22783. Wisconsin Trust Company (Milwaukee, WI)

Bank Information

Episode Type
Run Only
Bank Type
trust company
Start Date
April 25, 1905
Location
Milwaukee, Wisconsin (43.039, -87.906)

Metadata

Model
gpt-5-mini
Short Digest
5174daf0

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected

Description

Multiple contemporary articles (Apr 25–28, 1905) report a large run on the Wisconsin Trust Company (the savings department of the First National Bank of Milwaukee) following the confession and arrest of President Frank G. Bigelow for a $1,450,000 defalcation. The bank did not suspend in these reports; directors and correspondent banks sent funds and subscribers advanced capital to meet withdrawals, and officers prepared to keep the institution open.

Events (1)
1. April 25, 1905 Run
Cause
Bank Specific Adverse Info
Cause Details
Run triggered by the public revelation of a $1,450,000 embezzlement/defalcation by President Frank G. Bigelow.
Measures
Directors subscribed $1,635,000; funds/money sent from New York and Chicago banks; receiving tellers operated through a hole cut in front window to accept deposits; extra clerks and police detailed to handle crowds.
Newspaper Excerpt
Throngs on East Water street were besieging the Wisconsin Trust company, the savings bank department of the First National bank, and here the run assumed the greatest proportions.
Source
newspapers

Newspaper Articles (12)
1. April 25, 1905 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, April 25, 1905

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also be withdrawn at the opening of bus ness tomorrow. Throngs on Ea t Water street were besleging the Wiseonsin Trust, com pany savings bank department of the First National bank and there the run assumed the greatest proportions. When the do I'S closed fully 2,000 anx. lous men and women surrounded the doérs of the bank and trust company, elemoning for their money, Bank Has Many Friends. But while many depositors were seeking to withdraw the funds other people who believe in the soundness f the bank were com ng forward with deposits. So persistent were friends of the bank in offering money for deposit that when the bank closed theer was a line of depositors in waiting in opposition to the line waiting to withdraw money. While the bank could not honor checks it could receive deposits, and to facilittate the business of depositors, the bank was cleared at the hour for closing and a hole cut through the plate glass window on the Wisconsin street front. Receiving tellers were stationed here and until a late hour this evening depositors were there leaving their money. Officials of the bank expect a resumpt on of the run tomorrow. Money is on the way from New York to strengthen the resources of the bank, and the directors expect to meet all demands promptly. They claim the actual condition of the bank has no: been impaired by the Bigelow defalcation. The statement of the financial condition of the bank March 14, the last financial statement formally issued, shows total resources $199,567 271, capital $1,500,000; surplus $500,000: undivided profits, $42,323.10; circulaCon, $350,000; deposits, $16,574,948.34. Bige'ow's defalcation amounts to about $1,450.000, but he restored $300,000. The directors have subscribed 1,635,000 more, thus leaving the bank better off by about $400 000 than it vas before the funds were depleted y the peculations of the president. Bigelow Once a Millionaire. Bigel: W himself is left a poor men. it one time he was personally rated 'S a million and his fortune has been lost as well as the sum taken from he bank. His total losses in speculaon in two years is estimated at over 3,000.000. Late in the day Bigetow gave the required $25,000 bond and was re a ed.

