USA > Michigan > Wayne County > Detroit > Compendium of history and biography of the city of Detroit and Wayne County, Michigan > Part 22
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It is uniformly recognized that Detroit's system of municipal government is both lib- eral and effective and that it defies adverse criticism to an extent that can be claimed by few of the principal cities of the Union. A most important element in the scheme of govern- ment is the unique and conservative administration of the municipal finances. By its char- ter Detroit must needs limit its bonded indebtedness to two per cent. of its assessed valua- tion, and even this modest rate is seldom approached. All measures for the raising of money, either by tax levy or by the issuing of bonds, must be approved by a board of esti- mates, and this has forfended excessive demands by the various departments of the city government. The board of estimates consists of two members from each ward and five members at large, and all are elected on a general ticket. They hold office two years. The heads of the various municipal departments are members ex officio, with the privilege of speaking but not of voting. The board has no patronage and its members must not be in- terested in any city contracts. The charter of the city provides that itemized estimates of the different departments must be sent annually to the controller, who must forward them, with his recommendations, to the common council on or before the last day of February.
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The council is given a month for their consideration and then sends them to the board of estimates, which may decrease or disapprove any item but not increase any. The budget is divided among a number of committees, and the reports of the latter are considered, item by item, in committee of the whole, after which they are again gone over in general session before their final adoption. By reason of the provisions thus made frauds have been practically unknown in connection with the financial affairs of the city, and the tax levy has been exceptionally free from extravagant appropriations. The charter also pro- vides that no money shall be expended in excess of the appropriations, and that no moneys shall be transferred from one fund to another. Within the past three years the annexation of new territory has added a larger percentage to the cost of city government than it has to the assessment roll, but even with this the appropriations are believed to be less in propor- tion to population than those of any other large city in the country.
The natural topographical attractions of Detroit, the beautiful "City of the Straits," have been supplemented and enhanced most effectively by the care and discrimination shown in the platting of the city from its inception through the various stages of growth and prog- ress. Long has the city been noted for its broad and well-shaded streets and avenues, and the park and boulevard system has worthily supplemented the original platting, suggested in an early day by Judge Augustus B. Woodward.
In the Detroit river, opposite the east end of the city, lies Belle Isle, which has an area of seven hundred acres and which came into possession of the city about thirty years ago. Even as "Good wine needs no brush," so does Detroit's beautiful island park need no words of extollation, for its fame is coincident with that of the city itself; its attractions are not excelled by those of any public park in the world. A portion of the original forest on the island has been left essentially intact, and other parts of the fair isle have gained new beauties under the designs and labors of skilled landscape artists. The swamps have given place to lakes or lagoons, and these are connected by a series of canals, giving a long stretch of idyllic waterway for rowboats and canoes. Near the center of the island is a consid- erable space reserved for the zoological enclosure, and the conservatories and the aqua- rium are a constant attraction to the multitudes who visit the island each day during the summer season. The aquarium is conceded to be one of the best in the world, and the park as a whole is one of the most unique and interesting on the continent.
Belle Isle is accessible by large and well ordered ferry boats, which ply at frequent in- tervals, and is also connected with the mainland by a bridge about half a mile in length. From this bridge starts the Grand boulevard, which is one hundred and fifty feet, and in some portions two hundred feet, wide and twelve' miles long, and which encircles the city, terminating in a small park and dock at the western end. The roadway is macadamized and the sides and center have parklike treatment throughout the entire length. Palmer Park, of one hundred and forty acres, in the northern part of the city; Clark Park, of thirty acres, in the western part, and smaller parks on the river front and dotting other sections of the city, add to the attractions which have given Detroit the merited reputation of being one of the most beautiful cities in the country.
Within the past decade Detroit has shown a wonderful advancement in its industrial ac- tivities, as has already been stated, and this has, of course, implied a distinctive gain in pop- ulation. The government census of 1870 accredited to Detroit a population of 79,577; that of 1880, 116,340; that of 1890, 205,876, and that of 1900, 285,704. The state census of 1904, taken with federal co-operation, shows the population to have been 317,591. In 1906 the estimated population was 385,000, and in 1907, 410,000-both of these esti-
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mates being made upon authentic data secured by the city water board and the publishers of the city directory. The estimated population in 1908 is 425,000. This is the conserva- tive estimate based upon the water-board enumeration in June, which gave a total of 92,697 families. It will be understood that the water service takes no account of the contributory districts or suburbs of the city not included in the corporate limits but still essentially a part of the city. Thus the virtual population is considerably greater than that indicated by the water-board figures.
