The Yale expositor., 1908-01-31

( state Of Michigan. and presumed to
conform to and enforce the laws, did.
tional loan OF thirty. thousand dollars.
which, had the same been granted, the
Indemnify rate OF the Detroit United
bank or which you are vice. president,
would have been only II As per cent.
II have violated the law and should
resign. what should you do?
Your fifth charge Is OF gross neglect
In depositing state funds in the Chelsea
Savings bank. of which i was a stock
should have known of the banks imam
cial condition. and that the security
given for such deposits were In no
solvent before II was closed and that
IL was solvent when the last deposit OF
state funds was made therein. And 1
believe that IL IL solvent today
My answer to the NTH charge covers
also your sixth and seventh charges.
You certainly will not claim you were
ignorant of compiled laws Sec. 6132, by
which the commissioner of the banking
department is required to make an an
state which shall exhibit a summary
OF the state and conditions of every
bank, with an abstract of the whole
the the Whole amount Of their i@f debts AND and
| liabilities; the total amount of means
and resources, and separating the re-
ports of such banks and other corpora
tions and specifying the amount of
lawful money held by the banks at the
time OF their several returns. and such
other information in relation to such
banks and corporations as in his Judg
ment may be required. Neither Will
you claim that the commissioner did
not report to you as required by this
section.
The Chelsea Savings bank made and
/ filed with the commissioner the report
required by this statute; You have
stated in the public press that Mr. Zim
hermann. the banking commissioners,
called your attention to the condition
] ITnOn what base
your charge that | knew the bank was
in such a condition that the security
was not sufficient? III he did report.
and in his report showed the condition
of the bank and my knowledge with
was this delay in taking proceedings
against me until universal financial
crash Frustrated us?
paragraph s. wherein you charge that
the deposit made In the Chelsea bank
was made as an open account when in
fact 1t was intended as a time loan. is
tion; in fact the books OF the treasur-
er's office will show that calls were
made on that deposit the same as upon
the other like deposits whenever the
necessity OF the state required it,
BY the ninth charge you claim that
and maifeasance In ONCE. the state is
now unable to obtain the use of its
funds TO the amount OF 100000 and
%
several thousand dollars which were
illegally deposited by me and retained
on deposit during the. year OF 1907 in
the Chelsea Savings bank. there was
never an illegal deposit made by me in
the Chelsea Savings bank. or any other
bank. except possibly that made in the
Detroit United bank. OF which you were
, ice-president. Every deposit OF state
funds made by me in the Chelsea Saw
ings bank was made in strict compli-
ance with the statute, and there is no
reason TO believe that the state will
| ultimately lose dollar by reason of
the deposit Of state funds In the Chel-
sea Savings bank.
In round numbers the deposit OF the
state funds I'm the Chelsea Savings bank
Is $6S5,000. and the surety bonds given
amounts to s35000O and have every
| reason to believe and do believe that
the Chelsea Savings bank will pay dol
everybody who has Investigated the
matter at all. including the deputy
bank commissioner. admits that it will
nay at least so cents on the dollar, and
II II pays no more than that, then the
total security for the safe return Of
this $6S5, 900 is 1892 800.
Respectfully.
+. p. GLAZIER.
Gov. Warner has accepted the resig-
nation of Frank P. Glazier and has APP
pointed ex-Gov. John T. Rich, OF De-
troit. to succeed Glazier. He announces
his belief that Glazier is not mentally
responsible and quotes Atty. German
for GlaZier, to prove it.
Gov Warner instructed Atty Gen.
Bird to proceed with the public trial
of Glazier for his offenses as state
treasurer. Mr. Bird refused on the
ground that Glaciers resignation ad-
/ mitted the charges and ended the case
The governor then directed Attorney
/ ard T. IN x.,ffh
the hearing, which was done, Mr.. Bird
Withdrawing completely.
Seward l.. Merriam, personal attor-
ney of Gov. Warner. in the Glazier
hearing, charged that Glazier In his
handling OF both his bank and stove
company has committed criminal acts.
In addition to being presented in the
governors investigation evidence of
these acts will be placed in the hands
/ of the prosecuting attorney of Wash
tenaw county for prosecution.
Attorney German says that plans are
being made to have Chicago com.
pany take over and operate the Glazier
Stove works and possibly offer rs cents
on the dollar to Chelsea bank victims.
Glazier's point that he did not violate
the state law by depositing $3.50. 900 Of
state funds in the Chelsea bank is
overturned by the decisions OF the su-
preIse court In similar cases.
my report is in the hands of Gov.
Warner" said Attorney Merriam. HE
will take such action as he deems
best. What that action will be l do
not know, but know this. IL this had
occurred in Wayne county and I was
prosecutor. | would treat Mr.. Glacier
just as | would treat any other Grim
inal. No man. no matter what his sta
ton, should be allowed to break the
laws with impunity."
4 Frank Martin, OF Lennon, fell asleep
In the union depot in Durand