2. April 25, 1905 The Waxahachie Daily Light Waxahachie, TX
Article from The Waxahachie Daily Light, April 25, 1905

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LARGE SHORTAGE, Bank President Confesses to Defalcation of Over Million Dollars. Milwaukee, April 25.-Frank G. Bigelow, until Monday president of the First National bank of Milwaukee, was arrested, charged with the embezzlement of over $100,000 of the bank's funds. The arrest of Mr. Bigelow followed his confession to the board of directors that he was a defaulter to the extent of $1,450,000. Following Mr. Bigelow's confession he was removed from the presidency of the bank, and the facts of the case were laid before the Federal authorities. The complaint was sworn to by Unit. ed States District Attirney Butterfield. It charges that Bigelow, as president of the First National bank, embezzled a sum exceeding $100,000. A complaint and warrant identical with those in Bigelow's case were made out to Henry G. Goll. assistant cashier of the bank. President Bigelow was before United States Commissioner Bloodlow Monday night. He waived hearing, and was held to the Federal grand jury under $35,000 bonds. Dr. H. N. Brown and A. N. McGeoch certified as securities, and Bigelow was released. The announcement of the defalcation was followed by a rush of depositors to withdraw their money from the Wisconsin Trust company and the First National bank, the Wisconsin Trust company being the savings department of the bank. Many thousands of dollars were withdrawn, but on the other hand, a large number of people having confidence in the Institution increased their deposits. Arrangements were hastfly made to meet the run, President Bigelow's confession was made at a special meeting of the board of directors Saturday evening and continued Sunday and all Sunday night. In addressing his fellow directors President Bigelow said he had a painful statement to make, a confession that he had misdirected the funds of the bank. and an examination of his books and a comparison of figures show that he was indebted to the bank to the amount of over $1,450,000. 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 compensating the bank was his personal securities. valued at approximately $300,000. When the Federal marshal called at 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 affectinate farewell and left with the officer, the two walking to the Federal building. where a court commissioner was in waiting None of Mr. Bigelow's friends were in the clurt room during the brief proceedings. When the resolution was adopted removing Mr. Bigelow from the presidency of the bank Henry Goll. assistant cashier. was also removed. The removal of the assistant cashier was due to the statement of Mr. Bigelow that he was alded by Goll In concealing the shortage in the bank's accounts. The method adopted was an old one. Collection accounts were manipulated to the extent of 40 and In some cases C 50 per cent. to make it appear that the

3. April 25, 1905 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, April 25, 1905

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HEAVY DEFALCATION. (Continued from First Page.) make it appear that the amount reserve of to intact, and the difund increased was collection fund was The the to special stock operations. banks verted maintained in eastern of the reserve with, the books that the was tampered being fixed so First to be larger reserve dollars than it thousand National appeared really pursued by was. several and other methods were from the These in securing money records by the falsifying of of reserves, bank. the Bigelow manipulation In Assistant Bigelow and he was aided by in declares Goll and two bookkeepers acted on Cashier bank. These bookkeepers have the orders of Bigelow and suspended, they the been discharged nor witnesses in neither will be called as the and criminal they proceedings against manipulathe bank president. The on accounts has been according to the former tion of going statement cleverly for of months, the directors, but so the one of work done that neither examwas the the national bank with anything wrong of the bank: The funds there were iners the directors discovered nor irregularities first intimation that Charles F. Pfister, a director, of came to evening, when an employe information Friday bank gave Mr. Pfister Then the start an investigation. and sufficient followed a to meeting of the directors the confession. as the directors ascertained steps As soon extent of the peculations depositors the full taken to protect the F. Pfiswere other creditors. Charles fund to and $600,000 to a ter the surplus. John of the Milwaukee president make subscribed good I. Electric Beggs, gave and Light company brother of $300,000; Railway William Bigelow, $100,000 a to the president, added amount. sums until the amount lesser the Other directors subscribed raised reached $1,635,000. this the directors had Chicago been Prior to with bankers in York. As a result and New Milwaukee by in conference sent to the $1,000,000 Chicago defalwas before the news of hunbankers was made public. Several was cation thousand dollars in gold to the First banks so that dred by transferred local institution National bank was prepared the for bank a run. closed this afternoon for When 2,000 depositors were waiting was some Nearly $1,000,000 their money. two hours, and many their cuspaid out demanding in the closing of of tomers, not been served. One accounts, had a business man the first callers a check was for $100,000, He was the who of his account. by the city entire followed presented amount funds. treasurer, Withdraw- who of city to $10,drew $800,000 ranging from $1,000 o'clock als in sums followed, and by 2 extend000 quickly afternoon a line of people Wisconsin in the bank east on other ed from the and in the street to Broadway, corner and north direction around the The Chamber in East Water was street. one of the concerns funds. of Commerce quick to withdraw its several that was of Wisconsin has bank, The state thousand dollars in the hundred not withdrawn to-day. which was in East Water street The besieging depositors the Wisconsin Trust of Co., the were bank department run on and the First assumed the of large savings the savings National department bank, great- the Depositors withdrawest amounts proportions. apparently became ceased well known, als who sought and of the after those customers the facts their savings depositors deposits bank were while many savings funds, But seeking to withdraw their soundwere persons who Ibelieve in the forward other of the bank were coming closed ness deposits, and when the bank counwith a line of depositors withdraw to terbalance there was the line waiting to money. the bank was cleared through at the When of closing, a hole was cut Wisconhour plate glass window in the late hour the street front. and until a there sin this evening depositors were leaving there of the money. bank are preparing for Officers possible run to-morrow. of A request twenty any made for a detail extra force of to handle policemen, has be been employed and an the New business clerks York will is on the way from bank, to Money strengthen the resources of the

