The Red Cloud chief., 1905-04-28
IS SHORT S1.45O.OOO
MILWAUKEE BANK PRESIDENT
is A HEAVY DEFAulTER.
Says He Lost Money Specializing In
Grain and Stocks-Run Begins on
COMPREHENSIVE Coll Missing.

Company-CaShler Coll MkSsIng'
Milwaukee. April 25.-Frank G.
Bigelow, until yesterday president OF
the First National bank OF Milwau.
kee. was arrested, charged with the
ENLIGHTENMENT of over 100000 Of the
banks funds. The arrest of Mr..
Bigelow followed his confession to
the board OF directors of the bank
that he was a d%efaulter to the extent
of $1.450,0OO Following Mr.. Bige.
lows confession he was removed from
the presidency of the bank and the
facts in the case were laid before the
federal authorities.
The complaint was sworn to by
United States District Attorney But
terfeld. 1t charges that Bigelow, as
president OF the First National bank.
embezzled a sum exceeding 500, 600.
A complaint and warrant identical
with those in Bigelow's case were
made out for Henry G Coll, assistant
cashier of the bank. but Coll could not
be found. President Bigelow was
taken before United States Court Com
missioner Bloodgood. He waived hear
ing and was held to the federel grand
jury under $25.0 900 bond. DR.. Horace
N. Brown and Arthur N. McGeoch
certified as sureties and Mr.. 'Bigelow
was released. The e federal grand
jury has not yet been summoned.
President BigeIow's Confession.
President Bigelow's confession was
made at a special meeting of the
board Of directors. held Saturday
evening and continued Sunday. In ad-
dressing his fellow directors. President
Bigelow said he had a painful state
ment to make-a confession that he
had instructed the funds of the bank
and that an examination of his books
and a comparison of figures would
show that he was indebted to the
bank to the amount Of over $l,450,-
600. This money. he said, 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 recompensing the bank
were personal securities valued at ap-
proximately $500. 0O0.
The confession Of President Bige.
low astounded the directors OF the
bank. Mr.. Bigelow had been recog.
niZed as one of the foremost finan.
ciers of the northwest. He has been
associated with the bank in various
capacities for more than fifteen years
and his business nections-trust
| onr,noninc p,onnfo of,ripD onnnnrno
real estate deals and other similar
ventures-number scores. He was
honored a year ago by election to
the presidency Of the American Bank.
ers' association and by its members
was looked upon as q leader in fnan'
cial matters.
In making his statement to the d.
rectors of the bank Mr.. Bigelow said
he had become involved in speculation
several months ago. This was on Wal
street. More recently he had been a
persistent bull In the wheat marke,
and recent loss there had added tc
heavy reverses on Wall street. From
small m%anipulations Of the banks
funds he had extended the defalca
tions until his shortage had reached
the present stage. He saw no oppor
tunity or possibility Of making up the
amount and therefore confessed.
Run on the Bank.
Over 81, 900. 900 was sent to Milwau
kee by Chicago banks to reach tht
city before the news of the d~efalcatioI
was made public. Several hundred
thousand dollars In gold was trans
ferred TO the First National by ,oca
banks, so that institution was pre-
pared for the run that was expected
When the bank closed its door
more than 1000 depositors were clam
oring for their money. Nearly 81 900
600 had been paid out in the cours
Of two hours and but a small percent
age OF the customers demanding tn
closing Of their accounts had beef
served. The throngs on East Wate
street were ~besieging the Wisconsin
Trust company. the Savings bank de
partment OF the First National bank
and here the run assumed the grea,
est proportions. But while many dc
positors were seeking to WITHDRAW
their funds. other people who believ,
in the soundness OF the bank wer,
coming forward with deposits.
President Bigelow's d~efalcatioI
amounts to about S1,45O. 900. but h,
restored $500. 900. The directors hav,
subscribed $~1,635,000 more. Bigeloy
himself is left a poor man by his spec