4582. Milwaukee Avenue Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
August 6, 1906
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
59349404

Response Measures

Capital injected, Full suspension, Books examined

Other: Large cash ($300,000) removed to National Bank of the Republic for safekeeping; receivers appointed and rival receivers contested in court.

Description

The Milwaukee Avenue (State) Bank in Chicago experienced heavy withdrawals/riotous crowds when the state bank examiner closed the institution (early August 1906). The root cause was internal fraud/embezzlement by the president and cashier; receivers were appointed and the bank did not resume normal independent operations. Multiple articles report appointment of receivers and an ongoing receivership/legal contest.

Events (3)
1. August 6, 1906 Run
Cause
Bank Specific Adverse Info
Cause Details
Massive embezzlement/forgery by President Paul O. Stensland and alleged forgeries by the cashier; discovery of a deficit of roughly $750,000-$1,000,000 led depositors to withdraw and gather at the bank.
Measures
Some funds ($300,000) were removed from the vaults to the National Bank of the Republic for safekeeping; police deployed to control crowds.
Newspaper Excerpt
Riotous scenes followed the announcement of the failure and a large force of police struggled to keep an excited crowd of depositors ... from the doors of the institution.
Source
newspapers
2. August 6, 1906 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by the state bank examiner after discovery of large deficit and evidence of systematic plundering/forgery by the bank's president and cashier.
Newspaper Excerpt
With a deficit in its accounts estimated close to a million dollars ... the outlying State Bank ... closed by the state bank examiner, C. C. Jones.
Source
newspapers
3. August 10, 1906 Receivership
Newspaper Excerpt
The Federal court late at night appointed the Chicago Title and Trust Company receiver for the personal property of Paul O. Stensland; Receiver Fetzer already acting; receivership contest follows in courts thereafter. (articles Aug 10-13, 1906).
Source
newspapers

Newspaper Articles (18)
1. August 7, 1906 Tulsa Daily World Tulsa, OK
Article from Tulsa Daily World, August 7, 1906

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MILWAUKEE AVENUE BANK GOES TO THE WALL OVER A MILLION DEFICIT f n Family Bank,' With $4,200,000 of e 22,000 Depositors Money, Closed 8 by the Bank Examiner. d I Chicago, August 6.-With a deficit in its accounts estimated close to a million dollars, and with the wheretwo of its abouts of highest the officials Milunknown to the authorities, one est banks was waukee outlying State Bank, in the of city, the largtoday closed by the state bank examiner, C. C. Jones. failure was responsible for the death one of the The of depositors and the suicide of another man who a month ago had placed the earnings of his life in the institution for safe In the ing announcement keeping. the excitement of the failure, followJ. an official who had on League, G. Visser, deposit of the in Royal the bank, the funds of that institution, fell dead of heart failure. Hnry K. a small grocer, on hearing that had Opes, the bank suspended payment, and shot went the rear of his store died a later taken to himself. on to being He few the minutes hospital. Riotous scenes followed the announcement of the failure and a large force of to an excited keep police struggled crowd of all depositors day and -nearly all of them foreigners, of them women-from the doors ing many in of the institution. burstThe fact that the bank was on the verge of failure was first revealed by President Paul o Stensland, one of the absent officials. A letter to his who is president, St. son, written Theodore, from Paul, vice and received here started an investigation susAnother Saturday, which brought sensational about the feathe affair was ture pension. of the disappear- W. Herance of the cashier, Henry ring, and the issuing of a warrant for his arrest on the charge of embezzlement. A message, ordering his arrest was sent to every police station in the city. An examination of the books of the bank begun quietly last Saturday after the of president. was receipt Acting the upon leter instructions from the the the contained opened therein, deposit box and vice discovered president in that the were bad President proofs shape. bank's Potter, funds of the American Trust and Savings comwhich acted as pany, clearing called agent defunct institution, was The state and was into for the notied consultation. immediately sent auditor the to make a The shortage bank tigation. examiner is full estimated invesand $1,000,000. Disin astrous between speculation $750,000 real estate and in securities market is said to be for the responsible the failure. Members of the clearing house committee were that of this told the most amount was wholly unprotected by adequate security. The institution was known as the Bank." The for well family, 'Family years known Stensland resiNorthwest Side, owned the stock and much dnets of of the members bank. of It the family operated the was in 1891, a up organized and with succeeded paid capital of $250,000, the banking firm of Paul O. Stensland & Co. statement by Vice President Stensland showed A today $1,051,000 in He said of cash carried on hand. deposits $4,200,000 that the bank and had 22,000 depositors. was mem. ber The of Stensland the clearing bank house, not but & cleared the American The Savings through company. New Trust York and correspondents of the concern are The Mercantile and Chase National Banks.

