4586. Milwaukee Avenue State 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
c800c7bd

Response Measures

Full suspension, Books examined

Description

A run began Aug. 6, 1906 after rumors that the cashier had disappeared. The bank was closed by the state bank examiner (suspension) and placed in receivership; it did not resume normal banking operations and is described as defunct. Receiver paid dividends to depositors later, but the institution remained closed and officials were indicted and convicted for embezzlement.

Events (4)
1. August 6, 1906 Run
Cause
Rumor Or Misinformation
Cause Details
Run began on rumors that the cashier had disappeared, crowd clamorous and police called.
Measures
Policemen were called in to restrain the crowd; bank officers closed the bank while run was in progress.
Newspaper Excerpt
The run was started by rumors to the effect that the cashier had disappeared.
Source
newspapers
2. August 6, 1906 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State examiner closed the bank after discovering large deficits and alleged embezzlement by president/cashier; shortage estimated $750,000–$1,000,000 and insolvency suspected.
Newspaper Excerpt
The Milwaukee Avenue State Bank was closed today ... The bank was closed by State Bank Examiner C.C. Jones.
Source
newspapers
3. August 7, 1906 Receivership
Newspaper Excerpt
The appointment of a receiver was obtained ... The court fixed the bond of Receiver Fetzer at $1,000,000. Receiver Fetzer began the payment of the first dividend to the depositors ... Aug. 24–25, 1906 notices sent and payments began to depositors by receiver Fetzer. Bank described as defunct/wrecked by Stensland throughout coverage. (Articles dated Aug. 7 and Aug. 24–25 describe receivership and payments.)
Source
newspapers
4. August 25, 1906 Other
Newspaper Excerpt
Receiver Fetzer began the payment of the first dividend to the depositors of the Milwaukee Avenue state bank this morning. This is the earliest payment ever attempted in the case of a defunct bank ... Receiver sent notices Aug. 24 to call and receive twenty per cent dividend on their deposits.
Source
newspapers

Newspaper Articles (23)
1. August 6, 1906 Palestine Daily Herald Palestine, TX
Article from Palestine Daily Herald, August 6, 1906

Click image to open full size in new tab

Article Text

RUN ON BANK IN WINDY CITY TO QUIET THE CROWD THE BANK WAS CLOSED, AND THE POLICE CALLED.-CASHIER GONE. Special to the Herald. Chicago, Ill., Aug. 6.-The Milwaukee Avenue State Bank was closed today by Theodore Stensland, son of the president of the institution, while a run was in progress and the crowd was clamorous. Twenty policemen were called in to restrain the crowd. The bank has a capital of a quarter of a million, and deposits amounting to about four millions. The.run was started by rumors to the effect that the cashier had disappeared. Officers of the bank refuse to state how much money is missing. The depositors were told that the bank will be re-opened when the exact status of its finances is determined.

2. August 7, 1906 The Evening Times Grand Forks, ND
Article from The Evening Times, August 7, 1906

Click image to open full size in new tab

Article Text

President and Cashier of Defunct Chicago Bank Are Wanted by Officers-Warrants Are Refused. POLICE CALLED TO PREVENT A RIOT Angry Depositors Ready to Storm Bank-Safety Boxes Found Looted. Associated Press to The Evening Times. o Chicago, Aug. 7.-President Paul O. Stensland of the Milwau- C O kee Avenue State bank will prob- O O ably be arrested as soon as he O O enters Chicago or can be found. O Bank Examiner Jones, who closed @ . the bank yesterday, said today D O that Stensland surely had guilty O O knowledge of the looting of the D O bank. The 22,000 depositors in O the bank are gradually losing D O hope of receiving the $4,200,000 . they entrusted to Stensland's . care. Detectives are now seeking O O Cashier Henry W. Hering, the al- O O leged embezzler. Detective Can- O O non, who has the warrant for . O Hering's arrest charging embez- O O zlement, has information to the O . effect that the missing cashier O O O was in Detroit, Mich. @ The police in Detroit will be communicated with and today detectives will take up the search for Hering in earnest. There was a crowd of several hundred working people around the bank this morning notwithstanding the doors were closed and no prospect of recovering funds. Assistant Chief of Police Schuttler, with Inspector Shippey and Bank Examiner Jones, went to Justice Seversen and asked him to issue a warrant for the arrest of President Stensland. The charge in the complaint asking for the issuance of the warrant is fraud. Justice Severson was not inclined to issue the warrant and the three returned to the bank empty handed. It was expected, however, a warrant would be issued lated in the day by Justice Seversen or some other justice. A call for additional police was sent in caused by fear that the depositors and friends would storm the bank and cause a riot, when rumors spread that the contents of some of the safety deposit vaults had been tampered with. Persons with money in the vaults were said to have found their savings gone. The appointment of a receiver was obtained by two women who hold claims against the bank aggregating less than $300. The petition sets up that the two women are depositors and that August 6 the bank was closed and has not opened since; that it may never resume business; that the officials of the bank are not in their places and have left the city. The court was told that there are more than 20,000 persons who have money deposited in the alleged defunct institution and that most of these creditors are persons of little means and who know little or nothing about business methods. After further consultation with Assistant Chief of Police Schuttler and Inspector Shippey, Justice Serveson decided to. issue the warrant for the arrest of President Stensland. The complaint was signed by Bank Examiner Jones and charged Stensland with receiving deposits after the insolvency of the bank was known. The warrant was given to a detective to be served on President Stensland when found. The court fixed the bond of Receiver Fetzer at $1,000,000.

