The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-24
SHORT SI,5OO,OOO
President Of First National Bank
of Milwaukee
Makes Away With the Funds in
Speculation.
DIRECTORS MAKE GOOD
Promptly Subscribe Enough to
Cover the Loss.
Assistant Cashier Is Charged
With Completely.
DIRECTORS MAKE GOOD

E3l2e-
low, president Of the First National
bank of this city and former president
Of the American Bankers association.
has defauIted the banks funds to the
extent of $1,500,OOO. The directors of the
bank have deposited in the bank a sum
sufficient to make the institution per
fectly solid. Mr. Bigelow has not yet
been arrested
The capital of the First National
bank is 81, 100000 and the surplus is 81
100000. Mr.. Bigelow has signed over
property to the bank amounting to
100000. making his net defalcation
about 100000.
Aside from the surplus which will
meet the amount of the defalcation the
sum of $1,635,0O0 has been subscribed
by directors to meet any demands
which may be made on the bank The
aggregate wealth of the directors who
/ subscribed funds to meet any REQUIRE
nents of the bank approximates over
$4,000, 900.
The comptroller of the currency has
Deen notified and has been asked to
make an Immediate examination of the
bank Mr.. Bigelow's defalcation became
known to the directors OF the bank on
I Saturday night. He admitted today that
/ the amount had been. lost in speculation
/ and that he had falsiffed the books to
/ cover up the defalcation. Henry F. Coll,
assistant cashier Of the bank has been
/ removed, charged with having been a
party to the Justification of the figures
/ in the bank S books.
The announcement of the defalca-
ton was made by George P. Miller,
one of the directors of the bank. \
] notlce has been issued by the directors
/ announcing that sum has been sub
scribed sufficient to protect the de-
/ positors Charles Pfster headed the
list of directors who subscribed large
amounts to meet the deficit. Mr..
! Phster's subscription is 100000.
Directors Issue Statement.
The statement issued by the di-
rectOrs is as follows:
For value received, the under
I signed SeVeraIly 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 de-
mand of all deposits now in said
bank, or which within 30 days frem
this date may be placed therein. Our
/ claims hereunder for endorsement
! shall be subordinate and postponed to
/ the claims of all depositors and other
/ creditors.
Charles F. Pdster 100000; Fred
/ Nogel jr., 100000; John L. Beggs.
100000; E. Mariner 100000; Fred
F. Coll, $4,000; George P. Miller,
$50,0A0; J. II. Vandyke, jr., $4,000;
F. J. Kipp, $4,000; Albert G. TroseI1,
$4,000; August H. Vogel, Sl6,0Ot;
William Bigelow, 100000. Total ST.
$500
Dated Milwaukee. wis. April q.
1906"
Mr.. Bigelow was in his Office at the
/ bank as usual up to noon looking over
books and papers. His manner was
greatly agitated. Arrangements are
/ being made for the arrest of Mr.
+ Bigelow and probably Mr.. Coll tins
afternoon.
Mr.. Bigelow has long occupied a
4 foremost place in the financial trans
L. oil T---4
he was president of the American
Bankers association. He is also prom
4 inent in Milwaukee's social set.
Up to noon the defalcation was
news is likely to create CONSERVATION
among the depositors, ample provision
has been made to more than meet any
emergency.
Chicago Firm Involved.
Chicago, April 24@The Chicago
which Gordon Bigelow, son of the
president of the First National bank
| of Milwaukee, was a member, dissolved
4 partnership today.
The announcement made by the firm
/ concerning its dissolution gave no
| particulars as to the causes leading to
such action, stating simply that Mr..
/ Bigelow would no longer be mem
Der.
Ruined by Wheat.
An intimate friend of President
BigeIow said:
Bigelows their name and the bank
large sum of money. It is a family
tragedy as we'll as a tremendous shock
| to the financial circles Of the city
The father Frank G. Bigelow, had
Chicago speculative connections with
the firm of Tracy & Co, in which his
son, Gordon BigelOw, was member
''In the late Armour Gates wheat
battle and the sharp fluctuations OF
the market which have come during
the last few days Gigelow senior and
Bigelow junior were caught, ana
caught for all that the bank directors
now report. Hitherto the family name
had been of the highest in the city,
and the failure will come as sad
shock to all who know them
News St r,e a Run.
Several of the prominent bankers Of
Chicago were called to Milwaukee in
conference with the directors of the
First National bank and promised TO
lend any assistance that might. be need
ed. Among the visiting bankers in con-
ference were z. A. Hammiu of the
Corn Exchange National bank; James
D F'ergan of the First National bank
and Orson Smith Of the Merchants
Loan & Trust company. A million and
| a half dollars was received from Chi
cago at O'clock. At that time the
news of the defaIcation had spread to
| such an extent as to cause run on the
tt40A4tAbAo14 Il 4A6 CE0WU which SdluGiEu
numbered about 200 and blocked the
sidewalk in front of the bank Those
who sought to. withdraw their funds,
/ however, are the small depositors and
they were paid off as rapidly as they
made their demands. There has been
no great demonstration so far, the de-
positors acting calmly. Several police
men have been detailed to maintain
order
There has been no excitement at any
! Of the other banks.