4587. Milwaukee Avenue State Bank (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1909*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
60bf7721

Response Measures

None

Description

Newspapers describe the bank as wrecked and later under receivership after large embezzlement by its president Paul O. Stensland. There is no clear contemporaneous description of a depositor run; failure appears driven by bank-specific embezzlement and resulted in receivership/closure (paid ~70 cents on the dollar). Dates of failure are not explicitly given in these clippings; reports discussing the wreck appear in Jan-Feb 1910 and retrospectives of Stensland's death in 1918 reference the failure as about eight years earlier (circa 1909–1910).

Events (2)

1. January 1, 1909* Receivership
Newspaper Excerpt
The bank under receivership paid about seventy cents on the dollar; confessed embezzler of $800,000 from the Milwaukee Avenue State bank, which failed more than eight years ago, Paul O. Stensland ... pleaded guilty and was sentenced to 5 years in prison.
Source
newspapers
2. January 1, 1909* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure attributed to large embezzlement by the bank's president Paul O. Stensland (confessed embezzler of ~$800,000).
Newspaper Excerpt
the wrecked Milwaukee Avenue State Bank
Source
newspapers

Newspaper Articles (6)

Article from The Evening Times, January 18, 1909

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NEW JUDGES QUALIFIED (By H. n. Paulson.) Bismarck, N. D., Jan. 18.Judges Ellsworth and Carmody were today sworn in as members of the supreme court of North Dakota. penitentiary, Chief Justice Olson of the municipal court and former State's Attorney Healy-and when the board of pardons meets at Joliet next Tuesday it is declared that it will be bombarded by a mass of data, much of it seeking to show that Stensland has paid full penalty and should be let out of prison. Polish Alliance Active Against Him. While the convict's friends are thus rallying in his behalf, the Polish National Alliance of America, the largest organization of that nationality in America, took up the challenge of battle to-day and announced that it would do its utmost to keep in prison the man who caused so much suffering in the northwest section of the city through the failure of the Milwaukee Avenue state bank. Marion B. Stenczynski, the president, outlined a campaign and sounded the alarm among his countryman. Added zest was given to his movements when he learned that State's Attorney John E. W. Wayman had announced that if Stensland were released there would be no further prosecution, inasmuch as he would move in court to dismiss all standing indictments. Judge Kersten. when interviewed in reference to the efforts to free Stensland, said: "It is true that I have written and sent a letter in Stensland'es behalf to Gov. Deneen. In it I expressed my opinion that under the existing circumstances of the case, which I enumerated in my letter, he ought to be released as having been sufficiently punished. I make that recommendation on facts I set forth in the letter." Harry Olson Suggests Leniency Harry Olson, chief justice of the municipal courts, who was the chief assistant state's attorney and prosecutor of Stensland, has relented to some extent as to the bank wrecker, and has written a letter to the state board of pardons suggesting leniency for the convict. One of the reasons assigned in the letter as an extenuating Circumstance in Stensland's crime, is that he caused the state's attorney's office no trouble at the time of his arrestoin Algiers and paid his own passage home to face trial and certain conviction.


