Waterbury evening Democrat., 1905-04-25
EMBEZZLEMENT
Milwaukee Banker Owns to
 Dedication of $1, ,45O,OOo.
LOST IT IN WHEAT SPECULATION.
Frank c. Bigelow h Arrested After HeinE Deposed as Presfdent-Di- rectors Meet and Oversub-
 scribe the Heavy SAOrtage.

4 NlLW AUAEEI, WIS.,, Aprll ZO.- Frank G. Bigelow, president of the First National bank of Milwaukee, was arrested charged with the embezzle- ment of over $10O,OOO of the banks funds. The arrest of MT. Bigelow fol lowed his confession to the board of di- rectors of the bank that he was a de- faulter to the extent of $1, ,450,0OO. Fol lowing Mir. Bigelow's confession he was removed from the presidency of the bank, and the facts in the case were laid before the federal authori- ties.
 The complaint was sworn to by Unit ed States District Attorney H. K. But terfield. It charges that Bigelow as president of the First National bank embedded a sum exceeding $100,OO0. A complaint and a warrant identical with those in Bigelow's case were made out to Henry G. Coll, assistant cashier of the bank, but Coll could not be found.
 President Bigelow was taken before United States Commissioner Blood good, and bail was fixed at $25,0O0, and he was released to appear before the next federal grand jury.
 President Bigelow's confession was made special meeting of the board of directors Saturday evening. He met with the directors Sunday night. In addressing his fellow directors Presi- dent Bigelow said he had painful statement to make, confession that he had misdlrected the funds of the bank and that an examination of his books and comparison of figures would show that he was indebted to the bank for more than $1,450,0O0. This money, he said, had been lost in speculation in wheat and stocks. Not dollar of it could be recovered, and the only sum he could offer toward compensating the bank was personal securities valued at $30O,OOO.
 Mir. Bigelow had been recognized as among the foremost financiers of the northwest. He has been associated with the First National bank in vari- ous capacities for more than fifteen years, and his business connections with trust companies, manufacturing concerns. real estate deals and other similar ventures numbered scores. He was honored a year ago by election to the presidency Of the American Bank ers' association.
 In making his statement to the di- rectors of the bank Mir. Bigelow said he had become involved in speculation in Wall street several months ago. More recently he had been a persistent bull in the wheat market, and recent losses in grain had been added to heavy reverses in Wall street. From small manipulations of the banks funds he had extended the defalcations until his shortage had passed the S1,- 100000 mark. He saw no possibility of returning the money and therefore confessed his actions.
 directors of the bank to protect depos. itors against loss and to save the bank from a stampede. More than $1,OOO, 900 was guaranteed to the bank by various stockholders, and no serious run was made on the bank. It is net thought that any complications with creditors of the bank will follow.
 When the resolution was adopted re- moving Mir. Bigelow from the presi- dency of the bank Henry Coll, assist ant cashier. was also removed. The removal of the assistant cashier was due to the statement of President Bige. low that he was aided by Coll in con- cealing the shortage in the banks ac- counts.
 The method adopted was an old one. Collection accounts were manipulated 40 or even 30 per cent to 4iake it ap- pear that the reserve fund was intact. and the amount of the increased col lection fund was diverted to special stock operations. The reserve main- tained in eastern banks was tempered with, the books of the First National being fixed so that the reserve ap- peared to be larger by several hundred thousand dollars than it really was. These and other methods were pursued by Bigelow in securing money from the bank. In the falsifying of records and the manipulation of reserves Bige- low declares he was aided by Assist ant Cashier Coll and two bookkeepers in the bank. These bookkeepers acted on the orders of Bigelow, and they have neither been discharged nor sus- pended, and they will be called as witnesses in the criminal proceedings against the former bank president.
 While President Bigelow's defalca. ton amounts to about s1.450.OO0 he restored S3O0.OOO and the directors sub scribed S1.635.0OO, thus leaving the bank better oil by about $4OO. 600 than 1t was before the funds were depleted by the peculations of the president.
 Bigelow once was personally rated as a millionaire. and this fortune has been lost as well as the sum taken from the bank He has a magnificent home in Astor street, and his family is prominent socially in Milwaukee Bigelow is a member of several clubs.