The Detroit times., 1908-01-24
SHOWS
up GLAzIER'S !,
DEALINGS
eoe.s,...a l..- y...s rss.., I


tce.ti.ssa fro. FIRST Psrs.D
Issued after 1t was paid for, d oth<v
words. on prepayment for the sazne.
Later, tho following subscx1ption fog
the Increased capitalization n shOwns
II. p. Glaxier. 1853 SHARE Of
common stock. 10000 shares VI pre-
ferred stock; H. J. Simpson. 1,2s0
shares OF common stock. 1000 shares
OF preferred stock; 3. G. etiupD0n.
625 shares OF common etock, 6o0
shares OF preferred stock; Vera Ola
zier, 1880 shares Of common stock,
1000 shares of preferred stock; w. ,.
Knapp. 416 shares Of common stock
333 shares OF preferred stock: w. r.
Schenck, S32 shares OF common stock.
See shares OF preferred stock: G. p.
Collins, 1900 shares OF common stock
1000 shares Of preferred stock
1t Ia a fair inference from the rec.
ords that these subscribers were large-
stock being * prepaid md that the dr.
ferent parties were charged with the
amounts OF the subscriptions, and that.
larger portion OF this stock ana used
IL as collateral for value. >to-wit. ON
Oct. 81. 1907. there 10 a credit on the
this stock and charge against 0la-
zier on account thereof
The only inference that I can draw
zier knew he was goihg to faii ana
n a aa Ss ssem to his sns sirsady inrxs
diaaier s Stove s' CO. T For on NJ that day
there is credited To SAKE Stimson e1l,-
$50. II. J. stimson y2e5oo. Vera Gla-'
zer his s son s2soo H knepp d
r. Collins, $4,000: He charges 70 Elm
as am informed. these Items. inciud-
| Ing certain other items. which would
include apparently the subscriptions for
so This s change against as hmse
ever. ~ not entered until Nov. 80. 1907.
when the bank had ceased doing bust
meyer is explained by the credit to
Harold Glacier.
What Glaxier Took.
Previous TO these entries, Glnxier had
taken, under date OF May 2, 1901, prac-
ticaliy all OF the Increased fssue OF this
preferred stock: the first as certincates
| OF preferred stock. a total OF $4,000
shares OF the par value OF $4b0.00O: he
and used for value as collateral. being.
careful. however, not to allow his own
bank to get any or the preferred stock.
company and the inventoty Tor several
months prior 10 this period have not
yet been obtained. so that all OF the
| Information with reference TO this ma
nipulation is not at hand.
/ find nothing until the latter part
| OF November. 1907. 10 Indicate that no
put anything into his company I'm .ex-
change for the stock which he had
previously taken and used under
stand that then he gave two notes, one
ye Sssrs s aae one Ap eo. a.sss
May 2. 1907, due in three years, both
signed by GLACIER. payable to- the orr
der OF MS com company, n'ea na appar rnses
4 are so drawn that no interest could be
| collected on them until they matured.
Arbitration ' Of the stock Of the company
under representation that II had ceen
prepaid In cash. the books would fndi~
cate that Giazier was. IN ract. largely ss
| the year 1907 and was using the COM
pany and It's credit for his own pur-
AS shown by the books. in the latter.
part OF 1907 he was indebted to the
company in an amount OF upwards OF
10000. In addition to this. the bills
amount to about }270.ooo Neverthe-
less. OF that amount only sl2s:ovo ap-
pears S sss ss piyaSdc
abouts. arises, as / am advised. through
| Giaaier taking credit on the books Of
his e, that noe IN n' si.a
4
payable. as IL should have been In
| addition to these two Items IS the
5000, zoe In notes above referred to-.
Some time after July I. 1907, a d.
rectors' meeting OF the GlaYter stove
! Co. was held. at which Mr.. Glazler was
present Al that meettng a. res
\ olution was adopted authorizing Frank
| r, Glazier. as president OF the Gia-
zier stove Co. to use the name OK
the stove company, as indorser on a. bis
| 900. showing conclusiveiy that he was
using the credit OF the company at
that time uniawfuliy ana for his own
have offered this in order that
you might know how Glazier vfewed
| his own financial condition during the
4 year 1907 and the measures he took TO
| bolster up his own credit.
| Merriam then turns his attention TO
the Glaxier bank and reports what has
| bank. as TO how its affairs We're hand
| led, and adding that there was no way
I I'm which the governor eeaid Know A.
to who the borrowers or the bank
4 were. or what the security was. Then
| the attorney says.
From the foregoing I submit that
Il cconciusively appears that ne knew
1 tinuing TO keep the deposits of the
4 state In his bank and TO add TO them.
| that both himself and his bank were
,insolvent. and submit that this the
! most serious OF the written charges
preferred against him. Is fully sus-
4 n In. "a
Reverting again briefly to the matter
| OF interest on the deposit which was
wholly in his discretion 70 Ak and
which he was charged with the sta
| tutory duty OF fixing for the best In
terests OF the state. am advised that
/ II appears from the ledgers In his Of
| five that the banks In Grand Rapids
4 and Detroit which We're used by him
| as repositories. those which were
| charged the same rate OF Interest
which was charged against his bank,
| that these other repositories = having
money on that basis were checked
against frequently during each month.
often daily.
/ II must appear also that even
though he had required an ample
| bond from his bank he has. so In
| jured his own credit and standing OF
| the bank that the moneys OF the state
| therein could not be ready FOR the
use OF the state when called Tor. a.
the statute provides. As a trustee or
the funds he can neither use them
himself nor do any act which fmperfis
| them.
IL needs no argument to cohvince
| one that he has used the moneys OF
the state. and other deposftoriess I'm
the bank Ia wrongful manner
\ when he has borrowed money from
| the bank leaving the bank Insecure.
| when the loans TO himself. his ASSOC
ciates, family and friends are found
4 to exceed the limit prescribed by the
banking laws: when he has not re-
CURED the same security. for his own
dictate to the directors should be re-
quired OF other parties. and when he
has failed TO secure, apparently. the
/ auproyal of his directors for some OF