The Detroit times., 1911-02-08
Metropolitan II
TO RE0RGAnIz[
WITHOUT WALSH
fiaring Announcements in 1pood
Bought From Detroit Hswspapssu
with the Exception Of The
Times, Bit Premature.
Bank Not Yet An Authorized Instifu.
tion Under State Laws, Dsspite
Ad.-Stormy Career.
BY FINANCE.

In spite or the rather fiaring A.
nouncements that have appeared -
oil the papers OF Detroit with the a.
ception OF The Times, the MetroDolf>
tan State bank Will probably not oDon
for business on April 18th, the dnfa
set by promoters. At least. IL II doo4
't viii open under different auspices
than those which have been prom
inent IN its organization and promo
ton for the past two years. Behind
this lies an interesting story Of nimny
inanciering at which I have hinto6
from time to time In answer to M
guiries about the Metropolitan state
bank stock
AT the outset let me assure an
stockholders that their interests viii
he protected under a plan of rcorrn1-
ization that Is now under way ana
that they will rot be likely to loee
On their invessments. A letter has
been sent out calling a meeting of
the stockholders OF the Metropoiifan
to be held Feb. IL. and at this meet
ing President Henry G. wiedeman and
several directors who are associated
with him will put forward plan TOR
reorganization, reducing the capital
stock from $1,0je,000 TO $25O.O00 and
will invite those who have subscribod
for stock to JOIN them. Any stock
nolders who deciFe to withdraw will
receive their money back.
This action on the part of President
Wiedeman and ttose associated with
him Is taken as the only means OF
Lutting the bank on its feet and IN q
position TO open for business with any
chance OF success. II means, OF
course, the elimination OF the firm OF
5. Francis Walsh & Co, which has
been the promotion end Of the orxnss.
ization up TO the present time.
For an institution that, has uovor
bad the right to dc banking busln6ss.
the Metropolitan State has had q long
end somewhat unusual history. q Iiek
of officers and directors at times i'm
posing, but suffering severely from
Withdrawals. designations, and fiat de-
malls OF any connection with the In
stitution and a great deal OF publicity
desirable and otherwise.
Al one time II was announced that
big eastern banking syndicate would
lake control. After little investiga-
ton these parties turned the PROPOSE
tion down and from time to time varf-
Gus prominent Detroiters were men
toned TO serve as president Last
summer the frs. president to be for.
mally announces as such was Charles
' Bielman, but after holding the once
only a short time he resigned, follow
Ing the example OF most of the board
of direltors, which was announced at
hat time.
The original basis of Organization
was somewhat peculiar. Under the
articles or incorporation which were
granted last March Cthese articles by
he way, did not give the bank the
right 10 do banking business though
representations of that nature are
seid to have been made to prospec-
tive stockholders)-- under these arti-
cles $3.50 OF the 10000 shares OF the
bank were issued 10 s. Francis Walsh
II Co.. the remainder being taken by
snen associated with Mr.. Walsh under
contract TO pay $135 per share for
H. This was TO be sold for $50 per
share and the promoters would take
arout S150,000 out OF the advertised
100000 surplus as their share. This.
81 course, is somewhat unusual In the
fotation of a bank.
About July 1, when the stock was
not going very fast, money was need.
ed to keep the promotion Office going.
40 the Metropolitan State bank,
which had as yet no right to do a
Lanking business voted to s. Francis
Walsh Il Co. loan of $4,000. When
this was discovered by the published
list OF directors most of them, as L
have said, resigned
President Bieiman, however. stood
6y the ship until security to cover
The loan was given by Joseph Walsh.
nf Flint, father o. the daring young
bank promoter. Il does not appear
whether cash was actually given 70
the promoting company on this a,i-
thority That Is one OF the things 10
be determined by the audit OF the
books which is icing made by How
ard Beck.
From the record of stock sales
II appears that there have been sold
and paid for in one way or another
7i9 shares for which s. Francis Walsh
& Co. must account.
At the contract price OF S135 per
share. this amounts to s101.1l5. more
than half OF which is represented BY
notes, Ii is said. In addition there
were 30 shares subscribed for upon
which nothing has. been paid and 134
shares for which subscriptions were
signed. but upon which acceptance A.
refused. These unpaid and refused
tCentinsed on rnEe Nf.e.t
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