The Providence news. (Providence [R.I.]) 1891-1906, 1905-04-25
FOR S1,450,000
EMBEzzLEMENT
+. G. BigsIoW, Bank President,
Arrested al Milwaukee.
CONFESSED CRIME TO DIRECTORS
used Banks Money 10 Speculate In Stocks
and Was a Hsay Loser In the
Wheat Pit
CONFESSED CRIME TO DIRECTORS


bank of Milwaukee was arrested yester-
day charged with the embezzlement Of
over 100000 of the banks funds. The
arrest OF Mr.. Bigelow followed his con-
fession TO the board of directors OF the
bank. that he was a defaulter 10 the ex-
tent of 81. $4,000.
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, sworn TO by United
States District Attorney II. X. Butter
field. charges that Bigelow, as pres-
dent of the First National bank. en-
bezzled a sum exceeding 100000.
A complaint and warrant Identical
with those in Bigelow's case were made
out TO Henry @. Coil. assistant cashier
OF the bank, but Coll could not be
found.
Bigelow was taken before United States
Commissioner Bloodgood and bail was
fixed at S25. 900 He was released 10 APP
pear before the next Federal grand jury.
EVERY DOLLAR GONE.
President Bigelow's confession was
made a a special meeting of the board
OF directors Saturday evening. lie met
with the directors yesterday and all last
night.
In addressing his fellow directors Presi-
dent Bigelow said he had a painful state
ment TO make. a confession that he had
misdirected the funds of the bank and
that an examination OF his books and a
comparison OF figures would show that
he was indebted 10 the bank for more
than 81. $4,000.
This money. he said had been lost in
speculation IN wncHr and Stocks Not
dollar OF II could be recovered, and the
only sum he could offer toward compen-
sat ting the bank was personal securities
valued at $500 600.
Mr.. Bigelow has been recognized as
among the foremost financiers OF the
Northwest. He has been associated with
the First National bank in various ca
pacities for more thanV~ years and his
business connections with trust COM
panies, manufacturing copcerns, real es-
tate deals and other similar ventures
| numbered scores.
He was honored year ago by election
to the presidency OF the American Bank
ers association.
READY FOR A RUN.
In making his statement to the directors
OF the bank Mr.. Bigelow said he had be-
come involved I'm speculation in Wall
street several months ago. More recently
he had been a persistent bull I'm the wheat
market, and recent losses in grain had
been added TO heavy reverses In Wall
street
From small manipula tions OF the banks
funds. he had extended the defalcations
until his shortage had passed the million
dollar mark.
Funds were at once provided by the
directors Of the bank to protect de-
positors against loss and to save the bank
from stampede. More than a million
dollars ~ fha
various stockholders and no serious run
was made on the bank today. IL is not
thought that any complications with
creditors OF the bank will follow.
During the meeting OF directors which
was almost continuous for SO hours. sew
eral plans were suggested for protecting
the interests Of the bank
one, II vs. said, was to accept the resig-
nation or the president and to permit
him 10 go 10 Europe. while the directors
make good the amount OF his shortage
This would effectually protect the bank.
This alleged proposal never came 20 n
conclusion. because several directors de-
manded that the defaulter be punished
CASHIER COLL REMOVED.
A plan TO make UP the shortage for the
protection of depositors was then ap-
proved
Bigelow was removed from the presi
dency OF the bank and the case was ro-
fcrred 20 the federal officers
When the federal marshall called at
the Bigelow house 10 serve the warrant
the former bank president was In his
library with his wife Mrs. Bigelow re-
fused 10 withdraw and the warrant was
read In her presence.
The banker kissed his wife an affection
ate farewell and went with tho officers TO
the Federal building. There United
States commissioner was in waiting.
When the resolution was adopted re-
moving Mr.. Bigelow from the presidency
of the bank, Henry Coll 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 method adopted was an old one.
Collection accounts were manipulated
To the extent OF 40 or 10 per cent. TO
make it appear that the reserve fund
was intact, and the amount of the in
creased collection fund was diverted to
special stock operations.
The reserve maintained I'm eastern la nis
was tampered with. the books OF the
First National hank being fixed so that
the reserve appeared 10 be larger by sew
eral hundred thousand dollars than IL
really was. These and other methods
were pursued by Bigelow I'm securing
money from the bank.
CLEVER MANIPULAToRs.
The manipulation OF accounts has been
statement OF one OF the directors, but so
cleverly was the work done that neither
the. directors nor the national bank ex-
alniners discovered anything wrong with
the funds OF the bank.
The first intimation that there were ir-
regulaIitics Canlo TO Charles y. Pnster,
a director, Friday evening. when an EN-
ploye of the bank gave Mr.. Pfister infor-
nation sufficient 80 start on investiga-
ton.
As soon "A the directors asccrtained
- sf.ga
were taken To- protect the depositors and
other cpeditors. Charles r. Pfister sub
scrfbed s0p.0 90 a fund 10 make good
the surplus. John l. Bong president of
the Milwaukee Electric Railway and
Light company. gave AneD.
William Rigclow. a brother or the pres
ident added siUncn 10 the amount and
other directors subscribed lesser sums
until the amount raised reached Sl.eS 90.
RUSH or DEPOSITORS.
Prior 10 this the directors had been IN
conference with bankers in Chicago and