The Detroit times., 1911-02-09
Flaring Announcements in Space
Bought From Detroit Newspapers,
with the Exception of The
Times, a Bit Premature.
Bank Not Yet An Authorized Institu.
ton Under State Laws, Despite
Ad.-Stormy Career.
BY FINANCE.

eeption of The fines, the Metropoii-
AN State bank will probably not open
Tor business on April 18th, the date
set by promoters. At least. II II does
. will open under different auspices
Ihan those which have been prom
anent IN it's organization and promo,
ion for the past two years. Benino
inis lies an interesting story OF himsy
inanciering at which ] have hinted
from time to time In answer TO IN
: suiries about the Metropolitan state
bank stock. -.
At the outset let me assure all
stockholders that their interests VIII
De protected under plan OF reorgan.
lzation that Is now under way ana
hat they will rot be likely TO lose
IN their investments. A letter mas
been sent out calling meeting or
he stockholders OF the Metropolitan
20 be held Feb. IL. and at this meet
fi,g President Henry G. Wiedeman and
several directors who are associated
: with him will put forward plan TOT
contamination, reducing the capital
stock from $1.0Jn,O0O TO $25O.O0O and
will invite those who have subscribed
ior stock to JOIN them. Any stock.
holders who decire 10 withdraw VIII
receive their money back.
This action on the part OF President
Wiedenan and II ose associated with
him is taken as the only means OF
Gutting the bank on its feet and In
position to open for business with any
,hance OF success. II means, OF
course, the elimination OF the firm or
~ J. Francis Walsh & Co., which mas
/. Jeen the promotion end Of the organ
cation up to the present time.
For an institution that has never
rad the right to dc banking business,
he Metropolitan State has had a long
and somewhat unusual history, list
u officers and directors at times I'M
,osing. but suffering severely from
Withdrawals, designations, and nat de-
q iials of any connection with the In
3titutiop and a great deal or publicity
desirable and otherwise.
I, At one time II was announced that
"a big eastern banking syndicate would
AXE control. After little investiga-
ion these parties turned the proposi-
ion down and from time to time vari-
sus prominent Detroiters were men,
/. TONED to serve as president. Last
tumner the firs. president to be for
+, r Bielman, but after holding the office
,nly a short time he resigned. follow
ne tho example of most OF the board
,r directors, which was announced at
That time
i The original basis Of organization
sas somewhat peculiar. Under the
articles OF incorporation which were
granted last March (these articles by
he way, did not give the bank the
.,ght to do a banking business though
representations of that nature are
,eid to have been made to prospec-
i've stockholders) under these arti-
les $3.50 OF the 10000 shares OF the
)ank were issued to s. Francis Walsh
G Co., the remainder being taken by
den associated with Mr.. Walsh under
1 contract to pay $135 per share for
[. This was to be sold for $3.50 per
share and the promoters would take
,tout S150,000 out OF the advertised
800 900 surplus as their share. This,
n course, iy somewhat unusual in the
iotation or bank
About July 1, when the stock was
,ot going very fast, money was need
I'd to keep the promotion office going,
10 the Metropolitan State bank,
;hich had as yet no right to do a
;anlxing business voted to s. Francis
Walsh & Co. loan OF s25. 900. When
his was discovered by the published
lst OF directors most OF them, as
rave said. resigned.
President Bielman. however, stood
" the ship until security to cover
he loan was given by Joseph Walsh,
II Flint, father o. the daring young
bank promoter. IL does not appear
whether cash was actually given to
he promoting company on this au-
hority That is one OF the things to
)e determined by the audit of the
BOOKS which is Icing made by How
ard Beck.
From the record of stock sales"
4 appears that there have been sold
and paid for In one way or another
749 shares for which s. Francis Walsh
& Co. must account.
At the contract price of $135 per
share, this amounts to s101,115, more
than half Of which In represented by
notes, II 10 said. In addition there
we're 90 shares subscribed for upon
which nothing has been paid and 134
shares for which subscriptions were
signed, but upon which acceptance Is
refused. These unpaid and refused
stock subscriptions throw a light on
the curious method by which proInin-
emit names were received for the di-
rectory's list, for most of these shares
In these lists were issued to parties
who were at one time or another
announced as directors. All that a
man had to do apparently was to
signify his willingness to serve and
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 to explain the wholesale
designations. and Withdrawals which
have broken up the board.
At the present time the unsold por-
3 don OF the $3.50 shares, issued 70 s.
Francis Walsh a Co, is held In trust
by President II. c. Wiedeman. This
amounts to 1887 shares. Thus the
3 firm OF 8. Francis Walsh a Co, rs
already in the cold so far as the Met
ropolitan IL concerned.
In connection with the organization
of the Metropolitan there have been
some interesting incidents. At one
lime the former state banking com.
missioner made an attempt TO exam
inc the books and to see how the in
hofnO OrQanfznd Mr..