Palestine daily herald. [volume] (Palestine, Tex.) 1902-1949, 1905-04-26
LARGE SHORTAGE.
Bank President confesses to oefalestiin
of Over Million Dollars.

l. of Over Million Dollars.
Milwaukee, April 26.-F'rank G. Bige-
low, until Monday president of the
First National bank of Milwaukee was
arrested, charged with the embezzle-
ment Of over 100000 of the banks
funds. The arrest of MI. Bigelow fol-
lowed his confession to the board OF
directors that he was a defaulter to the
extent of s145OOOO. Following Mr..
Bigelow's confession he was removed
from the presidency of the bank. and
the facts of the case were laid before
the Federal authorities.
The complaint was sworn to by Unit
ed States District Attirney Butterfield.
1t charges that Bigelow, as president
Of the First National bank, embezzled
sum exceeding 100000. A complaint
and warrant identical with those in
Bigelow's case We're made out TO Henry
G. Coll assistant cashier of the bank.
President Rigelow was before United
States Commissioner Bloodlow Monday
night. He waived hearing, and was
held to the Federal grand jury under
S35, 900 bonds. DR.. II. n. Brown and
A. n. McGeoch certified as securities,
and Blgelow was released.
The announcement of the defalcation
was followed by a rush of depositoTs
to withdraw their money from the Wis
consn Trust company and the First
National bank, the Wisconsin Trust
company being the savings department
of the bank. Many thousands of dol
lars were withdrawn, but on the other
hand. large number OF people having
confidence i'm the institution increased
their deposits. Arrangements were hast
lily made to meet the run.
President Bigelow's confession was
made at a special meeting of the board
of directors Saturday evening and con-
tinued Sunday and all Sunday night.
In addressing his fellow directors Pres
ident Bigelow said he had a painful
statement to make. a confession that
he ha6 misdirected the funds OF the
bank. and an examination of his books
and comparison of figures show that
he was indebted to the bank TO the
amour. of over s145OOOO This money.
he said. had been lost IN Speculation in
WHEEL anu SlOChS. NOl q uO4ldl vi II
could be recovered. and the only sum
he could offer toward compensating
the bank was his personal securities.
valued at approximately 100000.
When the Federal marshal called at
the Bigelow residence to serve the war
rant the former bank president was I'm
the library with his wife. Mrs. Bigelow
refused 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 sffectinate farewell and left
with the officer. the two walking to
the Federal building. where court
commissioner was in waiting None OF
MI Bigelow's friends were in TIE ciurt
room during the brief proceedings.
When the resolution was adopted re-
moving Mr. Bigelow from the presiden-
cy OF the bank Henry Coll. assistant
cashier. was also removed. The remov-
al of the assistant cashier was due to
the statement of Mr.. Bigelow that he
was aided by Coll in concealing the
shortage in the banks accounts
The method adopted was an old one.
Collection accounts were manipulated
20 trek enTnf-4Ila mn in -s0fne cas-
so 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 opera
lions. The reserve maintained in east
ern banks was tempered with. the
books of the First National being fixed
so that the reserve appeared 10 be larg-
er by several hundreds of thousands
of dollars than II really was.
Directors raised $685. 900, one OF
them subscribing 100000.