New-York tribune., 1910-12-30

transactions He said that ]. T. WOOD,
the president OF the company. was away
| good deal of the time. and on sucn
occasions il had become his duty to sign
checks. which he had done In q pes-
functory way as a matter OF business
routine.
Morris was secretary Of the Bankers
Realty and Security Company, and iy-
man A Cheney. secretary OF the Wash
ingtcn Bank. was treasurer. The other
director is William L. Brewer, cashier
of the Northern Bank OF New York.
Testifies About Exiting" Of Checks.
Morris's testimony also disclosed the
remarkable manner of 'kiting" checks
between the Northern Bank and its va
rious branches. which the witness said
Robin employed Some of the checks, It
was said, were for very large amounts.
In view Of the fact that Robin was ad-
who examined him recently. and was
committed to DR.. Macdonald's sana-
torium by Justice Amend, Of the Su-
preme Court, on the application OF
Robins sister last Monday night, 1t is
expected that the question of his sanity
will play an important part in the de-
fence. Should the question be raised.
Judge Grain has the authority to ap-
point a commission of three TO adduce
evidence on that point and report to him.
The appointment of such a commission
would be made, however. only upon ap-
plication of Robins counsel It's prov
ince would be TO determine whether or
not the defendant be mentally able to
consult with counsel.
The report of such a commission would
be final. and if it adjudged the defendant
sane the commitment Of Justice Amend,
it was said. would be superseded, and
Robin would have to stand trial.
! NC immunity has been promised to
any one examined by this Office" Dis
trict Attorney Whitman said last night.
and there is every reason to believe
that several of the men associated with
Robin as officers Of some Of the institu-
tions which he is alleged to have used
| in his financial dealings will be called
upon TO plead to charges of larceny"
Considerable excitement prevailed in
/ the neighbornood of the Washington
Savings Bank yesterday when it closed
its doors. Depositors gathered in front
of the bank in small crowds all day and
| demanded their money. superintendent
Cheney of the Banking Department said
he had taken charge of the bank merely
as q preca utionary measure because of
its connection with the Northern Bank.
pending a more thorough examination Of
its affairs.
Paid 4 Per Cent Last Year.
The statement of the State Banking
Department for July 1, 1910. showed
that the Washington Savings Bank on
| that date had total resources of S1.42S.-
357 81. and that the amount due to de-
positors was S1.410, 2o5 60, while the
ether liabilities amounted to S125 93.
There were L130 open accounts with the
! bank on that date. Dividends were
paid at the rate of per cent for the
year ending June 80.
The bank was a considerable investor
in town and school district bonds in this
state, but its largest single holding was
in first mortgage railroad bonds. which
i held to a par value of S221 800, and
an investment value of 1923, ,606 50 in
January. 1910 It had also $4,000 in
vested in the bonds Of the State of Ten
! nessee, and 5000 each in the bonds OF
North Carolina and Arizona.
It was learned yesterday that the amount
Of the bond given by the National Surety
Company to guarantee the city money IN
the Northern Bank was $50. 900 less than the
amount Of city funds deposit when the
bank suspended payment on Tuesday.
| The bond was for sl50GG0, while the
amount on deposit at the time was a trifle
more than S200.OOG This was due to the
fact that the taxes being collected by
/ the Bronx bureau Of the Department OF
Tax Collections had been coming in rapidly
| and had accumulated in the Northern
Bank
Acting City Chamberlain Walsh. in the
absence Of City Chamberlain Hyde, finding
on Friday that the amount on deposit in
the Northern Bank on the night before was
s7s0ooo. drew out $4,000 and placed it in
cne of the other city repositories, leaving
$4,000 in the Northern. but the tax collec-
tons On Friday and Saturday carried the
amount UP TO $4,000 and over.
City Has to Wait for $4,000
On the day that the bank suspended
payment Walsh made 4 formal demand or
the representative Of the state Banking
| Department in charge of the institution fol-
! the payment Of the full amount Of tbs
citys deposit A formal refusal of this
demand having been received, the matte,
has been placed in charge of Corporation
Counsel watson, who will take steps for
, ! the collection Of the amount of the bond
| from the National Surety Company. This
| city will have 10 take its chances witt
the other depcsitors in getting the eddi-
Iticnal s5oaIn.
O. H. Cheney. Superintendent Of Banks
gave out a statement last night in which
he said:
Editorials have now appeared IN Va
; rious metropolitan papers to the effect ths
the Banking Department has been deln
euent in ascertaining the condition Of tbs
Northern Bank Of New York and suggest
ing that the information leading TO the uI
innate suspension of that institution hat
to be called TO the attention OF the Bank
ing Department by the Insurance Depart
nent. which was then engaged in invest
eating the lFtna Indemnity Company, il
which Robin was interested.
| CAS- a matter Of fact, the Banking De
partment placed examiners in the Northern
Bank and each of it's nine branches TIVE
days before the Insurance Department in
dicated that it was examining the z1tns
; Indemnity Company. On the very first da,