The San Francisco call., 1905-04-25
DIRECTORS PAY SHORTAGE.

DIRECTORS PAY SHORTAGE.
The manipulations 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 Examiners were able to dis
cover that anything was wrong. The
first intimation that there were irreg-
ularities came to Charles F. Pfister.
one of the directors. on Friday even
ing. An employe of the bank called
at Pfister's home and told him he had
something to reveal regarding the
bank. Although his confession was
meager it was sufficient to awaken
the suspicious of Pister and to start
an investigation. President Bigelow
was taxed with the irregularities and
he is said to have admitted his guilt.
Then followed the meeting of the di-
rectors and the full confession.
As soon as the directors ascertained
the full extent of the peculations,
steps were taken to protect the deposi-
tors and other creditors. Charles F.
Pfister subscribed 100000 to a fund
to make good the surplus; John I.
Biggs, president of the Milwaukee
100000; William Bigelow, a brother
of the president, added 100000 to the
amount. Other directors subscribed
lesser sums, until the amount raised
reached S1,635,000. Then the follow
ing statement was prepared and form
ally issued:
For value received, we. the under
signed, severally agree to advance and
pay to the First National Bank of Mil
waukee, 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 thirty days from this
date may be placed therein. Our
claims hereunder for reimbursement
shall be subordinate and postponed to
the claims of all depositors and other
ter. 100000; Fred vogel Jr.,
$500, 1000; John I. Peggs, $500. 900; E.
Mariner. 100000: Fred F. Coll,
$4,000; George p. Miller. $4,000; j.
H. Van Dyke Jr., $4,000; j. K. Kipp.
$4,000; Albert G. Trostel, $4,000;
August H. Vogel. 10000: William
Bigelow, 100000; total, s1,6S5.000
BIG RUN ON THE BANK.
Prior to this the directors had been
in conference with leading bankers of
Chicago and New York. Three Chi
cago bankers, President Forgan of the
First National Bank; Orson Smith, of
pany and Ernest A. Hamill of the
Corn Exchange National Bank, came
to Milwaukee on an early train and
went into conference with the direc-
tors of the First National. AS re-
suit of this meeting $1,000 was
sent to Milwaukee by Chicago banks
to reach the city before the news of
the defalcation was made public. Sew
eral hundred thousand dollars in gold
was transferred to the First National
Bank, SO that institution was prepared
for the run that was expected. Every
precaution was taken to keep the fact
of the shortage from the public until
the affairs of the bank could be put in
condition to meet any emergency that
might arise.
When the bank closed its doors this
afternoon more than 1000 depositors
were clamoring for their money. Near
ly 100000 had been paid out in the
course Of two hours and but a small
percentage Of the customers demand
ing the closing of their accounts had
been served. One of the first caIlers;
was business man, who presented a
check for 100000, the entire amount
of his account. He was followed ty
the City Treasurer, who drew out
$500, 900 of the city's funds. Withdraw
ais in sums ranging from $1,000 to
$4,000 quickly followed and by 2
o'clock in the afternoon a line of peo-
pie extended from the bank east ON
Wisconsin street to Broadway, and IN