The San Francisco call., 1905-04-25
Money Lost tinWa all
Street and the
Wheat Pit.
BIG RUN FOLLOWS
ANNOUNCEMENT
Directors Subscribe
to Make Good
the Loss.

|
Bigelow, until to-day president of the
First National Bank of Milwaukee,
was arrested to-day, charged with the
embezzlement of over 100000 of the
/ banks funds. The arrest of Bigelow
| followed his confession to the board of
| directors of the bank that he was a
| defaulter to the extent of s1,450, 900.
Following Bigelow's confession he was
removed 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. G..
Butterfield- 1t charges that Bigelow,
as president of the First National
/ Bank, embeZZled a sum exceeding
100000. A complaint and warrant
identical with those in Bigelow's case
were made out for Henry G. Coll.
| assistant cashier of the bank but Coll
could not be found tonight
/ President Bigelow was taken before
| United States Commissioner Blood
| good tonight He waived hearing
! and was held to the Federal Jury un-
der $4,000 bonds Dr. Horace NJ
Brown and Arthur McGooch certified
as sureties and Bigelow was released
| The Federal Grand Jury will meet
some time this month.
LOST IN SPECULATION.
| President Bigelow's confession was
made at a special meeting of the
board of directors held on Saturday
evening and continued yesterday and
all of last night. In addressing his
fellow directors, President Bigelow
said he had painful statement to
make-a confession that he had mis-
| directed the funds of the bank and
that an examination of his books and
a comparison of figures would show
| that he was indebted TO the bank to
| the amount of $1,450. 900. This money.
! he said, had been lost in speculation
| in wheat and stocks. Not a dollar of
| it could be recovered and the only
sums ne could offer toward COM
| pensating the bank were personal Sc
curities valued at approximately
| $500 600.
The confession of President Bigelow
astounded the directors of the bank.
| Bigelow had been recognized as one
| of the foremost financiers of the coun-
! try. He has been associated with the
| First National Bank in various ca
| pacities for more than fifteen years,
and hiss business connections-trus
companies. manufacturing concerns.
real estate deals and other similar ven
tures-number scores. He was hon
ored year ago by election to the
presidency of the American Bankers
Assocination and by its members was
looked upon as leader in financial
matters.
STORMY SESSION HELD.
In making his statement to the d.
rectors of the bank, Bigelow said he
had been involved in speculation sew
eral months ago. This was in Wall
street. Later he had been a persistent
bull in the wheat market and recent
losses there had added to the heavy re-
verses 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 opportunity nor possibility
of making up the amount and there
fore confessed.
1t is stated that the meeting of the
, directors, which was almost continu-
Gus for thirty-six hours, was stormy at
times. Several plans were suggested
for protecting the interests of the bank
One was to accept the resignation of
the president, permit him to go to
Europe and the directors make good
the amount of his shortage. This
would effectually protect the bank. The
proposal met determined opposition
from directors who demanded that the
defaulter be punished. The plan to
make up the shortage was then ap-
proved. Bigelow was removed from
the presidency of the bank and the
case was referred to the Federal au-
thorities.
BIDS WIFE FAREWELL
When the Federal marshal called at
the Bfgelow residence to serve the war
rant the former bank president was in
the library with his wife Mrs Bige-
low refused to withdraw and the war
rant was read in her presence.
Il will 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
commissioner was in waiting. None OF
Bigelow's friends were in the court
room during the brief proceedings.
When the resolution was adopted re-
moving 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 short
age in the banks accounts
The method adopted was an old one.
Collection accounts were manipulated
to the extent OF forty and in some in
stances fifty per cent to make it ap-
pear that the reserve fund was intact
and the amount of the increased col
lection fund was diverted to special
stock operations. The reserve main
tanned in Eastern banks was tampered
with, the books of the First National
to be larger by several hundred thou
sand dollars than 1t really was. These
r<~xt.>..n. - nr~~ N r-~1-