Evening journal., 1905-04-25
BANK PRESIDENT
SHORT Sl,45O,000
Head Of First National OF
Milwaukee Defaulter in
This Amount
DIRECTORS MAX. UP SH0aTAGt

Milwaukee, Wis. April 25.-Frank
G. Bigelow, president OF the First Ma
tional Bank OF Milwaukee. was arrest
ed, charged with the embezzlement Of
over Sl00 coo of the banks funds. Tie
arrest Of Mr.. Bigelow followed his con
fession to the board -of directors OF
the bank that he vas a defaulter TO
the extent Of 81, 100000. Following Mr.
Bigclow's 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 Dis
trict Attorney III. X. Butterfeld. It
charges that Bigelow. as president Of
the First National Bank, ombezzled a
sum exceeding 100000. A complaint
and a warrant identical with those in
Bigelow's case were made ont to Henry
G. Coll. assistant cashier of the bank,
but Coll could not be found. President
Bigelow was taken before United
States Commissioner Bloodgood and
bail was fixed at $4,000, and he was
released to appear before the next
federal grand jury.
President Bigelow's confession was
made at a special meeting Of the board
of directors. In addressing his fellow
directors. President Bigelow said he
had painful statement to make, a
confession that he had misdirected
the funds of the bank, and that an ex-
animation Of his books and a com2ari-
son of figures would show that he was
indebted to the bank for more than
sl.45O.o00 This money he said, had
been lost in speculation in wheat and
stocks. Not a dollar OF it could be re-
covered. and the only sum he could
OFFER toward compensating the bank
was personal securities valued at
$500. GOO
When the defalcation became known
run on the bank started, and In a
short time nearly s1o00,0O0 was paid
out. over sl.O00,OOO was sent 70 Mil
waukee by Chicago banks. and the OH
cials are prepared to pay an deposi
tors. although g serious run is not ex
pected
Mr. Bigelow had been recognized as
among the foremost fnanciers of the
northwest lie has been associated
with the First National Bank in varl
ous capacities for more tsan IS years
and his business connections with
trust companies. manufacturing con
Germs. real estate deals and other
similar ventures numbered scores IT.,
was honorel year ago by election @
the presidency of the American Bank
crs' Association.
In making his statement to the al
rectors of the bank. Mr. Bigelow sai'
he had become Involved IA speculation
in wall street Several months ago
More recently he had been a persist
ent bull in the wheat market, and re
cent losses in grain had been adde,
to heavy reverses in Wall street
From small manipuations of thl
banks funds he had extended the de
falcations. until his shortage hat
passed the llion dollar mark. II,
saw no possibility of returning IN,
money and therefore confessed hi
actions
AS soon as the directors ascortaine,
the full extent Of the peculatlons. step.
were taken to protect the depositor
and other creditors. Charles r. Pnsto
subscribed 100000 to a fund to maxi
good the surplus. John l. Beggs. presi
dent of the Milwaukee Electric Rail
way and Light company. gave $500
600. William Bigelow, a brother of tn
president. added 100000 TO the sum
Other directors subscribed lesse
sums until the amount raised reache,
s1.6350O0.
While President BigeIow's defalca
tion amounts 20 about S1.450,0O0. h
restored 100000. and the director
subscribed Sl,6S5.O0O. thus leaving tn
hank better OF by about 100000 tha
itfwas before the funds were depleto
by the peculations Of the president
MT Bigelow was personally rated a
millionaire, and this fortune ha
been lost. as well as the sum take
from the hank no las a magnincer
home In Astor street. and his famil
IS prominent socially in M.,waukel
Bigelow is a niembcr OF several club
He has been a generous donor TO cha
ity and has been favorite with a
classes.
TWO Drowned While Duck Hunting