The following pertinent facts concerning Detroit offer a comparative view of condi- tions in the years 1906 and 1907 and indicate clearly that the brave march of progress is continuing, even as it has during the year 1908, notwithstanding the period of financial de- pression which this year has recorded :
Population
1906 385,000
1907 410,000
Number of families in June, water board enumeration
81,535
87,968
Building construction.
Number
4,705
4,942
Cost
$ 13,282,350
$ 14,226,300
Bank statements.
Capital and surplus
$ 15,186,000
$ 17,393,000
Deposits
107,217,020
117,674,983
Total resources
139,417,909
1 38,345,786
Clearing's
670, 130,679
711,610,404
Manufacturing.
New companies incorporated
143
179
Capital subscribed
$ 5,563,980
$ 5,704,880
Old companies increased capital .
4,364,000
11,778,000
Federal.
Exports
$ 36,663,196
$ 40,488,295
Imports
5,769,879
7,679,837
Postoffice receipts
1,515,407
1,675,002
Internal revenue receipts
4,365,649
4,531,997
Municipal finances.
Assessed valuation
$305,756,930
$335,759,980
City tax levy
4,317,506
4,307,556
City debt
5,171,45I
5,637,365
REPRESENTATIVE FINANCIAL INSTITUTIONS
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DETROIT AND WAYNE COUNTY
THE FIRST NATIONAL BANK OF DETROIT.
Among the great monetary institutions which have emphasized and held powerful in- fluence in the financial stability and conserva- tism of the city of Detroit and the state of Michigan, none occupies a more conspicuous position than does the First National Bank, which has had a consecutive history covering a period of nearly half a century and which has at all times enlisted the capitalistic and execu- tive support of citizens of the highest standing in the community. The bank as now consti- tuted represents the merger of the First National Bank and the Commercial National Bank, whose interests were thus consolidated on the 30th of May, 1908.
The First National Bank of Detroit received its original charter (No. 97)) in the year 1863, its preliminary organization certificate having been executed August 5th and its articles of association having been signed on the 26th of the preceding month. The signers of this original certificate were as here noted : Philo Parsons, E. G. Merrick, John Hosmer, Waldo M. Johnson, C. M. Davison, Michael B. Kean, John Evans, T. K. Adams, C. L. Safford, John Hutchings and George Peck. The bank opened its doors for business Sep- tember 1, 1863, and its first board of directors comprised John Hosmer, E. G. Merrick, J. N. Ford, M. I. Mills, M. B. Kean, W. M. John- son, John James, John Hutchings, and Philo Parsons. The bank was incorporated with a capital stock of one hundred thousand dollars, and Philo Parsons was elected the first presi- dent of the institution, while Henry C. Kibber was chosen as the first cashier. The first bank- ing office was located in the building occupied by P. Parsons & Company, in the old Rotunda building, on Griswold street, where the present Newberry building stands. In December, 1864, control of the bank was secured by in- terests at the time in control also of the State Bank, and in the following year the latter in- stitution was merged in the First National.
It is well in this connection to enter brief data regarding the State Bank, which was
organized in 1858, largely through New York capital, and which was headed by ex-Governor Myron H. Clark of that state. The bank was capitalized for fifty thousand dollars and its first officers were as follows : Lorenzo E. Clark, president, and Theodore P. Hall, cashier. In 1861 the control of this bank became vested in Detroit parties, and at this time S. P. Brady became its president and Emory Wendell its cashier. These gentlemen served until its con- solidation with the First National Bank, when they assumed similar executive offices in the latter. In January, 1868, Jacob S. Farrand succeeded to the presidency, and in February of the following year the capital was increased to two hundred thousand dollars, while the sum of twenty thousand dollars was passed to the surplus account, from undivided profits accumulated in the preceding four years. In 1869 the National Insurance Bank went into voluntary liquidation, and its corporate property was purchased by the First Na- tional, to which nearly all of its accounts were transferred. The capital was at this time increased to five hundred thousand dollars, of which amount one hundred thou- sand dollars of stock were allotted to John Owen and his associates who had been the principal stockholders of the National Insur- ance Bank. The combined deposits of the two institutions aggregated about two million dol- lars. In 1875 James McMillan and William B. Wesson became large stockholders, and both were elected to the directorate; in 1880 Mr. McMillan purchased the interests of John Owen, who at that time retired from active business.
