Jasper County Democrat, Volume 9, Number 19, Rensselaer, Jasper County, 11 August 1906 — SAVINGS BANK CLOSES DOORS [ARTICLE]

SAVINGS BANK CLOSES DOORS

Milwaukee Avenue State Bank of Chicago in Financial Trouble. Chicago. Aug. 7.—With a deficit In its accounts estimated to reach close to a million dollars and with the whereabouts of two of its highest officials unknown to the authorities the Milwaukee Avenue State bank, one of the largest outlying hanks in the city, has been closed. The failure was responsible for te 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 institution for safe keeping. In the excitement following the announcement of the failure J. G. Vlsser, an official of the Loyal League, who had on deposit in the bank funds of that organization, fell dead of heart failure. Henry Koepke, a small grocer, on hearing that the bank had suspended payment, went to the rear of his store and shot himself fatally. Riotous scenes attended the announcement of the failure, and a large force of police struggled all day to keep an excited crowd of depositors—nearly ail of them foreigners and many of them women from rushing the doors of the institution. The fact that the bank was on the verge of failure was first revealed by President Paul O. Sten.sland, one of the absent officials. A letter to his son, Theodore, who is vice president, written from St Paul and received last Saturday, started the investigation which brought about the suspension. Another sensational feature of the affair was the disappearance of the cashier, Henry W. Hering. and the issuing of a warrant for his arrest on a charge of embezzlement. The shortage is estimated to be between $750,000 and $1,000,000. Disastrous spcuJation in real estate and in the security market is said to be responsible. Members of the clearing house committee were told that most of this amount was wholly unprotected by adequate collateral. '