New-York tribune., 1905-04-25
EMBEZZLED S1,45O,OOO.
Continued from first pnge.

Continued from urst pnge.
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
hanks was tampered WITH the books of the
First National being fixed so that the reserve
appeared to be larger by several hundred thou
sand dollars than it really was. These and other
methods were pursued by Blgeow in securing
money from the bank. In the falsifyng of
records and the manipulation of reserves. Bige-
low declares he was aided by Coll and two book
keepers in the bank These bookkeepers acted
on the orders of Bigeow They have neither
been discharged nor suspended and they will
be called as witnesses in the criminal proceed
ings against the former bank president
The manipulation of accounts has been going
on for months, according to the statement of
one of the directors but so cleverly was the
work done that neither the directors nor the
national bank examiners discovered that any
thing wrong with the funds of the bank.
The first intimation that there were irregulari-
ties came to Charles f. Pfster, director, Fri
day evening, when an emplOye Of the bank gave
Mr.. Phster information sufficient to start an in
vestigation Then followed a meeting of the
directors and the confession
DIRECTORS MAKE UP DEFICIT.
extent of the peculatons. steps were taken to
protect the depositors and other creditors.
Charles F. Pfster subscribed $6OOO00 to a fund
to make good the surplus. John l. Beggs presi-
dent of the Milwaukee Electric Railway and
Light Company gave 100000 William Bige-
low, a brother of the presidents, added 100000
to the amount Other directors subscribed lesser
sums until the AMOUNT raised reached 81. .G30,O0O.
Then the following statement was issued:
For value received. We the undersigned, sew
orally agree TO advance and pay TO the First
National Bank Of Milwaukee, Wis, the sums set
opposite our respective names, as the same may
be needed for the payment on demand of all
deposits now i'll said bank, or which within
thirty days from this date may be placed there
In Our claims hereunder for reimbursement
shall be subordinate and postponed to the
claims of all depositors and other creditors.
E5iER 5dhH l. F4d6ai BhGds 'F GssSSoSSy. SS5SsSoo'
d. MARINER ($lO9G6j
FRED +. COLL ($50.O0O
GEoRGE 2; MILLER $4,000.
j. H. VAN DYKE. Jr. (S50'OJ0)
AH6EkT AI5siET e q. T69Es4 TRGsTEh 5sio S7SOOO G
WILLIAM BIGELOW CSlt0,OooD,
Dated Milwaukee, Wis, April a. 1905.
Prior to this the directors had been in confer
ence with bankers of Chicago and New York.
As result, $1,00O,O00 was sent to Milwaukee by
Chicago banks before the news of the defalca-
tion was made public. Several hundred thou
sand dollars in gold was transferred to the First
National Bank by local banks, so that institution
was prepared for run
MILD RUN ON THE BANK.
When the bank closed this afternoon some
two thousand depositors were waiting for their
money Nearly $1OOO,OOO was paid out in two
hours and many customers demanding the clos
ing of their accounts had not been served. One
of the first callers was a business man. who pre-
sented check for 100000. the entire amount of
his account He was followed by the City
Treasurer, who drew out $500, 900 of city funds.
Withdrawals in sums ranging from $1,000 to
$4,000 quickly followed, and by , o'clock in the
afternoon a line of people extended from the
bank east in WiscOnsin-st TO Broadway, and in
the other direction around the corner and north
in Eastwater-st. The State of Wisconsin has
several hundred thousand dollars in the bank.
The State money not withdrawn to-day.
The depositors in Eastwater-st. were be-
sieging the Wisconsin Trust Company, the
ings bank department of the First National
Bank, and the run the savings department
assumed the greatest proportions. Depositors of
large amounts apparently ceased Withdrawals
after the facts became well known, and those
who sought their deposits were customers of the
savings bank.
But while many savings depOstOrs were seek
ing to withdraw their funds other persons, who
believed in the soundness of the bank, were
coming forward with deposits And per-
sistent were the friends of the bank in Offering
deposits that when the bank closed there was
a line Of depositors waiting to counterbalance
the line waiting to withdraw money. While the
bank could not honor checks after o'clock, it
could receive deposits. and the bank was cleared
az the hour for closing, hole was cut through
the plate glass window in the Wisconsn-st.
front, and at a late hour this evening depostors
We're there leaving their money
officers Of the baI.k are preparing for any pos
sible run tomorrow. a request has been made
for detail of twenty policemen the same num-
Der that was required 20 handle the crowds To-
day, and an extra force of clerks viii be en-
way from New-Yorll to strengthen the re-
sources OF the bank, and the directors expect to
be able to meet all demands promptly They
assert that the bank has not been impaired by
the Bigelow defacation.
The latest statement of the financial condition
of the bank, made on March IA. follows:
RESOURCES
Loans $l2 8463 335 90
Premium on United states bonds. .... gsS S9S ~
Investment securities 9lSOs2 81
cash ana due from banks .....:...... 5l97 30 d5
Total $l96G72Tl "A
LIABILITIES.
,,.ut.,, 200 Ooo IA