The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-08-29

Porter; r. Dale Benson. president of
the pennsylvania Fire Insurance com
pany; Joseph Def Junkin, an attorney.
Edward P. Borden. Samuel F. Hous-
ton, who is also vice president of the
company; former State Senator J. Bav-
ara Henry and Frank c. Roberts.
Death Revealed.
AS soon as the directors heard of the
sudden death of President Hipple thew
began an investigation Of his affairs
ana were shocked when they learned
the true condition of the company.
RMS was after the close of business
on FRIDAY. a meeting of the board wa
hurrledly called and it was decided TO
instruct the officers of the bank that all
deposits received after the opening of
business Saturday morning should he
set aside and deposited with the Frank
I'm National bank in the names of the
INDIVIDUALS presenting the money. This
was done TO absolve the directors from
criminal proceedings for receiving
money after they knew the trust com
pany was 1nsolvent. On Monday more
tnan $4,000 was deposited by patrons
OF Cne odnh. which was practically off
SET by Withdrawals by persons who had
heard rumors of the companv's con-
dition. The money deposited since sat
uroay VIII, however. not be returned to
the depositors, but will lie i'm the
Franklin National bank until the
courts have decided whether it should
be paid back
Crash Was Inevitable.
While the depositors were supnosa5lv
placing their money with the Real Es-
tate Trust company, the directors were
making strenuous efforts to tide the in
stltution over the difficulty. All dav
yesterday they worked, but il became
apparent shortly after noon TODAY that
the crash was inevitable Application
papers Tor a temporary receiver were
prepared and left at the offices of the
trust company, after which the direct
ors went TO the meeting of the Clearing
Rouse association to make a last ap-
peal for help
The newspapers were aware of the
trend of events and had men stationed
at the bank building ready to flash the
closing of the bank, il IL occurred
There were probably fifty bank presi-
dents at the clearing house to meet the
directors of the trust company. The
latter stated that they needed &. 600 600
but the best the banks could do was TO
guarantee s3,50O.000 This was not
enough. and as all other means for rails
ing money had failed Vice President
Houston telephOned TO the bank TO sus-
pend business and send the receivership
papers to court. In an incredibly short
time the story was ON the street and
created great CONSERVATION. Hundreds
of persons gathered about the building
clamoring for information. and the
crowd grew so great that detail of
police was sent for to clear the street.
There was no disorder.
Statement Made to Court.
The application for the receiver saws
the company has paid up capital of ST.
100000, an apparent surplus of an equal
and deposits of about 1O.OOO,-
600. The assets consist of real estate
I'm Philadelphia, loans on collateral on
demand and on time and other securi
ties. President Nipple. the application
says, by false reports to the directors
of the loans made by him brought
about the condition OF the company.
which was first discovered by the Off
GERS OF the bank subsequent to the
death of the president"
The court then appointed Mr.. Earle
and he entered security to the
amount of 1000 0O0
After his appointment Mr. Earle held
a long conference with the directors
and officers Of the company. at which
the receiver was put I'm possession Of
the condition of the company as far
as the officials of the concern could
inform him.
Statement of Receiver.
At the close of the conference MFR.
Earle made the following statement:
while / appreciate the danger of
making statements until I have made
r thorough examination. / think IT nv
duty to state that in my effort to keep
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