2. August 8, 1906 Santa Fe New Mexican Santa Fe., Santa Fe, NM
Article from Santa Fe New Mexican, August 8, 1906

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"WOMAN IN CASE" OF WRECKED BANK The President Had Lavished Loot on "Lady Friends" POOR PEOPLE PAID BILL Full Account of Robbery Left Behind-- "Wild Cat" Schemes. Chicago, Aug. 8.-The Tribune to day says: "A state of affairs more startling and shocking than had been hinted previously in connection with the collapse of the Milwaukee Avenue State Bank was revealed last night when it became plain that through bare-faced forgery President Paul O. Stensland had plundered his own bank systematically through a period of years. There has been discovered in President Stensland's own safety deposit box a series of memoranda detailing how the bank was looted. The amount taken from the savings of 22,000 poor persons, as set down in Stensland's handwriting is $1,003,000. The money went to support Stensland's real estate speculations and his fine household in Irving Park. According to the police some of it also went latterly for luxuries for a certain woman, or women friends of Stensland. It was intimated that when the bank president fled he was accompanied by a divorced woman, who is still with him." "Wild Cat" Speculation to Be Dis. closed. Chicago, Aug. "Wild Cat" financiering by Paul O. Stensland in his Irving Park sub-division will be disclosed, it was predicted today, as soon as J. E. Fetzer, the receiver of the Milwaukee Avenue Bank, checks up on the mortgages and notes given by hundreds of investors who hung onto a "bubble," let loose by the missing bank president. It has been learned that loans have been made on houses up to within eighty per cent of their top notch value. Today woe-begone depositors continued to crowd around the bank and the police were on hand to repress any tendency towards disorder. President Guilty of Stealing Million Dollars. Chicago, Ills., Aug. 8.-State Bank Examiner Jones announced today that he had unearthed conclusive evidence tnat President Stensland of Milwaukee Avenue Bank had been guilty of highly criminal acts in conducting the business of the bank. Jones confirmed the statement that frauds to the amount of over a million dollars were unearthed. Detectives were sent to Michigan today in pursuit of Henry W. Hering, the fugitive cashier. Jones said today he had no direct proof against Hering for whom he swore out the warrant yesterday.

3. August 8, 1906 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, August 8, 1906

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One Chicago Banker Arrested; Two Others in Full Flight. 7. HICAGO, Aug. Theodore when he knew the institution to be inStensland, vice president of the solvent. The arrest was made in the Milwaukee Avenue Bank, was office of Chief of Police Collins, where C arrested late this afternoon on Stensland had gone to confer with the a charge of violating the banking laws head of the Police Department. Later of the State. Earlier in the day the in the day Jacob Kern, a former institution was placed in the hands of State's Attorney, signed bonds for $5000 a receiver and Paul O. Stensland, presfor the release of Stensland. ident of the bank and father of the HOPE FOR DEPOSITORS. vice president, was officially declared a The promises held out yesterday that fugitive from justice, as was also the elder Stensland would appear in Cashier Herring. Their personal deChicago today were unfulfilled, and it scriptions will be placed in the hands is the belief of the police, based upon of the police throughout the country. dispatches from several Northern cities, This action was taken by the authat he had fled to Canada. Cashier thorities after developments today had Herring is thought to have reached the shown that the finances of the failed indominion by another route. stitution were in a deplorable condiThe day's developments were protion and had been so for a number of ductive of the first ray of hope for the years. Besides the discovery of many depositors, who yesterday believed irregularities in the management of the their savings of years swept away in bank it was also found that even the the wreck. David R. Forgan, vice pressafe deposit boxes owned and rented by ident of the First National Bank and the bank had been tampered with and one of those to whom the status of the rified. defunct bank's affairs had been laid The specific charge on which Theobare, declared that probably 70 cents on dore Stensland was arrested was that of having accepted deposits at the bank Continued on Page 2, Bottom Column 1.

