Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-12-28


Bank of New York, with deposits in
it's nine branches Of S6912. S.. at the
time of it's published ste tement, was
closed today by o. =. Cheney. state
superintendent Of banks. For the
benefit of dcpoSitors,' because CT GER
tain conditions and Also certain ir-
regular transactions An inventory
of the banks assets and liabilities Is
now under way, but until it is COM
plete no further statement from Supt.
Cheney will be available. w. II.
HotchkisS. state superintendent of in
surance, and District Attorney Whit
man are cooperating with him They
hope to present the facts to the
grand jury tomorrow.
Joseph G. Robin, chairman of the
executive committee of the bank and
a shareholder and director in many
other corpora lions, is in the private
sanitorium of DR.. Charles Mcdonald
at Central Valley, n. Y, whittier he
was committed last Saturday 10y Jus
tcc Amcndof of the state supreme
court at the request of his sister on
the certificate of two physicians. DR.
hSbOIidld Se1iu Soil6lll oNSi ti'' i'i's>
distance telephone that he could not
discuss the case. but James IA. Clifford
counsel for the bank and one of its
directors. stated that the examining
physicians had diagnosed the case as
acute paranoia. and that Robin tried
to kill himself in his apartments last
Saturday night, but was restrained
by nurse.
Although Robin was committed on
Saturday. he was not conveyed to
the santorium until today.
On Friday night said DIR. Clifford,
after the irregularities had been dis
covered another director and myself
went to the apartments of Mr.. Robin.
He was in great agony from kidney
trouble and it WAS plain to be seen
that he was out of his mind. We
could not get a connected statement
from him. 1t was plain that he u'd
not realize the seriousness of our ms
sion.
mot succeeding we left him and re
turned on Monday night. His mental
condition then was awful he was
suffering from paranoia and | under
stand, that after being examined by
eminent alienistS he was sent today
to private sanatorium. On Saturday
while in this condition, he tried to Kill
himself, but was frustrated by a watch
full nurse.
II knew nothing about the irrcgu-
larities, nor do think any of the
other directors did until they were re-
vealed by the examiners of the bank
ing department and our own investiga :
tors. We held out hopes that condi-
tions would right themselves until
Monday night when at a meeting which
lasted for hours we called upon tn"
state banking department to step in.
a copy of the resolution was turned
over to the department and Supt.
Cheney can make it public if he wishes.
We do not care to. We wish to do
nothing that might embarrass the pub
lie officials.
"DepoSitors will receive 100 cents on
the dollar and stockholders a sub
stantiIl dividend. if we can realizze on
our collateral. We have cash on hand
of $2,000,o00 and quick assets of 49,
0@0.000 Some people might think it
was ridiculous for us to close our doors
in this way. but we considered that as
soon as the Irregularities became pub
lie there would be a run on the bank.
In view of this fact. the directors be-
leved that the interests of all depusi-
tors demanded that we ask the state
banking department to take charge"
Supt. Hotchliiss was drawn in,o the
case through the fact that Robin held
a controlling interest in the Aetna In
dcmnity Co. Of Hartford. Conn. capt.
talized at $250.000. which does business;
in this state. The relations of the
Aetna with the Northern Bank. and of
both with the Title and Guarantee Co,
of Rochester form the subject matter
of a long statement by Supt. Hotchkiss.
The directors of the Aetna in a type
written reply admitted tonight that
The report given out by the insurance
Department. was correct in the essen
tial particulars, In part Supt. Hotch-
kiss statement is as follows:
Joseph G.. Robin was. in March last,
the controlling stakeholder Of the
Aetna Indemnity Co., and apparently
of the Northern Bank of New York.
One of the chief assets of the Aetna
Indemnity Co. CA Connecticut corpora :
ton, in no way related to the Aetna
Fire Insurance Coz was according to
the statement of Dec. 81, 1909, 1900
shares, or the entire issue. of the cor
porate stock of the Title and Guarantee
Co, of Rochester. The latter is a New
York Insurance corporation authorized
to do fidelity and guarantee business.
This corporation had been. however,
dormant for SINE time. A lease of it's
title plant to Rochester abstract COM
pany produced an income, which in ad-
dltion to it's other assets, gave this
stockholding value of $160,5O0 out of
the total assets of the Aetna Co., of
approximately $1,OOO,0O0.
"Coincident with an increase in the
ca Dital stock Of fha Aatna Tpdap,rit Il,