The Detroit times., 1908-07-31
gov. WARNER
\ FACES PROSECUTION
\ j AS AN OFFICER OF
~ PENNINGTON BANK


1887 provides that in the case OF any
brokers holding themselves out as
bankers. that on their sign and sta
ttionery the names of the persons car
trying on the business shall appear.
So 1t Is apparent that as to the own
ers OF the business OF the Farming.
ton Exchange Bank, they are violat-
Ing the law. -.
The penalty for such violation as
fixed In the act Is. upon conviction. a
fIne or not over $500 and costs. orlby
imprisonment of not more than six
months: and under section 5276 the
state treasurer is to refer such mat
ters to the attorney general. who may
begin suits In the county where the
business Is being done.
II am not able to furnish you with
the names OF all the parties against
whom these suits should be brought.
though the so-called officers OF the
bank would probably be proper sub
tJects. In the last Legislature Manual.
published by the state, in the bio
lgfaphical notice OF Gov. Fred nj. War
finer, II states that he is owner In IL
| cheese factories and is a stakeholder
A
tchange Bank
I 1iled report or statement thus far TO
FIX the ownership of this business as
LOO the proportionate individual inter
2e1ts therein.
IAN act was passed being No. 10l
I ~ the laws OF 1907, to regulate the
ICnrrying on of business under an az
- Anff m q
that certificate should be filed with
M 80 days after the act took effect
showing the true or real full name or
names OF the person or persons own
1hg. conducting or transacting the
zarne with the home or postoffice ad-
'k1ress or addresses OF said person or
tpersons.'
II think such q certificate should be
a1led with the county clerk OF Oakland
kspunty. but after search of his rec
k}fds, he was not able to find IL. and
,sT conclude II was never filed. This
net provides that failure to comply
with It's provisions, shall be punished
ION conviction with a fine OF not less
than SIS, nor more than 500. or by
Imprisonment In the county jail for
. u term not exceeding thirty days; or
~ such fine and Imprisonment, IN
die discretion OF the court.
t'.1 enclose a form OF the note which
the brokers calling themselves the
Harrington Exchange Bank put out
n which the form OF their transactions
- shown.
N~That a Arm Of brokers should thus
hold out their institution as a public
bank, doing business under the bank.
ing laws OF the state. subject to the
state inspection and state regulation
az these people seem to have done
for term OF years. is not only most
extraordinary, but most misleading.
IL not only deceives depositors. but
at two of the leading banks Of the
state I was met by the surprise OF
the officials when they were advised
that the Pennington Exchange Bank
so-called. was a combination OF pri.
vate brokers instead OF an organized
bank. where deposits and transactions
are safe-guarded by the state.
''in the legislative session OF 1s05-06.
when certain banking legislation was
there pending, Gov. Fred NJ. Warner
attention was called to the fact that
his Pennington bank as II was term
ed. was not complying with the law
as 10 his sign and his advertising, and
this fact came shortly after to my at
tention. Now. that he IL recommend
ing important changes In our
banking system. which would
require the most rigid and hon
est supervision OF banks and banking,
81 IL important that the executive
head Of the state, whose duty IL is to
nee all the laws executed, should be
eet hight and brought I'm obedience 10
The law before these most important
o6diffonal duties are put upon him.
Yours respectfully.
ARTHUR HILL