4. August 9, 1906 New-York Tribune New York, NY
Article from New-York Tribune, August 9, 1906

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TO DEPOSITORS' RESCUE Chicago Bank's Vice-President Will Turn Over Father's Property. Chicago. Aug. S.-Theodore Stensland, vice-president of the suspended Milwaukee Avenue Bank and son of the missing president of that institution, has come to the rescue of the 22,000 depositors, and to-night it is the general belief of those who are endeavoring to straighten out the affairs of the bank that there is an excellent chance for all to receive almost dollar for dollar when a final settlement is made. Vice-President Stensland to-night announced that he would, with full authority, turn over to Receiver Fetzer to-morrow all the real estate and personal property of Paul O. Stensland, his father. The SOIX places a valuation of $600,000 on this collateral, : Paul O. Stensland, president, and Henry W. Hering. cashier, are still at large. While a thousand depositors shouted their protests this afternoon, $300,000 was removed from the vaults of the closed Institution to the National Bank of the Republic, where it will be held for safekeeping until next Tuesday, when, it is said. distribution to the depositors will be begun. The removal of the money put the crowd in an angry mood, and it took many policemen to keep the excited throng from upsetting the patrol wagons, which were filled with bluecoats, as a guard for the treasure wagon. Theodore Stensland, who was arrested yesterday on a warrant charging him with violation of the banking laws of Illinois. appeared in court this afternoon. By agreement the hearing was postponed until August 18.

5. August 10, 1906 Evening Star Washington, DC
Article from Evening Star, August 10, 1906

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HERING UNDER ARREST CASHIER OF LOOTED CHICAGO BANK TELLS STORY. Declaring that he had never benefited a single dollar by the wrecking of the Milwaukee Avenue Bank, from whose funds is W. of the institution, was in after nearly Hering, arrested $1,000,000 cashier Chicago missing, ruined yesterday Henry The Star's report of the case closed. The will be refused ball until his connection with the disappearance of nearly $1,000,000 of the bank's funds is cleared up. Paul O. Stensland, president of the defunct institution, is still a fugitive, and, although nearly one hundred detectives are searching for the missing president, his whereabouts is a mystery. Hering was arrested two hours later than the time he had announced for giving himself He was taken at to the office of of Police a to knowledge through up. Chief of thorough President examination Stensland's Collins once as and alleged put his mismanagement of the institution. Hering declared he did not know where President Stensland was and that he had had no communication with Stensland for more than a week. Denied Responsibility. Hering strenuously denied any responsibility for the failure of the bank. He maintained that if he was guilty of breaking the laws of Illinois President Stensland was responsible. State Bank Examiner Jones and Assistant State's Attorney Olson were present during the examination of Hering. Neither they nor the police were satisfied with the explanation given by Hering of his connection with the collapse of the bank, and it was decided to refuse bail to Hering until the failure had been further investigated. Receiver Fetzer reported to the superior that a dividend court 25 per yesterday coat of at least would probably be declared to depositors in the bank within the next two weeks. This, it is said, will be fol(owed by a second dividend, although the receiver last night was not in a position to say how much of their savings the 22,000 depositors would recover from the institution. May Pay in Full. At a meeting of the board of directors in afternoon a the adopted bank the resolution was of appointing a committee to devise ways and means to apprehend President Stensland and to straighten out the affairs of the bank. The directors declare that there will be found sufficient revenue from the assets to pay all depositors in full Hering has not been out of Chicago morning. He left the for a day's rest. He Monday furday, he declares city on since Satreached Chicago Monday morning, got on straight to the on the corner he off. the car car and stopped rode bank. jumped When Just as the reached the edge of the sidewalk he saw a man pasting the nótice of the bank on its doors. ascending the backInstead of the closing of steps he tracked and headed downtown. Hering is insistent in his statement that he had absolutely nothing whatever to do with any speculation of the bank's He asserts that, although cashier of funds. the bank. he was merely a clerk for Stensland; orders. that all he did was to carry out Stensland's Suspicious Note Incidents, He declares that Stensland's instructions were such that there was no way or their face of determining that any crooked business was going on: it was only the culmination of several suspicious incidents and the piling of note upon note to on Stensland's real estate operations carry that finally made him morally certain that was rampant in the swears he has no thievery Hering institution knowledge just how and when the notes said to be of forgettes were signed by Stensland. "Whenever Stensland needed bolster "he up his operations, said money Hering, to worked as follows: Mr. Stensland would come to and say to me, 'Mr. Hering. please my desk out ber a certain number of notes (the make of which he would give me) for numamounts." of he giving me a memorandum these and amounts I then made out the notes handed them to him or sent generally the next Later. returned him in the regular routine day, of they business them to to me duly signed by various were tures ple. or at least they had the alleged signa- peoof various people "Mr Stensland then ordered me to them and to the credit of his personal place would then draw checks on his account al account for the various enterprises person- which dragged him to ruin. Aroused Cashier's Suspicions, My suspicions were aroused some time ago. but I made up my mind that it my duty to say something to Mr. Stens- was land of about five weeks ago. The infinitude notes piled upon notes had worried I so that I became sick from anxiety, me this went time away for a few days' rest. and Stensland, Mr. made up my mind to speak During to office "When and I came back I walked ting said: "This indebtedness into his in too large. and it ought to is gettrouble. some other way or the bank be will fixed be up in "Yes, "He I sat know. for a moment and then said, believe This I will have but it I all have fixed every reason to thing talk with Hering evidently up shortly to mind that flee led stensland to make was up the his Believe Stensland Has Fled to India. is A dispatch from Madison, Wis., Paul. reported O. that people who knew President says: It nue State Stensland of the Milwaukee Madison Bank of Chicago saw Avecarriage last Sunday; that he him in and met a woman on engaged a corner of his three blocks from the a street woman and that stepdaughter. later the Mrs. Inga apartments Sandberg, same seen her place. father Mrs. Sandberg was denies left at the Stensland has for a week. Mrs. Theodore having Others who knew been here for some time. to India, opinion that he may Stensland have gone are of the

