Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-04-25
A BIG CRASH.
Continued from Page One.)

maintained in Eastern banks was tam
pered with. the books of the First Nation
al Bank being fixed so that the reserve
appeared to ne larger by several hun
ldred thousand dollars than it really was.
These and other methods were pursued
by Bigelow in securing money from the
bank. In the classifying of records and
the manipulation of reserves, Bigelow de-
clares he was aided by Assistant Cashier
Coll and two bookkeepers in the bank.
These bookkeepers win be called as wit
Inesses in the criminal proceedings against
the former bank president.
The manipulation of accounts has been
going on for months, according to the
statement OF one of the directors but SO
cleverly was the work done that neither
the directors nor the national bank ex-
a,nirers, discovered anything wrong with
the funds of the bank. The first intima-
ton that there were irregularities came
to Charles F. Pfister. a director. Friday
evening, when an employe of the bank
gave Mr.. Pfister information sufficient to
start an investigation.
| AS soon as the directors ascertained the
full extent of the speculation, steps were
| taken to protect the depositors and other
| creditors. Charles F. Pfister subscribed
$6c0,0OO to fund to make good the sur
plus. John E. Meggs, president of the
| Milwaukee Electric Railway and Light
Co, gave 100000. William Bigelow. II
brother of the president, added 100000 to
the amount. Other directors subscribed
| lesser sums until the amount raised
reached $1,cGs,OOO
Priorf to this. the directors had been
in conference with bankers of Chicago
and New York. AS i result 81, OdO.OOO was
sent to Milwaukee by Chicago banks be
| fore the news of the defalcation was
made public. Several hundred thousand
dollars in gold We're transferred to the
First National Bank, so that institution
first prepared for Il run.
| When the bank closed, this afternoon,
some 5000 dcpositors were waiting for
their money. Nearly s1.OOOOOO was paid
out in two hours and many customers. de-
handing the closing of their accounts.
had not been served. One of the first
callers was a business man. who present
ed Il check for 100000, the entire amount
of his account. He was followed by thu
city treasurer. who drew out S30O0O0 OF
city funds. Withdrawals in sums ranging
by ; o'clock in the afternoon line of
people extended from the bank east on
Wisconsin street to Broadway and iii
other directions around the corner ana
north in E.astwatcr street.
| The state of Wisconsin had sew
| eral hundred thousand dollars in the
bank which was not withdrawn. today.
The depCsitors in East Water street Were
hcsieging. the Wisconsin Trust Co, the
Savings Bank department of the First
National Bank, and the run on the saw
ings department assumed the greatest
proportions.
| Rut while many savings depositors were
seeking to withdraw their funds. either
persons who believe in the sOundness of
the bank were corning forward with de-
posts. and when the bank closed there
Was'a hne.of depositors to COUNTERPART lance
the line waiting to withdraw money.
When the bank was cleared at the hour
for closing, 4 hole was cut through the
| plate glass window in the Wisconsin
street front, and until Il late hour this
evening. depositors were there leaving
their money.
| Officers of the banks are preparing for
lany possible run. tomorrow. Money is on
the way from New York to strengthen the
bln!5. and the directors expect to he able
to meet all demands promptly. They as
sert that the bank has not been impaired
h. the Figelow defacation.
The latest statement of the financial
condition of the bank. made, March II,
| follows:
Resourccs-Loans. 12.si6.:36; United
States bonds. S1Oo.OOO: premium on United
States bonds. $1,000: investment sureties.
s?lS0S2.5l; real estates. s90,Gl9l2: cash and
due from banks. Sj.117,alOGs Total. $l9
f1971.ii.
Liallilities-Capital 81. 90 OOO surplus
si.5Oo. coo: surplus. 100000: undivided prof
its. s'42 50. 10; circulation. $40 900: deposits.
NG57i,9iS.3i. fetal s195G7,27l.4i.
| BiGelow once waS personally rated as
Il millionaire. and this fortune has boon
lost. well as the sum taken from the
bank. He has Il magnificent home in
Aston street and his finlily is prominent
socially, in Milwaukee. BigelOw is
member of several clubs. He has been a
liberal donor to charity and has been
favorite with all classes
The Milwaukee Trust Co., through
its president, J. Fl. Vandyke, has is
sued statement to the effect that it is
no way involved by the defalcation and
that it will not be affected by the fl
nancifl trouble of Frank G. BigelOw.
~. G. Bigelow has been director of
: | the company" the statement says.
but the board of directors Of the
Trust Co. have discontinued him as
such and he has no connection with
| the company.
''The Trust Co. is abundantly able
and prepared to meet all the demands
| of all den0SitOrS and creditors Of Whit