New-York tribune., 1912-01-04
NEW RECORDS FOR BANKS.
Supt. Van TuyI in Report Shows
Resources of $4, 1874, 1865, ,563.
LIQUIDATION FASTENED
Head of Banking Department
Embarrassed by Existing Con-
tracts for Legal Work.

Albany. Jan. S.-George c. Van Tuyl. Jr,
Superintendent of Banks, i'm his annual re-
mort 10 the Legislature shows that in re-
sources the banks of the state nave
reached a new record exceeding AVD.WO,-
O0a. and announces that a special endeaNor
was made TO hasten the work Of liqudatlng
institutions which had been closed during
previous administrations and. if possible to
set a new pace i'm the work Of realizing on
such assets as remained to the institutions
An order that depositors and creditors
might receive the greatest possible consid-
Grafton.
The Superintendent, however was imme-
diateIv confronted with an extremely em-
barrassing situation 1t was found that
soon after the present Governor of the
state assumed office contracts had been en-
tered into by which the legal work in con-
nection with all the closed institutions eX-
cent one had been placed in the hands of a
single firm of attorneys, the limitation on
the charges for such services as We're
rendered by them being based on per-
centage of the sums collected, after the
analogy of the receivership system OF
liquidation, although subject to the ap-
provaI of the Superintendent of Banks
'depositors of failed institutions with ref
erence 10 the apparent neglect to enforce
collection of claims by suit when neces-
sary. and the failure vigorously TO prose-
cute suits already instituted These
charges were supplemented ana reinforced
by similar complaints received from eA-
aminers of the department In charge OF lile
Nuuidation of various institutions
of
As the \most favorable explanation OIL
the vexatious delays resulting from thls
condition was based on the immensely Oh
the work undertaken by this one hrm ana
the impossibility Of its responsible mem
hers passing on so many varied and lmpor-
tant questions within reasonable uine'
the conclusion was reached that III
vision of the work was necessary II the
work of liquidation was to be conuuc'eu
IN an energetic and economical manner
Bills Seemed Excessive.
Or calling for bills il was found that no
sattlament had been made for a long time
and that the preceding head of the depart
mont had not approved bills for services
wondered during his term of Office Inc
hills presented seemed. moreover, so eX-
ceeeive il not exorbitant, that approving
,ber under existing conditions did not
seem iustifable. On requesting the return
Of securities and papers in their posses
sion in order to divide the work amohs
sufficient number of attorneys to insure
sneedv action the department was met
with refusal on the ground that II
might he necessary for them to take ad-
vantage of their attorneys lien on lhese
papers in order to compel the department
10 nav their claims as presented.
\ similar position was taken ny o'he'
attorneys who had been employed pE o"o
of the failed institutions before II closeu
and had in their possession large amount
NJ its securities and whose bills the re''
ing Superintendent had refused TO pay Oh
similar grounds As result OF these op-
.,,,ctiva tactics these different attorneys
,y.ro still i'm possession of some oi the
uauers and property Of the falIed ihs'I'u-
,iou. a. the close of the fiscal year more
than four months after the once hau
rasscd TO the present incumbent
Notwithstanding these conditions IN 'he
four months the liquidation bureau o1 the
department paid dividends TO depositors aHO
creditors of four of the closed institutions
In addition. on November 10, there was
Maid a further dividend Of 10 per cent 10
The depositors of the Northern Bank OF
Ne,v York. With the disbursements 10 the
several institutions mentioned there mas
been Maid 10 the creditors and depositors
of failed institutions the following amounts