4. April 25, 1905 The Times Dispatch Richmond, VA
Article from The Times Dispatch, April 25, 1905

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CONFESSED THEFT OF OVER A MILLION (Continued from First Page.) forty or even fifty per cent. to make It appear that the reserve fund was Intact, and the amount of the increased collection fund was diverted to special stock operations. The reserve maintained in Eastern banks was tampered with, the books of the First National being fixed so that the reserve appeared to be larger by several hundred thousand dollars than It really was. These and other methods were pursued by Bigelow in securing money from the bank. In falsifying. the records and the manipulation of reserves, Bigelow declares he was aided by Assistant Cashier Goll and two bookkeepers in the bank. These bookkeepers noted on orders of Bigelow, and they have neither been discharged nor. suspended." and they will be called as witnesses in the criminal proceedings against the former bank president. The manipulation of accounts has been going on for months, according to the statement of one of the directors, but so cleverly was the work done that neither the directors nor the national bank examiners discovered that anything was wrong with the funds of the bank. Depositors Protected. The first intimation that there were irregularities came to Charles F. Pfister, a director, Friday evening. when an employe of the bank gave Mr. Pfister information sufficient to start an investigation. Then followed a meeting of the directors and the confession. As soon as the directors ascertained the full extent of the speculations, steps were taken to protect the depositors and other creditors. Charles F. Pfister subscribed $600,000 to a fund to make good the surplus. John I. Beggs, president of the Milwaukee Electric Railway and Light Company, gave $300,000. William Bigelow, a brother of President Bigelow, added $100,000 to the amount. Other directors subscribed lesser sums until the amount raised reached $1,635,000. Run on Bank. When the bank closed this afternoon, some two thousand depositors were waiting for their money. Nearly $1,000,000 was paid out in two hoyrs, and many customers, demanding the closing of their accounts, had not been served. One of the first callers was a business man, who presented a check for $100,000, the entire amount of his account. He was foilowed by the city treasurer, who drew out $300,000 of city funds. Withdrawais in sums ranging from $1,000 to $10,000 quickly followed, and soon a long line of people was waiting to withdraw. The depositors in East Water Street were besinging the Wisconsin Trust Company, the savings department of the First National Bank and the run on the savings department assumed the greatest proportions. Depositors of large amounts apparently ceased withdrawals after the facts became well known, and those who sought their deposits, were customers of the savings bank. But, while many savings depositors were seeking to withdraw their funds, other persons who believe in the soundness of the bank, were coming forward with deposits. Officers of the bank are preparing for any possible run to-morrow. A request has been made for a detail of twenty policemen, the same number that was required to handle the crowds to-day, and an extra force of clerks will be employed to handle the business. Money is on the way from New York to strengthen the resources of the bank, and the directors expect to be able to meet all demands promptly. They assert that the bank has

