwest of Bristol. The indications are that the murder was committed while the men were asleep Forty-seven of the passengers and members of the crew coasting steamer thirteen Russian Variagin of boats the have been rescued by Chinese mine The vallagin struck a noating and sank near Vladivostok Governor General Magoon is not likely to request Venezuela to extradite Manuel Silveira, the fugitive banker of Havana, who is understood to be in Caracas, as no criminal him. charges have yet been made against A daring attempt to liberate fifteen prisoners from Harlem, New York, jail was frustrated, but not until one keeper had been so seriously beaten that he may die, and another sustained a broken arm and serious bruises. A man named Spoggs, once a prominent revolutionary in the Balkan provinces, was killed at Mitau while his to America, because he his party. He just on had betrayed way inflicted had recovered from a wound on him by revolutionists George M. Pool was arrested at Los Angeles as a fugitive from the justice where, it is is of Texas, alleged. Beaumont he wanted for the murder at in of two or more men in the of a family feud, and Unit course 1898 Jim Jett. of ed States Marshal Every railroad in the country on which members of the Switchmen's of America are employed has refrom that a defor increased wages an mand ceived union organization and eight-hour day. Unless the demand is granted the men will strike. Raisuli, the bandit chief, has replied the of Ell the representative of sulTorres, to message Mohammed him the restore tan of Morocco. asking to order in the district of Argilla, saying that he had charged his brother with the task of restoring order there. The president has received the rereport of a committee recently sent to Oklahoma to investigate charges preferred aganst Governor Frantz of that territory. The report completely exonthe and will undoubtbe by the edly erated approved governor president. It has just been learned that Senora Guadalupe Vigily Bares, wife of a rancher at Round Mountain, N. M. and her two little children lost their direct result of a in three were blizzard lives as the All drowned San terrible the Rio Grande river near flde Fonso, Pueblo.


Article from The Garland Globe, November 3, 1906

Click image to open full size in new tab

Article Text

NEWS SUMMARY A hurricane which swept over southwestern Japan on the 24th destroyed several coral fishing boats. According to the present program San President Roosevelt will stop at from Juan, P. R., on his way back Panama Over 200 soldiers of the garrison the at Cronstadt have been arrested on revo charge of being members of the lutionary organization. Tom Crompton, a negro, was alleged lyched Centervile, Miss. It is near that he confessed that he murdered Ely Whitaker, a farmer. Bank of Jamestown, in Moni- by The county, Missouri., was entered se teau robbers. who blew open the safe, cured $2,700 and escaped. The bodies of three miners who had as died by inhaling gas were found work day shift of miners went to near the in the James Mullen mine No. 1, Philadelphia. Charles O. Hutchinson an old man Cal., lived in a cabin at Alpine, several and who who had been missing for three days, was found dead about miles from his cabin. board of bishops of the Methodist A church, in session in Rochester, to re Y., decided to raise $700,000 San N. build churches destroyed by the Francisco earthquake. Three hundred chaffeurs employed comthe New York Transportation elecby which operates 250 public for pany, tric cabs, went on strike last week an increase in wages. More than a dozen persons were inand it is believed that one which or jured lives were lost in a fire destroyed more the Chamber of Commerce building in Kansas City. William E. Hammond of Wilming- a Dela., has been left $8,000 by stranger ton, whom he befriended some news years ago while running as a agent on the Delaware railroad. While the second torpedo boat flowas in Newport waters recently to for tilla target practice, it is reported have excelled any previous marks- the manship by a torpedo flotilla of navy. Judge Brentano of Chicago has authorized the sale of the Milwaukee its State bank, which was wrecked by the president, Paul O. Stensland, to Assets Realization company for approximately $750,000. Two farm hands were murdered Bristol, Minn. Their bodies were discovered near in a hayloft a mile northwest of Bristol. The indications are that the murder was committed while the men were asleep Forty-seven of the passengers and the thirteen members of the crew of Russian coasting steamer Variagin have been rescued by Chinese boats. mine The Variagin struck a floating and sank near Vladivostok. Governor General Magoon is not likely to request Venezuela to extradite Manael Silveira, the fugitive banker of Havana, who is understood be in Caracas, as no criminal him. charges to have yet been made against A daring attempt to liberate fifteen prisoners from Harlem, New York, one jail frustrated, but not until keeper was had been so seriously beaten a he may die, and another serious sustained that a broken arm and bruises. h y A man named Spoggs, once a promd inent revolutionary in the Balkan J provinces, was killed at Mitau while he on his way to America, because betrayed bis party. He had just on had recovered from a wound inflicted him by revolutionists : t George M. Pool was arrested at Los 0 Angeles as a fugitive from the justice is e of Texas, where, it is alleged, he in d wanted for the murder at Beaumont the 1898 of two or more men in 1course of a family feud, and of Unit ed States Marshal Jim Jett. 1 . Every railroad in the country on a which members of the Switchmen's r union of America are employed has de- received from that organization a t it mand for increased wages and an is eight-hour day. Unless the demand granted the men will strike. e t Raisuli, the bandit chief, has replied Ell to the message of Mohammed y d Torres, the representative of the sultan of Morocco, asking him to restore 1 order in the district of Arzilla, saying with he had charged his 8. the of restoring order that task brother there. It The president has received the re8, a report of a committee recently sent to r. Oklahoma to investigate charges preferred aganst Governor Frantz of that