The herald-advance. (Milbank, S.D.) 1890-1922, 1905-04-28
MONEY LOST IN SPECULATION
SAW NO POSSIBILITY OF MAKING
UP THE AMOUNT so He
CONFESSED.
DIRECTORS PROTECT BANK
MAKE UP SHORTAGE AND Sc
CURE ADDITIONAL FUNDS TO
MEET A RUN.

Milwaukee, April 26.-Frank G. Big
Glow. until yesterday president Oh the
FIRST National Bank of Milwaukee,
was arrested yesterday charged with
the empezzlement of 100000 Of the
banks funds.
The arrest Of Mr.. Bigeiow followed
his confession to the board of direc-
tors of the bank that he was a de-
faulter to the extent of 81 100000.
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 authorl-
ties
A complaint and warrant identical
with those in Bigelow's case We're
made out for Henry G. Coll, assistant
cashier of the bank, but Coll could not
be found up to 6 o'clock last night.
Released on Bail.
President Bigelow was taken before
United States Court Commissioner
Bloodsood. He waived examination
and was held to the federal grand
jury under $25 900 bond. DR.. Horace
NJ Brown and Arthur McGeesch certi-
fed as sureties and Mr.. BigelOw was
released. The next federal grand jury
has not yet been summoned, but it is
expected it will meet some time next
month.
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 directors
President Eigelow said that the money
had been
Lost in Speculation
in wheat and stocks. Not a dollar of
it could be recovered, and the only
sum he could offer toward recon-
pensing the bank was personal prop
erty valued at approximately $500, 600.
The confession of President Bige.
low astounded the directors of the
bank Mr. Bigelow has been recog-
nized As one of the foremost financiers
of the Northwest. In making his state
Inent to the directors of the bank, Mr..
BigeloW said he had become involved
in stock speculation several months
ago. From small manipulations of the
banks funds he had extended the de-
falcations until his shortage had
reached the present stage. He saw no
opportunity or possibility of making
up the amount, and, therefore, con
fessed.
Assistant Cashier Fired.
When the resolution was adopted re-
moving Mr.. Bigelow from the presi-
dency. Mr.. Coll, the assistant cashier,
was also removed. The removal of the
assistant cashier was due to the state
ment of President Bigelow that he
was aided by Coll in concealing the
shortage in the banks accounts. The
manipulation of accounts has been go
ing on FOR months. according to the
statement of one of the directors, but
SO cleverly was the work done that
leither he directors nor the national
bank examiners were able to discover
the fact that anything was wrong
with the funds of the bank. AS soon
as the directors ascertained the full
extent of the peculations steps were
taken to
Protect the Depositors
and other creditors. Charles F. Pfis-
ter subscribed 100000 to a fund to
make good the surplus John l.. Beggs
gave $300,CG0. William Bigelow,
lrother of the president, added $780,
600 to the amount. Other directors
subscribed lesser sums until the
amount reached $1,635,000.
Prior to this the directors had been
in conference with leading bankers
Of Chicago and New York AS re-
suit Of this conference 81 100000 was
sent from Chicago to reach Milwaukee
on an early train. Several hundreds
Of thousands of dollars were
Subscribed by Local Banks,
SO the institution was prepared for
the run that was expected. Every pre-
caution had been taken to keep the
shortage from the public until the af.
fairs of the bank could be placed in
position to meet any emergency that
might arise
When the bank closed it's doors yes
terday afternoon more than 1000 de-
pOsitors were clamoring for their
money. Nearly $1,0OO,OOO 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 But while
many of the depositors were seeking
to withdraw their funds, other people
who believe in the
Soundness Of the Bank