5. April 26, 1905 Bryan Morning Eagle Bryan, TX
Article from Bryan Morning Eagle, April 26, 1905

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LARGE SHORTAGE. Bank President Confesses to Defalcation of Over Million Dollars. Milwaukee, April 25.-Frank G, Bigelow, until Monday president of the First National bank of Milwaukee, was arrested, charged with the embezzlement of over $100,000 of the bank's funds. The arrest of Mr. Bigelow followed his confession to the board of directors that he was a defaulter to the extent of $1,450,000. Following Mr. Bigelow's confession he was removed from the presidency of the bank. and the facts of the case well laid before the Federal authorities. The complaint was sworn to by United States District Attirney Butterfield. It charges that Bigelow,- as president of the First National bank, embezzled a sum exceeding $100,000. A complaint and warrant identical with those in Bigelow's case were made out to Henry G. Goll, assistant cashier of the bank. President Bigelow was before United States Commissioner Bloodlow Monday night. He waived hearing, and was held to the Federal grand jury under $35,000 bonds. Dr. H. N. Brown and A. N. McGeoch certified as securities, and Bigelow was released. The announcement of the defalcation was followed by a rush of depositors to withdraw their money from the Wisconsin Trust company and the First National bank, the Wisconsin Trust company being the savings department of the bank. Many thousands of dollars were withdrawn, but on the other hand, a large number of people having confidence in the institutiin increased their deposits. Arrangements were hastily made to meet the run, President Bigelow's confession was made at a special meeting of the board of directors Saturday evening and continued Sunday and all Sunday night. In addressing his fellow directors President Bigelow said he had a painful statement to make, a confession that he had misdirected the funds of the bank. and an examination of his books and a comparison of figures show that he was indebted to the bank to the amount of over $1,450,000. 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 compensating the bank was his personal securities, valued at approximately $300,000. When the Federal marshal called at 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 affectinate farewell and left with the officer, the two walking to the Federal building, where a court commissioner was in waiting. None of Mr. Bigelow's friends were in the clurt room during the brief proceedings. When the resolution was adopted removing Mr. Bigelow from the presidency of the bank Henry Goll. assistant cashier was also removed. The removal of the assistant cashier was due to the statement of Mr. Bigelow that he was aided by Goll In concealing the shortage in the bank's accounts, The method adopted was an old one. Collection accounts were manipulated to the extent of 40 and In some cases 50 per cent, to make It appear that the reserve fund was intact, and the : amount of the increased collection fund was diverted to special stock operations. The reserve maintained in eastern banks was tampered with, the / books of the First National being fixed so that the reserve appeared to be larger by several hundreds of thousands ( of dollars than It really was. Directors raised $1.635,000. one of them subscribing $600,000. -

6. April 26, 1905 Palestine Daily Herald Palestine, TX
Article from Palestine Daily Herald, April 26, 1905

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LARGE SHORTAGE. Bank President Confesses to Defalcation of Over Million Dollars, Milwaukee, April 26.-Frank G. Bigelow, until Monday president of the First National bank of Milwaukee, was arrested, charged with the embezzlement of over $100,000 of the bank's funds. The arrest of Mr. Bigelow foilowed his confession to the board of directors that he was a defaulter to the extent of $1,450,000. Following Mr. Bigelow's confession he was removed from the presidency of the bank, and the facts of the case were laid before the Federal authorities. The complaint was sworn to by United States District Attirney Butterfield. It charges that Bigelow, as president of the First National bank, embezzled a sum exceeding $100,000. A complaint and warrant identical with those in Bigelow's case were made out to Henry G. Goll. assistant cashier of the bank. President Bigelow was before United States Commissioner Bloodlow Monday night. He waived hearing, and was held to the Federal grand jury under $35,000 bonds. Dr. H. N. Brown and A. N. McGeoch certified as securities. and Bigelow was released. The announcement of the defalcation was followed by a rush of depositors to withdraw their money from the Wisconsin Trust company and the First National bank, the Wisconsin Trust company being the savings department of the bank. Many thousands of dollars were withdrawn, but on the other hand, a large number of people having confidence in the institution increased their deposits. Arrangements were hastily made to meet the run, President Bigelow's confession was made at a special meeting of the board of directors Saturday evening and continued Sunday and all Sunday night. In addressing his fellow directors President Bigelow said he had a painful statement to make, a confession that he had misdirected the funds of the bank. and an examination of his books and a comparison of figures show that he was indebted to the bank to the amount of over $1,450,000. 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 compensating the bank was his personal securities. valued at approximately $300,000. When the Federal marshal called at 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 affectinate farewell and left with the officer, the two walking to the Federal building, where a court commissioner was in waiting. None of Mr. Bigelow's friends were in the clurt room during the brief proceedings. When the resolution was adopted removing Mr. Bigelow from the presidency of the bank Henry Goll, assistant cashier was also removed. The removal of the assistant cashier was due to the statement of Mr. Bigelow that he was aided by Goll in concealing the shortage in the bank's accounts. The method adopted was aniold one. Collection accounts were manipulated to the extent of 40 and In some cases 50 per cent. to make It appear that the reserve fund was intact. and the amount of the increased collection fund was diverted to special stock operations. The reserve maintained in eastern banks was tampered with, the books of the First National being fixed so that the reserve appeared to be larger by several hundreds of thousands of dollars than it really was. Directors raised $1.635,000, one of them subscribing $600,000.