6. August 10, 1906 The Washington Times Washington, DC
Article from The Washington Times, August 10, 1906

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Meeting at Tuckhorn's Cafe. Conradi arose from his chair, excused himself and went with Stensland into Tuckhorn's private office. A moment later he emerged from the private office and, going up to the table where he had been previously sitting, said to one of the men who was seated there: "I am going to Cincinnati tonight. Will you take my friend home for me?" The other man assented to this and Conradi left the cafe in company with the man who is declared to have been Stensland In a few moments, according to report, Conradi again returned to the cafe and was asked, "Who was that you were going to Cincinnati with?" "Shut up," he replied. "Don't say a word. That's the president of the Milwaukee Avenue Bank and he's in trouble." The Federal court late at night appointed the Chicago Title and Trust Company receiver for the personal property of Paul O. Stensland, Arrangements were made to pay a dividend of 20 per cent to the depositors inside of two weeks. Nothing 18 known of Stensland's whereabouts. The total amount of deposits is $4,185,000.

7. August 11, 1906 The Wenatchee Daily World Wenatchee, WA
Article from The Wenatchee Daily World, August 11, 1906

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MORE SCANDAL UNEARTHED IN CHICAGO BANK FAILURE Chicago, Aug. 11.-Application was made here today for a receiver for the co-operative store started by President Stensland of the Mllwaukee Avenue Bank. Hundreds of notes, blank as to amounts bearing the signatures of prom inent Chicagoans, were found today in the vaults of the Milwaukee Avenue Bank. The aathoritiee declare Steneland intended to mulct the bank for half again as much as the present shortage. The signatures evidently were traced from genuine signatures, then worked over in ink.

