The Detroit times., 1911-02-08
METROPOLITAN is TO
REORGANIZE WITHOUT WALSH


stock subscriptions throw light on
the curious method by which promin'
ent names were received for the d.
rectors list for most of these shares
I'm these lists were issued TO parties
who were at one time or anotner
announced as directors. All that a
man had to do apparently was 10
signify his willingness TO serve ana
his name was given to the papers,
stock was issued TO him and the d.
rector's oath was presented for his
signature. Apparently no payment
whatever was required on the stock.
This helps 10 explain the wholesale
destinations and Withdrawals which
have broken up the board.
AT the present time the unsold por-
ton of the $3.50 shares, issued 10 s.
Francis Walsh & Co., Is held In trust
by President H. c. Wiedeman. This
amounts to 1887 shares. Thus the
firm of S. Francis Walsh q Co, Is
already in the cold SO far as the Met
ropolitan is concerned.
In connection with the organization
OF the Metropolitan there have been
some interesting incidents. AT one
time the former state banking com.
missioner made an attempt TO exam
Inc the books and to see how tha IN
stitution was being organized. Mr..
Walsh called In his attorney and upon
mis- advice the information was re-
fused. This was in accordance with
the Interpretation which the attorney
generals Office put upon the law and
the commissioner had-to retire With
out seeing the books.
At another time prospective
stakeholder asked to look over the
records of the organization and per-
mission was granted by Mr.. Walsh.
George Sweet, who held the position
of acting cashier, showed him through
the minutes of the directors meet.
ings. There were many lapses In the
records, however. minutes for sever
al of the weekly meetings being miss
ing Upon demand for them they
were produced after further consulta-
ton with Mr.. Walsh, and 1t was dis
covered that every record showing
any doubtful transaction between the
Metropolitan bank and 8. Francis
Walsh & Co. had been carefully cut
out OF the books that were shown
to the ordinary inquirer.
Another of the difficulties with
which the Metropolitan has had to
contend is the supervision of the Car
negie Trust Co, in New York, in
which funds TO the credit of s. Fran
els Walsh & Co., supposedly derived
from the sale of stock, were on de-
post. The amount tied up there Is
said TO have been about $4,000 but
Il will eventually be paid In full. This
suggests the parallel between the or.
ganization of the Carnegie Trust and
the Robins bank, to which the Car
negie failure was attributed and the
Metropolitan State Bank.
State Banking Commissioner Ed
ward III. Doyle when asked II his de-
partment had taken any action in re-
gard TO the Metropolitan state said:
Il have kept in touch with the insti-
tuition and have looked carefully into
its methods of organization. | have
found some things-that were not
quite satisfactory In connection With
II, but I feel sure that the reorganiza-
ton plan, which is under way, viii
put IL on its proper basis"
II is stated that the men who are
associating with Mr.. Wiedeman, in
the attempt to rehabilitate the or
ganization OF the Metropolitan are
men of the highest standing In De
troit and the state and II their plans
go thorugh. Detroit will have a new
sound banking institution With the
proper backing to insure success.