The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1905-05-05
BANKER IS A DEFAULTER
PRESIDENT OF FIRST NATIONAL
OF MILWAUKEE, coNFEssEs.
Acknowledges Loss of Nearly 81 $780,
900 of Banks Funds Through
Speculation-Is Arrested.


low, until Monday president of the
First National bank of Milwaukee, and
ex-president of the American Bankers
association, has been arrested, charged
with the embezzlement of over $4,000
of the banks funds. The arrest OF Mr..
Bigelow followed his confession to the
board of directors of the bank that he
was defaulter to the extent of 81 49,
900. Following Mr.. Bigelow's confess
sion, he was removed from the pres1-
dency of the bank and the facts in the
case were laid before the federal au-
thorities. President Bigelow was taken
before United States Court Commits
sioner Bloodgood and bail was fixed
at $4,000. In his confession Bigelow
said the money had been lost in spec
ulation in wheat and stocks. Not a
dollar of it could be recovered and
only the sum he could offer toward re-
compensating the bank was personal
securities valued at approximately
100000. He is said to have falsified
the accounts of the bank with the as
sistance of three clerks, and thus kept
his speculations from the knowledge
of the officials. The board of directors
of the bank decided that no attempt
should be made to shield the chief de-
faulter and his associates in the crime
from their full measure of punishment
and they will be prosecuted to the full
extent of the law.
AS soon as the directors ascertained
the full extent of the populations, steps
were taken to protect the depositors
and other creditors. Charles F. Pfister
subscribed 100000 to a fund to make
good the surplus; John l. Beggs, presi-
dent of the Milwaukee Electric Rail-
way & Light company, gave 100000;
William Bigelow, brother of the pres
ident, added 100000 to the amount.
Other directors subscribed lesser sums
until the amount raised reached ST.
$4,000. Officials of three of the lead
ing financial institutions of Chicago
came to Milwaukee on an early train
and went into conference with the di-
rectors of the First National. AS
result of this meeting $1,000,000 was
sent to Milwaukee by Chicago banks.
Bigelow is left poor man by his
SpeculationS and the surrender of the
securities to the bank. At one time he
was personally rated as a millionaire,
and this fortune has been lost as we'll
as the sum taken from the bank. His
total losses in speculation of various
kinds in two years are estimated by
his friends as upwards of $4,000
Milwaukee, April FIT can be
stated positively that Frank G. Bigelow,
the defaulting eX-president of the First
National bank, will be prosecuted to
the full extent of the law. This state
ment was made by one of the directors
Wednesday night, and is in line with
an announcement made to this effect
on Monday. Proceedings are now pend
ing, for Bigelow, having waived exami-
nation, was held to the grand jury,
which will be summoned some time
during May. In the meantime he is out
on bail.
Milwaukee, April 2S.-The latest
step in the career of Frank G. Bige-
low, the former bank president who
defaulted in the sum of 100000, is
the filing of petition in Involuntary
bankruptcy. The revised schedules
show a total liability on the part of
Mr.. Bigelow of s3,277,0O of which ST.
$4,000 is wholly or in part secured.
The assets Of the banker are esti-
mated at $1,S49,S00, against which
homestead exemption of $4,000 is
IF
chiefly of stock in various industrial
and other enterprises and 1000 acres
of coal land in Huerfano county, Col
orado, valued at 100000. The sched-
ule states that he has no cash on hand