3. August 8, 1906 Adams County News Ritzville, WA
Article from Adams County News, August 8, 1906

Click image to open full size in new tab

Article Text

CHICAGO BANK FAILS MI!WAUKEE AVENUE STATE BANK CLOSED ITS DOORS. President Stensland and Cashier Herring Have Disappeared-Warrants Are Out for Them-Bank Had 20,Depositors and Over Four Million on Deposit. Chicago, Aug. 7.-With a deficit in its accounts estimated close to a million dollars and with the whereabouts of two of its high officials unknown to the authorities, the Milwaukee Avenue State bank, one of the largest out lying banks in the city, was closed by State Bank Examiner C.C. Jones. In the excitement following the bank's close J. C. Visser an official of the Royal league, who had on deposit in the bank funds of that order, fell dead of heart failure. The failure was responsible for the death of one of the depositors and led to the suicide of another man who a month ago had placed his earnings of a lifetime in the instutition for safekeeping. Henry Koepke, a small grocer. on hearing that the bank had suspended, went to the rear of his store and shot himself. He died a few minutes later while being taken to a hospital. Riotous scenes followed the announcement of the failure and a large force of police struggled all day to keep an excited crowd of depositorsnearly all of them foreigners and many of the women-from bursting in the doors of the bank. The fact that the bank was on of the verge of failure was first revealed by President Paul O. Stenisand, one of the absent officials. A letter to his son, Theodore, who is vice president, written from St. Paul, started the investigation which brought about the suspension. Another sensational feature of the affair was the disappearance of the cashier, Henry W. Herring, and the issuing of a warrant for his arrest. The news spread rapidly throughout the city. The bank for years had been a popular depository for funds saved by working people. Soon a clamorous crowd gathered before the doors and demanded admission. Anticipating trouble, a score of policemen were hurried to The were to file the people permitted the scene. past doors bearing the posted notice and were compelled to keep moving. Only the having keys to safe deposit vaults were allowed to enter. The shortage is estimated between $750,000 and $1,000,000. Disastrous speculation in real estate and in the security market is said to be responsible. Memebrs of the clearing house committee were told that most of this amount was wholly unprotected by adequate collateral. The instution was known "family Stensland bank." The family, as a for years well known residents of the north west side, held much of the stock and members of the family operated the bank. It was organiel in 1891 with a paidup capital of $250,000 and succeeded the banking firm of Paul O. Stensland & Co. A statement made by Vice President Stensland today showed $1,051,000 in cash on hand. He said that the bank carried deposits of $4,200,000 and had 20,000 depositors. The last report of the bank was made on June 19. Inquiry at all the hotels in St. Paul and other places where he would likely be known failed to locate Paul O. Stensland. Search for him is being continued.

4. August 8, 1906 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, August 8, 1906

Click image to open full size in new tab

Article Text

# NORTHWEST NEWS. A colored man calling himself Brown, is under arrest at Mabton, Wash., charged with being John Shotgun, wanted in Arkansas for the murder of two white men. Oswald Brothers, of Culdesac, Idaho, has received a threshing outfit which is to be run by gasoline engine rather than steam. This is the first outfit of the kind seen in Culdesac. The top notch price paid for wool in Baker county was reported August 4. It is understood that Mr. Cundiff, the sheepman, sold 20,000 pounds of wool at 19½ cents. This is the highest price reported so far this season. At his home at Owyhee, Malheur county, Rev. John M. Harris, aged 70 years, died very suddenly, by heart failure. He had lived in Malheur and Baker counties 16 years, and had the unusual distinction of being an excellent business man as a farmer, as well as being an able minister. He was a Baptist. Henry Hicks Bond will expiate the crime of murder on the gallows at the Boise penitentiary next Friday, August 10, and Rudolph Wetter, convicted of a double murder, will probably be executed at the same time. Wetter is now trying to secure a change of sentence to life imprisonment. Bond has no hope of anything but death on the gallows. The two boys who shot and killed aged William Powell for his money at Cottage Grove, have been captured at Drain. The boys gave their names as Thomas Reves and Hugh Saxon. The boys are alleges to have confessed and Reves is being guarded to prevent his committing suicide. Powell was a San Francisco refugee and was an umbrella repairer. William Dilis, a widely known comedian, who has played with the Baker Stock company of Portland, for several years, is made penniless by the failure of the Milwaukee Avenue State Bank of Chicago. He claims to have always been very suspicious of Paul O. Stensland, the president, and to have remonstrated with his mother about putting their money in that institution. J. P. Forbes, a Pinkerton watchman aged 25 years, fell down an open elevator shaft in the Stearns buillding at Portland, the night of August 6, and lay helpless for six hours, until he was discovered by a newsboy. His skull was fractured, arm broken and one eye gouged out, and he will probably die. He lies unconscious and can tell nothing about how he came to walk into the shaft.

