The Saint Paul globe., 1905-04-25


the Bigelow residence to serve the
warrant the former bank president was
in the library with his wife. Mrs.
Bigelow refused to withdraw, and the
warrant was read in her presence.
I'll be ready to go with you at
once" said the banker.
Then he kissed .his wife an affections
ate farewell with walked to the federal
building, where court commissioner
was in waiting. None of Mr.. Bigelows
friends was in the courtroom during
the brief proceedings.
Assistant Cashier Helps
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 short
age in the banks accounts The meth
od adopted was an old one. Collection
accounts We're manipulated to the ex-
tent OF 40 and in some instances 80
per cent. TO make il appear that the
reserve fund was intact and the amount
OF the increase in the collection fund
was devoted to stock operation The
reserve maintained in eastern banks
was tampered with, the books of the
First National being fixed so that the
reserve appeared 10 be larger by sew
eral thousands of dollars than it really
was. These and other methods were
pursued by Bigelow in looting the
bank
In the falsifying of records and the
manipulation of the reserves BigeloW
declares he was aided by Assistant
cashier Coll and two bookkeepers il
the bank. These bookeepers acted or
the orders of Bigelow and have neither
been discharged nor suspended They
viii be called as witnesses in the Grim
mai proceedings against the former
bank president.
The manipulation of accounts has
been going on for months. according tC
the statements of one of the directors
put so cieVerly was the work done thai
neither the directors nor the nationa
Dank examiners We're able to discover
that anything was wrong with the
funds of the bank. The first intima-
tion that there were Irregularities came
10 Charles Pfster one of the directors
Friday evening. An employe of the
bank called at Mr.. PfiSter's home anC
told him he had something to reveal
While his information was meager il
was sufficient to awaken the suspi-
cions of Mr.. Pfister and to start an in
vestigatien. President Bigelow wa:
taxed with the Irregularities and is saiC
10 have admitted his guilt Then fol
lowed the meeting of the directors anC
the full confession.
Protect Creditors
As soon as the directors ascertaineG
the full extent OF the populations, steps
were taken to protect the depositors
~ or
subscribed S60000 to a fund to make
good the surplus. John 1. Beggs. pres
ldent of the Milwaukee Electric Light
and Gas company. gave 100000. Will
lam Bigelow, a brother of the cashier
acded 100000 to the amount. Other
directors subscribed lesser sums unit
the amount reached $1.635,000.
Prior TO this the directors had beer
in conference with leading directors
of Chicago and New York. Three Chi
cago NEUTRALITY-SUSPICIOUS. ]. l. Forgar
OF the First National bank, Orsor
Smith of the Merchants Loar
and Trust company and Ernest A
Hammil of the Corn Exchange Ma
ticnal bank, three of the leading finan-
cial institutions of Chicago, came t
Milwaukee on an early train. AS re-
suit of this conference $1.O00,O00 wa!
sent from Chicago. Several hundred:
ed by local banks, so the institution
was prepared for the run that was ex-
pected. Every precaution had beer
taken to keep the shortage from th'
public until the affairs of the banl
could be placed in position to NEE
any emergency that might arise.
Run Begins
When the bank closed its doors this
afternoon more than 1900 depOsitOr.
were .clamoring for their money. Near
ly $1,000,000 had been paid out i'm tive
hours and but a small percentage o.
the customers demanding the closing
OF their accounts had been served.
One of the first callers was bust
ness man, who presented a check fol
100000, the entire amount of his ac-
count. He was followed by the city
treasurer, who drew out $500 900 of the
city funds. Withdrawals in sums
ranging from $1,000 to $4,000 quickly
followed, and by 2 o'clock in the aft
ernoon a line of people extended from
the bank east on Wisconsin street tC
Broadway, and in the other direction
around the corner and north on Eas
Water street.
AS soon as the news of the defalca-
tion reached the offices of the chamber
meeting of the board of directors was
held and the entire amount on de-
pOSit with the First National bank was
ordered withdrawn. Secretary Lang
ston called at the bank in person anC
closed the account. He refused to state
the amount withdrawn. The state OF
Wisconsin has several hundred dollars
in the bank and it is said that also viii
be withdrawn at the opening of busi-
ness tomorrow.
The throngs on East Water street
were beSieging the Wisconsin Trust
company, the savings banks depart
ment of the First National, and here
the run assumed the greatest proper
tions. When the doors of the bank
closed fully 1000 anxious men ant
women surrounded the doors of the
bank and trust company. clamoring fQl
their money. But while many depos-
itors were seeking to withdraw theil
funds, other people who believe in the
soundness of the bank were coming
forward with deposits. So persistent
were the friends of the bank in Offering
money for deposit that when the banl
closed there was line of depositors IL
waiting in opposition to the line await
ing TO withdraw money.
Through Hole in Window
While the bank could not honor
checks, 1t could receive deposits, ant
to facilitate the business of depositor:
the bank was cleared at the hour fol
closing and hole was cut through the