7. April 27, 1905 Iron County Register Ironton, MO
Article from Iron County Register, April 27, 1905

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# BIGELOW DEFALCATION dency of the bank, Henry Goll, assistant cashier, was also removed. The removal of the assistant cashier was due to the statement of President Bigelow that he was aided by Goll in concealing the shortage in the bank's accounts. The method adopted was an old one. Collection accounts were manipulated to the extent of 40 and in some cases 50 per cent., to make it appear that the reserve fund was intact and the amount of the increased collection fund was diverted to special stock operations. The reserve maintained in eastern banks was tampered with, the books of the First national being fixed so that the reserve appeared to be larger by several hundreds of thousands of dollars than it really was. These and other methods were pursued by Bigelow in obtaining money from the bank. In the falsifying of records and the manipulation of the reserves, Bigelow declares he was aided by Assistant Cashier Goll and the two bookkeepers in the bank. These bookkepers acted on the orders of Bigelow, and they have neither been discharged nor suspended, and they will be called as witnesses in the criminal proceedings against the former bank president. As soon as the directors ascertained the full extent of the peculations steps were taken to protect the depositors and other creditors. Charles E. Pfister subscribed $600,000 to a fund to make good the surplus; John I. Beggs, president of the Milwaukee Electric Railway & Light Co., gave $300,000; William Bigelow, a brother of the president, added $100,000 to the amount. Other directors subscribed lesser sums until the amount raised reached $1,635,000. Prior to this the directors had been in conference with the leading bankers of Chicago and New York, Three Chicago bankers, Presidents J. L: Forgan of the First national bank; Orson Smith of the Merchants' Loan & Trust Co., and Ernst A. Hammill of the Corn Exchange national bank-three of the leading financial institutions of Chicago-came to Milwaukee on an early train and went into conference with the directors of the First national. As a result of this meeting $1,000,000 was sent to Milwaukee by Chicago banks to reach the city before the news of the defalcation was made public. Several hundred thousand dollars in gold was transferred to the First national by local banks, so that institution was prepared for the run that was inevitable, Every precaution had been taken to keep the fact of the shortage from the public until the affairs of the bank could be put in condition to meet any emergencies that might arise. When the bank closed its doors Monday afternoon more than 2,000 depositors were clamoring for their money. Nearly $1,000,000 had been paid out in the course of two hours, and but a small percentage of the customers demanding the closing of their accounts had been served. One of the first callers was a business man who presented a check for $100,000, the entire amount of his account. He was followed by the city treasurer who drew out $300,000 of the city funds. The throngs on East Water street were besieging the Wisconsin Trust Co., the savings bank department of the First national bank, and here the run assumed the greatest proportions. When the doors of the bank closed fully 2,000 anxious men and women surrounded the doors of the bank and the trust company, clamoring for their money. But while many depositors were seeking to withdraw their funds, other people who believed in the soundness of the bank were coming forward with deposits. And so persistent were the friends of the bank in offering money for deposit that when the bank closed there was a line of depositors in waiting in opposition to the line awaiting to withdraw their money. Money is on the way from New York to strengthen the resources of the bank, and the directors expect to be able to met all demands promptly. They claim that the actual condition of the bank has not yet been impaired by the Bigelow defalcation. At nine o'clock Monday night everything was quiet in the vicinity of the bank. Posted on all the windows and the stone columns to the entrance to the bank were printed notices issued by the directors, stating the various amounts subscribed opposite their names, which, it is said, will more than meet the amount of the defalcation. These were eagerly read by passers-by as well as those who have money on deposit. The notice, in a great measure, had a good effect on many who feared for the safety of their deposits. The bank is said to be amply prepared to meet all demands which may be made by depositors. Bigelow is left a poor man by his speculations and the surrender of the securities to the bank. At one time he was personally rated as a millionaire, and this fortune has been lost as well as the sum taken from the bank. His total losses in speculation of various kinds in two years are estimated by his friends at upward of $3,000,000.

