The Birmingham age-herald., 1910-12-28
NORTHERN BANK OF
 NEW YORK CLOSED
The Superintendent of Banks
 Claims Irregularities
BANKER IS IN HOSPITAL
Executive Committee of the Bank Tried to Kill Himself But
 Was Prevented

Tried to XIII Himself Hut Was Prevented
 New York. December 27.-The Northern Bank of New York. with deposits in it's nine branches of $6,s12.5s2. at the time of its last published statement, was closed today by O. H. Cheney, state superin- tendent of banks, for the benefit of the depositors," because of ''certain condi- tons" and "also certain irregular trans actions"
 An inventory of the banks assets and liabilities is now under way, but until it is completed no further statement from Superintendent Cheney will be available. ". H. Hotchkiss, state superintendent of insurance, and District Attorney Whit man are cooperating with him. They hope to present the facts to a grand jury tomorrow
 Joseph G. Robin, chairman of the ex- ecutiye committee of the bank and share holder and director in many other corpor- ations. is in a private sanitarium, to which he was committed last Saturday at the request of his sister. James H. Gif- ford, one of the banks directors, tonight said 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 sanitarium until today, for MT. Clifford and another di- rector visited him at his apartments Monday night in an effort to obtain col lateral. Mir. Clifford also said:
 Giford's Statement
 "I knew nothing about the irregularities nor do ] think any of the other direct ors did until they were revealed by the examiners of the banking department and our own investigators. We held out hopes that conditions would right them selves until Monday night, when at meeting which lasted for hours we called upon the state banking department to step in. A copy of the resolution was perintendent Cheney can make it public if he wishes. We do not care to. We wish to do nothing that might embarrass the public officials.'
 Superintendent Hotchkiss was drawn
 
 held a controlling interest in the Aetna Idemnity company of Hartford Conn, capitalized at s25o,00o, which does busi- ness in this state. The relations of the Aetna with the Northern bank, and Of both with the Title and Guarantee com pany of Rochester form the subject of a long statement by Superintendent Hotch- kiss. The directors of the Aetna in typewriter reply admitted tonight that f pix ont " ha ms department was correct in the essential particulars. In part the statement of MT. Hotchkiss follows:
 Statement By Hotchlkiss
 Joseph G. Robin was in March last the controlling stockholder of tho Aetna Indemnity company and appar- entiy of the Northern bank of New York. One of the chief assets of the Aetna Indemnity company Ca Connec ticutt corporation in no way related to the Aetna Fire Insurance company was, according to the statement of De- cember 31, 1909, 1500 shares, or the entire issue of the corporate stock of the Title Guarantee business. This cor poration had however, been dormant for some time. A lease of it's title plant to a Rochester abstract company produced an income which in addition to its other assets gave the stockhold-
 
 assets of the Aetna company of approx imately s1.000,000.
 "Coincident with an increase in the capital stock of the Aetna Indemnity last spring, Robin seems to have opened Negotiations for the purchase from it of the Rochester company. About that tune both companies elected new of ficers, former Superintendent Kelsey lotto Il. Kelsey of the state insurance department) becoming president of both. It appears that shortly prior to this time Robin, as one of the wit nesses, had stated that he would pur- chase from the Aetna the stock of the Title and Guarantee company On the strength of this statement-for there was no contract until October, 1910, the assets of the Rochester company were turned over to him on March S1 and without the knowledge of President Kelsey or the other officers of the two interested insurance companies dis posed of and manipulated as Robin di rected."
 The summary of this alleged manip- ulation follows and the statement then continued:
 Result of investigation
 "As a result when the present in- vestigation began the Title and Guar antee company of Rochester, instead of
 
 s1S0.000 and practically no liabilities, TOW owes $50,000 and has against 1t bonds and stock in the Robin concerns whose value is approximately $105.000. This is a net shrinkage of about $125,- 900 to be reduced, of course, but the ultimate returns from the Robin se- curities
 4Fortunately the Rochester company is not actively in business and the in- terests of poltcyholders are not af- fccted. nfh
 There is undoubtedly considerable shrinkage in the assets of the Aetna Indemnity company, whose small sur plus is unquestionably wiped out and wh ose capital is impaired. Whether this company will be rehabilitated or re- insured has not yet been determined" The directors of the Aetna explained | that "as soon as knowledge of the manipulations of MT. Robin came to | their attention they advised the in- | surance department of Connecticut which co-operated with the New York department in making a full and de- tailed examination of the financial transactions of the affiliated com | panies. ..
 MT. Robin has been entirely elim- mated from the stock control of tn e company and It's officers are now in a position to transfer control to strong interests. The officers are. therefore. confident that, with the successful completion of the negotiations, the pro- gress of the company will continue un- disturbed"
 NEGRO DESPERADO