Milwaukee Avenue State Bank (Chicago, IL)

Episode Information

Episode UID
5006728591280
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
500672859 hash
Start Date
August 6, 1906
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
16759903688bb911

Response Measures

None

Description

Bank president fled and large embezzlement was later disclosed.

Events (3)
1. August 6, 1906 Run
Cause
Rumor Or Misinformation
Cause Details
Run began after rumors that the cashier had disappeared and depositors clamored for funds.
Measures
Police called to restrain crowd; bank was closed during run.
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
Closure followed discovery of officer disappearance and later evidence of large embezzlement/forgery by the president and others.
Newspaper Excerpt
The Milwaukee Avenue State Bank was closed today ... The bank was closed today by Theodore Stensland ... while a run was in progress
Source
newspapers
3. August 8, 1906 Receivership
Newspaper Excerpt
J. E. Fetzer, the receiver of the Milwaukee Avenue Bank, checks up on the mortgages ... Receiver Fetzer began the payment of the first dividend to the depositors ... Receiver Fetzer was appointed receiver of the personal estate of President Stensland, valued at $500,000.
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 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, August 7, 1906

Click image to open full size in new tab

Article Text

BANK SHUTS DOORS CASHIER MISSING IS LARGEST OUTSIDE OF DOWNTOWN DISTRICT IN CHICAGO President Is in St. Paul-State Bank Examiner Says Whereabouts of Three Officers Unknown-Deposit ors Clamor for Money. Chicago, Ill., Aug. 6.-The Milwaukee Avenue State bank closed its doors today. This is one of the largest outside of the down-town district. The closing of the doors was followed by a run on the institution, caused by the report that one of the bank officers had absconded. For a time the run assumed the proportions of a riot, but the turbulence was quelled by the police. President in Europe. Paul O. Stensland is at present in St. Paul, where he went for a vacation. The capital stock is a quarter of a million. The surplus is about the same. The deposits are said to amount to three millions, largely the earnings of the working people. The news of the suspension spread rapidly and soon several smaller banks in the vicinity were besieged by depositors. Warrant for Cashier. 7 Henry W. Hering, cashier of the 3 bank, is missing, and a warrant charg5 ing embezzlement has been sworn out 0 against him. State Bank Examiner 2 Jones issued a statement to the effect 0 that the whereabouts of three of the 1 officers of the bank are unknown and 4 that the bank is without an official head. Reports were general that the alleged defalcation would reach twenty thousand dollars or more. 7 It is alSleged that one of the officials of the init stitution had been gambling on horse races. It is said that the list of depositors includes nearly fifty thousand d persons. Looted for $700,000. Chicago, Aug. 6.-The Daily News says: "It develops today that the Milwaukee Avenue State bank has been looted to the extent of $700,000. This amount of bogus notes was found, it is 00 stated, by a member of the clearing 50 house committee and the trouble was 00 first revealed by the president of the bank himself. 00

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

Click image to open full size in new tab

Article Text

"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.

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 9, 1906 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, August 9, 1906

Click image to open full size in new tab

Article Text

CHICAGO BANK MAY PAY IN FULL. Vice President Stensland Offers to Turn Over His Father's Property REACHES BIG SUM CHICAGO, Aug. 8.-Theodore Stensland, vice president of the Milwaukee Avenue State Bank, and son of the fugitive president of that institution, has come to the rescue of the 22,000 depositors and tonight it is the general belief of those who are endeavoring to straighten out the affairs of the bank that there is an excellent chance that all those who have deposits in the failed institution will receive almost dollar for dollar. The improved condition of the bank's affairs was brought about by young Stensland, who tonight announced that he would turn over to Receiver Fetzer tomorrow all the real estate and personal property of Paul O. Stensland, his father. The son places a valuation of $600,000 on this collateral and he stated tonight that he had full authority to make the transfer of the property for the benefit of the depositors. Arrangements have been made for a meeting tomorrow between Vice President Stensland and Receiver Fetzer, when the holdings of the father will be placed in the hands of the receiver. Paul O. Stensland, president, and Harry Herring, cashier, are still at large and search for these fugitives is being made all over the country. Five thousand pictures of the two officials are being prepared, with full descriptions of both, and these will be spread broadcast throughout th world. At one time this afternoon it appeared as if there would be serious trouble with the depositors who swarmed around the doors of the defunct bank. While fully a thousand of the depositors shouted their protests more than $300,000 was removed from the vaults of the institution to those of the National Bank of the Republic, where it will be held for safekeeping until next Tuesday, when it is said distribution to the depositors will be made. The removal of the money put the crowd in an angry mood, and it took a big police detail to keep the excited throng from upsetting the patrol wagons, which were filled with bluecoats. A statement of the bank's affairs is promised for next Monday by Bank Examiner Jones. Theodore Stensland, who was arrested yesterday on a warrant charging him with violation of the banking laws of Illinois, accompanied by his attorney and bondsmen, appeared in court this afternoon and by agreement the hearing was postponed until August 18.

