The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-25
GETS AWAY WITH $i,SOO,OOO.
BANK PRESIDENT +. G. BI6ELOW
SPECULATED ~ WHEAT.
Tie Is Arrested on Charge Of Embezuement
Assistant Cashier VAnishss-PrOmpt
Action Of Capitalists saves Bank
From Ruln-They Pledge 81 400 900.

Action OF CAPITALISTS saves BANK
From Ruln-They Pledge ~ 900 900.
MILWAUKEE. Wis. April H.-Frauk q.
Pigelow. president Of the First National Bank
~ Milwaukee, ex-president OF the Ameri-
can Bankers Association, director In half a
score Of corporations and custodian of
o dozen estates, IA defauter for 81, 800, 900
= the hanks funds. That ruin did not
ovcrtake the bank Is due chiefly to a state
ment issued as soon as the news Of the
defalcation came, announcing that men
representing t2o,OoO,OOO Of capital invested
n Milwaukee had subscribed over q, 600 900
to meet the shortage. This subscription
comprises a claim against the bank which
!, TO he subordinate TO the claims Of all
cepositors and other creditors.
In addition to this prompt step the presi-
dents Of several Of the biggest banks in
Chicago came TO the rescue. After inspect
ing the condition Of the bank they an
nounced their willingness TO aid the local
institution with any sum necessary to
prevent its suspension. AZ a result 81 OOO,-
900 was sent TO Milwaukee from Chica 60.
The local hanks aided by turning over
currency to the First National.
BiEelow waR arrested at 8 O'Clock this
afternoon at his home by the United States
Marshal. T. b. Reid. He answered the
ring Of the marshal in person. The papers
were procured by the United States District
Attorney and Bigelow was evidently ex-
recting the marshal, for he showed no sur
prise. He accompanied the marshal to
the Office Of Commissioner Bloodgood,
where he waived examination. declared
L. nd 81
IN bonds Of S25 900 furnished by his SON
in-law, Arthur H. McGeoch, and DR.. II. NJ.
Brown.
Meanwhile an effort was being made TO
find Henry 7. Coll, the assistant cashier,
who, it is alleged, was his accomplish. He
was last seen within block Of the North
western depot, walking anIiously about
% though waiting for some one, but whether
be left the city is not known.
There seems tonight 70 be no danger
that the bank will suspend. Local capital
ists representing all the biggest business
interests Of the State have issued state
ment that the bank Is absolutely solvent.
The only fear is that the panic among the
depositors may spread to depositors in
other institutions and make further trouble
Mr.. Bigelow has been involved In so
many financial transactions that only a
close examination Of his accounts will tell
the whole story Of the embezzlement
It Ia known, however, that he was able to
gnisappropriAte the banks funds through
y conspiracy among the officials Of the
bank. including bookkeepers and the
assistant cashier.
This afternoon at the Federal building
She warrant was issued for Mr.. BiRelow
q the charge Of embezzlement. Coll
T. charged with abetting the embezzle-
msnt-
Mr.. Bigelow, It Is alleged. drew large
sums from the bank and charged the
amounts 70 Chicago banks. By the aid
OF the bookkeepers he was able to cover
his tracks until Friday night, when the
shortage was discovered.
A meeting Of the directors was held at
once. On Saturday Chicago bank presi-
dents we're called in and Arrangements made
Cor the crisis to-day. When the news Of
The shortage became public property, the
bank was ready 10 pay all claims, and the
announcement Of its solvency, signed by
prominent hnanciers, was displayed
The inside story OF the defalcation Is
She old story Of gambling in wheat. MIR.
f1lkbloW may NC hdlu W be n NlCNull ul Alo
GATES collapse. His son was In a local COM
omission house, operating on the Chicago
board. and through him much Of the specu-
lation was done. As soon "a the details be-
rame known, the son, Gordon, was dismissed
from the commission house. William q.
.BigeloW, brother Of Frank and vice-presi-
dent Of the bank, is not involved in the
trouble. and has signed the 81 900, 900
guarantee, subscribing for 100000.
When the directors met and called Bige-
low before them, he confessed and was
dismissed from his post as was Coll.
Bgelow has turned over to the bank
property exceeding in value $500, 600. This,
u Is stated, reduces the shortage 10 81 100 900,
y sum equal to about the total Of the sur
plus and undivided profits Of the bank.
Among the subsoribers 10 the guarantee
fund are G. F. Pfister, 5000, 900: Fred Vogel,
Dr., $500, 900; John l. Biggs, $500 900. and
= Mariner, 5000 The bank has a capt.
Val Of q, 100, 900 paid in full. The directors
Shave telegraphed the Comptroller Of the
Currency at Washington TO send another
bank examiner 10 Milwaukee 20 make
n most thorough examination.
Il was decided by the directors on Sunday
10 call into the council some Of the leading
bankers OF Chicago, and they came 10 NIL
'Waukee on night trains. arriving early
this morning. Among them were james
,. Forgan, president OF the Chicago First
National Bank; f. A. Hammill, president
OF the Chicago Corn Exchange National
Bank, and Orson Sach, president OF the
Merchants Loan and Trust Company.
It was nearly noon before the public
learned Of the situation A panic developed
among the depositors. Before this time the
newspapers Of the city had been called into
consultation. As the First National Bank
3 the biggest financial institution in the
Northwest, outside OF Chicago, a general
Janic affecting every bank in the city was
feared. The directors Of the bank begged
consideration from the newspaper and
~ general agreement no extras were issued
until the first street editions were put on
fale at the usual time. The news spread
Ike wildfre, despite these precautions,
Tonight in the streets leading TO the savings
department depositors are forming IN line
TO draw their money when the bank opens
IN the morning. Twenty policemen Of the
central station were detailed TO assist In
banding the crowd
Al O'Clock this afternoon line Of people