The daily morning journal and courier., 1905-04-25
President of First National Bank of Milwaukee En- bezzIes a Million
 and a Half.
CONFESES TO DIRECTORS,
MONET LOST IN STOCK AND
 WHEAT SPECULATION

WHEAT SPECULATION
 Gives S300,000 In Personal Securities as
 Partial Compensation-Arrest by
 Federal Authorities-Entire Shortage
 Quickly Pledged by Directors Who
 Meet Run on Institution and Are Pre-
 pared to Make Good All Demands
 Method of Embezzlcment Old-As-
 sisfant Cashier Involved.
 Milwaukee, April 24.-Frank G. Bige- low, president of the First National bank of Milwaukee, was arrested to- day charged with the einbezzlement of over $10O,0oO of the banks funds. The arrest of MT. Bigelow followed his con- fession to the board of directors of the bank that he was a defaulter to the ex- tent of S1,450,000. Following MT. Bige-3 lows confession he was removed from the presidency of the bank and the. lclCtS III lilE ease NGIG ldtu pclOIE IllC federal authorities. $
 The complaint, sworn to by United States District Attorney H. K. Butter field, charges that. BigeloW, as president of the First National bank, embedded sum exceeding $100,OOO Al complaint and a warrant identical with those in BigeloW's case were made out for Henry c. Coll, assistant cashier of the bank, but Coll could not be found.
 President BigeloW was taken before United States Commissioner BIoodgood, bail was fixed at $25,000 and Bigelow 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 Saturday evening. He met with the directors yesterday and all last night. In addressing his fellow direc- tors President Bigelow said he had a painful statement to make-a confess sion that he had misdirested the funds of the bank, and that an examination of his books and a comparison of figures would show that he was indebted to the bank for more than $1, ,450,000 This money, he said, had been lost in specu- lation in wheat and stocks Not dol-. lar of it could be recovered, and the only sum he could. offer toward compen- sating the bank was personal securities valued at sS00,00o.
 Mir. BigeloW had been recognized as among the foremost financiers of the northwest. He has been associated with the First National bank in various capacities for more than fifteen years, and his business connections with trust companies, manufacturing concerns, real estate deals and other similar ven- lures numbered scores. He was hon. ored a year ago by election to the pres- idency of the American Bankers asso-. citation. ..z
 In making his statement to the direc- @ tors of the bank MT. Bigelow said that 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 TeVerses in Wall street. From small inanipulations of the banks funds he had extended the defaIcations until his shortage had passed the nillion-dollar mark. He saw no possibility of return ing the money and therefore confessed < his actions.
 Funds were at once provided by direc- tors of the bank to protect depositors against loss and to save the bank from a stampede More than 9 million dol- lars was guaranteed to the bank by various stockholders, and no serious run was made on the bank to-day. It is not thought that any complications with creditors of the bank will follow.
 During the meeting of directors, which was almost continuous for thir- ty-six hours, several plans were sug- gested 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 would effectually pro- tect the bank. This alleged proposal never came to a conclusion, because several directors demanded that the de- faulter be punished. A plan to make up the shortage for the protection of depositors was then approved.
 BigeloW was removed from the presi- dency of the bank and the case was re- ferred to federal officers.
 When the federal marshal called at the Bigelow house to serve the warrant the former bank president was in the < library with his wife. Mrs. Bigelow re- fused to withdraw and the warrant was read in her presence.
 ..I'll be ready to go with you at once.' said the banker. Then he kissed his wife an affectionate farewell and went with the officers to the Federal build. ing, where United States commission. CT was in waiting. ,
 When the resolution was adopted re. moving MT. Bigelow from the presi. dency of the bank, Henry Coll, assist. ant cashier, was also removed. The re. Tloyal of the assistant cashier was due to the statement of President ,BigeloN that he was aided by Coll in conceal. ing the shortage in the banks accounts
 The method adopted was an old one Collection accounts were manipulated to the extent of 40 or even 50 per cent
 lContinued on Fifth Page).