8. August 12, 1906 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, August 12, 1906

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Depositors of Chicago Will Hoard Earnings Recent Disclosures Cause of Millions Being Withdrawn Detectives Search in Vain for Presi. dent Stensland-Cashier Her. ing's Bail Fixed at $68,000 Special to The Herald. CHICAGO, Aug. 11.-To deposit their money in the bank or hoard their hardearned savings at home. thereby running the risk of a visit by burglars, is the question which several hundred thousand wage earners in Chicago are trying to solve at the present moment. With details of the wrecking of the Milwaukee avenue bank ringing in their ears, and each hour bringing forth additional proof of the high-handed manner in which the officials deliberately robbed 22,000 depositors, the task is not an easy one. Three men are dead as a direct result of the closing of the bank's doors. The shock brought death to one, while two others have committed suicide because of the loss of money entrusted to the bank's care. Hundreds of detectives are searching for the president of the institution, who is now said to have stolen no less than $2,000,000. The cashier, who is now believed to have been as deep in the mud as his superior was in the mire, is in jail. Whether the guilty parties will be brought to justice is a question, but there is no room for the possibility of a doubt as to the hardships that will result in numerous cases where the depositors lost every dollar they had in the world. What is more to the point with them is the question of dividends which in the near future may or may not be paid by those in charge of the wrecked institution from what little remains. As further probing brings to light the fact that a large proportion of the money was spent either for race track or other forms of gambling, the feelings of those who lost their all knows (Continued on Page Three.) O

9. August 14, 1906 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, August 14, 1906

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BELIEVES FATHER DEAD. Theodore Stensland Thinks President Has Taken His Own Life. Chicago, Aug., 13.-The Tribune today says: Theodore Stensland, son of the fugitive Milwaukee Avenue Bank president, made last night a full statement of his knowledge of the circumstances surrounding the flight of his father and touching the collosal forgery fraud in the bank. In a frank narration of the manner in which the great scandal was made known to him, young Stensland not only denied that he ever had knowledge of the plot, before August 3 last, but submitted various proofs with which he expects to substantiate his story when led before a jury. He declares absolutely that he was not only ignorant of the steals pepetrated. but that he never profited in any way from them. The young man advanced the belief that his father has not fied the country,but has committed suicide. He also advanced the theory that his father coul not himself, have committed forgeries of notes because of an impediment in his control of the pen in recent years. He thinks also that Cashier Henry W. Hering could not have sufficiently disguised his own distinctive chirography to perform the imitations and that therefore, an outside expert was employed for the purpose of copying signatures on blank checks. It became known last night that young Stensland late on Saturday had given to Receiver John C. Fetzer for the benefit of the bank depositors a deed to all the Cook county real estate held by his father, who had given him a power of attorney. The property is estimated to be worth $650,000. The fugitive banker's son was found at down-town hotel. where he is staying preparatory to surrendering himself today to the sheriff on the bench warrant for conspiracy, in which he was included with Paul O. Stensland and Cashier Hering.

10. August 14, 1906 The Morning Astorian Astoria, OR
Article from The Morning Astorian, August 14, 1906

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Defunct Chicago Bank Situation Grows Complicated. LEGAL CONTEST IS EXPECTED On Creditor's Application Judge of Circuit Court Appoints Receiver to Replace One Named by the Superior Court. 7 CHICAGO, August 13.-The - banks of the Chicago Clearing Association have offered a reward of $5000 for the apprehension of Paul O. Stensland, the fugitive president of the Milwaukee Avenue Bank. The failed bank has two receivers tonight. Jude Gibbons in the circuit court this afternoon appointed the Chicago Title & Trust Company receiver, the appointment being made on a petition of one of the creditors of the bank. The new receiver has made formal demand upon Receiver Fetzer, that he turn all the books and papers. Fetzer has refused and a bitter contest is expected. It is declared by the attorneys, who asked for a new receiver that Judge Bretano of the Superior Court, was without proper jurisdiction, when he appointed Fetzer.

