New-York tribune., 1910-12-28
hut held off In hopes that the bank
could be saved over the holidays.
Plain Statement of Hotclkiss.

t0DU0 be saved over the lOlludNS.
Plain Statement Of Hotchkss.
The statement issued yesterday by
superintendent Hotchkss is a remark
ahle account Of kited checks and -Hye-
sertous entries in bank passhooks. with
the disappearance and alteration OF such
hooks when the occasion seemed to de-
mand it The statement follows;
An examins,ion of the lEtna lnoemnisy
company of Hartford by the New ferk Ana
Counecticut insurance departments was
6aSun on December 1e. 1t is still lncohi-
snt The Be- statement ass Of The following facts;
Joseph @. Robin was in March iast Ine I
1onsng o1psRR ToGkR0ds snd apparentiS. Of the
4so-theTp Bank of New York, loeaIea q. :
No sl5 West l25th street, the latter win
side Sank. at Eighth avenue and 9th street
He also largely controlled the Bankers
posasion heavily interested in Bronx lands;
the Fidelity Development Company Nte
owner OF The old Morris Park racetrack, ,t
and the South Shore Traction Company aIio
the Babylon Railroad Company. two Long
Island traction corporations -
The Robin corporations. other than the
esnks and the insurance company, all office
1oSetAer on the eighth floor OF the Iilnes
Buil6ins snd seem to have the same EN-
rloyes. Save as TO the Northern Bank. in
which he is chairman of the finance COM
n1rtee. Robin appears not to be an onicer
Of auy- OF these institutions his control or
influence being exercised through one or
more confidential representatives. Such
control seems however. TO be a absoiute. and
his connection with most of these corpora
sions such that they and their assets are
practically his property, subject to use. as
one of the chief assets of the -Etna. In
Gemnlty Company "a Connecticut corpora
ton in no way related to the -ftna Life
1nsurznce Company. whose principal office
IS al No. IS William street. and which con-
ducts surety. fidelity. plate glass and
business IS
accident and health business OF limited eAr
1n Sa' aCIod 90, olls . 4oo t9 Ss a.e sc IN eT1,iTe
issue. Of the corporate stock OF the 1Itie
snd Guarantee Company OF Rochester. Ihe
latter is q New York insurance corporatlon
authorized to do a fidelity and TUE guar
zntee business. This corporation had, how
siitisa3ed matters preventing its dissolution
a lease Of its title plant TO koehesteT
sepsny prooSGee 2 ese sssets @ gave
tshis stocffrolding & value of slsS.5oa OUT OF
she total assets of the -Etna company OF
20 epprczin1ately G.tsc"e
Negotiations for Rochester Concern.
Coincident with an increase in the capital
Htock OF tie -ftna Indemnity last spring
robin seems to. have opened negotiations
s1or the purchase from it of its ownership
icf the Rochester company. About the same
slime both companies elected new officers.
Scrmer Superintendent Kelsey becoming
Hresident of both. and Anthony Stunpf and
FWllfsrn Y Iscmex- Two Representatives of
s1Sobin- becoming. respectively, sHlce-presl
sCeat and secretary. The election OF these
irnen seems to have been on March ., 1910.
i-sf the same time 3 resolution was passed
s<llrecting the removal Of the office. records
re nd assets of the Rochester company TO
SSe7E York; and cn March 90 or 81 Charles
nv. Day the conlpapys treasurer, brought
sham TO the Office Of the AEtna lndeu1pltT
8ompanr. and later delivered them 70
,EtuTnpf in Robin Office. Thereafter things
Ssppene6 -he connected story Of which
sseelas. prior TO the present iI1vestisa ton.
$50 have been known only 10 Robin and his
1t appears thar shortly prior 20 this time
siSobin as one Of tbs witnesses says. had
f~'steted that he would purchase from the
.Ftns the stock of the Title and Guarantee
lccmpauy.' On the strength OF this state
'-aent or nrorcsltion-for there MAS no con
tract until October. 1eI4-the assets of the
Rochester company were turned over TO
him On March 81. apparently by Nice-Pres1-
! dent Stumpf and Secretary LoriaE. and
;~ith their assistance. without the knovyi-
edge Of President Kelsey or the other ofn-
Gers Of the two interested insurance com
iTsnses. disposed Of an'3 manipulated as
The only a}Iffcrttz for transactions which
have greatly depleted tbs assets Of the
Rochester company seems to have been
Robins orders end E two-ysar-old Tesolu-
slo1 Of that company's hoard, passed un-
vie ITtle ana Guarantee .Company's board
bad but one meeting. that IN octeher- 70
made no report az that -rriss rlissting of What
they had been dong Indeed, the present
sno1iry was based on falsidcation Of the
ern Bank The manipulation Of the Roch-
ester ooInps nT's assets was not then known
outside the inner circles Of the Robin
Tells of Rohin's "E.oharaes"
9iee Gay ttssusecptities Of the Rochester
company we're put in Robins safe, or ne s
IoI.eR1Ig- ZocI kchanseo stIs,o
stuck; for bonds Of the South Shore
Irecsior Company. it then leased, and
evideneed only by a somewhat mythical
due bill. until December q. and then only
hy typeNritten interim certificate the
Ftoek seems. Sc%ever - bsYa r,ssssa ed 70
now to be he'd by the Controller Of the
titv Of New York. as security for such
oompeny's obligations to the city.
IN addition, a cash balance Of from
sleao 70 sl5.oso was used. and good mort
cages DISPOSE: Of. and thus an -'exehange"
fer about s5r. fs1 of the bonds Of the
Babylon Railroad Company, old horse
car line then being, or since. electrified.
accomplished, with similar treatment as TO
due bill and interim certificate. Needing
more money, however. Robin caused
Sr1rnpf and LonlaN to execute the Roches-
20 be discounted in his. the Northern, bank,
end then oia &c 6 me 1so lqeusnSe ou zee & eompani
Of his Fidelity Development Company. All
this and more of the same sort. though in
The stock holding Of the Rochester com
rsry and without the directors of that
company, save Stun1pf ana LcrnaA, KNOW
sng what going
As result. when the present investiga-
.ton began instead of assets consisting of
approximately sls0.0ae and practically no
liabilities the Title and Guarantee Com
ranv Of Rochester now owes s5o,Ooo and
Ses against II. besides bonds and stock
81 the Robin concerns. whose value is
problematicai. approximately sle5.ooo. net
ehinkase. the $50 600 note being considered,
of about sl25,eoo. such slrinkage TO he re-
iSuoed Of course. by the ultimate return
.srorn the Robin securities.
The Rochester coupany's account has
.fe-ee scale without loss. however, so far
les has yet been deveioUed. I
Fortunately. the Rochester company rs
lyot actively in business. and the INTERESTS
tcf policvhoide-s are not affected Such
Jecrpsny. as an asset Of the A5tna inoehl-
f2s,v. is. however. much less valuable
ca!is Operations CUipable.
gut Robin s operations IN the Northern
Rank when seeking TO carry out contract
sso- the purchase OF the Rochester COM
psnv. which. il seems. Was actually mace
lest October, are more startling and culp- /
;eble- Again there Was an exchange, ROD
sn's Bankers Realty and security COM /
1 parry. about October ., 1916, giving the
-Ftna its check for S5o.09o as part payment 1
for the Rochester company 5 stock holdlns' /
end the A1tna giving the Bankers Realty /
SIS check for $4,000 in payment for about !
:5e. 900 worth of the Babylon Railroad Com |
Csny bonds
For the last unreturned check the Etna |
-seeived nothing until on the night Of De
rsnstence Of TIE New York department and /
for cio