The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1905-04-28
PRESIDENT OF THE FIRST Ma,
rioNAL BANK OF MILWAUKEE,
LooTs INSTITUTION.
LOST MONEY SPECULATIVE
ABOUT FIFTEEN HUNDRED THOU.
SAND DOLLARS OF BANKS
FUNDS DissIPATED.

MiIw aukee, April 25-F'ranS G.
Bigelow, until Monday president of
the First National bank of Milwaukee,
was arrested during the day charged
sith the embezzlement of 100000 of
the banks funds.
President Bigelow was taken before
United States Court Commissioner
Bloodgood at night. He waived ex-
animation and was held to the federal
grand jury under $4,000 bond. DR..
Horace NJ. Brown and Arthur Nc
Geesch certified as surities and Mr..
Bigelow was released. The next fed
eral grand jury has not yet been sum-
moned, but it is expected it will meet
some time next month.
The arrest of Mr.. Bigelow followed
his confession to the board of direc.
tors of the bank that he was de-
taulter to the extent of $1.450,0O0.
Following Mr.. Bigelows confession
he was removed from the presidency
of the hank and the facts In the case
were laid before the federal authori-
ties. 1GI
The complaint was sworn TO by
United States District Attorney HI. K.
Rutterield. 1t charges that Bigelow,
as president of the First National
bank, embezzled a sum exceeding
100000.
A complaint and warrant identical
NTH thoSn In pfoolouv'S
made out for Henry G. Coll, assistant
cashier of the bank. but Coll could
not be found up to late hour.
President Bigelow's confession was
made at special meeting of the
board of directors held Saturday even
ing and continued Sunday and all q
Sunday night.
President BigeIow confesses.
In addressing his fellow directors
President Bigelow said he had pain
full statement to make-a confession
that he had misdirected the funds Of
the bank and that an examination of
his books and comparison of figures
would show that he was indebted to
tuc Dduh W LUG dllOuhI VI OSSl VII
100000. This money, he said, had
been lost in speculation in wheat and
stocks. Not dollar of 1t could be re-
covered and the only sum he could
offer toward recompensing the bank
was personal property valued at ap-
proximately 100000.
The confession of President Bige-
Ia oato hA Of fhn
bank. Mr.. Bigelow has been recog-
nized as one of the foremost financiers
of the Northwest. He has been asso-
ciated with the First National bank
In various capacities for more than
fifteen years and his business connec-
lection fund was devoted to stock
operations. The reserve maintained
In Eastern banks was tempered with,
the books of the First National being
fixed so that the reserve appeared to
be larger by several hundreds of thou
sands of dollars than it really was.
These and other methods were pur-
sued by Bigelow in footing the bank.
In the fa,sifying of records and the
manipulation of the reserves Bigelow
declares he was caided by Assistant
Cashier Coll and two bookkeepers in
the bank. These bookkeepers acted
on the orders of Bigelow and they
have neither been discharged nor sus1
pended and they will be called as Wit
nesses in the criminal proceedings
against Bigelow. 49, ao
The manipulation of accounts has
been going on for months, according
to the statement of one of the direc-
tors, but SO cleverly was the work
done that neither the directors nor
the national bank examiners were
able to discover the fact that any
thing was wrong with the funds of
the bank. The first intimstion that
there we're Irregularities came to
Charles Pfister, one of the directors,
Friday evening.
Bank Employe Started Investigation.
An employee of the bank called at
Mr.. Pfister's home and told him he
had something to reveal regarding the
bank. While his information was
meagre 1t was sufficient to awaken
IuC ouSpiClOAS vi MI. uSISI anu W
start an investigation. President
Bigelow was taxed with the Irregular
ties, and he is said to have admitted
his guilt. Then followed the meeting
of the directors and the full confess
sion.
AS soon as the directors ascertain
ed the full extent of the populations,
steps were taken to protect the de.
positors and other creditors. Charles
F. Pf1ster subscribed $6O0,C00 to a
fund to make good the surplus: John
I. Beggs gave 100000; william
Bigelow, brother of the president.
gave 100000. and other directors sub
scribed lesser sums until the amount
reached $1.635,Ooo.
President Bigelow's defalcations
amount to about $1,450,00o, but he re.
stored 100000. The directors have
subscribed $1,635,000 more, thus leav-
ing the bank better off by about $400,
600 than it was before the funds were
depleted by the populations of the
president.
Bigelow himself is left a poor man
by his speculations and the surrender
Of the securities to the bank At one
time he was personally rated as a
millionaire and this fortune has been
lost, as we'll as the sum taken from