The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-31
PLUNDERING TROr BINKS.
Daniel Robinson Accused by Superintendent
neutrality-suspicious. Finnac,cring.


TROY, Jan. sO.-Daniel Robinson, Vice
President and Treasurer OF the Troy and Bos-
ton Railroad Company. has for twenty-five
years been one Of the foremost men in this part
Of the State. In addition to being tho actual
head Of his railroad and rs such tho opponent
OF Gen. Burt in tho long and hard fight over tho
route 10 the Hoosnc tunnel he has been con-
cerncd in many banking ana manufacturing
enterprises. His natural aggressivcness made
him always consp cuous above his companions
in all these concerns. so that. although he malo
many enemies. his abilities were generally al
terrain Church society and reiisiuusly active.
He acquired wealth and extensive Influence
through persistent work, and, as IL now np-
pears. the use 81 INSCRIPTIONS methods. The
pundering of the Merchants and Mo
chanics' Bank was. exposed several months
dent. d. Thomas Vail. was complete. Vail
hal loaned tiuOUlO Of tho hnnk b money 10 q
manufacturing company. of which he WINS also
President taxing no securlt2, and covering up
the fraud by perjury and forgery. Vail had
held position at the top Of Troys fashionable
- lrtY, ana We SHOCK ot MS disgrace made
him el Ill that his rgcoyery Is doubtful. He was
Presiiont Of the Troy and lioston Company.
too. and in invest eating the banks affairs il
was found that no had lent large amount Of
money u tho railroad Robinson was not nm
officer Of the bank Lut he WINS concerned with
Vail in masking the loans TO the railroad and the
maEufuclory and had long been regarded ms
the real schooner for all U. his and Nail's joint
Among the losers by the banks collapse was
the Troy savings Bank. which had tG7 1000 in It
ON q, post when the crash came Robinson
ana Van were directors In the savings bank.
and, rs tho loss had been incurred through
thtr influence. Bank Superintendent Lamb
asked them To- resign. Vail rrnduY complied
hut the pugnacious Robinson refused 10 20 vol
unfairly. aud b9aSt'd that he could not bo
turned out Lamb began an Investigation about
month HgO " R0binson's connection with
all these complicated AT IRIS. with view ~
forcing ham ont Of the savings bank board. and
hf DI b. IT 4.
G.m'ral, who Will conduct lutther proceedings.
III. testimony OF the cashlcr md the teller II
the aarchHnts' and mechanics Bank shows that
i"e &, ncerh hhd nern foltrn lor many years
before ~ failure. Robinson WAS the controlling
power. through {ml. In 1916 the money loaned
s7Un0OO. and q little later ti3OOOO had been
given 10 the insoyent manuiH'tory. All that
tna bnnk had tQ show for these sums was the
notes OF Vail and Robinson. which became val
ueless through failure to protest them when
due. Throo directors examined the accounts
satis fed themselves OF the fraud md resigned
their offices, and sold their stock but gave no
public warning Of the danger. Tho bank ceased
10 do business under the national laws, and
went back 10 the State system, in order 10 escape
Government supervision. but was soon in trou-
bic with the state examiners. Eight worthless
notes, hgRrrgailng about siOOuOO. were put
into the assets SO as 70 figure out false sol
Wncy in the reports TO the Bank Department
These notes nave been surrepluously de-
strpyed since the exposure. Some Of them
were iorsrries, and others woro procured by
Robinson from his railroad wOTkmon who
were given some ilimsy excuse for signing
papers that they did not understand. 50 the
report OF the Examiner says.
As 10 the loss Of SG7 900 by the savings bank
lnmb says in his report that it was through
hohihsnll. who nj ono time induced the Swings
bank TO Keep over 100000 on deposit in the
MERCHANTS and Mechanics. when censured
by his follow directors in the savings bank no
assured them that he had nothing TO do with the
Merchants and Mechanics Bank and was not
personally Interested in the amount OF the de-
post. lie also disRyOwed any knowledge Of its
condition, although he was then helping Vail
TO h0dt II with the worthless checks, and was
tho real director u its operations.
ROhinsOn's arrest is expected. Vail is under
guard in his own house.