The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-04-25
BANK LOOTED BY
ITS PRESIDENT
First National of Milwaukee Loses
Over Million Dollars.
DEPoSIToRS ARE SECURED
BIGELoW, THE EM8EZZIER, UN,
DER ARREST.

ga ILwAUKEE. Wis. April "a
wi Frank G.. Bigelow until today
president of the First National
bank of Milwaukee, WAS arrested today
charged with the emDezzIement of over
100000 of the banks funds.
The arrest of Mr.. BigeIOw followed
his confession to the board of directors
of the bank that he was defaulter
to the extent OF $1.450 GOO. Following
Mr.. BigeIow's confession he was re-
moved from the presidency of the bank
and the facts in the case were laid be
fore the federal authorities.
Released on Bail.
The complaint was sworn to by Unit
ed States District Attorney H G.. But
terrified 1t charges that Bigelow, as
president Of the First National bank,
emb zzled a sum exceeding 500 0O0. n
complaint and warrant Identical with
those in BigelOw's case were made out
for Henry q. Coll. assistant cashier
Of the bank, but Coll could not be
found up to O'Clock tonight.
President BigeIOw was taken before
United states Commissioner Blood good
( tonight He waived a hearing and was
held TO the federal jury under SO. 900
bond. DR.. Horace NJ. Brown and Ar
thur McGooch certified as sureties and
Mr.. Bigelow was released The next
/ federal grand jury has not yet been
summoned, but it is expected it Will
meet some time this month.
BigeIow's Confession.
President BigeIow's confession was
| made at special meeting Of the board
| of directors held Saturday evening and
| continued yesterday and all Of last
i night In addressing his fellow direct
/ ors President Bigelow said he had
| painful statement to make-a confess
sion that he had misdiTeCted the funds
/ of the bank and that an examination
! of his books and d comparison OF fig
/ ures would show that he was indebted
/ 10 the bank TO the amount of over 81
I 100000 This money, he said. had been
! lost in speculation in wheat and stocks.
! Not dollar Of it could be recovered
! and the only sums he could offer to-
! ward recOmpensating the bank were
! personal securities valued at approx
! mately S9o0, 900.
Directors Astounded.
! The confession of President BigsIow
| astounded the directors of the bank
| Mr.. BigelOw had been recognized as
! one of the foremost financiers for many
/ years. He has been associated with the
! First National bank in various capaci-
! ties for more than fifteen years and his
| business cOnnectiOns-truS companies
! manufacturing concerns, real estate
deals and other similar ventures-num-
! Der scores He was h0nored a year 20
! by election to the presidency Of the
! American Bankers association and by
its members was looked upon as a lead
! er in financial matters.
Victim of Wall Street.
In making his statement to the direc-
/ tors of the bank, Mr.. BigeIow said he had
| become involved in speculation several
/ months ago This was in Wall street.
! Later ne had been a persistent bull In
| the wheat market and recent losses
] there had added to the heavy reverses
J on Wall street. From small naniDuI-
! ationS Of the bank funds he had ex-
/ tended the defalcatious until his short
! age mad reached the present stage. He
saw no opportunity nor possibility Of
/ making up the amount and therefore
! confessed
1t is stated that the meeting of the
directors. which was almost continuous
/ Tor thlrty-SlX hours, stormy at
times. Several plans We're suggested for
| protecting the interests of the bank One
! was to accept the resignation Of the pres
IGent. permit MIN 10 go to- Europe and
4 the directors make good the amount
of his shortage, This would effectUaHy
I protect the bank The PROPOSAL met de-
/ termined opposition from directors. who
demanded that the defauiter be punished.
| The plan to make up the shortage was
/ then approved Rigeiow was removed
! from the presidency Of the bank and the
case was referred to the federal authori-
6igeIow Arrested.
When the federal marshal called at
the BlgeioW residence to serve the war
rant the former bank president was in
refused to withdraw and the warrant was
/ read IN his presence
once" said the banker Then he kissed
ms wife an affectiOnate farewell and
left with the Officers. the two walking
TO the federal building where = court
commissioner was in waiting None OF
Mr.. BigelOw's friends were in the court
room during the brief proceedings. When
the resolution was adopted removing Mr..
BigelOw from the presidency of the bank.
Henry Coll. assistant cashier was also
removed. The removal of the assistant
Z cashier was due to the statement of Pres
ident BigelOw that he was aided by Coll
in concealing the shortage in the banks
Old Method Adapted.
The method adopted was an old one.
Collection accounts were manipulated to
the extent of 20 and in some instances
% per cent 10 rake - appear that the
reserve fund was intact. and the amount
of the Increased collection fund was di-
Verted to special stock operations. Inc
reserve maintained in eastern banks was
Z tempered with. the books of the First
/ National being fiVcd so that the reserve
| appeared TO be larger by several hun
! dred thousand dollars than il really was
These and other methods were pursued
I by RigeIOw in obtaining money from the
/ bank. In the falsifyinE of records and
! the manipulation of the reserves BiSe-
/ two bOokkeepers in the bank. These
| bookkeepers actd on tn orders Of Bige-
low and they have not been discharged
/ or suspeT dcd but will he called at wit
uesscs in the criminal proceedings
against the former bank president.
Books CIeVerIy Doctored.
The manipulation of accounts has been
| going on for months, according 20 the
I statement OF one OF the directors, but
so cleverly was the work done that Meth
er the directors nor the national bank
examiners were able to discover the fact
that anything was wrong with the funds
of the bank The first intimatiOn that
there were Irregularities came TO Charles
r. Pfister, one Of the directors. Friday
evening. An employee of the bank called
at Mr.. Pfister's home and told him he
had something to reveal regarding the
bank. Although his confession was mea-
gre il was sufficient TO awaken the SuS-
picious of Mr.. Pfister and to start an
investigation. President Bigelow was
taxed with the Irregularities and he is
said TO have admitted his guilt Then
followed the meeting of the directors and
the full confession
As soon as the directors ascertain ed
the full extent of the populations steps