Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-31
NIPPLE WAS A STAR
AMONG DEFRAUDERS
Worked the Church Element
to a Finish.
WORE MASK OF MORALITY
And Pastors Dumped Their Savings
Into His Till.
REVELATIONS A CRUEL BLOW
Receiver Says That He Stole Securities
Worth $e5, 900 and criminally
Loaned Five Millions.

PHILADELPHIA. Pa, August sB1.-The
statement Of Receiver Earl Of the broken
Real Estate Trust Company Of this city
that Frank K. Nipple. the late president CT
the concern, had stolen securities valued at
$65. 900. and that the lending Of s., 900 coo to
Adolph Segal on insufficient security
amounted to as much as theft, created a
profound sensation throughout the city to
day. =
The revelation was especially cruel
blow to his many intimate friends. most Of
whom are prominent in the Presbyterian
Church. either as clergymen or laymen. So
high was their estimation Of the man who
abhorred tobacco and LIQUOR. and refraided
from reading Sunday newspapers that not
only the various organizations in the Pres
byterian Church made the trust company
their depository. but hundreds of members
of that denomination placed their money In
his company. The number Of pastors who
used the bank to care for their savings was
exceptionally large. :
Most Of them refused to entertain the the
ory that Nipple ended his own life, and 1t
was difficult to make them believe that his
secret operations were as irregular as they
are alleged to be- In addition to his church
work Mr.. Nipple took an active interest in
hCioi III POAtlCSs diiu Is SdlO 10 nave Deen
heavy contributor to the reformers' cam
paign fund In last years notable contest in
this city.
Creditors Are Angry
The criticism heretofore expressed by de-
positors of the failure of the directors OF
the company to discover Nipples trans
actions has increased. and many of the
larger creditors are angry at what they
term the negligence Of these men, There
is now pending before the local courts an
application for the appointment of a CO.
receiver. who shall directly represent the
depositors and inform them OF the true
condition Of the company. A decision is
expected today.
had knowledge that some OF Nipples trans
actions were unsafe, but they had such
confidence In his integrity that they did
not suspect the true state of affairs or en-
tertafn the belief that his operations were
Irregular. 1t became known today that the
employees of the company were aware there
was something wrong with the accounts
several OF them went so far as to leave
checks with their fellow employees when
they went on vacation for an Immediate
withdrawal of their deposits If their sus-
picions were confirmed.
Statement by the Receiver.
The receiver has become SO alarmed at
the criticism expressed by creditors that he
has Issued a statement to depositors asking
them not to take part in litigation at the
expense Of their funds before they have
talked with him. He says 1t has been his
experience that most of such litigation has
failed. and that by refraining from taking
Legal action the creditors will be aiding him
In obtaining the results asked for.
Adolph Segal, whose borrowings from the
trust company were the principal cause of
the failure, and who has talked freely on
his transactions with Nipple, has adopted
policy of sience. He now refuses to dis
cuss any phase or development in the at
fair, and directs all inquirers to his attor-
neys
The failure of the Real Estate Trust Com
pany Is likely to lead to a revision of the
state laws governing trust companies. I'm
der the present laws trust companies in
this state are permitted to do a surety bust
ness. and movement Is now on foot to
separate the two. - '-''
State Treasurer Berry today issued
draft on Baltimore indemnity company,
which was surety for the $175.O0O state de-
post in the Real Estate Trust Company at
the time of its failure, for payment Of the
full amount Of the deposit. The Baltimore
company has notified Treasurer Berry that
the money will be paid at once.