Article from Chicago Eagle, January 29, 1910

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Items from All Parts of the World Carefully Selected from the Press Telegrams. A Weekly Digest of the Most Important Facts and Happenings for Busy Readers. Sunday. SCHIAVONES FOUND NOT GUILTY. French floods were fast assuming the proportions of a national disaster Banker's Daughter Falls to Convince Gifford Pinchot has been made presithe Jury with Her Story. dent of the National Conservation As A jury in Chicago returned a verdict sociation. of not guilty in the case of Francesco Schiavone and four members of his Ezra Kendall, widely known come family, who were accused by Angelina dian, died at a sanitarium in Indiana Schiavone of having conspired with after a long illness. her to steal nearly $100,000 from the Negotiations opening in the wage bank of her father, Pasquale Schiadispute involved 125,000 trainmen and vone, at Taylor and Halsted streets. seventy-four railroads. Angelina swore that she had been inThe National Anti-Food Trust duced by the promise that she should League, with a membership of 3,000,have her cousin, Michael Schiavone, 000 and gaining thousands every day. as a husband to continue her peculaissued platform telling how it will tions through a number of years. She fight for continued lower prices of was employed in her father's bank and food. had access to his money. She said that she was in the habit of removing Monday. several hundred dollars every week in A pronounced drop in the price of bills, turning the money over to her foodstuffs was recorded in the wholeuncle, Francesco, or to her consin, Molsale markets. lie Schiavone. Assistant State's AtA New York banker was robbed of torney Fleming. who was greatly dis$28,000 by two women in a New York appointed at the result of the trial, street. A Chicago pair were held. said that a number of other charges President Taft plans a special mesagainst the Schiavones would be dissage on the high cost of living. Secmissed. retary Wilson blames the retailers' combines. CHERRY MINE MADE DEFENDANT The agreement of the members of Company Accused by Davies of Emthe Hocking pool leaked out and eviploying Young Boys. dence is that a traitor in camp caused Information has been filed against the deal's collapse. the St. Paul Mine Company at Cherry, Paris and suburbs were hard hit by by State Factory Inspector Davies, althe flood, which still raged. The Seine leging it was employing boys under 16 continued to rise and thousands of peryears of age in the mine at the time of sons were homeless. the disaster. Three boys under 16 Tuesday. years of age lost their lives in the mine and two were rescued. and a France officially recognized the sixth, who had just passed his 16th birthday of the kaiser. birthday, perished in the fire. Four The Twentieth Century Limited was others were several weeks past the lewrecked in New York State. gal age, but they had worked for a The National board of trade will inyear or two, and therefore the mine vestigate the high prices of food. owners are liable if the cases can be The prices of butter, eggs and milk proved. Mr. Davies had three assistfall as a result of the meat strike. ants on the ground at Cherry, arrivThe Yerkes art collection was ordering there the Tuesday after the accied sold at auction by court in New dent, and remaining several weeks. York. They were denied the records of the company by Chief Clerk Buck, but Receivers were appointed at Columlater discovered a way to trace the bus, Ohio, for the Columbus and Hockboys' ages. ing Coal and Iron group of companies. The intervention by outside nations, ADMITS KILLING WOMAN. probably the United States, is the only thing that can restore peace in NicarClinton St. Clair Confesses to Meagua. Intosh Murder at Rockford. Clinton St. Clair and wife were arA powerful lobby influencing Conrested in Rockford as suspects in the gress practically to donate Alaska coal murder of Mrs. Mary E. McIntosh, 76 lands to "special interests" was alleg. years of age, who was found in her ed by John E. Ballaine, who who asked home with her throat cut and body lease. slashed in terrible fashion. In the arWednesday. rest of the St. Clairs the police hope America is to apply financial protecto clear up a list of hitherto baffling torates over Honduras and Liberia. murder mysteries. The evidence points The formation of a billion dollar strongly to St. Clair. the police say, as a letter found among the letters of copper trust was announced in New York. the victim dropped by the murderer in flight was one his wife had given Floods continued to spread over and St. Clair to mail. St. Clair was with under Paris: the art treasures in a woman who was ground to pieces by Louvre were menaced. a train ten years ago. When confrontSecretary Wilson said living costs ed by the evidence and under police more in the United States than anypressure St. Clair confessed killing where else in the world. Mrs. MeIntesh. The United Mine Workers of AmerSALETY PIN IN BOY'S THROAT. ica agreed to "stand or fall together" on their wage increase demand. Strangulation Results in Its ReAn American messenger, bearing moval After Two Years. dispatches to Rear Admiral Kimball, When 6 months of age, the son of was ejected from a train in Labrador. Mr. and Mrs. Wesley Pease of Garden Boston citizens at a mass meeting Prairle swallowed an open safety pin. decide to quit eating meat and lower Physicians were never able to recover prices by the law of supply and deit and said the acids of the stomach mand. would destroy it in a few months This The Federal court quashed the libel was two years ago. Recently, as the indictment against the New York child was eating a piece of chicken, he World based on its Panama Canal strangled. Reaching her fingers down charges. her son's throat, Mrs. Pease found and A fisherman from Buffalo was shot removed the safety pin. It was black dead in Niagara River from the Canexcept the point, which was still adian shore, and a Dominion game inbright. The child will probably recover. spector admitted firing at the boat. Thursday. Seeks to Undo Deneen's Act. Former Sheriff Frank E. Davis inGov. Deneen of Illinois is training stituted quo warranto proceedings in his guns in opposition to direct plura!the Circuit court of Alexander coun ity primary and hopes to defeat the ty to gain back the office from which Gibson amendment to the Senate bill. Governor Deneen deposed him on ac Paroles were granted to Paul O. count of the double lynching. The suit Stensland and Henry W. Hering, rewill test the law under which the govspectively president and cashier of the ernor acted. wrecked Milwaukee Avenue State Bank of Chicago. ( Standard Sued for $600. Friday. The Standard Oil Company was made defendant in a $600 damage suit Fifteen persons were killed when a filed by the city of Carmi. The comton of nitroglycerin exploded at Cold pany is alleged to have violated a city Springs, N. Y. ordinance prohibiting the storage of Organized labor has appointed a oil in quantities exceeding 60 gallons committee to investigate the cause of in the city limits. the high cost of living. A wreck in Canada killed more than Fifteen Hurt in Consting Mishaps. twenty persons, perhaps forty, and the Fifteen persons were hurt. six of cars plunged into an ice covered river. them seriously, in two coasting acciSaturday. dents in Alton. A bobsled carrying eight persons collided with an ambuMrs. Dore Lyon, the noted woman's lance and the horses fell on the sled. club leader, failed for $503,246; she Later another sled with seven perwas too poor to pay the fee. sons collided with an automobile. Vincent A. Altman was acquitted in for


