The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1905-04-26
.BiGELOW UNDER ARREST
President Of Milwaukee Bank
Charged With Embezzlement.
Had Been Connected With Bank For
is Years and Was Last Year Pres'
dent Of American Bankers Associa-
tIon-Famlliar Method Of concealing
Shortage In Reserve Fund.

tIon-Famliar Method Of concealing
Shortage In Reserve Fund.
Milwaukee, April 25. - Frank G.
Bigelow, president of the First Ma
tional bank of Milwaukee, was ar
rested charged with the embezzlement
of over 100000 of the banks funds.
Fhe arrest of Mr.. Bigelow followed his
confession to the board of directors OF
the bank that he was a defaulter to
the extent of $1,450OO0,
Following Mr.. 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
United States District Attorney H. K
Butterfield. 1t charges that Bigelow,
as president of the First National
bank. embezzled a sum exceeding 800.
600.
A complaint and 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 $4,000. He
was released to appear before the next
federal grand jury.
Confessed to Directors.
President Bigeow's confession was
made at special meeting of the board
of directors Saturday night. He met
with the directors Sunday and all of
that night 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 exam
ination of his books and a comparison
of figures would show that he was in.
! debted to the bank for more than
| $1,450,000.
This money, he said, had been lost
in speculation in wheat and stocks.
Not a. dollar of it could be recovered
and the only sum he could offer toward
compensating the bank was personal
securities valued at 100000.
Mr. Bigelow had been recognized as
among the foremost financiers of the
Northwest. He has been associated
with the First National bank for more.
than Is years. He was honored a
year ago by election to the presidency
of the American Bankers association.
Persistent Bull In Wheat Market.
Mr.. Bigelow said 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 de-
falcations until his shortage had pass
ed the million dollar mark. He saw no
possibility of returning the money and
therefore confessed his actions.
Funds were at once provided by the
directors of the bank to protect depos-
itors against loss and to save the bank
from a stampede. More than million
dollars was guaranteed to the bank by
various stockholders and no serious
run was made on the bank. 1t is not
thought that any complications with
creditors of the bank will follow.
During the meeting of directors,
which was almost continuous for Sc
hours, several plans were suggested
for protecting the interests of the
bank One, it is said, was to accept
the resignation of the president and
to permit him to go to Europe while
the directors make good the amount
of his shortage. This alleged pro.
| posal never came to a conclusion be-
cause several directors demanded that
the defaulter be punished A plan to
make up the shortage for the protec.
tion of depositors was then approved.
When the federal marshal called at
the Bigelow house to serve the war.
rant the former bank president was in
the library with him wife. Mrs Bige.
low refused to withdraw and the war.
rant was read in her presence.
"Tll be ready to go with you at
once" said Bigelow, then he kissed
his wife and left with the officers, the
two walking to the federal building,
where a United States commissioner
was in waiting. None of Mr.. Bige-
lows friends were in the court room
during the brief proceedings.
Henry Coll, assistant cashier of the
bank, was also removed on the state
ment of President Bigelow that he was
aided by Coll in concealing the short.
age In the banks accounts.
The method adopted was an old one.
Collection accounts were manipulated
20 or even so per cent to make 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.
tanned in Eastern banks was tampered
with, the books of the First National
being fixed so that the reserve ap-
peared to be larger by several hundred
thousand dollars than 1t really was
These and other methods were pur.
sued by Bigelow in securing money
from the bank.