The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-04-25
Says He Lost The Money in
Spscu|atiOns on the
Wheat Market
CROWDS CLAMORF FOR MONEY
AND FRIENDSCAME TO RESCUE
Frank c. Bieelow Was One of the
Most Prominent Financiers in the
Northwest and Held a Promi-
nent Social Position.

Milwaukee Wis, April A-Frank G.
Bigelow, until today president. of the
First National Bank of Milwaukee, was
arrested today charged with the embez-
element of over 100000 of the banks
funds.
The arrest of Mr.. Bigelow followed his
confession to the board of directors of
the bank that he was defauter to the
extent of $l,45O000. Following Mr.. Bige-
lows confession he was removed from
the presidency of the bank and the facts
in the case were laid before the federal
authorities.
The complaint was sworn to by United
States District Attorney H. Is. Butter
field. 1t charges that Bigelow, as pres
ident of the First National Bank, en-
bezzled a sum exceeding $1OO,00O.i A COM
plant and warrant identical with these
in Bigelow's case were made out to Henry
G. Coll, assistant cashier of the bank, but
Gou could not be found up to I o'clock
tonight.
President Bigelow was before United
States Commissioner Bloodgood tonight.
q
federal grand jlry under $4,000 bond. DR..
II. N. Brown and A. n. McGoch certified
as sureties. and Bigelow was released.
The next federal grand jury has not
yet been summoned. but 1t is expected it
vii meet some time next month.
Depositors Make a Rush.
The announcement of the defalcation
was followed by a rush of depositors to
H..ifb bflrau oil m
National Bank and from the Wisconsin
Trust company the savings department
of the bank. Many thousands cs dollars
We're withdrawn, but on the other hand,
large numbers of people having confidence
fih the institution increased their de-
posits. Arrangements were hastily made
to meet the run, and the officers of the
bank express full confidence in their abil-
ity to keep them open.
President Bigelow's confession was made
at a special meeting of the board of direc
tors held Saturday evening, and continued
yesterday and all of last night. In ad-
dressing his fellow directors President
Bigelow said he had painful statement
to make-a confession that he had mis-
directed the funds of the banks. and that
an examination of his books and COM
rarison of figures would show that he was
indebted to the bank to the amount of
over 81 450000 This money he said had
stocks Not at dollar of it could be re-
covered, and the only sum he could offer
toward recompensating the bank per-
81 nal security valued at Approximately
$300.o0e.
Astounded the Directors.
The confession of President Blgelow as
founded the directors Of the bank. Mr..
Bigelow had been recognized as one of
the foremost financiers of the northwest.
National bank in various capacities for
more than~fifteen years, and his business
connections-trust companies, concerns,
real estate deals and other similar ven
tures-number scores. He was honored
year ago by election to the presidency
of the American Bankers association, and
by its members was looked upon as
leader in financial mStters.
In making his statement to the direc-
tors of the bank Mr. Bigelow said he
had become involved in speculation sew
eral months ago. This was on Wall street.
More recently he had been persistent
bull in the wheat market, and recent
losses there had added to heavy reverses
on Wall street. From small manipulations
of the banks funds he had extended the
defalcations until his shortage hal
reached the present stage. He saw no op-
portunity or possibility of making up tho
amount and therefore confessed.
1t is stated that the meeting of the d.
rectors which was almost continuous for
thrty-six hours, was stormy at times.
Several plans were suggested for protect
ing the interests of the bank. One was to
accept the resignation of the president,
permit him to go to Europe and the direc-
tors make good the amount of his short
age This would effectually protect the
bank. The proposal met with determined
opposition from directors who demanded
that the defaulter be punished The plan
to make up the shortage was then APP
proved. Bigelow was removed from the
presidency of the bank and the matter
was referred to the federal authorities.
Mrs. 6igeIow Refused to Leave.
When the federal marshal called at the
Bigelow residence to serve the warrant the
former bank president in the library
with his wife. Mrs. Bigelow refused to
withdraw and the warrant was read in her
presence
.'rl be ready to go with you at once"
said the banker Then he kissed his wife
an affectiohate farewell and left with the
officer the two walking to the federal
building, where court commissioner was
In waiting. None of Mr.. Bigeow's friends
was in the court room during the brief
proceedings.
When the resolution was adopted re-
moving Mr. Bigelow from the presidency
of the bank Henry Goss. assistant cash
ier was also removed. The removal of
the assistant cashier was due to the state
ment of President Bigelow that he was
aided by Coll in concealing the shortage
In the banks accounts.
The method adopted was an old one.
Collection accounts were manipulated to
the extent of forty and in some instances
fifty percent, to make it appear that the
reserve fund was intact. and the amount
OF the increased collection fund was di-
verted to special stock operations. The
afrfa aflpd
tampered with, the books Of the First
National being fixed so that the reserve
appeared to be larger by several hum
dreds of thousands of dollars than 1t
really was In the falsifying of records
and the manipulation of the reserves.
Bipelow declares, he was aided by AS
sistant Cashier Coll and two bookkeepers
II. the bank These bookkeepers acted on
the orders of Bigelow. and they have
neither been discharged or suspended.