Frank P Glazier

The Glazier Scandal

Frank Glazier, the 23rd Treasurer, was most notable for siphoning $680,000 (over $19 million today) into the insolvent Chelsea Savings Bank, of which he was president and a shareholder. At the end of year, Treasury could not pay the State School Fund. He was removed from office and John T. Rich, former governor, was appointed as Treasurer.

Who Rescued Treasury?

Left to do damage control, Treasurer Rich called in favors; three banks, and three railroads agreed to pay their taxes early, providing the department with immediate funds to pay the State School Fund and other obligations. Michigan Central Railroad, Chicago and Northwestern Railroad, Pier Marquette Railroad, First National Bank, Old Detroit National Bank, and People's State Bank effectively rescued Michigan from a financial crisis.

Why Would They Want to Help?

Although favors and acquaintanceships are helpful, these businesses had another incentive. The impending constitutional rewrite meant changing tax laws and rates. If the businesses paid taxes early, they would be taxed under the current law and most likely pay less in taxes than after the new constitution was ratified.

Frank Glazier's Legacy

Frank Glazier passed away in 1922, leaving the state a valuable lesson in financial accountability that can never be forgotten.