New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-20
{FNIs VAN TUYL'SP[AN
:. Rank Liquidation Doubtful
ln'e y. dividend for Depositors.
.o,Ilo PAY DEBTS FIRST
,dM N. Grout Explains Why
pSa o,rr Stock Is Security for
. Loans by Institution

o,rn Stock Is security ior
same Loans by Institution
nodee. the deputy in charge
aNsra ~ OF the Union Bank Of
ne HUI ~ the state Banking Depart
y's !i.s + with rather i'll grace yester,
1T '0ON cote superintendent Van Tuyl
iha' ,'m. FOR the depositors OF the
ysgn' !. =, dividend and planned TO
s,k to s.o.Sbolders in order to raise
:, for the deposi'Ors' ,
go H'. hank has not been closed very
1S' '~ hs said. "only fourteen months.
8 un's .ss are four or five years in
sst 0s of course. I don't know how
90 '''' .,,ositors can expect dividend.
=, in7 Great deal on the real estate
:, brooklyn. The bills payable ac-
rA'. .,.o has nearly 100000 remaining to
- and We will have to settle that
: ..fore the depositors can set any
80. ox,,,,ation of why
20 sums had been paid out by the
S.sors any attempt was made to raise
SDss.,d for the depositors.
-, the Union Bank failed" he said.
80 between 100000 and 100000 TO
s.nts and trust companies. from
/, had borrowed money. All the
= .sss-s he'd been given as collateral
- hans. They were not preferred
~, the hanks holding the collateral
=. r,ch, 20 sell it 20 reimburse them
* for their loans. and it was neces-
for Us 10 pay the money back in
"a save the collateral. and so save
-orsv o. the depositors and pay them
s5ssrd We have paid Off about
,~aa NJ these debts. and have little
IA, 10000 still to pay After they
..is We will try 10 get the money for
s4s.rd for the depositors."
erout Ready TO Explain.
W Dodge refused TO comment on the
l., on the schedule Of assets and liabih-
/, Il, N. bank showing the banks own
- a. security for various large loans.
|.u,s y. Grout. the president OF the
:. however. was glad 10 explain these
-s-s
~ law does not allow a bank TO loan
-.,sv on its own stock" said Mr.. Grout.
=. when Il has a loan on its books II
81 axe any security il can lay its hands
n make that loan good. That was the
80 with the loans on the books Of the
-.u Bank secured by the stock OF the
AK
When Clark Williams turned the bank
r-r n ne in le0s he had already called on
sv,l Of the creditors TO put up security
a. -G loans. and in several cases had
srss necessary 10 take stock OF the
x,s esslf FOR the security. When I came
ti.si to 90 the same thing.
T.s william Strasser loan OF s33. 200 IS
e maple. s,rasser was a director OF
p sa.k. and the loan appears on the
sin gn6er date of March 13 1909. This
B q reality a renewal note. and il is Sc
~ BY stock OF the Union Bank because
, zI4d or him for security, and all he
ia give was the Union Bank stock It
y what you might call salvage. We had
tsks what We could get.
his loan. ike many others. was hold
~ from the Mechanics and Traders
.rk In some cases the Union Bank
tx held as security is simply & reissue OF
Ixhanics and Traders stock. The Me-
rncs and Traders Bank took Us own
* as security for loans. and when the
III was reopened as the Union Bank
r., the failure in 1898 the loans were re-
Fssi. but the stock held as security was
iz1sd as Union Bank stock.
Why Stock Was Security.
Tie Thomas D Tonpkins loan Of $1,000
IA example Of this. That loan was made
J re Mechanics and Traders Bank. When
'ok charge IN 1875 the loan was carried
Izg and the security was reissued as
-.m Bank stock. The loan OF 5000 20
p estate % r. B. Tompkins. in February,
p ia -erewa! loan % one carried over
.n ;Hs Mechanics and Traders Bank.
= sane thing is true OF the loans 70
ares y Brown. loan OF $500 appears
: hin under date OF April 1, 1910, one
frih before the bank closed. That was
ysral OF an old loan made by the Me-
-i,.cs and Traders
\. real estate security IS practically all
--,..isd from tie Mechanics and Traders
z id not make a loan on real estate
K-iiy while 7 was president Of the bank
q lE take real estate as security for
20 o. 'he old loans when we could
r gst collateral u was a case OF take
p, We could get We would call on
zotor FOR security for his loan. and II he
p no,h!rg else we would have 70 take
= Estate. But We did not make a new
q ea real estate.
-as Heinze and Thomas loans are in
xzsd from the Mechanics and Traders
togrse The Heinze loans will be pald'
-Ak I think the collateral VIII make
y Thomas put $4,000 in trust when
tank closed and agreed to put SleoV"
ear with b. each year until the loans
2 paid. think his loans will be paid
isss ne dies
- trouble with rs was what We IN
s'eo from the Mechanics and Traders
-ess said % me the other day that ne
~ synpstnize with our troubles. az IN
ne 70 liQu.date the bank he was run
: against the same thing that we had TO
gle WIKI IL trying % keep the bank