June 17. 1882, upon the expiration of its original charter, the First National Bank entered into voluntary liquidation and was suc- ceeded by a new organization, under the same name and with charter No. 2707, the reorgani- zation having been effected on the Ist of the preceding February. The personnel of the executive corps under the new charter was as follows: Emory Wendell, president; D. M. Ferry, vice-president ; and L. E. Clark, cashier. Besides these officers the board of directors in- cluded J. S. Farrand, G. V. N. Lothrop, M. I.
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DETROIT AND WAYNE COUNTY
Mills, William B. Wesson, Alanson Sheley, fluence. The First National Bank of Detroit and James McMillan.
The second charter expired February I, 1902, and under the same title and number an extension was secured for a period of twenty years. January 10, 1893, John T. Shaw suc- ceeded L. E. Clark as cashier, and in 1899 he was elected vice-president, of which dual offices he has since remained incumbent. October 10, 1892, Emory Wendell resigned the presi- dency, on account of impaired health, and D. M. Ferry became acting president, an office to which he was duly elected somewhat later in the same year. He continued to serve as presi- dent of the bank until his death, which occurred on the Ioth of November, 1907. The other officers at the time of consolidation with the Commercial National Bank were as follows: John T. Shaw, vice-president; Emory W. Clark, second vice-president; Frank G. Smith and Joseph Grindley, assistant cashiers. The officers and directors of the bank at the present time are as here designated: Morris L. Will- iams, president; John T. Shaw, vice-president and cashier; Emory W. Clark, second vice- president ; F. A. Smith, assistant to the presi- dent; Frank G. Smith, W. A. McWhinney, F. F. Christie, Joseph Grindley, and J. H. Hart, assistant cashiers; directors, Dr. J. B. Book, William J. Chittenden, Emory W. Clark, Don M. Dickinson, Clinton G. Edgar, Dexter M. Ferry, Jr., J. S. Farrand, Jr., Edward Ford, Charles F. Hammond, George Hendrie, Robert Henkel, Gilbert W. Lee, Cyrus E. Lothrop, Philip H. McMillan, M. J. Murphy, Thomas Neal, Charles L. Palms, Cornelius J. Reilly, John T. Shaw, Stephen Y. Seyburn, James D. Standish, Frederic B. Stevens, Willis C. Ward, A. E. F. White, H. K. White, Morris L. Williams, William C. Williams.
Within the history of this old and substan- tial institution there have been identified with the same as directors many of the most prom- inent business men and most honored citizens of Detroit, and in addition to those already mentioned in a direct or incidental way there have been others of equal prominence and in-
now has a capital of two million dollars, and its surplus and undivided profits reach an ag- gregate of about one million dollars.
June Ist, 1908, the offices of the First National Bank were removed from the Union Trust building to the present fine quarters in the magnificent Ford building, and its facilities and prestige are excelled by those of no other financial institution in the state. Detroit's long continued commercial and general business in- tegrity has been in a large measure due to the wise and discriminating banking methods here employed, the city having weathered many financial storms and panics which have pros- trated other sections of the Union, and among the most influential potencies in insuring this solidity has stood the First National Bank, whose history has been one of consecutive success.
THE COMMERCIAL NATIONAL BANK .- It is but consonant that in this article should be given also a brief outline of the history of the Commercial National Bank, which long held much relative priority among the great banking institutions of the Michigan metropolis and of whose consolidation with the First National Bank due mention has already been made.
This well known and popular bank was or- ganized in 1881 and was incorporated with a capital stock of two hundred and fifty thou- sand dollars. Its charter was received Decem- ber 27th of that year. The first executive corps was as follows: Hugh McMillan, presi- dent; George H. Hammond, vice-president ; and Morris L. Williams, cashier. The original directorate comprised, besides the officers men- tioned, Ashley Pond, William G. Thompson, Isaac L. Lyon, James K. Burnham, W. C. Williams, Joseph H. Berry, and George Hendrie. The capital stock was increased to five hundred thousand dollars, and finally a further increase was made to the notable ag- gregate of one million dollars. At the time of its consolidation with the First National its deposits aggregated nearly eight million dol- lars. It was a United States depository and its charter number was 2591.
