The Evening standard. [volume] (Ogden City, Utah) 1910-1913, 1910-12-28

NEW YORK, Dec- 80 -.
ern Bank OF New York, WIN oepo''
in its nine branches OF $o,4iE,
tbe time OF It's last pubusneu eSa1e
rnent. was closed today by Z. II Cne
ney. state superintendent Oh UahNS,
"for the benefit OF the deposatos'
because of "certain conditions an1
"aIso certain irregular transactions,
An inventory OF the BANK asseeb
and liabilities IS now under way, oue
until Il is completed No iurtner staoe-
mani from superintendent Cheney
waa available. w. H. Hotchkss' sta1e
sunerlntendcnt OF insurance aud D's-
trict Attorney Whitman are cooper
at,ng with him. They hope To present
tha facts TO the grand jury tomor-
row.
Chairman In a Sanltarium.
Iosanb G. Robin, chairman OF the
,,o.ntive committee of the bank and
sharabolder and director In many
,,,bar corporations, Is In a private san
,tari,,m M Central Valley, n. y. TO
n,hlch he was committed last Satur-
Sav hv Justice Amend OF the state
s,,1,,no court at the request of his
sistar on the certificate of two ply
sioiaDs. o. ,ho
bank and one OF It's directorS' an
pounced tonight that physicians hau
diagnosed the case as acute Pefano'a'
Robin tried 10 Kill himself III nus
anartments last Saturday night, but
was restrained by nurse, according
to Nr. clifford. e
"On Friday night" said Mr.. Gil-
ford. after Irregularities had been
disoovered. another director and my
sslf won't TO the apartments OF Mr.
Robin We could not get connect
ed statement from him. IL was plain
that he did not realize the serious
ness OF our mission.
Did Not Know Of Irregularities.
OF knew nothing about the irrcgu-
larttlcs nor do ] think any other di-
roctors did until they were revealed
by the examiners OF the banking de-
partment and our own Investigators.
We held out hope that conditions
rogld right themselves until Monday
night when, at h meeting which last
ed for hours, we called upon the
Rtate banking department to step In
"a CODY Of the resolution was
turned over to the department and
SUPERINTENDENT Cheney can make IT
public II he wishes. We don't care
20 We wish TO do nothing that might
zmbarrass the public officials"
Superintendent Hctchkss was
drawn into the case through the fact
that Robin held a controlling inter
est In the Aetna Indemnity company
pf Hartford, Conn, capitalized at
$3.50 900, which does business in this
state. The relations OF the Aetna
with the Northern Bank and of both
the Title & Guarantee company
OF Rochester, form the subject mat
Ter OF a long statement by Superin- |
tendcnt Hotohkiss.
The directors OF the Aetna admit |
ted tonight that the report given !
out by the insurance department" |
was correct in essential particulars. |
The statement Of Mr.. Hotchklss fol !
lows in part:
Joseph G. Robin was In March
last the controlling stakeholder OF
the Aetna Indemnity company and
apparently Of the Northern Bank of
New York. One OF the chief assets
of the Aetna Indemnity company Ca !
Connecticut corporation in no way re-
lated 10 the Aetna Fire Insurance
company was. according to the state
ment CT December 81, 1909, $500
shares. OF the entire Issue of the cor.
poratc stock OF the Title G. Guarantee
company OF Rochester
THE latter Is a New York lnsur-
ance company. authorized to do
fidelity and a title guaranty business. /
This corporation had, however, been
dormant for some time. A leose OF
its title plant to Rochester ab-
Stract company promised an income
which In addition 10 Its other assets,
gave the stockholders value of $l69,-
500 out OF the total assets of the
Aetna company OF approximately ST..
100000.
Wanted TO Purchase Company.
'Coincldent with an increase ia the
capital stock Of the Aetna Indemnity
last spring. Robin seems to have
opened negotiations for the purchase
from 1t OF the Rochester company.
About that time both companies
elected new officers, former Superin-
tendeut Kelsey lotto H. Kelsey OF
the state insurance department. be-
coming president oil both.
1T appears that shortly prior TO
This time Robin. as one OF the wit
hesses said. had stated that he would |
purchase from the Aetna the stock of |
the title and guaranty company.
On the strength OF this statement !
for there was no contract until Oc- |
tooer, lslo-the assets of the Ro- !
chester company were turned over to !
bim on March 81, and. without the !
knowledge OF President Kelsey or |
other officers of the two Interested !
insurance companies. disposed of and |
manipulated as Robin directed"
Manipulation Of Books.
The summary OF this alleged man
ipuladon follows and the statement
then continues,
AS q result, when the present In.
Vestigation began, the Title C Guar. |
antce company of Rochester instead
ot assets consisting OF approximately
SlSO,OoO'OOo and practically no liabil- |
ities now owes $4,000 and has
against 1t bonds and stock In the
Robin concerns. whose value is an.
proximately 100000. This is net
shrlnkage OF about s12s 900 TO be re-