Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-25
THE MILWAUKEE DEFALcATIoN
Defaulting Bank President Under
Bonds of $25, 900.

Frank G. Bigelow president of the First
National Bank of Milwaukee, whose confess
sion of embezZlement of the banks funds
was reported in The Star yesterday. was
arrested late yesterday afternoon Follow
ing Mr. 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 u. 3
District Attorney Butterfield. 1t charges
that Bigelow, as president of the First Ma
tional Bank, embezzled sum exceeding
100000. A complaint and warrant, iden-
teal with those in Bigelow's case, were
made out to Henry G. Coll, assistant cash
Ter Of the bank, but Coll could not be
found.
President Bigelow was taken before L.
S. Commissioner Bloodgood, and bail was
fixed at s25, go He was released to appear
before the next federal grand jury.
President Bigelow's confession was made
at a special meeting of the board of direc-
tors Saturday evening. He met with the
directors Sunday and all night. Address
ing his fellow-directors. President Bigelow
said he had a painful statement to make
confession that he had misdirected the
funds of the bank and that an examina-
ton of his books and a comparison of
figures would show that he was indebted to
the bank for more than S1,450,OOO. This
money, ne SdlU, Idu Detu iOSl III SItSuitt-
ton In wheat and stocks. Not dollar of
it could DO recovered, and the only sum
he could offer toward compensatng the
bank was personal securities valued at $780,
600.
During the meeting Of directors, which
was almost continuous for thrty-siX
hours, several plans were suggested for
protecting the interests of the bank. Orr.
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 protect the bank This alleged
proposal never came to a conclusion be-
cause several directors demanded that the
defaulter be punished. A plan to make up
the shortage for the Profession of the
depositors was then approved. Bigelow
was removed from the presidency of the
bank. and the case was referred to fed
eral officers.
When the resolution was adopted re-
moving Mr.. Bigelow from the presidency
Of the bank, Henry Coll assistant cashier.
was also removed The removal of the
assistant cashier was due to the state
ment Of President Bigelow that he was
aided by Coll in concealing the shortage in
the banks accounts.
The method adopted a bold one.
Collection accounts were manipulated
forty or fifty per cent to make 1t appear
that the reserve fund was intact, and the
amount Of the increased collection fund
was diverted to special stock operations.
The reserve maintained in eastern banks
was tempered with, the books of the First
National being fixed that the reserve ap-
peared to be larger by several hundred
thousand dollars than 1t really was These
and other methods were pursued by Bige-
low in securing money from the bank. In
the falsifying of records and the manipula-
ton OF reserves, Bigelow declares he was
aided by Assistant Cashier Coll and two
bookkeepers in the bank. These bookkeep
ers acted orders of Bigelow, and they
have neither been discharged nor suspended
wi " N ha
criminal proceedings against the former
bank president.