The Montgomery advertiser., 1905-04-25
BigelOW Defaulter to the Extent Of $1.45O,0OO.
SENSATION IN MIL WAUKEE
A Stunning Blow to First Ma
 tiOnal Bank.
Embexzler Had Been Elected President American Association and Was Regarded as One of Fore
 most Financiers.

Milwaukee. Wis. April 24.-Frank G. Bigelow. until today president of the First National Bank of Milwaukee, was arrested today charged with the em- bezzlement of over $100,000 of the banks funds.
 The arrest of Mir. Bigelow followed his confession to the board of directors of the bank that he was a defaulter to the extent of $1,45o,0oG. Following MT. Bigelow's confession he. was re- moved 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 District Attorney H. K. Butterfield. It charges that Bigelow as president of the First National Bank embedded a sum exceeding $100,000. complaint and warrant Identical with those in Bigelows case were made out to Henry G. Coll. assistant cashier of the bank. but Coll could not be found up to o'clock tonight.
 President Bigelow was before United States Commissioner Bloodgood to- night. He waived hearing and was held to the federal grand jury under $25,O00 bond. Dr. H. N. Brown. and A. N. McGeough certified as sureties and Bigelow was released. The next federal grand jury has not been sum- moned, but it is expected 1t will meet some time next month
 The announcement of the dedication was followed by a rush of depositors to withdraw their money from the First National Bank and from the Winconsin Trust Company, the saw lnes department of the bank. Many thousands of dollars were withdrawn, but on the other hand large numbers of people, having confidence in the institutions, increased their deposits. Arrangements were hastily made to
 kf.A n6 hn banks express full confidence in their ability to keep them open
 Bigelcw's Confession.
 President Bigelow's confession was made at a, special meeting of the board of directors held Saturday evening and and continued yesterday and all of last night In addressing his fellow direct ors President Bigelow said he had painful statement to make, confess sion that he had misdirected the funds of the bank and that an examination of his books and a comparison of fig ures would show that he was indebted to the bank to the amount of over Sle million dollars. This money he said he had lost in speculation. Not dol lar of it could be recovered and the on- ly sum he could offer toward recompen- sating the bank was personal security valued at approximately $30O,000.
 The confession of President Bigelow astounded the directors of the bank. Mir. Bigelow had been recognized as one of the foremost tinanciers of the Northwest. He has been associated with the First National Bank in various capacities for more than fifteen years and his business connections-trust companies, real estate deals and other similar ventures-number scores. He was honored year ago by election to the presidency of the American Bank CTS Association and by it's members 1RaA Anr fT nfs matters.
 Tn making his statement to the di- rectors of the bank, MT Bigelow said he had become involved in speculation several months ago. This was on Wall Street More recently he had been persistent bull in the wheat market and recent losses there had added ta heavy reverses on Wall Street. From small manipulations of the banks funds he had extended the defalcations until his shortage had reached the present Stage. He saw no possibility of making up tho amount and therefore confessed.
 Directors Meeting stormy.
 It is stated that the meeting of the directors, which was almost continuous for thirty-siX hours, was stormy at times. Several plans were suggested for protecting the interests Of the bank One was to accept the resigna- ton of the president. permit him to go to Europe and the directors make good the amount of his shortage. This would effectual1y protect the bank. The proposal met with determined opposi- tion from other directors, who demand ed that the defaulter be punished. The plan to make up the shortage was then approved. Bigelow was removed from the presidency of the bank and the case was referred to the federal au- thorities.
 When the federal marshall called at the Bigelow residence to serve the warrant, the former bank president was in the library with his wife. Mrs Bigelow refused to withdraw and the warrant was read in her presence
 "Ill be ready to go with you at once said the banker. Then he kissed his wife an affectionate farewell and left with the officer. the two walking to the federal building where court commls- sioner was in waiting. None or MT Bigelow's friends was in the court room during the brief proceedings.
 When the resolution was adopted re- moving MT. Bigelow from the presiden- cy of the bank Henry Coll. assistant cashier, was also removed. The re- moval of the assistant cashier was du" to the statement of President Rigelow that he was aided by Coll In concealing the shortage in the banks accounts.
 The Method Employed.
 The method adopted was an old one. Collection accounts were manipulated to the extent of 40 and in some in- stances 50 per cent. to make it appear that the reserve fund was intact, and the amount of the increased collection fund was diverted to special stock Dp- orators. The reserve maintained m Eastern banks was not tempered with. the books of the First National being fixed so that the reserve appeared to be larger by several hundreds of thous- ands of dollars than it really was. In the falsifying of records and the ma nipulation of the reserves. Blgelow de- clares he was aided by Assistant Cashier Coll and two bookkeepers in the bank These bookkeepers acted on the order of Bigelow and they have neither been discharged or suspended They will be called as witnesses in the criminal proceedings against the for mer bank president.
 The manipulation of accounts mas been going on for months. according to the statement of one of the direc-