5. August 15, 1906 Vernon County Censor Viroqua, WI
Article from Vernon County Censor, August 15, 1906

Click image to open full size in new tab

Article Text

ABSCONDER'S SON AIDS DEPOSITORS TURNS OVER PROPERTY TO DE FUNCT BANK. OFFICIALS STILL AT LARGE President Stensland and Cashier Her ing Being Sought All Over the Country-Investments in Bubbles Undermined the Supposedly Conservative, Financial Institution. Aug. -Theodore Stens vice president of the fuland, Chicago, Milwaukee of the Avenue State bank, and son gitive president of that institution. has come to the rescue of the 22,000 depositors and it is the general belief to of those who are endeavoring straighten out the affairs of the bank that there is an excellent chance that those who have deposits 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 last night announced that he would turn over to Receiver Fetzer today all the real estate and personal property of his father. The son places a valuation of $600,000 on this collateral and he stated that he had full authority to make the transfer This for the benefit of the depositors. transfer will be made today. President Stensland and Cashier Hering are still at large and a search for them is being made all over the country. Yesterday afternoon it ap peared as if there would be serious trouble with the depositors who swarmed around the doors of the failed bank. While fully 1.000 depositors shouted their protests over $300. 000 was removed from the vaults of the institution to the National Bank of the Republic, where it will be held for safe keeping until next Tuesday, when it is said a distribution to the depositors will be made. The removal of the money put the crowd in an angry mood and it took a big po. lice detail to keep the excited throne from upsetting the patrol wagon filled with bluecoats as a bodyguard for the treasure. Money Lost in Bubbles. "Wildcat" real estate financiering by Paul O. Stensland in his Irving Park subdivision will be disclosed, it as soon as J. E. Fetzer, for the wrecked bank, on the mortgages and hundreds of investors receiver by was up predicted, who notes hung checks given 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 subdivision 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 subdivision which were declared time to be too at the the expensive Loan for the character of the section. 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. Highly Criminal Acts Conclusive evidence has been unearthed by State Bank Examiner C. C. Jones that Paul O. Stensland, the fugitive president of the bank, has been guilty of highest criminal acts stitution of which he is the head. This was officially announced by Mr. Jones. At the same time culpability for the crimes which have brought the far reaching disaster on the northwest side is narrowing more and more to President Stensland. Henry W. Hering, the missing cashier who was declared to be an embezzler of large sums of money, is being in a measure exonerated because of the lack of direct proof against him. "When I swore out the warrant for Mr. Stensland," said Mr. Jones, I was perfectly assured of the criminal nature of the acts of which the banker has been guilty. Against Mr. Hering I have no direct evidence. I cannot say as yet precisely how far the frauds operated by Stensland have been carried, out it is to a great length that is by papers already brought to light. Mr. Jones' confirmed statements that the frauds amounted to over $1,000,000. some Secret History. The secret history of the wrecked Milwaukee Avenue State bank revea!s not altogether women and gaming wine, the surprising have fact clotted nanu- that a few more escutcheons Not a ful of the 22.000 depositors whose names were written in the books of Paul O. Stensland's bank knew the details of Paul O. Stensland's life. Still his fewer knew the way in which cashier, Henry Hering, lived. Between Stensland and Hering and the struggling Norwegians, Swedes, Danes and Poles of the northwest side who put their money in Stensland's bank there was a deep gulf fixed. Stensland had escaped from the life that his depositors were forced Hering had never lived that Each of them had came within the ken hard-working never life. scure, to lead. people tastes of the whose that OD be mony lay, or was supposed to lay,

6. August 16, 1906 The Wenatchee Daily World Wenatchee, WA
Article from The Wenatchee Daily World, August 16, 1906

Click image to open full size in new tab

Article Text

Cashier Was a Bookmaker Chicago Aug. 16.-Absolute proof that Henry Hering cashier of the wrecked* Milwaukee Avenue State bank was financial backer of a bookmaking syndicate which laid odds on horse races was brought to li he late today, when Inspector Shippy found a check made payable to Harry M Smith, who for years ran a buffet at 256 South State street, and whose place was closed [this spring because of his running a handbook, that handbook being none other than that run by the syndicate headed by Hering, but whose name never appeared as connected with it until today

7. August 16, 1906 The Manitowoc Pilot Manitowoc, WI
Article from The Manitowoc Pilot, August 16, 1906

Click image to open full size in new tab

Article Text

Then followed the story of how young Stensland exposed his father to the bank directors. of the closing of the bank, and of the run. Cashier Hering was jailed Saturday night in default of bail. Vice President Gives Up. Theodore Stensland, vice president of the Milwaukee Avenue State bank, appeared in Judge Kersten's court this afternoon. Inspector Shippy and two detectives went to the home of President Stensland, at Irving Park, today to seek further evidence against the missing bank president. In the house they found what they believe to be a secret room but which was empty.

8. August 17, 1906 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, August 17, 1906

Click image to open full size in new tab

Article Text

BANK GLOSES DOORS; ANOTHER TO RESCUE First National of Chelsea, Mass., in Receiver's Hands-50 Per Cent Tendered. Boston, Aug. 17.-The business community of Chelsea was surprised when it became known that First National bank of that city, one of the oldest financial institutions in this section of the state, had been closed and Bank Examiner Alfred Ever placed in charge. Many of the small tradesmen had practically all of their ready money tied up in the bank, but it is expected that relief will be afforded by the Winnisimet National bank of Chelsea which has offered to pay to depositors of the First National 50 per cent of their accounts. The remaining banks in Chelsea have but a few thousand dollars to their credit at the First National, and will not be directly affected by the difficulty. It is said that the difficulty at the bank was brought about by a steady transfer of large accounts to Boston banks and the Chelsea bank was thereby hampered for ready money. It has been learned also that the First National was heavily involved in real estate which tied up its money to the extent of about $500,000. The failure of the First National was responsible for small runs on the Chelsea Savings and Co-operative e Provident banks this morning. Stensland Not Found. Mobile, Ala., Aug. 17.-There is no truth in reports sent out from here that a man believed to be Paul O. Stensland the fugitive bank president of Chicago was seen in a house on the e outskirts of Mobile and that a posse C had surrounded the place. Another Bank Closed. Chicago, Aug. 17.-The Garfield r Park bank, a small institution located n at 2024 West Madison street, has been e placed in the hands of a receiver by e Judge Bethea. Three creditors with Is claims amounting to several thousand dollars, filed the petition in court, askiing that Ellis E. Drake, president of k the institution as well as the bank, be is declared insolvent. 1The collapse of the Milwaukee Avetnue tSate bank is said to have caused the doors of the smaller institution to be closed. Ever since the failure of the Milwaukee avenue bank the depositors k in the Garfield Park bank have been t withdrawing their deposits. aPresident Drake declared that he er was solvent and if given time to disd pose of certain securities he would be rable to pay all of the creditors in full.

