The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-08-30
HOPE 1OSAVEP HLA.T TRUST co.
RECEIVER THINKB D~EPOSyTORS
WILL BE PAID Nv Full. -
Plans for. tsrhaLiNtattpg I.set6d Hest ~
tate Trust Go. tBder Consideration
-Sfsnrs EroD,s,i Is Rejected II ate
pcpcsito fs VIII Get Msney Back.

Dcpcsisofs WIZ Ger henfy baek.
Pu%ILaprLrTIA. ArF. ?9.-An effort to
reak tho receive.ihin % George II. Earle OF
tie Real Fstnfe Trust Company was made
to-day ty Adolph segal. whose O., 800 400
Of loans from the President. Frank X.
Nipple, caused Ito institution TO close its
doors.
Mr.. Seral's iCea was also to put the COM
rany rack on its financial feat. His PROPOSE
lion WAS that the directors should produce
from their own prfvate resources %. 500. 900,
to which would bs added $40 OO. 900 of the
Lest convertible assets of the company
and the %company's building, valued at
s2.OcoyoOO moro. making altogether 81, 500 600
Of good collateral o which the national
anks of Philadelphia would 10 asked to
lend tie $1,000 900 necessary to cover the
Real Estate Trust C%ompany's deposits.
At the Clearing House on Tuesday the
directors had tried to borrow the necessary
money on collateral. Including the various
properties OF Adolph segal, and had been
turned down by the banks. largely on the
ground that the segal properties were Of
doubtful value.
Directors OF the Real Estate Trust Com
pany have agreed to put up the amounts
required of them under the amended propo-
sition OF Segall yioe-President Samuel +.
Rouston's contribution is placed at ST.
200, 600; John H. Converse's, at $500 ,oO0; Ed
ward p. Borden's at $500 900, the remainder
being distributed among the board. 1t is
necessary. however, to get Rsoeiver Earls's
cooperation to do this.
Adoiph segai and his attorney, John
Sparhawk, Jr., sought the services Of Dis
trict Attorney John G. Bell, who. while
declining to act as Segai's counsel, con-
eented to place the proposition before
Receiver Earle, himself q member of the
Clearing House. Mr.. Earle refused to
entertain tho segal proposition. iptimating
that he had another plan.
This eliminated the. possibility OF raising
the required $1,000 900 through the Clearing
House. Segal. however. turned over to
the Real Estate Trust Company all Of his
various properties, which, according to his
own estimate, are worth from 5000, 600 to
$40, OO0, 600. but on which Philadelphia bank
ers had said the day before they would not
lend q ,0oo, 600.
At an afternoon session Of the Real Estate
Trust Company directors which Receiver
Earle attended there were present repre-
sentatives Of the banking houSe Of J.. p.
Morgan d Co. Of New York. This inspired
depositors With the hope that financial
succor would be got from that hrm.
Should all other efforts fail 1t was said
by interests closely affiliated with the Real
C-A-A- T-.zk r~---~-., kL-k - .rA-A,:k.k~
the broken institution and to repay to dts
depositors their money, dollar for dollar.
a plan had emanatsd from the fertile brain
Of Receiver Earle which has no parallel
in PhiladelphiA finance, except the famous
plan by which William M. Singeriy's Chest
nut Street National Bank and his trust CON-
pany wore made to pay back they deposi-
tors money.
In that case, however; the bank and trust
company had back Of them the Philadelphia
Record, . paying property, as their chief
asset, while the Real Estate Trust Company
under Receiver Earle's plan would have to
depend upon properties which are not now
productive, but which Mr.. Earle believes
can be made profitable. It was said, In
short; that the receiver proposed to take
over the various properties OK Adolph Segal;
In which the Is, 800. 0os OF Nipple loans were
presumably sunk, undertake to plaoe them
on a paying basis and then turn over their
profits TO the Real Estate Trust Company
for disbursement among its deposttors.
Receiver Earle in the afternoon gave the
The bond was signed by the American
Surety Company Of New York for 100000
and the United States Fidelity aad Guaran-
~ Oo-oocvn 40 n.lSlx>oro and tha E;dolitxv
Deposit Company OF Maryland for $3.50 900
each.
After filing his bond and taking official
charge OF the Real Estate Trust C~ompany's
Affairs Mr.. Earle made q statement TO the
would be paid In full. He added that,
while he had not examined the books, be
believed from information he had reoeiyed
from the directors that the rust funds
In the oompany's custody were intact.
Real Estate Trust Company receives about
Of half q million dollars.
'In view Of the charges Of fraud that
have been made said Mr.. Earle, Il am
making o thorough investigation Of the
company's affairs o n my own account,
employing my own uioh tOr tuat puIpoSc.
In o few days I expect to be in a position
to make q publho statement regarding
the oompany's condition. together with
q plan for rehabilitating the institution
Uneasiness Of depositors who had placed
money with the company In the " days
preceding the closing Of the doors was
allayed by q statement from Mr.. Earl In re-
ply to o report that such deposits had not
been placed in the Franklin National Bank,
as asserted by some Of the directors.
Il have positive assurance from the
directors" said Mr.. Earl, .that all deposits
received by the Real Estate Trust after the
directors had discovered the true condition
OF affairs were marked and deposited in
the Franklin National Bank"
This being the case these deposlts will
not be tied up under the receivership and
will be returned TO deposltors uponr appli-
cation.
As an indication that considerable money
was deposited with the Real Estate Trust
after President Nipples death 1t has been
learned that q man alone put in 90 900