11. August 15, 1906 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, August 15, 1906

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COURTS CLASH. illinois and United States Tribunals at Variance. President Stensland Made Extensive Preparations for Flight. Large Amount of Collateral Security for Notes Found to Have Been Stolen. Chicago, Aug. 1. in the investigation into the affairs of the suspended Milwaukee Avenue Bank was stimulated today by the anticipation of a clash between the circuit and superior court of Cook county. Judge John Gibbons of the former tribunal yesterday appointed the Chicago Title and Trust Co. receiver for the bank an today preparations were made to oust Receiver John C. Fetzer, acting under authority of Judge Brentano, of the superior court. The official report of the condition of the defunct institution is to be given to the state auditor today but Bank Examiner C. C. Jones has decided to withhold the contents of the report from the public in order to protect those most vitally interested in the bank's affairs. Another warrant against Henry W. 1 Hering, cashier of the bank, charging him with forging a note of $10,000 in the name of Marious S. Kirkeby was issued today by Judge Kerston. Following a conference with Judge Brentano today counsel for Receiver t Fetzer began preparing a petition asking that at least one of the lawyers and parties to yesterday's receivership 1 proceedings be punished for contempt of court. 1 Testimony indicating that extensive preparations for flight were made by t President Stensland and that a woman entered into these preparations was I secured by Assistant State's Attorney Olson today through the cross examina1 tion of Mrs. Ellen McCracken, housee keeper for Stensland. It was learned : that Stensland took with him in trunks and boxes sheets and other bedding, . towels, window curtains, carpets, rugs and a silver dinner set. Some of this , is said to have been traced to BaraC boo. Wis., but a big trunk said to have e been taken by Stensland the detectives I have not ben able to get a trace of. Telegrams have ben sent to all parts of the world asking the authorities to look for the trunk, which is said to be three feet high and hound with iron. The box traced to Baraboo weighed 375 : pounds when it was placed on an express wagon at the Stensland home the day of the flight. Chicago, Aug. 14.-The belief that large amounts of collateral given as security for notes in the Milwaukee Ayenue State Dank have been stolen. pra became a certainty last nightwhen a note for $9000, known

12. August 17, 1906 The Aberdeen Democrat Aberdeen, SD
Article from The Aberdeen Democrat, August 17, 1906

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clared insolvent. The assets of the bank are not given in the petition of the creditors. The court appointed Henry Hiestand receiver and fixed his bond at $10,000. The collapse of the Milwaukee Avenue Bank is said to have caused the doors of the smaller institution to be closed. Ever since the failure of the Milwaukee Avenue Bank depositors in the Garfield Park Bank have been withdrawing their deposits. Yesterday afternoon, when the three creditors who asked for the receiver went to the bank for their money. They were given no satisfaction and the courts action followed. President Drake declared last night that he was solvent and if given time to dispose of certain securities, he would be able to pay all of the creditors in full. He attributes the run on his bank to the failure of the Milwaukee Avenue Bank. The attorneys for the crdeitors said last night that they had been unable to ascertain the amount of th ebank's liabilities, but it is not believed they are very large.

13. August 22, 1906 Tulsa Daily World Tulsa, OK
Article from Tulsa Daily World, August 22, 1906

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DEPOSITOR. A SUICIDE. Another Added to the Death Roll of Stensland's Bank. Chicago, Aug. 21.-Another suicide was added today to the list caused by the wrecking of the Milwaukee Avenue Bank. Edward Kollerab, 45 years of age, who two months ago deposited $250 in the institution, today hanged himself. Receiver Charles G. Dawes elosed the Milwaukee Avenue Co-Operative store, a Stensland enterprise, today. Notices were posted on the windows that the store had been elosed in preparation for a receiver's sale.

14. August 26, 1906 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, August 26, 1906

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PEABODY SENDS $40,000 TO MILWAUKEE AVENUE BANK CHICAGO, Aug. 25.-Francis S. Peabody of this city sent a check for $40,000 to the receiver of the Milwaukee Avenue Bank today to cover every claim against him at the bank. whether in the form of genuine or forged papers. Peabody's action was taken through sympathy with victims of the bank and a desire to bring about a speedy adjustment of its affairs.

