Norwich bulletin., 1910-12-28

Robin held d controlling interest Tn the Aetna Indemnity company oI
 Hartford, Conn, capitalized at $25O, 000, which does business in this state. The relations of the Aetna with the North ern bank and of both kith the Title
 and Guarantee company of Rochester
 form the subject matter Of d lonS
 statement by Superintendent Hotch-
 .,'~s The directors of the Aetna, In
 typewriter reply, admitted tonlgh that
 the report given out by the insurance
 department" was correct in the essen-
 tial particulars.
 Statement by Supt. Hotchkiss.
 In part Superintendent Hotchkiss' statement is as follows:
 Joseph c. Robin was in March last the controlling stockholder of the Act na Indemnity company and apparently of the Northern Bank of New York. One of the chief assets of the Aetna Indemnity company Ca Connecticut company in no way related to the Act na Fire Insurance company was ac- cordln@ to the statement of December 31 1909. 500 shares of the entire is- sue of the corporate stock of the Title and Guarantee company of Rochester. The latter is a New York insurance corporation authorized to do a fidelity and title guarantee business. This cor poratiOn had, however, been dorment for some time. A lease of it's title plant to a Rochester abstract company produced an income which, in addition to it's other assets. gave this stockhold- ing @ value of S169, 300 out of the total assets of the Aetna company approx imately S1,000, ,O00.
 "Cofncident with an increase in the capital stock of the Aetna Indemnity last spring. Robin seems to have open ed negotiations for the purchase from it of the Rochester company. About that time both companies elected new former Superintendent kel- Sey lotto IT. Kelsey of the State In surance company becoming president of both. IL appears that shortly prior to this time Robin, as one of the wit ness sad, had stated that he would purchase 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 com pany were turned over to him on March 31, and. without the knowledge of President Kelsey or the other off cers Of the two interested insurance companies, disposed of and manipulat- ed as Robin directed"
 Statement by Directors of Aetna.
 The summary of this manipulation follows and the statement then con tinues:
 As a result when the present investi- gation began the Title and Guarantee of Rochester instead of haV- ing assets consisting of approximately S1s0.O0O and practically no liabilities. now owes S50,000, and has against it bonds and stocks in the Robin con- carns whose value is approximately S10J.O0O. This is a net shrinkage of about St25,000 to be reduced of course by the ultimate return from the Robin securities.
 Fortunately the Rochester company is not actively in business, and the in- erests of poicyhOlders are not affect ed.
 "There is undoubtedly a considerable shrinkage in the assets of the Aetna Indemnity company, whose small sur plas is unquestionably wiped out and whose capital Is impaired. Whether this company will be Tehabilitated or reinsured has not yet been determin- ed"
 The directors of the Aetna in their statement issued tonight explain that "as scon as knowledge of the manip- ulations by Mir. Robin came to their attention they notified the insurance department of Connecticut, which CO., operated with the New York depart mnut in making a full and detailed ex- animation of the financial transactions of the affiliated companies MT Robin has been entirely eliminated from the stock control of the company, and it's officers are now in a position to trans fer control to strong interests. The officers, therefore, are confident that with the successful completion of the ucgotfatfons the progress of the com pauv will continue undisturbed."