The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-04-25

the criminal proceedings against the for
mer bank president.
Going on for Months.
The manipulation of accounts has been
gcing on for months, according to the
statement of one of the directors, but
so cleverly was the work done that nei-
ther 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
L. Pfster, one of the directors, Friday
evening An employe of the bank called
at Mr. Pfster's home and told him he
had something to reveal regarding the
bank While his information was meager,
1t was sufficient to awaken the suspicious
of Mr. Pfister and to start an inVestlga-
ton. Bgelow was taxed with the lrreg
ularities and he is saio to have admitted
his guilt Then followed the meeting OF
the directors and the full confession.
AS soon as the directors ascertalned
the full extent of the speeulations steps
were taken to protect the depositors and
other creditors. Charles +. Phster SUD
scribed 100000 to a fund to make gooo
the surplus. John |. Beggs. president OF
the Milwaukee Electric Railway ana
Light company, gave 100000. William
Bigeiow. a brother of the president add
e., 300 900 to the amount Other ulrec-
TORS subscribed lesser sums until the
amount raised reached 81, 1,635,00O.
CHICAGO Bankers Came to Rescue.
Prior 10 this the directors had been in
conference with leading bankers OF Chlca-
go and New York. Three Chicago BANK
ers came to Milwaukee on an early tram
and went into conference with the ulrec-
tors of the First National. AS result
of this meeting $1,0O0,O00 was sent TO MIL
waukee by Chicago banks to reach the
city before the news of the defalcation
was made public Several hundred thous-
and dollars in gold was transferred to the
First National by local banks SO that
institution was prepared for the run that
was expected. Every precaution mad
been taken to keep the fact of the snort
aee from the public until the affairs OF
the bank could be put in condition against
any emergencies that might arise
When the bank closed its doors this
afternoon, more than two thousand depos-
itors were camoring for their money.
Nearly 81 100000 had been paid out in the
course of two hours and but small
percentage of the customers demanding
the closing of their accounts had been
served One of the first callers was
business man who presented check Tor
800 OO0 the entire amount OF his ac-
count. He was followed by the city treas
urer who drew out 100000 of the city
funds Withdrawals in sums ranging from
$1,000 to $4,000 quickly followed, and by
o'clock in the afternoon a line of people
extended from the bank east on Wiscon-
sin street to Broadway, and In the other
direction around the corner and north
on East Water street The state of Wis
oonsin has several hundred thousand dol
lars deposited in the bank, and IL Is
said also that will be withdrawn at the
opening of business tomorrow
Throngs cIamor for Money.
The throngs on East Water street were
besieging the Wisconsin Trust company,
the savings bank department of the First
National bank and here the run assum-
ed the greatest proportions. When the
doors of the bank closed fully 2000 anx-
fous men and women surrounded the doors
of the bank and the trust company,
clamoring for their money. But while
mank depositors were seeking to with
draw their funds, other people who be-
live in the soundness of the bank were
coming forward with deps sits. and so per-
sistent were the friends Of the banks in
offering money for deposit, that when the
bank closed there was a line of deposit
tors in waiting in opposition to the line
awaiting to withdraw money.
The officials of the bank are looking for
a resumption of the run tomorrow morn
ing.
The statement of the financial condition
of the bank March A. and which is the
last financial statement formally issued,
is a strong one. 1t is as follows:
RESOURCES
Loans - ............ .s12, SAC, 1886. rs
limited States bonds ........ 100000 90
Premium on U. S. bonds ...... 5000. 90
Investment securities .......... 9lSB2 81
Real estate .................. 90.642. .12
Cash and due from banks.... 5.177 .03
Total .s1s, ,5s7 ,271 "A