Arizona republican., 1910-12-28
'CRAzY HEAD
 IF A BANK Failure Of thG Northern of
 New York
 ITS MANY RAMIF|CAT|ONS Nine Branches With Depos- it's of Six Millions and Other Institutions Are In volved in Catastrophe - Manager Tries Suicide.
ITS MANY RAMIF|CAT|ONS


 Bank of New York, with deposits in its nine branches of $6,9l2.5S2 at the time of the last published statement, was closed today by O. H. Chenev, state superintendent of banks, for the bene- fit Of depositors' and because of 'cer- tain conditions,' and also certain ir- regular transactions"
 An inventory of the banks assets and liabilities is now under way, but until it is completed, no further states ment from Superintendent Cheney will be available. w. C. Hotchkiss, state perintendent of insurance, and District Attorney Whitman are cooperating with him. They hope to present the facts to the grand jury tomorrow.
 Joseph c. Robin, chairman of the executive committee of the bank and a shareholder and director in many oth- CT corporations, is in private sani- tarium at Central Valley, \. Y, to which he was committed last Satur- day by Justice Amend of the state su- preme court, at the request of his sis ter and on the certificate of two phy- sicians
 James H. Clifford. counsel for the bank and one of it's directors, an- nounced tonight that physicians had diagnosed the case Of Robin as 3cute paranoia. He tried to kill himself in his apartments last Saturday. but was restrained by a nurse, according to Clifford
 "On Friday night" said Clifford. aft CT the Irregularities had been discov- cred, another director and myself went to the apartments of Robin. We could not get a connected statement from him. Ie was plain that he did not realize the seriousness of our mis- sion.
 We knew nothing about the irregu- larities, nor do I think did any of the other directors until they were revealed by the examiners of the banking de- pertinent and our own investigators We held out hope that conditions would right themselves until Monday night when. after a meeting which lasted for hours. we called Upon the state banking department to step in.
 Ire depostors will receive 100 cents on the dollar and the stockholders a substantial dividend if we can realize on the collateral. The cash on hand is s2.0O0,000 and the quick assets. s3,00O.0O0. Some people might think it ridiculous for us to close our doors 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- ! lieved that the interests of all the de- 1 positors demanded that we ask the 1 state banking department to take ' charge"
 Hotchkiss was drawn into the case through the fact that Robin held con trolling interest in the Aetna Indemnity | of Hartford, Conn, capitalized l at s250,000 which does business in this l state. The relations of the Aetna with ] the northern bank. and both with the !, Title & Guarantee company of ROches- ter form subject matter of a long statement by Hotchkiss.
 Directors of the Aetna admitted to- | night that the report given out tonight | by the insurance department was cor rect in essential particulars. The | statement of HOtchkiss follows in part: |
 Joseph c. Robin was in March last ! the controlling stOckhOlder of the Act ma Indemnity company and apparently | of the Northern Bank of New York | One of the chief assets of the Aetna | Indemnity company, a Connecticut cor pOratiOn in no way related to the Act na Fire Insurance company, was, ac- cording to the statement of December I 31, 1909. the owner of 1,5O0 shares. or the entire issue. of the corporate stock | of the Title & Guarantee company of | Rochester
 The latter is New York insurance | authorized to do T fidelity and title guarantee business. This had. however. been dorm- ant for some time. The lease of it's title plant to a Rochester abstract produced an income, which. in addition to it's other assets, gave the stock a value of $169.5OO out of the to- tai assets of the Aetna company of ap- $1,000,000.
 "Coincidental with an increase in the capital stock of the Aetna Indemnity company last spring. Robin seems to have opened negotiations for the pur- chase from it of the Rochester com pany. About that time. both companies elected new officers. former Superin- tendent Kelsey lotto H. Kelsey) of the state insurance department becom- ing president of both.
 "It appears that shortly prior to this