The Dakota chief. (Gann Valley, Buffalo County, S.D.) 18??-1913, 1906-09-06
BIG BANK WRECKED.
A PHILADELPHIA CONCERN IN
100000 FAILURE.
Real Estate and Trust Company Coca
Down with a Crash-MilIions Are
Gone, President a Suictde--A uca
ChurcA Money Tied Up.

Ine Real Estate trust Company, the
second largest concern of its kind in
Philadelphia, suspended business short
ly after , o'clock Tuesday afternoon be-
cause OF inability to meet obligations to
the amount of 81 100000. There are re-
ports Of gross misuses of the institu.
tion's millions and criminal prosecu-
tions are possible. The bank is the de.
pository for more than Sl,0O0,OOO of the
funds of the Presbyterian church, $780,
coo in tax receipts of the city of Phila-
delphia and $4,000 of cash of the
State of Pennsylvania.
The failure, which Is reckoned the
greatest in the history Of Philadelphia,
was due primarily to the suicide Friday
OF the president of the trust company,
Frank II. Hipple. Mr.. Hipple. accord
Ing to the diagnosis made at the time
by his physician and the coroner Of
NorristOwn, died Of hemorrhage of the
brain, but 1t has since been authorita-
lively stated that he had taken a dose
Of laudanum and then gotten into a
parently drowned.
Mr.. Nipple was one of the best known
fnanciers of the city, was identified also
with many charitable and religious in
stitutions and was regarded as most
conservative. He was treasurer of the
board of trustees of the general assem-
bly, Of the Presbyterian church. treas
urer OF the suStenation committee Of
the synod of Pennsylvania, treasurer Of
the Presbyterian hospital there and
American treasurer of the western Sec
ton of the Alliance of Reformed
Churches holding the Presbyterian sys-
tenn. Large sums belonging to those
bodies will be tied up or entirely lost
in the failure.
Mr.. Nipples financial downfall was
due largely to his advancing of money
OF the bank in aid of enterprises of
Adolph Segal, owner of the Majestic
hotel and promoter known for the
boldness of his operations. Friends of
the dead banker express the belief that
Segal exercised hypnotic influence
over him.
Defcit May he Millions.
The liabilities of the trust company
are placed at S10,0OO,OOO, against which
there are quick assets OF about S3,5OO,-
600 and collateral Of about SS.OOO 600,
which Is not negotiable or readily con-
vertfble. The doubtful collateral Is
held as security for loans of about S5.-
100000 made to SeSal. In addition
there are loans of $2,OOOOOO made to
Others by Hipple and hidden from the
directors.
The announcement of the suspension
of the trust company followed a meet
ing of the representatives of the banks
and trust companies forming the clear
ing house association. at which unsuc-
cessful efforts were made to obtain
pledges Of money enough to help the
Real Estate Trust Company over Its
difficulties.
There had been rumors that the Hip
pie estate was badly tangled. Until al
most the hour Of the failure, however,
the fact that the trust company held
large amounts of paper Of doubtful
value was kept secret, In the hope
that the local financiers would agree
to underwrite notes and securities be-
longing to the concern and its directors,
so as to cover the 100000 needed
Those who attended the clearing
house meeting, however, subscribed only
half OF this amount, and, foreseeing no
other source of relief for the present,
tie officers of the company Immediately
applied for the appointment of re-
ceiver
The application was beard by Judge
Audenreid, and he appointed George
Fl. Earle, Jr, president Of the Finance
Company of Philadelphia. as tempo
rary receiver, fixing his bond at ST..
10000. ..
Immediately after the closing Of the
banks doors a crowd Of 300 depositors
blocked the entrance and clamored for
admission. 1t was necessary to call q
squad Of policemen to calm them, but
there was no attempt at violence, A
run had been In progress since the bank
opened in the morning. due to rumors
as to the stability of the institution,
which were circulated persistently after
the death of Mr.. Hipp.e. The demands
OF the depositors did not cause alarm,
however, until after noon. when they
5ecame 80 clamorous as to hasten the
suspension of the bank.
The board OF publication Of the Pres
byterian church. which had between
$4,000 and $4,000 on deposit with the
trust company. made an effort to with
draw the money. but failed by three
minutes. Hearing rumors Of the un-
stable condition of the company, men,
bers of the board notified the officials