Article from Wausau Pilot, February 1, 1910

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SUMMARY OF THE MOST IMPORTANT NEWS. Sunday. French floods were fast assuming the proportions of a national disaster. The British elections appeared to be a tie; House of Common is evenly divided. Gifford Pinchot has been made president of the National Conservation Association. Ezra Kendall, widely known comedian, died at a sanitarium in indiana after a long illness. Negotiations opening in the wage dispute involved 125,000 trainmen and seventy-four railroads. The National Anti-Food Trust League, with a membership of 3,000,000 and gaining thousands every day, issued platform telling how it will fight for continued lower prices of food. Monday. A pronounced drop in the price of foodstuffs was recorded in the wholesale markets. A New York banker was robbed of $28,000 by two women in a New York street. A Chicago pair were held. President Taft plans a special message on the high cost of living. Secretary Wilson blames the retailers' combines. The agreement of the members of the Hocking pool leaked out and evidence is that a traitor in camp caused the deal's collapse. Paris and suburbs were hard hit by the flood, which still raged. The Seine continued to rise and thousands of persons were homeless. Tuesday. France officially recognized the birthday of the kaiser. The Twentieth Century Limited was wrecked in New York State. The National board of trade will investigate the high prices of food. The prices of butter, eggs and milk fall as a result of the meat strike. The Yerkes art collection was ordered sold at auction by court in New York. Receivers were appointed at Columbus, Ohio, for the Columbus and Hocking Coal and Iron group of companies. The intervention by outside nations, probably the United States, is the only thing that can restore peace in Nicaragua. Floods extended disaster to a large part of France, the suffering being in tense and the damage enormous in Paris. A powerful lobby influencing Congress practically to donate Alaska coal lands to "special interests" was alleged by John E. Ballaine, who who asked lease. Wednesday. A pool in Hocking stock collapsed; Keene lost heavily and two New York firms failed for $8,000,000. Paulhan, the Frenchman, broke the world's record in carrying passengers cross country in an aeroplane at Los Angeles. Chicago and Western Indiana Railroad Company claimed to have been swindled out of $850,000 by "kiting" realty prices. Thursday. President Taft and Congress decided to keep their hands off in the matter of regulating produce exchanges. The Canadian province of Alberta will operate government pork-packing plants if farmers guarantee enough hogs. Gov. Deneen of Illinois is training his guns in opposition to direct plura!ity primary and hopes to defeat the Gibson amendment to the Senate bill. Paroles were granted to Paul O. Stensland and Henry W. Hering, respectively president and cashier of the wrecked Milwaukee Avenue State Bank of Chicago. Friday. Floods caused a death and loss to property in France. Fifteen persons were killed when a ton of nitroglycerin exploded at Cold Springs, N. Y. Organized labor has appointed a committee to investigate the cause of the high cost of living. A wreck in Canada killed more than twenty persons, perhaps forty, and the cars plunged into an ice covered river. Four masked bandits held up a Misuri Pacific train near St. Louis and lied on the engine with two cars and the safe. Saturday. Mrs. Dore Lyon, the noted woman's club leader, failed for $503,246; she was too poor to pay the fee. Vincent A. Altman was acquitted in Chicago of responsibility for bomb 31. The grand jury investigation of great eustoms frauds at New Orleans involved three federal officials. Republican leaders, warned by former experiences of revolt and defeat following tariff revisions, plan to prevent a repetition of history. Seventy great questions regarding public welfare are to be acted on at the fortieth annual meeting of the Na tional Board of Trade in Washington. CURRENT NEWS NOTES. former Chief Forester