15. September 5, 1906 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, September 5, 1906

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FULL CONFESSION. Stensland Talks Freely About His Defalcations. Chicago, Sept. 4.-A cable dispatch to the Tribune from Tangier, says: Paul Stensland's confession made to Assistant State's Attorney Olsen yesterday clears up much of the mystery surrounding the events leading up to the crash which involved the ruin of the Milwaukee Avenue Bank. He took much of the blame upon himself but declared Cashier Hering was the forger and that Hering got most of the money. He exonerated his son Theodore and the bank directors. He declared it a lie that he had spent any money on Leone Langdon Key or any other woman. He declared that he never spent more than $5000 a year himself, and that all the money he stole he put into real estate or investments in the hope of "making good." In his heart he was glad he was no longer a wanderer on the face of the earth. "Why." said he. "think of using a name not your own. It is worse than stealing. I did not know it would be so hard to be a fugitive." Stensland did not delude himself either with the idea of escaping punishment. "You have not been found guilty yet; you have a chance to make a fight in court." was suggested. Stensland laughed and said: "I know I what a Chicago jury will do to me. know Chicago juries." He said he had made up his minl to flee on the Thursday preceding the Sun- All day in which he left Chicago. Wednesday night he wrestled with the problem whether to blow his brains out he to run. In the hours of darkness decided or to kill himself but postponed the act until dawn and with the sunlight came the primal instinct to hold onto life and flight won over death. His preparations were hurried. He had for surrendered his life insurance policy $5000 and had received $8000, as commission the sale of property of the Co-opera- Inon tive store to the Northwestern Life surance Co., which had held a mortgage lien on the premisés. He drew $1500 as salary from the Mount Olive Cemetery he Association. This was all the money had taken with him. "Why with a million of dollars cash in the bank did you not take more?" "I could have taken a quarter of a million dollars without trouble." said he, "but I did not want to. I never took one in cent of cash from the bank and put It my own pocket. I never took a dollar belonging to other people." Stensland's health at first was not the best. When he boarded the train on the start of his flight he fainted and was unconscious for a while. On board ship was again stricken and for four days he on his back. In his first few days he was Tangier he was far from well and took went in to Spain, knowing the risk he in moving from what he regarded as proteeted soil. Stensland made no attempt to deny His his and only tried to minimize. that confession guilt began with a statement total was surprised to learn that the would less he involved in the bank's failure reach $2,000,000. He said: "I cannot understand how the shortage knowlbe $2,000,000. To my certain not can my Fability to the bank does must exceed edge $500,000. Anything over that have been stolen by Hering. "My indebtedness began a long while 2 in 1896. It was a small affair, ago. amount, and God knows I never intended small to steal. I was in a tight hole needed money. I put my own Then note, genuine, and not a forgery. in the box. bank it was suggested to me that the (Continued on Page Four.)

16. September 5, 1906 New-York Tribune New York, NY
Article from New-York Tribune, September 5, 1906

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STENSLAND CONFESSES. May Be Difficult to Bring Bank Wrecker Home for Trial. Chicago, Sept. 4.-According to cable dispatches from Tangier, Morocco, Paul O. Stensland made a confession to Assistant State's Attorney Olsen yesterday which clears up much of the mystery surrounding the events leading up to the crash which involved the ruin of the Milwaukee Avenue Bank He took much of the blame upon himself. but declared Cashier Hering was the forger and that Hering got most of the money. He exonerated his son, Theodore, and the bank directors. He declared it untrue that he had spent any money on Leone Langdon Key or any other woman. He said that he never spent more than $5,000 a year himself. and that all the money he stole he put into real estate or investments in the hope of "making good." In his heart of hearts he was glad he was no longer a wanderer on the face of the earth. He did not delude himself, either, with the idea of escaping punishment. He said he had made up his mind to flee on the Thursday preceding the Sunday in which he left Chicago. All Wednesday night he wrestled with the problem whether to blow his brains out or run. In the hours of darkness he decided to kill himself, but postponed the act until dawn, and with the sunlight came the primal instinct to hold on to life, and flight won over death. His preparations were hurried. He had surrendered his life insurance polley for $5,000 and had received $8,000 as commission on the sale of the property of the Co-operative Store to the Northwestern Life Insurance Company, which had held a mortgage lien on the premises. He drew $1,500 as salary from the Mount Olive Cemetery Association. This was all the money he had taken with him. "Why, with a million dollars cash in the bank, did you not take more?" he was asked. "I could have taken a quarter of a million dollars without trouble," said he. "but I did not want to. I never took one cent of cash from the bank and put it in my own pocket. I never took a dollar belonging to other people." Stensland made no attempt to deny his guilt, and only tried to minimize it. His confession began with a statement that he was surprised to learn that the loss involved in the bank's failure would reach $2,000,000. He said: I cannot understand how the shortage can be $2,000,000. To my certain knowledge my liability to the bank does not exceed $500,000. Anything over that must have been stolen by Hering. My indebtedness began a long while ago. in 1896 It was a small affair. a small amount. and God knows I never intended to steal. I was in a tight hole and needed money. I put my own note. genuine, not a forgery, in the box. Then it was suggested to me that the bank examiner would stand for it. and he did. 'Who "suggested it?" "Hering It was the beginning He pointed out. in a roundabout way at first. that it was easy to obtain money that way. Then when my own notes became too numerous he suggested the forgeries." "And you acquiesced?" Yes. First he tempted. then he urged. and I fell. Ever after I was absolutely in his power. He owned me. body and soul." 'How many of the forgeries did you do yourself?" Not one. Hering, I think. did all." A telegram to Governor Deneen from the State Department at Washington late this afternoon stated that no "homing" warship will be due in the Mediterranean for forty or fifty days. The message was forwarded to Assistant State's Attorney Barbour here to-night. This complication. according to Mr. Barbour. will necessitate the sending of a man to Tangier from the State's Attorney's office. Springfield, III., Sept. 4.-Governor Deneen today issued a request to President Roosevelt that the United States government make a request upon the government of Morocco for the extradition of Paul O. Stensland, the president of the Milwaukee Avenue Bank of Chicago, and that

