New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-04
ASSESSES SHAREHOLDERS
Must Make Coed Union Bank
Debts, Van TuyI Writes Them.
Sl,OO0,0O0 IS INVOLVED
Order of superintendent of Banks
Affects All Investors IN
Brooklyn Institution.

George c. Van Tuyl. jr., Superintendent
OF Banks. sent word 10 the All stocAlio'"'
ers OF the Union Bank. Of Brookiyn' yes
terday that they had been assessor
amounts equal to the par value oil the
stock they held That such an assessment
would he levied on the stockholders was
announced exclusively in The Tribune sew
eral days ago.
The assessment will realize sl."Oep Ii
was levied under Section 19S OF the S'al'
Ranking Law, entitled liability OF STOCK
holders and Directors" which reads' IL
default shall he made IN the payment oil
any debt or liability, contracted by any
CORPORATION, The stockholders thereon shdi
be individually responsible. equally ana
ratably, for the then existing debts OF the
corporaton. but no stockholder snail DE
liable for the debts OF the corporation u
an amount exceeding the par value OF the
respective shares Of stock by him heid III
such corporation AT the time of such oe-
fault"
II the assessment does not meet the
losses occasoned by the financial trahSac
lions of the bank further action may ~
taken under another clause OF tho sectoh'
which reads: For all losses OF none!
which the capital stock shall not be sum
cient 20 satisfy, the directors shall be re-
sponsible in the same manner and 10 the
came extent that directors are now respoh-
sible IN law or equity
TIE bank was organized with capltal
of 10000. Ten thousand shares or STOCK
were issued, with par value OF 500. Al
the beginning of 1910 the chief stockh"ld-
ers were Jonas ]. Levy. 100 shares; Roper'
Maclay & Co. 200; David A. Sullivan, an
ey-presdent. 979: William o. Allison, 1885,
James ~ Brown 3OS William j. Buttlns
Cnow deceased, POI; William A. Main l25,
William Mcguire go; John V. Reilly, 100;
William Strasser, los: Theodore Steiner
Ic0; Thomas D. Tompklns. 400: Louis Bcs-
sert. 90; Solomon Kaplsn. 20; John Will
Jams. e.; Henry Roth. IS; Leo Schlesinger'
m: Jamie V Wilmurth, %; Edward NJ.
Grort. the president, 67IA, Paul circuit the
banks attorney, s.; Ida j.. Grout, 1ll2; the
Home Bank. Of Brooklyn. 56ll2. James !.
Ashley. former vice-president and cashier,
SO; T. A. Filter. 1ia, and Simon J. Hard
ing. 179 In speaking OF the assessment,
Edward l.. Dodge, the deputy superinte d
ent in charge Of the affairs Of the Union
Rank, said:
Superintendent Van Tuyl believes that the
stockholders are legally responsible 10 an
amount equal TO the par value Of the stock.
II is his intention to use all the machinery
IT the law for collecting this amount. The
stockholders elect the directors, who man
age the bank They are responsible for
seeing that the bank IS managed by men
who will conduct its affairs in a safe and
judicious manner. II the bank fails. they
share In the blame for the inefficient man
aeement The depositor is helpless, and is
entitled to the protection Of the law"
The letter sent out to the stockholders
reads as follows:
Gentlemen: The Union Bank Of Brooklyn,
having made default in the payment of its
0obts ana the Superintendent of Banks
having taken possession of its property ana
business i'm accordance with the provisions
OF Section 10 Of the banking law OF the
state Of New York and the said Superln-
tendeut Of Banks being Of the opinion that
- II is necessary in order to pay the debts OF
said corporation 90 enforce the individual
ral.litt Of the stockholders thereof.
Now therefore. in accordance with the
authority conferred upon me. you are here
hy required a. the owner and holder of one
share Of stock Of the said delinquent cor
lOratiOn. forthwith to pay in trust for the
Union Bank of Brooklyn and the creditors
thereof 20 me as Superintendent Of Banks
tho sum of $780, being the par value OF
one share Of stock Of said delinquent cor
pOration held by you at the time Of sucl
default; said sum to be used and applied
equally and Tatable as provided by Section
19G Of the banking law of the state %
New York. and any surplus remaining af.
ter such use and application TO be returned
L. you.
In the event Of your failure 10 make pay
ment in accordance with the terms Of this
demand within sixty days from It's service
upon you action will be commenced against
YOU TO enforce your said liability.