Jasper County Democrat, Volume 8, Number 4, Rensselaer, Jasper County, 29 April 1905 — BANK PRESIDENT SHORT $1,500,000 [ARTICLE]

BANK PRESIDENT SHORT $1,500,000

Defalcation Causes a Run on the First National at Milwaukee. * DEPOSITORS WILL LOSE NOTHING Directors Meet and Subscribe Funds to Make Up Deficit. One Million Five Hundred Thousand Dollar* in Cash Arrives at the Bank from Chicago—President Speculated. Milwaukee, Wis., April 27.—Frank G. Bigelow, the defaulting bank president, has confessed an indebtedness to t>a ukß, commercial InstitutlonS and tates of which he had charge, w’hich will aggregate between $2,000,000 and $3,000,000, and, based on his confession, a voluntary petition in bankruptcy has been filed in the United States district court which, contains the names of as many of Mr. Bigelow's creditors as he can remember, together with a list of assets, on which Mr. Bigelow’s valuation is $1,410,000. Milwaukee, Wis., April 26.—The run on the Milwaukee Trust company bank and the First National bank of Milwaukee ceased entirely in the afternoon and business in these institutions was resumed under normal conditions. Milwaukee, Wis., April 25. —Frank G. Bigelow, president of the First National bank of this city, and former president of the American Bankers’ association, has defaulted the bank’s funds to the extent of $1,500,000. The directors of the bank have deposited in the bank a sum sufficient to make the institution perfectly solid. Mr. Bigelow has been arrested. The capital of the First National is $1,500,000 and the surplus is $1,200,000. Mr. Bigelow has signed over property to the bank amounting to $300,000, making his net defalcation about $1,200,000.

Bank Has Good Backing. Aside from the surplus, which will meet the amount of the defalcation, the sum of $1,635,000 has been subscribed by directors to meet any demands which may be made on the bank. The aggregate wealth of the directors who subscribed funds to meet any requirements of the bank approximates $20,000,000. The comptroller of the currency has been notified and has been asked to make an immediate examination of the bank. Mr. Bigelow admits that the amount had been lost in speculation and that he had falsified the books to cover up the defalcation. Henry G. Goll, assistant cashier of the bank, has been removed, charged with having been a party to the falsification of the figures in the bank’s books. Funds to Meet Deficit. The announcement of the defalcation was made by George P. Miller, one of the directors of the bank. A notice has l>een issued by the directors announcing that a sum has been subscribed sufficient to protect the depositors. Charles F. Pfister headed the list of directors who subscribed large amounts to meet the deficit Mr. Pfister’s subscription is $600,000. Mr. Bigelow was in his office at the bank as usual up to noon looking over books and papers. His manner was greatly agitated. Arrangements were being made for the arrest of Mr. Bigelow and probably Mr. Goli. / Foremost Place tn Finance. Mr. Bigelow has long occupied a foremost place In the financial transactions of Milwaukee. Only last year be was president of the American Bankers' association. He is also prominent in Milwaukee’s social set Several of the prominent bankers of Chicago were called to Milwaukee In conference with the directors of First National bank and promised) to lend any assistance which might be needed. A million and a half dollars was received from Chicago at 1 o’clock. At that hour, the news of the defalcation had spread to such an extent as to cause a run on the institution. The crowd which gathered numbered about 500 people. Bigelow Released on Ball. Bigelow was arrested charged with violation of the national banking laws. He was released on $25,000 bond and allowed to return to his home. He appeared completely broken down. Henry G. Goll, assistant cashier of the First National bank, who is charged in the United States district attorney’s complaint with emblezxling a sum exceeding SIOO,OOO of the bank’s funds, has not yet been arrested. United States Marshal Thomas B. Reed, said, however, that be expected to take Goll into custody during the day.