17. September 7, 1906 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, September 7, 1906

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Trustworthy Business Barometers. Philadelphia Record. Insolvency statistics constitute one of the most trustworthy barometers of the state of trade; for panics and depressions are always preceded by losses which are reflected in the tables of commercial mortality. It is an important fact, therefore, that Bradstreet's tables show that the insolvencies last month were smaller than in any preceding month for seven years. The aggregate liabilities were swelled by the HOT suspension of the Real Estate Trust company here and the Milwaukee Avenue bank in Chicago. But omitting these, the total of liabilities, like the number of insolvencies, is exceptionally small.

18. January 11, 1907 Graham Guardian Safford, AZ
Article from Graham Guardian, January 11, 1907

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grand Insurance and forgery. E. charge Green er State on the govof New with postal ernmentin connection supplies. Fourth trial of granted comMarch Powers, accused Dr. to Caleb in Goebel murder. Obio, plicity C. Haugh, at Dayton, of his found and Oliver guilty of murder brother. case, after Spriggs, syndi- ne accused of a vice, for 0 York dens of women, 0 of white prison. 0 found guilty and sent to clerk April court 1_J. A. Linn, Ill., of circuit to sentenced to defraud of Gaynor to de. in connec found the government harbor imtion fraud with Savannah given par comticipation in in C. bank of National in ten years presiprison for Milwaukee, participation n ts. dent Bigelow's anova, on 17 year trial in Josephine I, placed to death York for stabbing wife. New ber uncle and his June-Bertha aged Claiche Gendron French in who killed Emil brought girl York, whose trial New New prosecution of several of proYork vice, about policemen charges to two e B B O in guilty of Tucker a found Charles L the murB S electrocuted at Boston for J. Kean Mabel Page. John for fo der of to prison for twenty Mutb years in B sent kidnapping Freddie to to tl Philadelphia. 25_Harry K. Thaw, of who the June Pittsburg family, artists' D fi wealthy Evelyn Nesbit, an Stanford married shot and killed during A the model, architect, Madison 1 Square a gambling casinos Baden, p e French Lick and West by O at said to be controlled of 0 Ind., Tuggart, chairman committee, V Thomas national Hanley, la Robert democratic order of Gov. secreP closed by G. Proctor, private Cabot tary to W Lodge, g L had actor, who his pro. fo fr la G of 20 been THE ac "Mrs. in New Calla- lit quitted sessions. Hargisand W m special on trial at Beattyville: Ky. tb han, murder mayor ag for found the not guilty. N. J., Former William with H. of Patterson, who absconded and Belcher, returned to Paterson $200,000, after wandering about ao surrendered country for a year. prisla sa guilty the and was sentenced July to 31, Mayfield, Ky., for as T on At Mathis, a negro held hanged lu Allan white girl. was that W saulting five mintes a after the jury in tried fifty him was sworn. ge Milwaukee avenue bank state in Aug of Chicago closen by known pi became been sysit had chief offi m by its fled. un and conPi mob and fessed. with negros family murder of the Lyerly trial the weeks before. Divorce Pitts th ree Hartje, wealthy from his of Augustus who sought relief Hartje, beautiful evidence to burger, wife, Mary Scott prove im