Milford chronicle., 1906-09-14
WILL REOPEN
( LOOTED BANK
Directors Of Philadelphia Concern
Agree to Receivers Plan.
10 SUBSCRIBE OVER 100000

Philadelphia, Sept. 1O.-AI of the
directors of the Real Estate Trust
company. which was wrecked by its
suicide president, Frank X. Nipple,
principally through heavy loans made
10 Adolph Segal, a promoter, on
tiimsy collateral. have agreed to Re
ceiver Earle's plan for reorganizing
the company. Mr.. Earle received a
Telegram from DR.. S. Weir Mitchell,
the only member Of the board of direc-
tors who is away from the city, agree
ing to the proposition that the direc-
tors contribute the amount deemed
necessary by the receiver. DR.. Mitchell
expresses his willingness to bear his
portion Of the burden. The other direc-
tors had previously assented to the
plan.
Receiver Earle spent Sunday at his
home in Bryn Mawr working on the
details Of his proposition, which he
hopes to be able to present to the
directors very soon. He also expects
TO call a general meeting OF stock
holders and depositors in order to
thoroughly acquaint them with his pur-
pose.
'It is slow work" he said. Il am not
in a position at present to say any
thing more definite than has already
been published concerning my propo-
sltion. but l wish it understood that
the directors In signing the agreement
have pledged themselves to raise the
amount which I consider necessary.
This money is given absolutely. with
out promise of return OF security.
They are putting up the money from
their own pockets so as to make up
the losses which have been sustained
through the bad Segal loans"
The loans made to Segal by President
Nipple aggregate more than s5,O00,OOO
and his securities are believed to be
worth about $1,000 OOO Consequently
the directors will subscribe something
more than s3,OOO,OOO It was stated
that some of the Segal securities, which
are considered Of little value, would be
given the directors for the money ad-
vanced by them. Receiver Earle de-
MED this.
A statement issued by Rev DR.. Rob-
erts, stated clerk Of the General Assem-
bly, Of the Presbyterian church, an
nounces that in addition to the $4,000
of the trust funds of the trustees OF the
church which we're lost in the collapse.
deposits amounting to about s1S0,0O0
are also involved. These deposits were
- H,.,. IL - he I'D ,F In
fsterlal relief. the trustees Of the board |
of publication and dSabbath-schOOlw work, |
the trustees Of the general assembly, |
the stated clerk Of the general assem-
bly, and the Women's Foreign Mission. |
ary Society.
It developed that the last state exam.
ination OF the trust company was made
by Banking Commissioner Reeder In
h902. Robert McAfee, who was state
banking commissioner from April, 1908,
to July, 1905. made no examination,
and Commissioner Berkey, who sue
ceeded McAfee. also failed to examine
the institution. The two expert &C
countants appointed by Commissioner
Berkey TO investigate the condition Of
the concern, at the end Of their first
days work announced that they found
the trust estates. Of which the Real
Estate Trust company acted as trus-
tee to be intact.
That there will be no prosecutions
against the directors Of the trust COM
pany was the authoritative. statement
which emanated from District AttOr-
ney Bells ONCE. The announcement
was made after Special Bank Exam
iners Vollum and Goldsmith, who
were appointed by State Banking
Commissioner Berkey to investigate
the trust company's affairs, had made
a partial report. Although the exam
dners are not through with their work,
enough has been learned to relieve the
directors of criminal responsibility for
the collapse Of the institution.
An investigation Of the contents of
the strong box of the Detre estate. for
which President Nipple was trustee, ]
developed the fact that mortgage pa
pers representing $4,000 were miss. {
ing. An effort to trace them will be Z
made.
THIRD RAIL KILLED HIM
italian tlaId Nv Current Until Sneed. Z