Albuquerque morning journal., 1910-12-28
BIG NEW YORK
BANK FORCED
TO SUSPEND
HAD NEARLY
SEVEN MILLION ON DEPOSIT
President Whose Irregularities
Are Blamed for Failure in
Sanltariumi Grand Jury to
Investigate.

fBy Morning journal Special Leascd wireI
New York, Dec. 27.--The Northern
Bank of New York, with deposits in
its nine branches Of s6.912,5s2 at the
time OF It's last published statement,
was closed today by o. II. Cheney.
state superintendent of banks, flor
the benefit of the depositors because
of certain conditions" and "also GER
tain irregular transactions"
An inventory OF the banks assets
and the liabilities Is now under way.
but until 1t is completed. no further
statement from superintendent Che
ney was available. w. II. Hotchkiss,
state superintendent OF insurance,
and District Attorney Whitman. are
cooperating with him. They hope TO
present the facts TO the grand jury
tomorrow
Joseph G.. Robin, chairman of the
executive commission of the bank and
shareholder ard director In many
other corporations. is In private
sanitarium at Central valley. New
York, to which he was committed
last Saturday by Justice Amend OF
the state supreme court at the request
OF his sister on the certificate OF two
physicians.
James III. Clifford, of counsel for
the bank and one OF its directors. an-
nounced tonight that physicians had
diagnosed the case as acute parano-
la. Robin tried to kin himself In his
apartments last saturday night but
was restrained by nurse. according
TO Mr.. clifford.
"On friday night said Mr.. Cir
ford. after the irregularities had boon
discovered. another director and N.Y.
self went to apartments of Mr.. Ro-
bin. We could not get a connected
statement from him. 1t was plain
that he did not realize the seriousness
of our mission.
II knew nothing about the irreg-
ularities nor do / think any OF the
other directors did until they were
revealed by the examiners OF the
banking department and our own In
vestigators. We held out hopes that
conditions would right themselves un-
til Monday night when meeting
which lasted for hours, we called
upon the state banking department
to step In,
"A copy of the resolution was turn
ed over to the department and Super
intendent Cheney can make It public
n he wishes. We do not care to. We
wish to do nothing that might embar-
rass the public officials.
ssDanoqttnro will raaafUa Inn raptz
on the dollar and the stockholders a
substantial dividend II we can real
lie on our collateral. We have cash
on hand of S2,000,0 900 and quick az
sets of ss,000.00o.
"Some people might think 1t was
ridiculous for us to close our doors
IN this way, but we considered that
as soon as the irregularities became
public there would be a run on the
bark. In view of this fact the direc-
tors believed the interest of all de-
positors demanded that we ask the
tate banking department TO take
Superintendent Hotchkiss was
drawn into the case through the fact
that Robin held a controlling interest
in the Aetna Indemnity company of
Conn, capitalized at $780,
OO0 which does business in this state.
The relations OF the Aetna with the
Northern bank and OF both with the
Title and Guarantee company, Of
Rochester, form the subject matter
of q long statement by Superlrtend-
ent Hotchkiss.
The directors of the Aetna admit
ted tonight that the report given out
BY the insurance department was
.orrect in the essential particulars
rhe statement of Mr.. Hotchkiss fol-
ows In part:
Joseph G.. Robin was In March
ast the controlling stockholder of the
Aetna Indemnity company and appar-
ntly OF the Northern Bank Of New
FORK one of the chief assets of the
Ietna Indemnity company Ga Con-
Iectlcut corporation in no way re-
lted TO the Aetna Fire Insurance
was according TO the state
1ent of December 81, 1909, 1900
hares. or the entire issue. of tho COR
crate stock of the Title and Guar
ntee company Of Rochester.
"rhe latter is a New York insur-
nee tpTpotdtiph huhh'i tNtu 10 h'
delity and title guarantee business.
his corporation had. however. been
ormant for some time, A lease OF
8 title plant to a Rochester abstract
)mpany produced an income. which
addition to its other assets. gave
lo stockholders value OF sl69,500
ut of the total assets OF the Aetna
,mpany Of approximately si,0o0.ooo.
Coincident with an increase In the
lpital stock OF the Aetna Indemnity
st spring. Robin seems TO have
Dened negotiations for the purchase
ON Il Of the Rochester company.
bout that time both companies
ected new officers. Former Superin-
ndent Kelsey. lotto II. Kelsey. OF
e state Insurance Department. be-
.mfng president Of both.