New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-30
VAN TUYL TAKES OVER
BIG LOAN COMPANY
Repeated Violations of State
Banking Law Laid to the
Industriaps Officers.
ABOUT 5000 MEMBERS
Attorney Says 1t Will Pay ST.
$1,000 Liabilities in Full
Allied Mortgage Con-
Germ in Trouble.

ceorR. c. Van Tuyl, jr., superintendent
Of the State Banking Department TOOK
possession yesterday of the Industrial saw
ings and Loan Company OF this CITY lts
dealings with the New York Mortgage
Company OF which Mr.. Var Tuy' also
took charge. and with the Columbia Real
Estate COMPANY, a New J.lsey corpora
.,on. are said to be responsible for the ac-
tion by the Banking Department Frank
NJ Patterson. attorney for superintendent
Van Tuyl, has charge Of the investigation
into the affairs OF the three companies
There is an intimation Of cri-inal Faoility'
The Industrial Savings an Loan Com
ranv has been in business on an extensive
scale since 1893. Its members are said 10
Number about FIVE thousand. It had MADE
loans on real estate in the counties Oh
Erie Kings. Niagara, Ononoasa queens
Richmond. schenectady and WESTMINSTER
and In the State OF New Jersey. The assets
as shown by the examiners report to the
Ranking Department, aggregate S24l4'sfS'
Including sl.77ooo2 in loans on bones ana
mortgages. s3553S3 in real estate and sleh4o'
cash on hand or in banks.
The apCrerate amount duo shareholders
.s s2892O24 and the total liabilities amount
70 s2.51s2s9 The deficit amounts to Sloi'AZo.
II the nayrnent Of dividends on July mao
NO, been forbidden by the Banking Depart
rent the total deficit would have been
uAAa II is said that within the year Hs
expenditures exceeded its earning capacity
by $4,000.
Officers OF Both Companies
George A. Ron is president and treasurer
nj the Industrial Savings and Loan Com
rany. Frank f. Knox is secretary ana
rrhomas II. RothweI is its attorney
Frank E. Knox is president and Thomas
n Rothwell is secretary OF he New YORK
Mortgage Company, which Is capitahzeo
AZ s15o 100 It's assets, according TO the last
ranort nublished, were s660,12 and II had
outstanding an issue Of ST.4Oo deoenture
bonds. said TO be secured by the pledg1ng
Of first mortgage loans.
BENJAMIN D. Hatght, Of New Berhn' N
Y. has been designated as specia! deputy
superintendent to assist in ere liquidation
Of the concerns.
The Industrial Savings and Loan Com
panv, II was found. carried among It's as
sets shares Of the Columbia Real Estate
Company, on which IT placed valuation
of $500 Investigation showed 1t is al
legged, that the Columbia Real Estate Com
pany had never paid dividend and that
its expenses exceeded its earnings, The
money collected by the Industrial savings
and Loan Company and the New YORK
Mortgage Company. II was founo' had been
loaned largely TO the Columbia Real Es-
tate Company. directly and indirectly upon
undeveloped vacant lana or on Plots IN
process Of development
The Columbia Real Estate Company has
been selling stocks and bonds to the gen
eral public and, according to the reports
made to Superintendent Van Tuyl, would
be unable to fulfil its obligations to the
Industrial Savings and Loan Company and
TO the New York Mortgage Company.
In a statement given out yesterday 1t was
said that the investigation made by Super
intendent Van Tuyrs men showed that
"oficers Of the Industrial Savings and
Loan Company have been guilty OF re-
peated violations of the state banking law
and Of gross misrepresentation with ref
erence to the manner IN which the business
Of this corporation was being conducted"
Action Came as Surprise.
Mr. Rothwell, the legal representative Of
The Industrial Savings and Loan Company,
said Yesterday that while representatives
of the State Banking Department had been
investigating conditions for the last two
weeks, II was a surprise when they took
possession Of the Office
I'VE were told by the department last
year to reduce loans on unimproved prop
erty," said Mr.. Rothwell. "and we agreed
70 reduce them $4,000 by the coming Sep
TENDER So far we have reduced them $40
900, and with little more time could have
met our agreement"
The company. Mr.. Rothwell declared, had
IS per cent Of its loans on unimproved
property or vacant lands and the rest on
improved property. The company had ex-
perienced great difficulty. he declared, in
making collections because Of hard times.
Many of those who were paying for their
homes were year in arrears.
The company is in position TO pay 100
cents on the dollar" he added.
The land business" the legal represent
alive said, had been absolutely dead Of
late