State banks, individual deposits, subject to check.. State banks, commercial certificates of deposit.. State banks, savings depositors... State banks, savings certificates of deposit. National banks, individual deposits subject to check.. 172,069 58,249 626,548 114,423 194,575 66,344 An increase in the number of commercial depositors in state banks for the year is shown of 21,756, while the gain in the number of savings depositors is 49,817, constituting an increase in state banks for the year 1912 of 71,573 depositors. During the year depositors in Michigan national banks have increased 13,272. It will be seen, therefore, that the total gain in number of depositors in state and national banks aggregate 84,845 for the year 1912. The following table shows the number of commercial and savings depositors in the 439 state banks and 99 national banks, the aggregate deposits, and per capita of deposits: During the year all receiverships have filed final reports. No material change has been made in any of the receiverships since 1911, with the exception of that of the Farmers and Merchants State Bank of Parma, condensed final report of which is as follows: The Farmers and Merchants' State Bank, Parma. Seymour H. Godfrey, receiver of the Farmers' and Merchants' State Bank, Parma, under date December 21, 1912, submitted his final report, as follows: Liability to depositors at date of suspension.. $86,207 99 140,219 36 102,579 14 Disposition of collections: This bank was closed by the Department, September 18, 1908, as the result of an examination which showed an intermingling and confusion of its assets and liabilities with those of a private bank in which the cashier was interested. Dividends to the amount of 1011⁄2 per cent. have been paid depositors. during the course of the receivership. On petition of all the savings depositors, waiving their right to any additional sums which might accrue by reason of having the proceeds of all real estate mortgages and bonds applied to their sole benefit, the receiver, on order of the court. declared dividends to the commercial and savings depositors on an equal basis. The Department made a thorough examination of this receivership and found all assets and collections accounted for in every detail. The Department is now making an examination of the receivership of the State Bank of Fenton for the purpose of verifying final report. During the early part of the year the Department made an examination of the affairs of the Union Trust Company, so far as they pertained to the receivership of the City Savings Bank of Detroit, Michigan, and ascertained that all the assets of said bank and all monies realized from same had been accounted for in every detail and disbursed as indicated in final report. The following table is a condensed abstract of the final reports of all receivers of insolvent state banks since the organization of the Department in 1889: From the foregoing table it will be seen that the per cent collected on total assets of receiverships, all of which are closed, was 53.08, while there was 55.92 per cent of assets collected, including the amount received from assessments on stockholders. 27.56 per cent of the total amount of capital stock was collected by assessments on stockholders. Expenses incurred by the several receivers amounted to 5.99 per cent of the total assets and equaled 10.72 per cent of total collections. average of 67.15 per cent has been paid to depositors. RECEIPTS AND DISBURSEMENTS OF DEPARTMENT. An In accordance with Section 40 of the Banking Law, the Department has collected on account of the annual, preliminary and special examina. tions of banks, $39,834.70. There has also been turned over to the Secretary of State for franchise fees, on account of new banks, increase of capital stock, and extensions of corporate existence, $1.443.75, showing total receipts during the year of $41,278.45. Attention is called to the list of state banks and trust companies in the latter part of this text, which list shows the dates of examinations and the amount of each annual examination fee collected from each state bank. The examiner's reports (from which the examination fee is determined) have been carefully compared, checked and verified by the State Treasurer with the amount of fees collected from each bank and turned over to said official, and your attention is respectfully called to his letter appended to the text. During the year 1912 the expenses of the Department were as follows: Salary of E. H. Doyle. Commissioner... Salary of A. E. Manning, Deputy Commissioner. Salary of Max Socha, Chief Clerk and Examiner (resigned $3 500.00 2,500.00 September 21, 1912) 1.277.61 Salary of Jos. M. Dodge, Chief Clerk and Examiner (appointed Salary of J. B. Showerman, Examiner (resigned June 30, 1912) 941.50 1,786.28 Salary of A. E. Lark, Examiner (resigned August 31, 1912).. 1,143.17 Salary of H. A. Morris, Examiner.. 1,743.78 Salary of Chas. O. Ball, Examiner.. 1.719.02 Salary of Fred L. Perkins, Examiner (appointed Jan. 2, 1912) 1,700.00 1,373.10 6.609.10 12.620.46 Printing and binding 2,749.74 Postage 900.00 Stationery, telephone, telegraph, express, office equipment, etc. 1.603.68 xix Bank supervision cost the State for the year 1912, as shown from above, $12,215.38. As stated heretofore, 915 examinations of banks were made during the year, which exceeds the number made in 1911 by 60, notwithstanding the fact that the assets and liabilities of state banks examined increased approximately $55,000,000.00. SECURITIES COMMISSION. The following table shows the steamship bonds which are legal investments for savings deposits of state banks at the date of this report: No Date of approval. Name of company. Name of steamer. Amount bond issue. Jan. 13,1909 Jan. 13, 1909 Jan. 13,1909 Jan. 13, 1909 Jan. 13,1909 Jan. 13, 1909 Mar. 18,1909 June 2,1910 June 2,1910 June 2,1910 June 2,1910 Hawgood Transit Co.. Dearborn Transit Co. Cuyahoga Steamship Co.* Acme Steamship Co.. Shenango Steamship Co Valley Steamship Co. Kinney Steamship Co. Four meetings of the commission have been held during the year, and three bond issues covering steamships have been approved in compliance with the provisions of the banking law, as will be noticed by reference to the foregoing table. As a result of a conference had between the representatives of the several trust companies and shipbuilding companies, the securities commission recommend that section 27 of the banking law be amended in such a manner as to make the minimum carrying capacity of any bulk freighter on which bonds are to be approved by the commission, at 7,000 rather than 5,000 tons as at present. ESCHEATED DEPOSITS. In compliance with provisions of Act No. 238 of the Public Acts of 1897, the Department called for reports as to escheated deposits at close of business, June 30, 1912, and statements as to deposits which had remained inactive since June 30, 1909. Reports were called for from state, national and private banks, trust companies, and building and loan associations. In this connection, however, we call attention to the opinions of the attorney general to the effect that national banks and building and loan associations are not required to report escheated or inactive deposits under the provisions of said act. As required by said act, reports from institutions showing such deposits have been referred to the attorney general for further attention. Our report to the attorney general showed deposits escheated to the state aggregating $114.48, and inactive deposits amounting to $13,561.06. TIMBER BONDS. I desire particularly at this time to caution the officers and directors of state banks to be extremely careful in their investigations before investing in timber bonds. It is true that there are good issues of timber bonds on the market, but it is also true that there are timber issues where the amounts are altogether out of proportion to the actual value of standing timber and the land on which it stands. Cut-over lands, lands with thin fringes or edges of standing timber, with possibly an |