9. August 18, 1906 The New Age Portland, OR
Article from The New Age, August 18, 1906

Click image to open full size in new tab

Article Text

# NEWS OF THE WEEK In a Condensed Form for Our Busy Readers. # HAPPENINGS OF TWO CONTINENTS A Resume of the Less Important but Not Less Interesting Events of the Past Week, The murder of policemen in Poland continues. Japanese goods have supplanted all others in Corea. Many officers are involved in a navy scandal at San Francisco. Another Chicago bank has failed as a result of Stensland's crimes. Ex-United States Senator Turner, of Washington, is mentioned as Bryan's running mate. France has resolved to make no concessions to the Catholics and may confiscate churches. A member of the late Russian parlisment has been arrested as a leader of agrarian disorders. R. B. Brown, of Zanesvil'e, Olio, has been elected commander-in-chief of the National G. A. R. Diego Mendoza, ex-Colombian minister to the United States, declars that President Reyes is a traitor. A second grand jury has been called at Chiago to inquire into recent rebates gliven the Standard Oil company. The Milwaukee Avenue State bank, of Chicago, has delcaraed a 20 per cent dividend for depositors. More will be paid later. Secretary Root has arrived at Buenas Ayres. Mad Mullah has received a disastrous defeat. Negotiations looking to a Russo Japanese fishing treaty have been commenced. It is likely that the War department will concentrate all colored troops at one post. Many Republican state conventions are declaring in favor of Roosevelt for a third term. Persants in Southern Russia are ravaging the country and the troops refuse to fire on them. A plot to assassinate the president of Cuba was discovered just in time to frustrate the plans. The powers are expected to make strong representations to Greece. The trouble is over the barbarous acts of Greek marauders in Macedona. Government inquiry into the relations between the railroads entering Toledo, Ohio, and the ice trust show the two to be working hand in hand. A warrant has been issued for the arrest of W. R. Vice, formerly coast passenger agent of the Union Pacific. Vice is charged with embezzling $10,000 three years ago. He had been in hiding until the San Francisco disaster of April 18, when he reappeared, believing the papers incriminating him had been destroyed. The National G. A R. is in convention at Minneapolis. Crops have been damaged by unprecedented rains in Virginia. The sultan of Turkey has rewarded his physician by elevating him to the rank of general. With the exception of St. Petersburg, Russia, and Rome, Italy, Chicago leads the world in crime. A Birmingham, Alabama, bank teller and confederates have been arrested for wholesale stealing. The banks of the Chicago Clearing House association have offered a reward of $5,000 for the capture of Stensland. The Rhine & Moselle Insurance company, of Germany, has announced that it will not pay its $2,000,000 liabilities in San Francisco. The sultan of Morocco is considering the question of moving the capital from Fez to Morocco City in order to be more secure from bandits. New York is waging a war against the Coney Island street car lines. A fare of 10 cents is charged, which the courts hold is not legal and the people are fighting to keep from paying more than 5 cents. Thousands are being assaulted by the company's employes and are thrown from the cars on refusal to pay the additional fare. The Longworths have returned from Europe. There has been a wholesale slaughter of police spies in Poland. The Russian War department is planning to rebuild the navy.

10. August 22, 1906 Vernon County Censor Viroqua, WI
Article from Vernon County Censor, August 22, 1906

Click image to open full size in new tab

Article Text

# TELEGRAMS IN BRIEF. # CHICAGO'S BANK FAILURE. Mrs. Leone Langdon Key denied the report that fugitive Banker Stensland paid her hotel bill. Theodore Stensland was held to the grand jury in $10,000 bonds signed by Attorney Kern and Alexander H. Matson. Cashier Hering of the defunct Milwaukee Avenue State bank was shown to be a great plunger on race horses. Henry W. Hering was held to a criminal court under bonds aggregating $68,000 on charges of forgery, larceny, embezzlement, perjury and conspiracy. Frank J. Kowalski, receiving teller for the Milwaukee Avenue State bank, committed suicide at his home, making the third death due to Stensland's looting. The creditors of Banker Stensland's cooperative store demand a receivership, alleging that $200,000 in bonds belonging to the institution have been transferred to Stensland. State Examiner Jones' official report on the Milwaukee Avenue bank will show that the institution was plundered of from $800,000 to $1,000,000, in addition to probable losses on $1,112,000 in questionable paper.

11. August 25, 1906 The Roswell Daily Record Roswell, NM
Article from The Roswell Daily Record, August 25, 1906

Click image to open full size in new tab

Article Text

DIVIDEND ANNOUNCED. Depositors of Milwaukee Avenue Bank to Receive Twenty Per Cent. Chicago, Aug. 24.-The receiver of the defunct Milwaukee Avenue State Bank sent out notices to five thousand depositors yesterday to call at the bank and receive twenty per cent dividend on their deposits. It was the original intention to send out the notice to 22,000 depositors simultaneously, but on account of the difficulty in handling such a crowd, the receiver decided to send out only five thousand notices per day. Five hundred thousand dollars in currency and coin was taken to the bank yesterday in preparation for today's work. One hundred policement in uniform and about fifty men in plain clothes will be at the bank this morning in anticipation of the opening of the doors at nine o'clock.

