The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-04-25
BANK RUNS FROM
BIGELOW AFFAIR.
Crowds Of Depositors at First Ma
tional and Milwaukee Trust /
Company Banks.
BIGELo W ARRESTED AND
RELEASED UNDER BOND

NpSCu1dtlOu auQ DAD luVeSGmeuIS,
Not High Living, the Cause
of the Trouble.
Milwaukee, April 25.-The run on the
Milwaukee Trust Company bank and
the First National bank Of Milwaukee,
IN both of which Frank g.. Bigelow was
a director, continued this morning, but
ceased in the afternoon, and business
in these institutions was resumed under
normal conditions. The two banks to-
law requiring that notice Of thirty
days be given before sums under 800
can be withdrawn and a notice Of nine
ty days on sums exceeding 800. The
passbooks were so stamped when pre-
sented at the bank windows. The same
rule applies to certificates of deposits.
The general display in the windows
houses of placards containing reassur-
ing statements Of the boards of direc-
tors Of the First National bank and the
Milwaukee clearinghouse committee
also had an effect Of restoring con-
fdence.
Crowds at tho Bank.
When the doors Of the two banks
were thrown open, the crowd that had
block from the main entrance Of
each, filed in as rapidly as the police
would permit.
More than a dozen sought admission
at once and there was q lively scramble.
Women and men, an old man on crutch-
es among them, were jostled rudely.
Those who sought to withdraw their
who applied at the savings departments.
There were some depositors, chiefly
lined up at the window of the First
National bank.
The directors Of the Milwaukee
Chamber of Commerce today voted
rent fund from the First National
bank. The opinion was generally ex-
pressed that the bank was perfectly
solvent.
Statement from Bank.
The following statement was issued
shortly before noon by the directors
of tho First National bank:
The board OF directors Of the First Ma
| tional bank announce with absolute posi-
! tiveness that the bank is perfectly SOL
vent and able to pay every dollar of its
| Indebtedness. The report of the clearing
| house committee confirms this statement.
We have money on hand with which to
Withstand any run that may be made.
Only small depositors are Withdrawing.
All banks in the city are taking advantage
Of the law on time deposits. The First
4 National is safe.
4 Bigelow Arrested.
.Bigelow was arrested late YESTERDAY
and was held to the federal jury under
$25, 900 bonds, which was furnished by
DR.. Horace M. Brown and Arthur Nc
1Geesch.
Bigelow' g confession was made at
special meeting Of the board Of di-
rectors Saturday evening and continued
Sundayand Sunday night.
Bigelow said he had painful state
ment to mako confession that he had
misdirected the funds Of the bank
and that an examination Of his
books and a comparison Of figures would
show that he was indebted to the bank
to the amount Of over ST, 100000. This
money, he said, had been lost in specula-
tion in wheat and stocks.
Not dollar Of it could be recovered,
and the only sum he could offer toward
recompensing the bank was personal
property valued at approximately $780,
Confession Is Last Resort.
Mr.. Bigelow said he had become in.
volved in speculation several months
ago. This was on Wall street. More
recently he had been a persistent bull
in the wheat market with disastrous
result. From small manipulations Of
the bank s funds he had extended the
reached the present stage. He saw no
opportunity or possibility Of making up
the amount and therefore confessed.
The meeting of the directors. which
was almost continuous for thirty six
hours, was stormy at times. Several
plans were suggested for protecting the
interests Of the bank. One was to ac-
cept the resignation Of the president,
permit him to go to Europe, and the
directors make good his shortage.
The proposal met with determined OPP
position from the directors who de-
manded that the defaulter be punished.
The plan to make up the shortage was
then approved. Bigelow was removed
from the presidency Of the bank, and
the case was referred to the federal au-
thorities.
Wife Is Steadfast.
When the federal marshal called at
the Bigelow residence to serve the war
rant, the former bank president was In
the library with his wife. Mrs. Btge-
low refused to withdraw, and the war
!, rant was reaQ III nor pIescuco.
"I,l be ready to go with you at
once, - said the banker.
Then he kissed his wife an affection
ate farewell and left with the officer.
When the resolution was adopted re-
moving Bigelow from the presidency,
: Mr.. Coll, the assistant cashier, was also
removed. The removal was due to the
, statement of Bigelow that he was aided
by Coll in concealing the shortage.
Z The method adopted was an old one
} Collection accounts were manipulated
} to the extent of 40, and in some in
| stances so, per cent, to make 1T appear
that the reserve fund was intact and
! the amount of the increase in the col
, lection fund was devoted to stock oper-
ations. The reserve maintained in east
ern banks was tempered with, the books
of the First National being fixed 50
; that the reserve appeared to be larger
> by several hundred thousand dollar
! than it really was. These and othel
!, methods were pursued by BigeloW ~
, footing the bank.
Clerks to Be Witnesses.
In the classifying of records and the
: manipulation of the reserves, BlgeloW
t declares he was aided by Coll and two
3 bookkeepers, who acted on the orders Of
t | Bjgelow. They have neither been dis
; charged nor suspended, and will bs
called as witnesses in the criminal pro
4 coodinos =