Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1905-04-27

I
deney of the bank. Henry Coll. assist
ant cashier, was also removed. The
removal of the assistant cashier was
due to the statement of President
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 manip- |
ulated to the extent of 40 and in some
cases so per cent, to make it appear
that the reserve fund was intact and
the amount of the increased collection
fund was diverted to special 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 thous-
ands of dollars than it really vas
These and other methods were pur-
sued by Bigelow in obtaining money
from the bank. In the classifying of
records and the manipulation of the
reserves, Bigelow declares he was
aided by Assistant Cashier Coll and
the two b~ookkeepers in the bank.
These bookkepers acted on the orders
of Bigelow, and they have neither been
discharged nor suspended, and they will
be called as witnesses in the criminal
proceedings against the former bank
president.
ku coon oo Tho divaotNrc o.caortainaH
the full extent of the populations steps
we're taken to protect the depositors
and other creditors. Charles E.
Pfster subscribed $500, 900 to a fund to
make good the surplus; John |. Beggs,
president of the Milwaukee Electric
Railway & Light Co., gave $500, 900;
William Bigelow, a brother of the pres
ident, added 100000 to the amount.
Other directors subscribed lesser sums
until the mount raised reached ST.
635, 900.
Prior to this the directors had been
in conference with the leading bankers
of Chicago and New York, Three Chi
cago bankers, Presidents ]. l.: For
gan of the First national bank; Orson
Smith of the Merchants Loan & Trust
| Co., and Ernst A. Hammill of the Corn
Exchange national bank-three OF the
leading financial institutions of Chica-
| go-came to Milwaukee on an early
train and went into conference with
the directors of the First national. AS
a result of this meeting 100000 was
sent to Milwaukee by Chicago banks
to reach the city before the news OF
the de~falcation was made public. Sew
eral hundred thousand dollars in gold
was transferred to the First national
by local banks, so hat institution was
prepared for the run that was inevlta-
BILE, Every precaution had been taken
to keen the fact of the shortage from
the public until the affairs Of the bank
could be put in condition to meet any
emergencies that might arise.
When the bank closed its doors
Monday afternoon more than 1000 de-
positors were clamoring for their
money. Nearly $1,000, 900 had been paid
out in the course of two hours, and
but a small percentage Of the customers
demanding the closing OF their &C.
counts had been served. One OF the
first callers was a business man who
presented a check for $1,000 the en-
tire mount of his account. He, was
followed by the city treasurer Wht
drew out $500, 900 Of the city funds
The throngs on East Water stree
were besieging the Wisconsin Trus
Co., the savings bank department o.
the First national bank, and here TIM
run assumed the greatest proportions
When the doors of the bank CLOSED
fully 1000 anxious men and Womer
surrounded the doors of the bank ant
the trust company, clamoring for thell
money. But while many deposltors
were seeking to withdraw their funds
other people who believed in TN
s%oundness of the bank were coming
forward with deposits. And so per
sistent were the friends OF the n
in offering money for deposit that wher
the bank closed there was a line o
depositors III waiting in opposition u
the line awaiting to withdraw thel1
money.
Money is on the way from New Yorl
to strengthen the resources OF tn
hank. and the directors expect to b.
able to met all demands promptly
They claim that the actual condition o
the bank has not yet been impaired D.
the Bigelow defalcation.
AT nine o'clock Monday night every
thing was quiet in the vicinity OF tn
hank. Posted on all the windows AM
the stone columns to the entrance u
the bank were printed notices lssue'
by the directors, stating the varlou
amounts subscribed opposite thei
names. which, it is said, will NOR
than meet the amount OF the defalca
ton. These were eagerly read by pas
sers-by as we'll as those who nav
money on deposit. The notice, in
great measure, had a good effect Of
many who feared for the safety 0
their deposits. The bank is said to b
amply prepared to meet all demand
which may be made by depositors.
Bigelow is left a poor man by III
speculations and the surrender OF tn
securities to the bank. At one tim
he was personally rated as a million
aire, and this fortune has been lost a
we'll as the sum taken from the bank
His total losses in speculation of va
rious kinds in two years are estimates
by his friends at upward of $3,0OO,O0O