New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-19
IAN TNL PLANS TO
ASSESS STOCKHOLDERS
says Oepositors Of Defunct
~ Union Bank Haven't Had
Square Deal.
INVESTIGATION TO CONTINUE
.,.,;al Counsel Appalled, by the
y Number of Items on Seized
nile of Assets and
Liabilities.
INVESTIGATION TO CONTINUE

ossn,ent on the stockholders n
..,unct Union Bank of Brooklyn &c
W. ". mar value of their stock is the plan
tn' pank Superintendent Van Tuyl
r,,nd for raising money imme-
- 70 pay a dividend to the de-
oia'. NJ the bank The bank has a
Ps, s,ock Of 81 100000. while the de-
'ap ., the time the institution closed
United approximately to S4,ooo,Ooo
total assessment can be collected
j. s,,os,tors will receive a dividend OF
~ ~ cent on their accounts this sum
instead Of having to wait eighteen
tbs FOR q problematical 10 per cent
~ realized from the slow assets Of
the bank .,os
money so far, amounting TO about
sonconoO have been used 10 pay OF
mans from other banks and trust
,ies that came 10 the aid Of the
.sh,,r institution and tried to brace
-, and keep it from failing. Some
..,s- n-eferred creditors have also been
-. rare Of. and when Mr. Van Tuyl
,haree Of the state Banking De-
~, he found that II was the in
-, # those who had charge Of the
''-a,aa,ion of the institution 70 pay OF
~ ..ese creditors before the depositors
-.,e,ved attention.
r,o hills pavable account Of the bank
IN carries a total of $4,000. The
~ ~ those in charge Of the hquioa-
hos been 10 close this account first
LAG all Of the money that can be real
,..a from the assets for that purpose
- estimate that this will take ABOUT
,o,tbs The depositors would then
-. ,nsir turn. an endeavor being maze
.o,,ect fund for dividend for them
49,, The real estate holdings OF the
. As the real estate market III
1.,otlvn Is extremely slow at the pres
,ir,e II is estimated that it would
abe AZ least a year to gather FUND OF
,monpn for a 10 per cent dividend lor
he depositors-
,.,os;,ors Not Treated Square'y'
srrs-,rtendent Van Tuyl could not see
,,s treatment Of the depositors. his
=, rer,art when he looked into the al
a.. - the Union Bank was: Tine de-
,o.ito-s have not been getting a square
a., Information about the condluoh
:. -. hank has been withheld from
,,sr, and there has been no attempt 70
oo,lect a dividend for them. 1t is time
70 wake No and give the depositors some
money"
The hank has been closed for nearly
fourteen months and in that time there
has been no thought Of assessing the
stockholders. and thus raising money 1or
the depositors There is no hope Tor an
early dividend from the assets of the
hank Mr.. Van Tuyl. accordingly. mas
dscidsd IN call on the stockholders TO
nav into the bank an assessment
amounting 10 the par value Of their
stock holdings.
IN the meantime the investigation or
The conduct Of the bank will be carried
on but Assernblyman Goldstein, who
has been appointed by Governor Dix as
special counsel 70 the Banking Depart
ment for the purposes Of the investfga-
ton. had his ardor for immediate public
hearings considerably cooled Saturday,
Re had conference With Superintend-
ent Van Tuyl in the office Of the State
Parking Department and some Of the
detail work necessary 10 such an inves-
tigation was explained 70 him. As a re-
suit he will go 70 Albany to-day TO at
tend n his duties as a legislator. in
stead ~ issuing subpoenas and heckling
witnesses at No 80 Broadway.
Various items on the schedule Of the
assets and liabilities Of the Union Bank
we're shown 10 Goldstein az examples Of
what he would have 10 investigate, and
re was told that he would first have 10
tece these items through all Of the
books Of the institution and discover
what they might disclose as 70 the way
IN which the hanks business had been
carried on before he could undertake 10
NaI Witnesses anu Noiu puDiiN HV1' i4'9S'
Gave Loans on Bank Stock.
Among the items called TO Goldstein's
attention were loans secured by the
stock % the bank The state banking
law saws that a bank shall not lend
money on its own stock. The schedule OF
ne Union Bank shows that, on March
u, 1909 William Strasser. a director In
TIE institution. borrowed S33,625 Oh from
ne bank on a note secured by 1ools
Shares Of Union Bank stock and 121s
shares Of stock I'm the Peoples Surety
company
Another item is loan 10 Charles Is.
Malloy made on November q, 1901 and