New-York tribune., 1913-12-29
STATE BANK HEAD
TELLS OF INQUIRIES
George c. Van Tuyl, Jr., Gives
Hint of Contents of An
nual Report.

Albany. Dec. 2S.-That several special
Investigations were undertaken by tho
state Banking Department during the last
year will be shown in the departments
annual report, soon 10 go 10 the Legis-
lature. In this connection Superintendent:
George c. Van Tuyl, jr.. to-day said:
Valuable work has been done in the
line OF special examinations during the
last year. The affairs Of a number OF
concerns believed 10 be operating In viola
ton Of the provisions Of the banking Jaw
or in a manner intended TO deceive the
public were Investigated by bank eX-
aminers Reports were made to the At
torney General, upon which actions in the
courts were instituted for the dissolution
Of certain ILLEGAL concerns. In connection
with the investigation OF one So-called
realty corporation engaged in the business
of selling bonds decision was given In the
lower courts ir an action against the COM
pany that the methods employed were In
violation Of the banking law. This de-
cision was upheld by the Appellate Term
Of the Supreme Court. 1st Department
The ultimate decision in this case may be
realty corporation selling instalment Or
debenture bonds within the supervision oi
this department.
IN order TO eyade the banking law
the United states and Mexican Trust Com
pany. which had been refused license
20 do business in this state. attempted 10
do business under the charter of the
Metropolis Finance Company. a specially
chartered institution. The Metropolis Fl
nance Company applied for permission -
change its name TO United States and
Mexican Trust Company, and approval OF
such change OF name was refused by the
Superintendent OF Banks. As the result
Of an investigation OF the affairs Of these
concerns instituted by the Banking De
partment an action was commenced by tho
Attorney General 10 prevent either Of th,
corporations from dOng business IN this
state.
"ln this case the court made an impor-
iant decision. holding IN effect that al
though tho Metropolis Finance Company
vas organized under special law, the
provisions Of Section % OF the general
corporation law, with reference 20 for
teiture Of corporate powers. applied 10 II.
and that the provisions Of this section
were self-eXecutory.
Certain business concerns were under
investigation for alleged violations OF the
state banking law in using part OF their
funds in making loans and discounts de-
spite the prohibition Of Section lO7 Of the
banking law. These companies were OPP
Grating under a system involving the use
Of leases in connection with instalment
sales These leases were employed In lieu
Of conditional bills OF sale, because II was
not necessary TO have the leases placed
on record. The Investigation OF this char
acter OF business disclosed an opportunity
for the consideration OF an amendment TO
the personal property law that would be
OF advantage to the personal loan associ-
ations and the public.
notwithstanding widening OF the
scope Of the work OF the department
called for by recent legislative enact
ments, the expenditures for the year, ag
gregating s212.117 81. showed only a nor
NAL increase. The total increased outlay
over 1912 was $4,000 The total cost
Of examination OF the state banks. trust
companies. savings banks, safe depos.
companies, mortgage loan and investment
companies. savings and loan associations,
building lot associations and personal loan
associations OF the state for the year
ended August 81, 1918, was s11G,250."