12. August 25, 1906 The Paducah Evening Sun Paducah, KY
Article from The Paducah Evening Sun, August 25, 1906

Click image to open full size in new tab

Article Text

PAYING DEPOSITORS. Looted Milwaukee Avenue State Bank Opens Doors. Chicago, August 25.- Receiver Fetzer began the payment of the first dividend to the depositors or the Milwaukee Avenue state bank this morning. This is the earliest payment ever attempted in the case of a defunct bank and the preparations for the big crowd kept the employes of the received at work hours after the time for closing last night.

13. August 25, 1906 The Glenwood Post Glenwood Springs, CO
Article from The Glenwood Post, August 25, 1906

Click image to open full size in new tab

Article Text

Miscellaneous. The Pulajane insurrection in the island of Samar, Philipine islands, is about stamped out, according to Col. Williams, commanding that department. The prosecuting attorney of Marion county, Indiana, has caused actions to be instituted against three prominent express companies to oust them from doing business in the state for alleged failure to obey the state law. The United States court of appeals at St. Louis has affirmed the judgment of the Nebraska court convicting John and Herman Krause of fencing 4,500 acres of government land. The police of France have arrested an Italian anarchist on suspicion of his being in a plot to assassinate President Fallieres. The commercial club of Lincoln, Neb., has entered a complaint with the interstate commerce commission to the effect that present freight schedules discriminate in favor of Omaha. The construction quartermaster at Fort D. A. Russell has received instructions from the war department to construct buildings there with a view to making it one of the seven brigade posts. While the governor of South Carolina was speaking to a mob recently in an effort to save the life of a negro brute, the prisoner was removed from the view of the executive and riddled with bullets, The republicans of the Eighteenth Illinois congressional district have renominated Speaker Cannon for the 18th consecutive time, this being the 17th nomination by acclamation. The convention also enthusiastically endorsed Mr. Cannon for president. Texas democrats have nominated T. M. Campbell, a railroad lawyer for governor. The Garfield Park bank of Chicago, has been placed in the hands of a receiver by Judge Bethea, of the United States district court. The failure was caused by the collapse of the Milwaukee Avenue State bank. R. B. Brown, of Zanesville, O., was unanimously chosen commander-inchief of the G. A. R. at the Minneapolis encampment, the other candidates withdrawing. Archbishop Ireland, of St. Paul, was chosen chaplain. Acting apparently with a definite plan and at a signal terrorists and revolutionists in Russian Poland recently inaugurated a carnival of bomb throwing in various cities of the country. Many deaths resulted. mostly of policmen, gendarmes and soldiers. After a conference at Topeka with Secretary Crumbine, of the state board of health, the grocery jobbers of Kansas agreed to stand by the rules of the board and not handle any stock which the chemists of the board found to contain adulterants unless the same was properly labeled. More than 1,200 delegates have been appointed to attend the national irrigation congress at Boise, Idaho. The democrats of Nebraska have nominated A. C. Shallenberger, of Alma, for governor. Acting Attorney General Robb, has rendered an opinion to the effect that Mexican laborers could not be imported into Texas under contract to work on railroads in that state. The Standard Oil company has reduced the price of western crude oil three cents a barrel.

14. August 31, 1906 The Pioche Weekly Record Pioche, NV
Article from The Pioche Weekly Record, August 31, 1906

Click image to open full size in new tab

Article Text

Wanted Their Twenty Per Cent. Chicago.-Six policemen were overwhelmed Friday by a mad rush of men and women who were determined to get the first money paid out of the vaults of the ruined Milwaukee Avenue State bank. Receiver Fetzer had made arrangements to pay 20 per cent to 5,000 of the 22,000 depositors, and everybody was anxious to be among the 5,000. At daybreak the crowds swarmed around the bank and by 8 o'clock the bank was surrounded by 15,000 people.

15. September 13, 1906 The Fulton County News McConnellsburg, PA
Article from The Fulton County News, September 13, 1906

Click image to open full size in new tab

Article Text

# Will Get Stensland. Chicago, Ill., (Special).-Assistant State's Attorney Barbour received the following telegram from Charles L. Binns, who is representing the State's Attorney's office in the Stensland matter at Washington: "Warrant being prepared for the President's signature. Instructions will be cabled to deliver Stensland into custody of Olson and Keely." "As soon as the warrant is signed by the President," said Assistant State's Attorney Barbour, "it will be sent to Tangier, and then the start for this country can be made at once." Mr. Barbour received a message from Assistant State's Attorney Olson at Tangier requesting that the authorities at Washington permit Stensland to return without waiting for the arrival of legal documents. The prisoner was said to be willing and anxious to return to Chicago at once. Receiver Fetzer, of the Milwaukee Avenue State Bank, which was wrecked by Stensland, receiving the following dispatch from Secretary of the Treasury Shaw in Washington: "Assistant Secretary of State consulted the Solicitor for the State Department concerning the $12,000 deposited by Stensland in the French Bank at Tangier. The Solicitor sees no course open but for you to attach the fund acording to law and according to the proceedure controlling judicial questions affecting the French Bank at Tangier."