8. April 27, 1905 The Bamberg Herald Bamberg, SC
Article from The Bamberg Herald, April 27, 1905

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Bigelow Made Way With $1,450,000 of Bank Funds. LOST ALL IN SPECULATION President of First National of Milwaukee Creates Great Sensation by Confessing to Enormous Embezziement. Frank G. Bigelow, president of the First National Bank of Milwaukee, was arrested Monday, charged with the embezzlement of over $100,000 of the bank's funds. The arrest of Mr. Bigelow followed his confession to the board of directors of the bank that he was a defaulted to the extent of $1,450,000. Following Mr. Bigelow's confession be 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 H. K. Butterfleld. It charges that Bigelow as president of the First National Bank embezzled a sum exceeding $100,000. A complaint and warrant, identical with those in Bigelow's case, were made out to Henry G. Goll, assistant cashier of the bank. President Bigelow was arraigned before United States Commissioner Bloodgeod. He waived a hearing and was held to the federal grand jury unfer $25,000 bond. Dr. H. N. Brown and A. N. McGeoch certified as sureties and Bigelow was released. The arnouncement of the defalcation was followed hy a rush of depositors to withdraw their money from the First National and from the Wisconsin Trust company, the savings department of the bank. Many thousands of dollars were withdrawn, but, on the other hand, large numhers of people having confidence in the institutions, increased their deposits. Arrangements were hastily made to meet the run, and the officers of the banks express full confidence in their ability to keep them open. President Bigelow's confession was made at a special meeting of the board of directors held Saturday evening, and continued Sunday and all of Sunday night. In addressing his fellow directors, President Bigelow said be had a painful statement to makea 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 ne was indebted to the bank to the amount of over $1,450,000. 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 reccmpensating the bank was personal security, valued approximately at $300,000. The confession astounded the directers of the bank. Mr. Bigelow had been recognized as one of the foremost financiers of the northwest. He has been associated with the Fir% National Bank in various capacities for more than fifteen years, and his business connections-trust companies, manufacturing concerns, real estate deals and other similar ventures— number scores. He was honored a year ago by election to the presidency of the American Bankers' Association, and by its members looked upon as a leader in financial matters. In making his statement to the directors of the bank, Mr. Bigelow said be had become involved in speculation several months ago. This was on Wall street. More recently he had been a persistent bull in the wheat market, and recent losses there had added to heavy reverses on Wall street. From small manipulations of the:bank's funds, he had extended the defalcations until his shortage had reached the present stage. He saw no opportunity or possibility of making up the amount, and therefore confessed.

9. April 28, 1905 The Red Cloud Chief Red Cloud, NE
Article from The Red Cloud Chief, April 28, 1905

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SHORT $1.450,000 WAUKEE BANK PRESIDENT IS A HEAVY DEFAULTER. si He Lost Money Speculating rain and Stocks-Run Begins or irst National and Wisconsin Trust ompany-Cashier Goll Missing. filwaukee. April 25.-Frank elow, until yesterday president First National bank of Milwau . was arrested, charged with the bezzlement of over $100,000 of the k's funds. The arrest of elow followed his confession board of directors of the 1 he was a defaulter to the extent $1,450,000. Following Mr. 's confession he was removed presidency of the bank and the si in the case were laid before the eral authorities. he complaint was sworn to ted States District Attorney ield. It charges that Bigelow, sident of the First National bank bezzled a sum exceeding $100,000 complaint and warrant identica h those in Bigelow's case de out for Henry G. Goll. assistant hier of the bank, but Goll could found. President Bigelow en before United States Court sioner Bloodgood. He waived hear and was held to the federel grand y under $25,000 bond. Dr. Horac Brown and Arthur N. McGeocl tified as sureties and Mr. Bigelov ; released. The next federal y has not yet been summoned. President Bigelow's Confession. resident Bigelow's confession de at a special meeting of rd of directors, held Saturda ning and continued Sunday. In ssing his fellow directors. Presiden elow said he had a painful state nt to make-a confession that I misdirected the funds of the 1 that an examination of his book I a comparison of figures would w that he was indebted to k to the amount of over $1,450 . This money, he said, had beer t in speculation in wheat cks. Not a dollar of it could overed and the only sum he r toward recompensing the re personal securities valued at ximately $300,000. 'he confession of President , astounded the directors of k. Mr. Bigelow had been recog ed as one of the foremost finar rs of the northwest. He has bee ociated with the bank in variou