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DETROIT AND WAYNE COUNTY
Upon the death of George H. Hammond, in 1886, Henry B. Ledyard succeeded to the office of vice-president, and upon the retirement of the latter F. H. Walker was chosen successor. Mr. Walker was later succeeded by Morris L. Williams, who was elected president upon the retirement of Hugh McMillan, and who thereafter remained the executive head of the institution until its consolidation with the First National Bank. Mr. Williams was practically the chief administrative officer of the Com- mercial National during the entire period of its history, and he is known as one of the most discriminating and influential bankers of the state. The other officers of the Commercial National at the time of its merging with the First National were as follows: George Hen- drie, vice-president; Charles L. Palms, second vice-president; F. A. Smith, cashier; and W. A. McWhinney, F. F. Christie, and J. H. Hart, assistant cashiers. In addition to the president and vice-presidents the directorate included Joseph H. Berry (since deceased), Dr. J. B. Book, J. S. Farrand, Jr., Charles F. Hammond, Robert Henkel, Gilbert W. Lee, M. J. Mur- phy, James D. Standish, F. B. Stevens, A. E. F. White, H. K. White, and William C. Williams.
THE PEOPLE'S STATE BANK.
This institution represents the consolidation in January, 1907, of the People's Savings Bank and the State Savings Bank, both of which had gained a secure place in connec- tion with financial affairs in Detroit and the state. The People's State Bank thus initiated its business under the most auspicious circum- stances and it exercises important functions in its wide field. It occupies the splendid bank building erected by the State Savings Bank and used by the latter until the consoli- dation of the two was effected. The bank has a capital stock of one million five hundred thousand dollars and a surplus fund of the same amount, while its net undivided profits are in excess of two hundred and fifty thou- sand dollars. According to its statement at the close of business September 23, 1908, its
commercial deposits aggregate $6,923,727.30; and the savings deposits $13,602,584.22, and bank deposits $3,690,320.23. The executive officers of the institution are as here noted : George H. Russel, president; Michael W. O'Brien, vice-president and chairman of the board of directors; H. C. Potter, Jr., George E. Lawson, R. S. Mason, and F. A. Schulte, vice-presidents; Austin E. Wing, cashier ; H. P. Borgman, cashier of savings department ; R. W. Smylie, manager of credit department; George T. Courtney, auditor ; and J. R. Bodde, assistant cashier. The personnel of the board of directors is as follows: R. A. Alger, George H. Barbour, W. T. Barbour, H. M. Campbell, B. S. Colburn, C. A. Ducharme, Jeremiah Dwyer, Haley Fiske, F. J. Hecker, George E. Lawson, H. B. Ledyard, P. H. Mc- Millan, R. S. Mason, Fred T. Moran, M. J. Murphy, M. W. O'Brien, H. C. Potter, Jr., Louis Rothschild, George H. Russel, Hugo Scherer, F. A. Schulte, and Henry Russel. The bank maintains several branch offices in Detroit.