16. September 19, 1906 Vernon County Censor Viroqua, WI
Article from Vernon County Censor, September 19, 1906

Click image to open full size in new tab

Article Text

# FORMAL RETURN # OF INDICTMENTS STENSLAND'S VOYAGE TO UNIT. ED STATES IN DOUBT. # DEPARTURE KEPT A SECRET State Auditor Attacks Appointment of Receiver of Defunct Milwaukee Avenue State Bank-Theodore Stensland, It is Said, Disclosed Whereabouts of His Father. Chicago, Ill., Sept. 13. Formal return of the 20 joint indictments charg-ing forgery against Paul O. Stensland, president of the defunct Milwaukee Avenue State bank and Henry W. Her-ing, the cashier, was made by the grand jury yesterday in Judge Kavanaugh's court. Stensland's Voyage in Doubt. Reports reached Chicago to the effect that Paul O. Stensland has sailed for New York. No such word was received at the state's attorney's office. Assistant State's Attorney Barbour said he had been informed that the authorities at Washington had or-dered that Stensland's departure be kept a secret. The forgery indictments had been prepared by the state's attorney's office before the grand jury convened and there was needed only the for-mality of the jurors signing the in-dictments, once they had voted them. The other indictments decided upon by the grand jury had to be drawn after the action was taken, causing a delay in their return. State Attacks Receivership. Attack was made in the circuit court yesterday by State Auditor James S. McCullough on the proceed-ings by which John C. Fetzer was ap-pointed receiver for the defunct bank. In a bill which was presented to the court by Attorney General Stead it is declared the appointment of Fetzer was illegal and that all acts done by him under the appointment are void, as well as all orders entered in behalf of the receiver by Judge Brentano. Notes Alleged as Forged. In the indictments were a number of copies of the notes to which names were said to be forged. The notes and names forged, as charged in the indictments, are as follows: Note for $4,200, dated November 28, 1905, name forged-Ole Stensland. Note for $9,800, dated October 11, 1905, name forged-Thomas Olson. Note for $5,000, dated June 20, 1905, name forged-Fenski Brothers, 139 McHenry street. Note for $2,436, dated April 30, 1906, name forged-M. C. Bartholdy. Note of $5,000, dated June 11, 1905, name forged-George C. Johnson. Note for $5,800, dated May 28, 1905, name forged-L. A. La Buy, 581 Milwaukee avenue. Note for $10,000, dated February 28, 1903, name forged-F. Herbold. Note for $10,000, dated September 2, 1903, name forged-F. S. Peabody. Note for $7,500, dated October 14, 1905 name forged-B. J. Eisendrath. Note for $6,000, dated June 11, name forged-George C. Johnson. Note for $9,850, dated March 10, 1904, name forged-C. F. Kimball & Co. and C. F. Kimball. Note for $5,000, dated June 20, 1905, name forged-Fenski Bros., 139 Mc Henry street. Note for $8,500, dated October 1, 1905, name forged-Tom Olson. Note for $2,500, dated April 30, 1906, name forged-M. C. Bartholdy, 586 Milwaukee avenue. Note for $5,000, dated June 22, 1905, name forged-Moeller Bros., 930 Milwaukee avenue. Note for $5,000, dated October 1, 1905, name forged-S. J. Eisendrath. Note for $15,000, dated February 28, 1903, name forged-Jacob J. Kern, 77 Clark street. Note for $5,000, dated June 22, 1905, name forged-Moeller Bros., 930 Milwaukee avenue. Note for $2,000, dated May 1, 1906, name forged-C. H. Beckman, 703 West Division street. Note for $2,500, dated May 1, 1906. name forged-C. H. Beckman. Did Son Betray Paul O. Stensland? Strong indications that it was Theodore Stensland who betrayed to the state's attorney the hiding place of his father, Paul O. Stensland, are seen by some persons in the fact that Theodore, the director most closely in touch with the bank's affairs, was not indicted, but was used as a witness before the grand jury. New Romance in Looter's Life. The grand jury hearing brought to light another romance in Paul O. Stensland's life. In a package marked "Nobody's Business," displayed by Inspector Shippy in the grand jury room, papers were found to indicate that Stensland paid $1,600 to one Philip Votava in settlement of a claim for alienation of the affections of Votava's pretty young wife. Mrs. Votava, wife of a workingman, visited Stensland at the bank. When her husband discovered his wife's guilt he threatened a scandal, which Stensland quieted with $1,600 of his depositors' money on February 26, 1906. Theodore Stensland was in the grand jury room only five minutes. His testimony was, therefore, brief.

