New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-16
MAY Be CRIMINAL AC||ON
Union Banks Affairs Occupy
Much of Van TuyI's Time
RESULT OF G0LDSTEIN MOVE
Assemblyman Whose Action LED
to Fight Says Politicians Tried
to Stop His Activity


! RanL NJ Rrooklvn nv the state banhns
Denar,mert 4, was learned yesterday me
cbareos made ny Assemblyman Louis COLD
stein IN tho free for all fight in Albany on
| "Wednesday were laid before the Governor
and Sunerin,endent Van Tuyl or the S'a'e
pankipc Denar,ment Immediately after tho
ennointmont Of Mr.. Van Tuyl. and the
state Superintendent has heen deVouhs
most OF his time in this city since "ls ny
pointment 10 the affairs Of the mon banh'
+ Assemhlyman Godstein preseht'" MS
charges 10 the Governor in tho enneaNor 10
have him use his influence for the adop'on
ny. the LEGISLATURE Of his bill for the In
yestieation of tho bar, by legislative
committee Immediately after his resolu-
ton was introduced Mr. Goldstein sa'd
Yesterday he was approached ny several
we'll known but apparently unattached poll
ticians i'm Albany and told that II ne had
any regard for his political future ne "ouId
drop the Union Bank. After that he was
unable to get his resolution reported out OF
| the committee.
Mr. Goldstein said that he then prepared
his charges in the form Of a petition to the
| Governor. asking for legislative inVesu-
! cation. At the instigation or the poiiti-
clans ne laid them before the Governor ana
Mr. Van Tuyl Informally. instead OF as a
petition lie waited nearly two weeks Tor
action, and then decided that il was time 10
offer them again as a formal petition from
the depositors' committee of the bank. but
| ne was told that his time would he wasted
and the petition smothered. 1t was TOT
that reason and to force publicity OF his
charges and the investigation that he con-
siders imperative that 3lr. Goldstein IN
| sisted on reading the charges TO the AS
sembly on Wednesday. He considers the
fight in the Assembly ample proof OF his
allegations that political influences are be-
hind the attempt to suppress any inquiry
into the affairs Of the Union Bank.
Van TuyI investigating.
Superintendent Van TuyL however. began
an immediate Investigation of the affairs
of the bank. and has had consultations
every day that he has been in this city
with members of the depostors committee
Of the closed institution. Several OF the
former officers and employees of the bank
have also been before tho state Superin-
tendent. and their testimony has been
taken down by a stenosrapher. 1t is UNI
derstood that Mr.. Van Tuy has in his pos
session what are called the confessions OF
two If the former officers Of the banks,
while some Of those who lid business with
the institution have told stories that are
being carefully investigated with view to
criminal prosecutions.
81 am making n thorough investigation
of the condition of the bank AT the present
time" Mr. Van Tuyl said yesterday. but
I am not yet i'm a position 10 go into
details II any evidence Of anything crimi-
nal is discovered it will at once be turned
over to the proper prosecuting officer.
II have had numerous conferences with
depositors of the Union Bank and ! am
very confident that policy and plan for
liquidation can he worked out shortly 10
the satisfaction Of the depositors and the
depositors committee
one Of the stories heard by Superin en-
dent Van Tuyl is that of a real estate deal
e. I'm Brooklyn. who told Of securing loans
for more than 10000 from the Union Bank
on second and third mortgages on property
that was already bonded for fun value on
first mortgages. The real estate man said
that he gave a bonus OF $4,000 to certain
officers Of the bank for placing the loans.
Another story that has come To Supern-
tendent Van Tuyl is Of the peculiar use made
| Of the money OF an estate that was a de
positor ~ the Union Bank The money OF
! this estate was seldom drawn on and con-
stituted an inactive account. The deposit
averaged upward of 10000. and It is said
that some Of the officers OF the bank made
! constant use OF the money I'm their own
affairs.
ON one occasion. ii is said. when tho de-
post should have amounted 10 nearly $l2j.-
o. the manager OF the estate went TO the
bank with a check against the account for
approx imately $1,000. The wrong man in
The bank got the check and told the man
ager that there was not enough money In
the account 10 cover the check The man
aper went TO the District Attorney. but the
account was made good and the lnvestiga %
ton, it * said, died in the grand jury
| room.
Loan to Director Looked Into.
\ loan made to former director of the
bank is another subject ~ investigation
This director held large block Of the
stock of the bank. which lie wanted TO
sell. The price was rapidly falling. how
ever and no buyers appeared even at the
falling price. The director. therefore.
| through his son. made a loan OF $4,000 from
the bank. the stock In the institution being
given as security
The loan was never paid and the dfec-
tor aftcrward died. leaving the loan among
the liabilities Of his estate. one Of the
officers of the hank became the executor
Of the estate. and following this made a
loan from the bank 10 himself for $50 GO.
As one NJ the securities for the loan tho
note carried the Endorsement of the estate
for which the officer making the loan was
the executor. which already owed the bank
on overdue loan Of $1,000.
These stories. which have been told IN
Mr.. Var Tuyl. are all being inyestiCat ed
with a view to criminal prosecutions. In
the mean time the depositors' committee
Is at loggerheads over the recommendation
OF an attorney and a real estate appraiser
10 he appointed by Superintendent Van
| Tuyl tn take charge Of the liquidation of
the bank Mr. Van Tuyl IL anxious 10 act
In harmony with the committee and hast
on the liquidation as much as possible
In appointing an attorney and "A real es-
tate appraiser he is DESTROYS OF making
selections that viii be agreeable to the
committee