The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-25
NORTHERN BANK HIT
BY ROBINS DEALS
Why Institution Failed shown
in Suit Over Mortgages
Involved.
GOT $4,000 OUT OF 1T
Syndicate Wouldn't Take Over
Bank When Deal Was
Discovered.
GOT $4,000 OUT OF 1T

A transaction engineered by Joseph q
Robin by which he got $4,000 from the
Washington Savings Bank for his own
use through the assignment of mortgages
worth $49,s37 and owned by the Northern
Bank has been disclosed in the Supreme
Court The disclosure explains why a
syndicate Of bankers who were ready to
take over the Northern Bank and prevent
its failure refused TO carry out their plans.
1t Is understood that the facts disclosed
will be used against Robin In case he
seeks n full pardon from Gov. Glynn.
Tho testimony was given before Su-
preme Court Justice GGvegan in a suit OF
the Northern Bank against the Washing
ton Savings Banks 10 establish It's owner
ship OF the s49.G37 OF mortgages. The
savings bank claims the mortgages by
reason OF giving up $4,000 in cash for
them. The case has been on trial for
some days and will probably be finished
to-day. Robin has not testified.
The evidence and exhibits In the case
show that the Bankers Realty and Secur-
ity Company was formed by Robin, that
he owned all but 500 Of the stock and
that It's entire business was transacted In
behalf OF Robin. The Maciay Avenue
Realty Company was formed by the
Northern Bank TO hold property, he
ownership NJ which by the bank 1t was
thought advisable to conceal from the
bank examiners. Two OF the chief ex-
hibits In the case are checks, one for $54,-
900 and the other for $4,000. The tes-
tinony shows that on April II. 1909. when
the Bankers Realty and Security Company
had a balance Of only SEQ IN its deposit
account with the Northern Bank. a check
"a. h.aA n
on the order of Robin and signed by
Thomas +. Murphy. v.ce-presldent and +.
X. Morris, secretary. OF the Bankers
Realty and Security Company.
No effort was made to cash this check
until the following day, April II. when u
check for $4,000 was drawn 10y Robin
and l.. a. Cheney. secretary OF the Wash
ington Savings Bank on the account of
the savings bank with the Empire Trust
Company. The check was payable TO the
order OF Cheney and was Endorsed by him
to Robins Bankers Realty and Security
Company. II was deposited at once and
the $4,000 check drawn the day before
was then deposited by Robin to his ac-
count with the Carnegie Trust Company
The check was used to pay note OF
Robins for $4,000 due a. the trust COM
pany that day. IL was said. Three months
later Robin had +. X. Morris as president
OF the Maclay Avenue Realty Company
assigned the s4e,631 OF mortgages owned
by the Northern Bank to the Washington
Savings Bank for the $4,000 check by
which Robin was able 70 raise $50. 900 In
cash to meet his note.
Witnesses testified that when the North
ern Bank failed the mortgages in question
were found In the vaults OF the Northern
Bank. but the bonds tina. should have
accompanied them we're In Robins office
In the Times Building. II was learned
yesterday that this mortgage transaction
was the actual cause OF tho failure Of the
Northern Bank. syndicate of bankers
had been formed to buy tho Northe IN
Bank stock and was prepared to ofyer
$3.50 e share. When the assignment OF
the $3.50, in mortgages was revealed
the syndicate refused to have anything
more to do with the bank.