The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-04-24

!. FRANK G. BIGEL0W,
!: Former Head Of American Bankers, Now
3 Defaulter.
Exyxxaex xx ~ 4: ~ y exxxsaxai
Milwaukee, April 24-Frank G. Bige-
low, president Of the First National
bank of this city, and former president
of the American Bankers association,
has defaulted the bank s funds to the
extent Of $1,500,00O. The directors OF
the bank have deposited in the bank
sum sufficient to make the institu-
ton perfectly solid.
Mr.: Bigelow has not yet been ar.
rested.
An intimate friend of President Bige.
low said today:
"Wheat speculation has cost the Big
CLOVIS their name and the bank large
sum of money. It is family tragedy,
as well as tremendous shock to the
financial circles of the city. The
father, Frank G. Bigelow, had Chicago
speculative connections with the firm of
Tracy & Co., in which his son, Gordon
Blgelow, was a member.
fIn the late Armour Gates wheat
battle and the sharp fluctuations Of the
market, which have come during the
last few days, Bigelow senior and Bige-
low, junior, were caught and caught for
all that the bank directors now report.
Hitherto the family name has been of
the highest in the city, and the failure
vii come on ne,, az sad shock to all who,
The capital of the First National
bank is $1,5O0,00O and the surplus is
81 100000,
Net Defalcation Huge.
Mr.. Bigelow has signed over property
to the bank amounting to 100000,
making his net defalcation about
$l,2OO,0OO.
Aside from the surplus which will
meet the amount Of the defalcation,
the sum Of $1,535,000 has been sub
mands. The aggregate wealth of the
directors who subscribed funds %.
proximates $20,00O,OO0.
Mr.. Bigelow's defalcation became
known to the directors on Saturday. He
admitted today that the amount had
been lost in speculation and that he had
falsifed the books to cover up the do
Henry D. Coll, assistant cashier, has
been removed, charged with having
been a party to the Justification in the
bank IS books.
Statement by Directors.
Charles F. Pfster headed the list q
directors who subscribed large amounts
scription Il 100000. The statement
issued by directors is as follows:
For value received, we, the UNDER
| signed, severally agree to advance and
| pay to the First National bank of MIL
| waukee, Wis, the sums set opposite our
| respective names, as the same may be
| needed, for the payment on demand of all
| deposits now in said bank, or which
within thirty days from this date may be
| placed therein. Our claims hereunder for
reimbursement shall be subordinate and
| postponed to the claims Of all depositors
| and other creditors.
Charles F. Pfster, $500, 900.
| Fred Vogel. Jr.. 100000.
John I. Beggs, 100000.
| E. Mariner 100000.
Fred F. Coll, $4,000.
George P. Miller, $4,000.
J. H. Van Dyke, Jr., $4,000.
F. J. Kippe, $4,000.
Robert G. Trostle, $4,000.
August F. Voegel, $4,000.
! William Bigelow, 100000.
Dated. Milwaukee, Wis, April "a, 1905.
| Bigelow in His Office.
Mr.. Bigelow was in his office at the
| bank as usual up to noon, looking over
| books and papers. His manner was
greatly agitated. Arrangements are be-
| int. made for the arrest of Mr.. BlgelOw
and probably Mr.. Coll, this afternoon.
Mr.. Bigelow has long occupied fore
| most place in the financial transactions
Of Milwaukee. Only last year he was
| president Of the American Bankers as
| ISOLATION. He is also prominent in Mill
waukee's social set.
Several of the important bankers OF
| Chicago were called to milwaukee, In
conference with directors of the First
| National bank and promised to lend any
assistance that might be needed. Among
the visiting bankers in conference. were
| u. A. Hamill of the Corn: Exchanges
National bank, James D. Forgan of the
First National bank, and Orson Smith
of the Merchants Loan and Trust COM
pany's bank, all Of Chicago.
Run on Bank Starts.
A million and half dollars was re-
| ceived from Chicago at l O'Clock. At
! that hour the news of the defalcatiOn
had spread to such an extent as to cause
1 a run on the institution.
The crowd numbered about two hum
dred and blocked the sidewalk in front
4 of the bank. Those who sought to with
draw their funds, however, were the
small depositors, and they were being
paid off as rapidly as they made their
4 demands. Several policemen were de-
tailed to maintain order.