6. August 10, 1906 The Vinita Daily Chieftain Vinita, OK
Article from The Vinita Daily Chieftain, August 10, 1906

Click image to open full size in new tab

Article Text

A PLUNGER President Stensland Bet Heavily on the Races Chicago, Aug. 10-Another sensational memorandum book came to light last night during the examination of Cashier Hering of the wrecked Milwaukee Avenue State bank It showed that President Stensland, in company with a coterie of friends, was a heavy plunger on the races. In one instance $75,000 was bet to win $60,000. This bet was WOD, but there are lots of losings to offset this big winning. Hering admitted taking $1,000 from the paying teller's drawer, putting the money on a slip and charging it to the account of a mythical "Umbach." Hering was arrested yesterday afternoon two hours after he had announced he would give himself up. He was taken at once to the office of the chief of police where he was given a thorough examination as to his knowledge of President Stensland's mismanagement of the institution. Hering declared that he did not know where President Stensland was and had had no communication with him for over a week. The cashier strenuously denied the charge that he, himself, was partly responsible for the failure of the bank. Hering maintains that if he is guilty of breaking the banking laws of Illinois, President Stensland is responsible, as Hering in his examination declared he never benefited a single dollar by President Stensland's peculiar system of banking. The Chicago Title and Trust company at 11 o'clock last night was appointed receiver of the personal estate of President Stensland, which is valued at $500,000. The appointment was made by Bankruptcy Referee Eastman, on a petition of three of the creditors. It was feared that because of Stensland's flight from Chicago he would transfer his estate and defeat his creditors.

7. 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

8. 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.

9. August 21, 1906 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, August 21, 1906

Click image to open full size in new tab

Article Text

Suicide of a Depositor. Another suicide was added yesterday to the list caused by the wrecking of the Milwaukee Avenue State Bank, of Ohicago, Edward Kollereb, 45. years of age, who two months ago deposited $250 in the institution, yesterday hanged himself from a pile of number in sight of a number of men in boats on the lake. Several of the men hurried to his assistance, but were unable to reach him in time. Friends of Kollereb claim that the loss of the money so preyed on him that for several days his mind seemed unbalanced Receiver Charles G. Dawes yesterday closed the Milwaukee Avenue Co-operative Store, one of Paul O. Stensland's enterprises. The store was closed in preparation for a receiver's sale.

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 Daily Press Newport News, VA
Article from Daily Press, August 25, 1906

Click image to open full size in new tab

Article Text

MAD MOB RUSHSES 60 CHICAGO POLICEMEN $1 Allens Make a Determined Effort to Get Their Money Out of the Wrecked Bank. ONLY 5,000 RECEIVED MONEY Bohemians, Poles, Norweglans and Italians Wave Their Pass Books and Scream For the Gold-Runaway Banker, Who Wrecked Institution, Seen In London by American. 1 (By Lasociated Press.) CHICAGO, ILLS.. Aug. 24.-Sixty policemen were overwhelmed today by a mass of men and women who were determined to get the first money paid out of the vaults of the ruined MIIwaukee Avenue State bank. Receiver Fetzer had made arrange. ments to pay 20 per cent. to 5,000 of the 23,000 depositors and everybody WAS anxious to be among the 5.000. At daybreak the crowds commenced to gather around the bank and by 8 o'clock the bank was surrounded by 5.000 people. Sixty policemen had been sont to the bank, but they were unable to handle the crowd, the greater part of which was unable to understand the English language. Forty more policeman were finally sent to the bank and oredr was even then restored with difficulty. At one time the crowd threatened to fairly storm the bank as. waving their pass books In the air, they rush ed for the doors, shouting in Bohemlan, Polish Norwegian and Italian. The receiver was all day paying the 5.000 and will pay as many more tomorrow.

12. 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.

13. 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.

14. August 30, 1906 The Spanish Fork Press Spanish Fork, UT
Article from The Spanish Fork Press, August 30, 1906

Click image to open full size in new tab

Article Text

Wanted Their Twenty Per Cent. Chicago.-Six policement were over whelmed 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 Avemue 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.