10. April 28, 1905 The Weekly True Democrat Tallahassee, FL
Article from The Weekly True Democrat, April 28, 1905

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BANK HARD HIT BY DEFAULTER President of Milwaukee Institution Embezzles $1,450,000. RESULT OF SPECULATION Bigelow Confessed to Directors That Collapse in Wheat and Dabbling in Stocks Caused Downfall. Frank G. Bigelow, president of the First National Bank of Milwaukee, was arrested Monday, charged with the emlezzlement of over $100,000 of the bank's funds. The arrest of Mr. Bigelow followed his confession to the board of direc. tors of the bank that he was a defaulted to the extent of $1,450,000. Following Mr. Bigelow's confession be was removed from the presidency of the bank and the facts in the case were laid before the federal author.ties. The complaint was sworn to by United States District Attorney H. K. Butterfleld. It charges that Bigelow as president of the First National Bank embezzled a sum exceeding $100,000. A complaint and warrant, identical with those in Bigelow's case, were made out to Henry G. Goll, assistant cashier of the bank. President Bigelow was arraigned before United States Commissioner Bloodgeod. He waived a hearing and was held to the federal grand jury under $25,000 bond. Dr. H. N. Brown and A. N. McGeoch certified as sureties and Bigelow was released. The ar nouncement of the defalcation was followed by a rush of depositors to withdraw their money from the First National and from the Wisconsin Trust company, the savings department of the bank. Many thousands of dollars were withdrawn, but, on the other hand. large numhers of people having confidence in the institutions, increased their deposits. Arrangements were hastily made to meet the run. and the officers of the banks express full confidence in their ability to keep them open. President Bigelow's confession was made at a special meeting of the board of directors held Saturday evenontinued Sunday and all of ing. and Sunday night. In addressing his fellew directors, President Bigelow said be had a painful statement to makea confession that he had misdirected the funds of the bank, and that an examination of his books and a comyarison of figures would show that re was indebted to the bank to the amount of over $1,450,000. This money, he said. had been lost in speculat:on in wheat and stocks. Not a do:lar of it could be recovered, and the only sum he could offer toward recompensating the bank was personal security, valued approximately at $300,000. The confession astounded the direc ters of the bank. Mr. Bigelow had been recognized as one of the fore. most financiers of the northwest. He has been associated with the F1% National Bank in various capacities for more than fifteen years, and his business connections-trust companies, reanufacturing concerns, real estate deals and other similar ventures— number scores. He was honored a year ago by election to the presidency of the American Bankers' Association. an1 by its members looked upon as a leader in financial matters. In making his statement to the dfrectors of the bank, Mr. Bigelow said he bad become involved in speculation several months ago. This was on Wall street. More recently he had been a persistent bull in the wheat market, and recent losses there had added to heavy reverses on Wall street. From small manipulations of the bank's funds, he had extended the defalcations until his shortage had reached the present stage. He saw Γ.o opportunity or possibility of mak. ing up the amount, and therefore confessed.