17. September 27, 1906 Audubon Republican Audubon, IA
Article from Audubon Republican, September 27, 1906

Click image to open full size in new tab

Article Text

Chicago. The story of the pursuit and capture of Paul O. Stensland, president of the wrecked Milwaukee Avenue State bank, is one of the most dramatic in the history of those all too frequent events. Traced from this city to Tangiers, Morocco, he was apprehended there by Assistant State's Attorney Olsen, who was accompanied by a representative of the Chicago Tribune. Not less interesting Is Stensland's account of the circumstances leading to the wrecking of the bank and the despoiling of thousands of depositors of the poorer class of the savings of their lifetime. Told In detail by the Tribune representative the story is as follows: It was the old story of a woman scorned that led to the finding of Stensland's trail. One of his numerous friends who thought she had been shabbily treated put the authorities In possession of the first hint as to the fugitive's whereabouts. Her information was indefinite, but investigation proved its probable accuracy. Finally, on August 13, it became certain that he was in Tangier and had been for 16 days. The facts were laid before State's Attorney Healy. He was asked if he could send a man with a representative of the Tribune to an unknown destination, where it was expected to find Stensland or his trail. Mr. Healy accepted the proposition and Assistant State's Attorney Harry Olsen was ordered to meet the representative of the Tribune In New York on Monday, August 20. The next day Mr. Olsen and the Tribune man sailed on the liner Kaiser Wilhelm II. Paris was reached Monday, August 27, and was left Tuesday at noon. Madrid was reached Wednesday afternoon, August 29, and Gibraltar 26 hours later. On Saturday morning, September 1, the boat was taken for Tangier, the Moorish city being reached early in the evening. ### Back to Gibraltar. All Saturday night and until four o'clock Sunday afternoon, September 2, the investigation proceeded. At every town Stensland's tracks were uncovered and the last clew pointed to the Grand hotel at Gibraltar. It was as follows: Assistant State's Attorney Olson had represented himself to the keeper of the hotel where Stensland stopped at Tangier as his son. Stensland, as has been stated, is traveling under the alias of P. Olsen. The names were the same and the two men do not look unlike. The hotel keeper believed the story, but could give no direct information as to Stensland's whereabouts. As he was riding to the hotel at midnight after getting the governor of the French bank out of bed, a voice from a Moorish cafe sung out: "I say, Olson, I think I know where your governor is." We dismounted as the hotel man continued: "You left the old man in 'Gib.' A friend of mine just come over on the night boat says he saw him at the Grand hotel." When we left Tangier Sunday afternoon, September 2, for Gibraltar to run down the Grand hotel clew we left 25 Moorish and Arab scouts to guard all the entrances and exits. Less than an hour after the Oldenburg, the German steamer bearing Stensland from the Rock to the Moorish coast, reached port our Arab chief of scouts sent a cable to us at Gibraltar announcing the arrival of the boat and the presence on board of the man we wanted. ### Hired Special Steamer. We began negotiations for a special steamer to bring us back to Tangier. Finally a small steamer was chartered and permission obtained from the officer of the guard to leave port. At midnight we turned tail on the Rock and headed across the straits. It was four o'clock in the morning when we rounded Malabat Point and saw the red light above the gate of the city of Tangier. The steamer Oldenburg lay half a mile off shore. We hauled alongside and asked if the passengers had landed. It was great relief to hear that they had not, as we feared that if so Stensland might have been warned

18. September 28, 1906 The Washburn Leader Washburn, ND
Article from The Washburn Leader, September 28, 1906

Click image to open full size in new tab

Article Text

# FOREIGN NEWS. In a formal note to France and other powers Turkey draws attention to the warlike preparations which are going on in Bulgaria. While it is declared that the note makes no allusion to retaliatory steps on the part of Turkey this formal notification from the porte is regarded as ominous. Mail advices from China are disquieting to Americans having financial interests in the Orient. There is no abatement of the anti-foreign feeling and the animosity is no longer confined to Americans, but includes all foreigners except Japanese. Sunday was George Washington day in Budapest, Hungary, and the entire population from morning until night gave itself up to enthusiasm over the unveiling on monarchial territory of a monument to the first president of the United States. A column of the Thirteenth infantry under Captain Fassett was fired upon at La Paz, island of Leyte, by Pulajanes on the night of Sept. 10. Corporal D. H. Pierce of Company A and Private A. E. Winegardner of Company B were killed. Pulajanes on the island of Leyte attacked a detachment of the Twenty-fourth infantry (colored) on the night of the 10th and killed two and wounded eight of the colored soldiers. They were finally repulsed with heavy loss. The people of Sicily are in a condition of panic because of the earthquake shocks which have been occurring there for a week past. They continue to camp out in the open and many have taken refuge in caves. Besides eleven schooners wrecked at Belle Isle recently by storms seven others with over 100 people on board were driven ashore on the Labrador coast. Four fatalities only are reported thus far. The steamer Prinz Adelbert has left Tangier, Morocco, with Paul O. Stensland, president of the wrecked Milwaukee Avenue State bank of Chicago, on board. Albrecht, prince of Prussia, regent of the duchy of Brunswick and the richest prince in Germany, is dead. Death followed a stroke of apoplexy. Dominican rebels defeated the government troops in a severe battle on the Haytian frontier. The government losses were heavy. Rear Admiral Sir Edward Chichester, who commanded the British squadron at Manila during the Spanish-American war, is dead.

19. October 5, 1906 The Washburn Leader Washburn, ND
Article from The Washburn Leader, October 5, 1906

Click image to open full size in new tab

Article Text

FOREIGN NEWS. In a formal note to France and other powers Turkey draws attention to the warlike preparations which are going on in Bulgaria. While it is declared that the note makes no allusion to retaliatory steps on the part of Turkey this formal notification from the porte is regarded as ominous. Mail advices from China are disquieting to Americans having financial interests in the Orient. There is no abatement of the anti-foreign feeling and the animosity is no longer confined to Americans, but includes all foreigners except Japanese. Sunday was George Washington day in Budapest, Hungary, and the entire population from morning until night gave itself up to enthusiasm over the unveiling on monarchial territory of a monument to the first president of the United States. A column of the Thirteenth infantry under Captain Fassett was fired upon at La Paz, island of Leyte, by Pulajanes on the night of Sept. 10. Corporal D. H. Pierce of Company A and Private A. E. Winegardner of Company B were killed. Pulajanes on the island of Leyte attacked a detachment of the Twenty-fourth infantry (colored) on the night of the 10th and killed two and wounded eight of the colored soldiers. They were finally repulsed with heavy loss. The people of Sicily are in a condition of panic because of the earthquake shocks which have been occurring there for a week past. They continue to camp out in the open and many have taken refuge in caves. Besides eleven schooners wrecked at Belle Isle recently by storms seven others with over 100 people on board were driven ashore on the Labrador coast. Four fatalities only are reported thus far. The steamer Prinz Adelbert has left Tangier, Morocco, with Paul O. Stensland, president of the wrecked Milwaukee Avenue State bank of Chicago, on board. Albrecht, prince of Prussia, regent of the duchy of Brunswick and the richest prince in Germany, is dead. Death followed a stroke of apoplexy. Dominican rebels defeated the government troops in a severe battle on the Haytian frontier. The government losses were heavy. Rear Admiral Sir Edward Chichester, who commanded the British squadron at Manila during the Spanish-American war, is dead.