Article from The Advocate, February 3, 1910

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The unavailing protest made against the pardon of Paul O. Stensland and his cashier from their penitentiary sentences for wrecking the Milwaukee Avenue State Bank was presented by President M. B. Steczynski, of the Polish National Alliance: Joseph Niemiec, president of the United Polish Republican Clubs of Cook County; Phillip Ksycki, vice-president of the Polish National Alliance, and K. Ztotincki, a director of the Polish National Alliance. The hearing of the pardon board was short and the decision reached with surprising celerity. The objections to the pardons disclose reasons which will probably keep the pardoned bankers out of the district where the loss was felt, out of regard for their personal safety. The objectors called attention to the fact that the failure of the bank had brought about three suicides, two attempts at murder and driven two men insane. They did not oppose the paroling of the men with any vociferous heat, but asked the board to consider whether men who either intentionally or through culpable negligence were responsible for such appalling array of tragedies were sufficiently punished by the time they had served in the penitentiary. Attorneys for the convict-banker declared that the bank was not insolvent at any time and laid the blame for the tragedies upon the panic of fear which seized Stensland and to his lack of business acumen and ability to keep his self-control at a critical time.


Article from The Richmond Palladium and Sun-Telegram, April 16, 1918

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Death Defeats Him in Race for Fortune to Repay What He Stole (By Associated Press) CHICAGO, April 16.-Paul O. Stensland, confessed embezzler of $800,000 from the Milwaukee Avenue State bank, which failed more than eight years ago, died yesterday of a complication of ailments at the age of 71. Just before the failure of the bank of which he was president, Stensland fled to Tangier, Morocco, where a few weeks later he was arrested by James Keeley, then general manager of the Chicago Tribune. Stensland was brought back to Chicago, pleaded guily to embezzlement of the bank's funds and was stentenced to 5 years in prison. After a little more than one year has was paroled and he set about to make another fortune, in order, he said, that he might repay in fuil the depositors of the wrecked bank. Ill health overtook him and he made only indifferent progress toward recouping his fortune. The bank under receivership paid about seventy cents on the dollar.


Article from The Barre Daily Times, April 17, 1918

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# STENSLAND DEAD. Confessed Embezzler Failed in His Efforts to Repay. Chicago, April 17.--Paul O. Stensland, confessed embezzler of $800,000 from the Milwaukee Avenue State bank, which failed more than eight years ago, died Monday of a complication of ailments at the age of 70. Just before the failure of the bank, of which he was president, he fled to Tangier, Morocco, where a few weeks later he was arrested by James Keeley, general manager of the Chicago Tribune. Stensland was brought back to Chicago, pleaded guilty and was sentenced to five years in prison. After serving a little more than a year, he was paroled and set about making another fortune, in order, he said, that he might repay in full the depositors of the wrecked bank. Ill health overtook him, and he made only indifferent progress toward recouping his fortune. The bank under receivership paid about 70 cents on the dollar.