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STATE BANKING DEPARTMENT
REPORT OF THE COMMISSIONER
STATE OF MICHIGAN,
To the Honorable Aaron T. Bliss, Governor of Michigan:
I have the honor to submit the sixteenth annual report of this department in compliance with the provisions of section 43 of the General Banking Law of Michigan, as follows:
On the thirty-first day of December the Commissioner of the Banking Department shall make an annual report to the Governor of the State, which report shall be published and shall exhibit:
First, A summary of the state and condition of every bank from which reports have been received during the year, with an abstract of the whole amount of capital returned by them, the whole amount of their debts and liabilities, the total amount of means and resources, separating the reports of such banks and other corporations, and specifying the amount of lawful money held by banks at the time of their several returns, and such other information in relation to such banks and corporations as in his judgment may be required;
Second, A statement. of the banks and corporations whose business has been closed during the year, the amount of their resources and liabilities, and the amount paid to the creditors thereof;
Third, The names and compensation of the clerks employed by him, and the whole amount of expenses of the banking department during the year; Fourth, The amount of fees received for the examination of banks, or other corporations, and fines collected and paid over to the State Treasurer. In accordance with the provisions of sections 39 and 40 of the General Banking Law, all of the institutions under the supervision of this department have been examined during the year.
At the date of this report, there are two hundred and fifty-seven State banks, four trust companies and one society for savings under the supervision of this department. In the statistics following the number of banks is given at 248 State banks. This is caused by nine banks commencing business subsequent to September 6, the date of last call for report of condition. Statements showing the financial condition of all State banks and trust companies, as called for by this department four times during the year, and in addition thereto reports of the financial condition of the eighty-eight national banks of the State, are appended; as are also abstracts of the yearly reports for the past fifteen years, which show the progress and increasing
Twenty state banks have been organized during the year.
They are as
On July 30, 1904, the Department took possession of the State Bank of White Pigeon and turned it over to J. Murray Benjamin, of White Pigeon, who was appointed receiver. It is believed that the depositors will be paid in full, without resorting to an assessment on the stockholders. This institution was the only bank to become insolvent during the year.
The City Bank of Dowagiac, by vote of its stockholders April 21, went into voluntary liquidation, as provided for in section 53 of the Banking law.
On December 22, 1903, the stockholders of the State Bank of Middleville voted to place that institution in voluntary liquidation, according to provisions of said section 53, but such liquidation was not sanctioned by the Department until March 1, 1904.
CONSOLIDATION OF STATE BANKS.
According to the provisions of section 54 of the banking law, the following consolidations of state banks were consummated during the year:
The Ionia County Savings Bank, Ionia, by a vote of its stockholders May 4, was consolidated with and absorbed by the State Savings Bank, Ionia. On May 2, 1904, the Marlette State Bank, Marlette, by vote of its stockholders was consolidated with and absorbed by the Commercial State Bank, Marlette.
On June 29, 1904, the stockholders of the Chippewa County Savings Bank, Sault Ste. Marie, voted to consolidate with and be absorbed by the Central
INCREASE AND DECREASE OF CAPITAL STOCK.
During the year 1904, following the law as laid down in section 10 of the banking act, the banks named below have increased their capital stock: Alpena County Savings Bank, Alpena, $50,000.00 to $75,000.00. Waldby & Clay's State Bank, Adrian, $55,000.00 to $75,000.00. Commercial State Bank of Marlette, $25,000.00 to $40.000.00. Central Savings Bank, Sault Ste. Marie, $50,000.00 to $100,000.00. This is an increase of banking capital of $110,000.00; adding to this amount the $500,000.00 gain caused by the organization of new banks makes a gross increase of banking capital of $610,000.00. Deducting from this amount the $250,000.00 loss of banking capital caused by the consolidation, liquidation, and insolvency of state banks, as heretofore mentioned, a net gain in capital stock of State banks is shown of $360,000.00.
OTHER AMENDMENTS TO ARTICLES OF INCORPORATION.
On April 7, the Monroe County Bank, Dundee, taking advantage of section 10 of the banking law, by a vote of its stockholders, amended their original articles of incorporation allowing such bank to transact a savings bank business.
The State Bank of East Jordan by a vote of its stockholders on January 12, 1904, also amended their original articles of incorporation so as to permit of the transaction of a savings bank business, according to said section. 10 of the banking law.
EXTENSION OF CORPORATE EXISTENCE.
According to the provisions of section 67 of the banking law the Lumbermans State Bank, West Bay City, extended its corporate existence for thirty years from and after January 1, 1905.
GROWTH OF STATE BANKS.
Since the organization of this department, 1889, the increase and growth. of business has been very great. Loans show an increase of $118,039,906.06, and deposits $128,702,163.50, as will be seen from the following statement:
NUMBER OF DEPOSITORS.
The total number of depositors in the 248 State banks and 88 National banks on December 1, 1904, was 603,234, as follows:
The following table will show number of commercial depositors and savings depositors in the 248 State banks and 88 National banks, together with amount of deposits and average amount to each depositor:
*This includes certificates of deposits; several certificates issued to one person counted as one.
RECEIPTS AND EXPENSES OF THE DEPARTMENT.
The fees collected by this department for the examination of banks, according to the provisions of section 40 of the general banking law, amounted to $18,601.37. And there has been turned over to the Secretary of State for franchise fees on capital stock of new banks and from banks increasing their capital and extending their corporate existence, $340.00. This amount together with $18,601.37 examination fees, makes a total of $18,941.37 received from banks during the year.
The expenses of the department for the year were as follows:
Salary of B. C. Jolly, examiner, (resigned October 15, 1904).
Salary of F. D. Carleton, clerk (appointed January 1, 1904, resigned July 1, 1904)...
Salary of extra clerks...
Expenses incurred in examination of banks.
Miscellaneous expenses, viz., printing, stationery, postage, etc..
The foregoing shows that the actual cost of the department to the State is $4,755.58.
In accordance with the provisions of sections 24 and 27 of the banking law, I have designated for the year 1905 the following as reserve cities, viz.: Detroit, Grand Rapids, Bay City, Saginaw, Kalamazoo, Jackson, Port Huron, Adrian, Benton Harbor, Muskegon, Ann Arbor, Marquette, New York, Boston, Philadelphia, Baltimore, Buffalo, Cleveland, Cincinnati, St. Louis, Chicago and Milwaukee.
REPORTS OF RECEIVERS.
The following reports from the receivers of the several insolvent banks in Michigan were received during December, 1904:
People's Savings Bank, Lansing.
G. W. Jewett, receiver, under date of December 29, 1904, reports as follows:
Liability to depositors at date of suspension, July 15, 1896.... $138,540 20 Other liabilities....
Total assets at date of, and received since suspension.
City Savings Bank, Detroit.
Union Trust Company, Detroit, receiver, under date of December 1, 1904, reports as follows:
Liability to depositors at date of suspension, February 10, 1902 $3,378,121 20 Other liabilities..
Total assets at date of, and received since suspension.