20. November 6, 1906 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, November 6, 1906

Click image to open full size in new tab

Article Text

Stensland and Hering Sentenced. CHICAGO, Nov. 6.-Pani O. Stensland, formerly president of the failed Milwankee Avenue State bank. who was arrested in Tangier, and Henry W. Hering. cashier of the same Institution, were sentenced by Judge Pinckney In the criminal court to indeterminate terms In the penitentiary for embezzlement and forgery. The sentences may run anywhere from one to ten years.

21. May 9, 1907 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, May 9, 1907

Click image to open full size in new tab

Article Text

OBJECTIONS TO FETZER'S FEE Claim of $20,000 Allowed Former Ottumwan as Stensland Bank Receiver Raises Storm, Stockholders in the defunct Milwaukee Avenue State bank of Chicago, wrecked by Stensland, now serving a term in the penitentiary, have raised a storm of protests against the allowance of the claim of $20,000 filed by John C. Fetzer, a former Ottumwan, receiver for the institution, and the claim of $20,000 filed by Fetzer as fees for his attorney. The Chicago Tribune this morning, says: A renewal of several former attacks on the legality of the appointment of John C. Fetzer as receiver of the Milwaukee Avenue State bank was made yesterday by Attorney Warren Pease, representing a large number of Polish depositors. Argument will be made today before Judge McEwen. The attack was made in an answer to Receiver Fetzer's report covering the fees of the receiver and attorneys, and the expenses of winding up the bank's affairs. It was filed in the Superior court and sets forth that no attorneys' fees should be paid to the receiver's lawyers, as Attorney General William H. Stead has at all times stood ready to handle the legal affairs of the bank at public expense. Objection also is made on the ground that the fees allowed the receiver and attorneys are excessive. ObHUNDRED jection is made also to the allowance of the shrinkage of $1,563,894, classified as forgeries and depreciation. Attorney K. B. Czarnecki, who appeared in court when the bill was LIVES filed, declared that many of the persons whose names appear on Attor ney Pease's list as objectors would repudiate the litigation. Receiver Fetzer has received on acBOAT count $20,000 for the receiver and $20,000 as fees for the attorneys.

22. August 31, 1907 The Lake County Times Hammond, IN
Article from The Lake County Times, August 31, 1907

Click image to open full size in new tab

Article Text

# PLEA FOR RELEASE # OF BANK WRECKER Stensland Takes First Steps in Fight for Release From Penitentiary. Paul O. Stensland has taken the first step in his fight for release from the Joliet state penitentiary. The convicted president of the defunct Milwaukee Avenue State bank, who for eleven months has occupied a cell at Joliet, made a formal appeal to the state board of pardons for his freedom on August 22. Failing eyesight and general physical breakdown are the grounds upon which Stensland bases his plea. The appeal for clemency was backed with statements of Drs. Marie Olsen and Valborg Sogn, both of whom are living with Mrs. Inga Sandberg, Stensland's daughter. They submitted to the board reports on the former banker's condition. Stensland pleaded with the board for more than an hour, after which Ethan Allen Snively and Charles Eckhart, the members who heard the appeal, promised the former banker to again take up the case next month, when the board holds its regular session. Promises to Pay Debts. Stensland is declared to have promised the board that if liberated he would pay all his old debts. "I did not mean to do wrong," he is reported to have said, "and if you will let me go on parole or give me a pardon I will at once go to work and will promise to pay all my old debts." The former bank president, according to the two physicians who examined him, is suffering with fatty degeneration of the heart, chronic bronchitis, anaemia, emphysema, deficient elimination, general breakdown, insomnia, mental anguish, threatened tuberculosis and a serious affliction of the eyes. He denies forging documents, placing the responsibility of alleged forgeries upon other persons in the bank, and particularly upon former Cashier Hering. Tells of Money in Bank. "When I left Chicago there was nearly $900,000 in the bank," Stensland said, "and I could have taken that, but I did not. I had $12,000 which the Northwestern railroad had paid me for work done in connection with securing a right of way. That money I took with me on my flight, and added to this $30,000, which was on deposit there to our credit." "The fact that Dr. Sogn and I are friends of Mrs. Sandberg in no way affects our professional opinion concerning Mr. Stensland's physical condition," said Dr. Olsen. "We became interested in the case when Mr. Stensland was in Chicago testifying in matters pertaining to the receivership of the Milwaukee Avenue State bank. 'It was then that Stensland almost fainted on the witness stand and his daughter, Mrs. Sandberg, became worried. At her solicitation Dr. Sogn and myself examined him and we were also instrumental in securing him permission from the authorities to wear glasses."

23. December 19, 1907 Northern Wisconsin Advertiser Wabeno, WI
Article from Northern Wisconsin Advertiser, December 19, 1907

Click image to open full size in new tab

Article Text

# BANK DIRECTORS FREED. Statute Held Unconstitutional as Applying to Them. Chicago, Dec. 15. - Five directors of the defunct Milwaukee Avenue State bank were freed yesterday when Judge Windes held the statute under which they had been indicted unconstitutional. Michael A. Labuy, Joseph Lister, Marcus Kirkeby, Frank R. Crane and Elof Johnson are the men who profit by the decision. They were accused of having guilty knowledge of the bank's condition previous to its suspension. Paul O. Steensland, president of the bank, and Henry Herring, cashier, who were convicted of embezzling, are now in the penitentiary. The decision will not affect them.