11. April 28, 1905 The Jasper Weekly Courier Jasper, IN
Article from The Jasper Weekly Courier, April 28, 1905

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the brief proceedings When the resolution was adopted relieving Mr. Bigelow from the presidency of the bank, Henry Goll, assistant cashier, was also removed. The removal of the assistant cashier was due to the statement of President Bigelow that he was aided by Goll In concealing the shortage in the bank's accounts. The method adopted was an old one. Collection accounts were manipulated to the extent of 40 and in some cases 50 per cent., to make It appear that the reserve fund was intact and the amount of the increased collection fund was diverted to special stock operations. The reserve maintained in eastern banks was tampered with the books of the First national being fixed SO that the reserve appeared to be larger by several hundreds of thousands of dollars than it really was. These and other methods were pursued by Bigelow in obtaining money from the bank In the falsifying of records and the manipulation of the reserves, Bigelow declares he was aided by Assistant Cashier Goll and the two bookkeepers in the bank. These bookkepers acted on the orders of Bigelow and they have neither been discharged nor suspended,: and they will be called as witnesses in the criminal proceedings against the former bank president. As soon as the directors ascertained the full extent of the peculations steps were taken to protect the depositors and other creditors. Charles E. Pfister subscribed $600,000 to a fund to make good the surplus; John 1. Beggs, president of the Milwaukee Electric Railway & Light Co., gave $300,000; William Bigelow, a brother of the president, added $100,000 to the amount. Other directors subscribed lesser sums until the amount raised reached $1,635,000. Prior to this the directors had been in conference with the leading bankers of Chicago and New York, Three Chicago bankers, Presidents J. L: Forgan of the First national bank: Orson Smith of the Merchants Loan & Trust Co., and Ernst A. Hammill of the Corn Exchange national bank-three of the leading financial institutions of Chicago-came to Milwaukee on an early train and went into conference with the directors of the First national. As a result of this meeting $1 was sent to Milwaukee by Chicago banks to reach the city before the news of the defalcation was made public. Sev. eral hundred thousand dollars in gold was transferred to the First national by local banks so that institution was prepared for the run that was inevitable. Every precaution had been taken to keep the fact of the shortage from the public until the affairs of the bank could be put in condition to meet any emergencies that might arise. When the bank closed its doors Monday afternoon more than 2,000 depositors were clamoring for their money Nearly $1,000,000 had been paid out in the course of two hours. and but a small percentage of the customers demanding the closing of their accounts had been served. One of the first callers was a business man who presented a check for $100,000, the en tire amount of his account. He was followed by the city treasurer who drew out $300,000 of UA city funds. The throngs on East Water street were besieging the Wisconsin Trust Co., the savings bank department of the First national bank, and here the run assumed the greatest proportions. When the doors of the bank closed fully 2,000 anxious men and women surrounded the doors of the bank and the trust company, clamoring for their money. But while many depositors were seeking to withdraw their funds, other people who believed in the soundness of the bank were coming forward with deposits. And so persistent were the friends of the bank in offering money for deposit that when the bank closed there was a line of depositors in waiting in opposition to the line awaiting to withdraw their money. Money is on the way from New York to strengthen the resources of the bank. and the directors expect to be able to met all demands promptly. They claim that the actual condition of the bank has not yet been impaired by the Bigelow defalcation. At nine o'clock Monday night everything was quiet in the vicinity of the bank. Posted on all the windows and the stone columns to the entrance to the bank were printed notices issued by the directors. stating the various amounts subscribed opposite their names. which, it is said, will more than meet the amount of the defalcation. These were eagerly read by passers-by as well as those who have money on deposit. The notice, in a great measure. had a good effect on

12. May 1, 1905 Vilas County News Eagle River, WI
Article from Vilas County News, May 1, 1905

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Total $19,567,271.44 Thousands Clamor for Deposits. When the bank closed its doors yesterday® afternoon, more than 2,000 depositors were clamoring for their money. Nearly $1,000,000 had been paid out in the course of two hours and but a small percentage of the customers demanding the closing of their accounts had been served. One of the first callers was a business man who presented a check for $100,000, the entire amount of his account. He was followed by the city treasurer, who drew out $300,000 of city funds. The Chamber of Commerce was one of the concerns that was quick to withdraw its funds. The state of Wisconsin has several hundred thousand dollars deposited in the bank and it is said that this will also be withdrawn at the opening of business today. Great Throngs in Line. Throngs on East Water street were besieging the Wisconsin Trust company, the savings bank department of the First National bank, and here the run assumed the greatest proportions. When the doors were closed fully 2,000 anxious men and women surrounded the doors of the bank and trust company, clamoring for their money. But while many depositors were seeking to withdraw their funds, other people who believed in the soundness of the bank were coming forward with deposits. Friends Also Persistent. So persistent were the friends of the bank in offering money for deposit that when the bank closed there was a line of depositors in waiting in opposition to the line awaiting to withdraw money. While the bank could not honor checks it could receive deposits and to facilitate the business of the depositors, the bank was cleared at the hour for closing and a hole cut through the plate glass window on the Wisconsin street front. Receiving tellers were stationed here and until a late hour last evening depositors were there leaving their money. Millions on the Way. The officials of the bank expect the resumption of the run today. Money is on the way from New York to strengthen the resources of the bank and the directors expect to meet all demands promptly. They claim that the actual condition of the bank has not yet been impaired by Bigelow's defalcation. Restored Part of Loss. Bigelow's defalcation amounts to about $1,450,000 but he restored $300,000. The directors have subscribed $1,635,000 more, thus leaving the bank better off by about $400,000 than it was before the funds were depleted by the peculations of the president. Left a Poor Man. Bigelow himself is left a poor man. At one time he was personally rated a millionaire. This fortune has been lost, as well as the sum taken from the bank. His total losses in speculation in two years are estimated at over $3,000,000. In addition to his banking interests,