Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1905-05-04
BANK president
IS A DGfAULTER
FRANK G. BIGELoW, HEAD OF
FIRST NATIONAL OF MIL
WAUKEE, GOES WRONG.
Confesses to Misuse of Nearly 81, $780,
600 Of Banks Funds-Is Arrested
and Held to Grand Jury-Directors
Make Good the Shortage. ri


association, has been arrested, charged
with the embezzlement of over $780,
600 OF the banks funds. The arrest
of Mr.. Bigelow followed his aonfession
to the board of directors of lhe bank
that he was defaulter to the extent
of $1,450,0O0. Following Mr.. 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 b.
United States District Attorney H. K.
Butterdeld. 1t charges that Bigelow
Us president of the First National
bank, embezzled sum exceeding $780,
600. A complaint and warrant iden-
teal with those in Bigelow's case were
made out to Henry G. Coll, assistant
cashier of the bank, but Coll could
not be found up to seven o'clock Mon
day night. President Bigelow was
taken before United States Court Com
missioner Bloodgood and bail was
fixed at $25,000.
! Lost in Speculation.
President Bigelow's confession was
made at special meeting Of the board
of directors held Saturday evening and
continued Sunday and all Of Sunday
night. In addressing his fellow direc-
tors, President Bigelow said he had a
painful statement to make-a confess
sion that he had misdirected the funds
of the bank and that an examination
of his books and a comparison Of fig
ures would show that he was indebted
to the bank to the amount of over ST.
100000. This money, he said, had been
lost in speculation in wheat and stocks
and the only sum he could offer to-
ward recompensating the bank was
personal securities valued at approx
mately 100000.
In making his statement to the di-
rectors of the bank, Mr.. Bigelow said
he had become involved in speculation
several months ago. This was on
Wall street. More recently he had been
a persistent bull in the wheat market
and recent loss there had added to
heavy reverses on Wall street. From
small manipulatiOns of tue banks
funds he had extended the defalca-
lions until his shortage had reached
the present stage. He saw no oppor-
tunity or possibility of making up the
amount and therefore confessed.
The board of directors of the bank
decided that no attempt should be
made to shield the chief defaulter and
his associates in the crime from their
full measure of punishment, and they
will be prosecuted to the full extent
of the law.
Records Falsifed.
The method adopted was an old one.
Collection accounts were manipulated
to the extent of 40 and in some in
stances 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 op-
erations. The reserve maintained in
eastern banks were 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 was.
These and other methods were pursued
by Bigelow in looting the bank. In the
classifying of records and the manipu-
lation of the reserves Bigelow declares
he was aided by Assistant Cashier
Coll and two boolkeepers in the bank.
To Protect Depositors.
AS soon as the directors ascertained
the full extent Of the populations stems
were taken to protect the depositors
and other creditors. Charles F. Pfister
subscribed 100000 to a fund to make
good the surplus; John l. beggs, pres
ident of the Milwaukee Electric Rail-
way & Light company, gave $30O,OOO
William Bigelow, brother of the pres
ident, added 100000 to the amount.
Other directors subscribed lesser sums
until the amount raised reached ST.
5000. Officers of three of the lead
ing financial institutions of Chicago
came to Milwaukee on an early train
and went into conference with the d.
rectors OF the First National. AS q
result of this meeting $1,0OO,OOO was
sent to Milwaukee by Chicago banks.
Caused a Run.
+ When the bank closed it's doors in
the afternoon more than 1000 de-
positors were clamoring for their
money. Nearly $1,OOOOOO had been
paid out in the course of two hours
and but small percentage of the GUS
toners demanding the closing of their
accounts had been served.
Confidence Restored.
Milwaukee, April 26. Confidence has
again been restored in the banking insti-
tutions of Milwaukee, and the run on the
First national bank and the Milwaukee
Trust company, which was caused by
the defalcation by Frank G.. Bigelow,
until Monday president of the First ma
tional bank, of over 81, 100000, is a thing
of the past, and banking affairs in Mil
waukee have resumed their normal con-
dition. While the two banks affected
are entirely separate institutions, the
fact that they occupy adjoining build
ings and that some Of the First national
banks officers direct the affairs of the
Milwaukee Trust cOmDanv caused manv