THE PEOPLE'S SAVINGS BANK for many years figured as one of the most substantial and popular financial institutions of Detroit, and this precedence continued unchallenged up to the time of its consolidation with the State Savings Bank, under the title of the People's State Bank. The People's Savings Bank was organized and incorporated under the laws of the state in 1871, on the 2d of January of which year it commenced business in quar- ters on Woodward avenue near the corner of Jefferson avenue. Francis Palms was the orig- inal president of the institution and Michael W. O'Brien, cashier, the latter having later served for many years as president of the bank and being at the present time vice-presi- dent and chairman of the board of directors of its successor, the People's State Bank, as noted in the preceding paragraph. On the 2d of January, 1872, the bank was reorgan- ized under the general banking law as amend- ed by the session of the legislature of 1871-2, and under the new regime the following offi- cers were chosen: President, Francis Palms;
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DETROIT AND WAYNE COUNTY
vice-president, John Heffron; cashier, Michael W. O'Brien; directors, Francis Palms, Charles Ducharme, Anton Pulte, Ferdinand Morrell, Edward Reidy, William Foxen, John Heff- ron, and John Mark. At the reorganization the capital stock of the bank was placed at sixty thousand dollars, and in the same year the institution was removed to more eligible quarters, in the Telegraph block, at the corner of Congress and Griswold streets. On the Ist of January, 1874, the capital of the bank was increased to one hundred and twenty thousand dollars, and later in the same month William L. Carpenter was elected a director to succeed Charles Ducharme, deceased. Jan- uary 12, 1875, Anton Pulte succeeded John Heffron as vice-president, the latter retiring from the board of directors at this time, and in 1881 Francis F. Palms and Jeremiah Dwyer became members of the directorate, succeeding William Foxen and Ferdinand Morrell. In January of the same year the capital of the institution was raised to two hundred thousand dollars. On the organiza- tion of the Detroit Clearing House Associa- tion, in March, 1883, the People's Savings Bank became a member of the same. On the Ist of January, 1874, the capital of the bank creased to five hundred thousand dollars, and M. W. O'Brien retired from the directorate in order to create a vacancy, which was filled by the late James L. Edson. In the following year Mr. O'Brien again became a director, succeeding Mr. Carpenter, who died on the 13th of November of that year. On the 26th of November, 1886, occurred the death of Francis Palms, and in the following January George H. Barbour was chosen as his succes- sor in the directory. On the 2d of May, 1887. Michael W. O'Brien was elected to the presi- dency, Frank A. Schulte became vice-president, and Silas B. Coleman, cashier. At the opening of the year 1890 the bank removed to the Moffat building, and in December of that year Charles A. Ducharme was elected a di- rector, to succeed William Boeing, deceased, while George E. Lawson succeeded Mr. Cole- man as cashier. December 8, 1891, Charles L. Palms was elected a director and Patrick
Fitzsimons and William C. Yawkey retired from the board. December 8, 1896, the late Sigmund Rothschild was elected a director, and in January, 1901, Michael J. Murphy be- came a member of the board. The late David Whitney, Jr., was a director for some time.
THE STATE SAVINGS BANK likewise played a large and important part in the financial af- fairs of Detroit from the time of its organi- zation until it was merged with the People's Savings Bank, as already noted. This bank was organized and incorporated in 1883, un- der the banking laws of the state, and it initi- ated business on the 23d of October of that year. The founders of the institution were David Hamilton and T. S. Anderson, capital- ists who came to Detroit from Owensboro, Kentucky, and who were fortunate in enlist- ing the co-operation and executive services of Robert S. Mason, at that time the first teller of the First National Bank and long identified with the banking business in this city. Mr. Hamilton became president of the State Sav- ings Bank; Mr. Anderson, vice-president. and Mr. Mason, cashier. Temporary banking of- fices were secured at 88 Griswold street, and these were occupied about six months, at the expiration of which the bank was removed to the Buhl block. The original capital stock was one hundred and fifty thousand dollars, practically controlled by the two founders of the institution. In 1887 a reorganization took place and the capital was increased to two hundred thousand dollars. At this time also T. S. Anderson became president, an office of which he continued incumbent until 1889, when George H. Russel succeeded him, hav- ing previously been a member of the board of directors. Mr. Russel's financial and busi- ness interests were then, as now, of great scope and variety, and he consented to assume the presidency of this bank only on the under- standing that the arrangement was to be a temporary one. So high a valuation, how- ever, did the stockholders and directors place upon his services and so insistent were they in demanding his retention of the office that he continued in the same until the bank was
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consolidated with the People's Savings Bank. From the Buhl block the bank finally removed to more spacious quarters in the Hammond building, where it remained until the comple- tion of its fine new building, one of the best devoted specifically to banking uses to be found in the Union. This building, now oc- cupied by the People's State Bank, is located at the southeast corner of Fort and Shelby streets, and possession of the same was taken on the 30th of May, 1900. The building and grounds represent an investment of more than four hundred thousand dollars. The bank eventually increased its capital to five hundred thousand dollars and maintained a large sur- plus fund. Careful attention was given to sav- ings accounts and a large and representative. commercial business was controlled.
UNION TRUST COMPANY.
Following the enacting of the present trust company law by the legislature of the state of Michigan, at the session of 1891, the Union Trust Company, of Detroit, was organized thereunder and in October of that year opened its doors for business, its capital stock being five hundred thousand dollars, fully paid in.
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