The Jersey City news., 1906-09-01
H|PPLE'S FREE HAND
Permitted by Directors of Failed
Trust Company to Run
Its Affairs.
NO EXAMINATION IN YEARS.
Clearing House Member Explains Why
No Aid Was Rendered to Wrecked
Institution - Nipples Defalcations
Shock NAssociates-Failure May Lead
to Revision of Banking Laws.

to Revision of Banking Laws.
Philadelphia, Sept Additional de-
yelopments, sensational in character,
continue to crop out in connection with
the failure Of the Real Estate Trust
company. 1t has become known pub
licly that there had not been q meeting
of the directors of the failed bank for
nearly three years. every detail having
been left to the late president of the
company, Frank X. Nipple, who COM
fairs which caused the Clearing House
association to hesitate about coming to
the aid of the trust company.
During the meeting of the clearing
house bankers Joseph D. Junkin, coun-
sci for the Real Estate Trust company,
was asked:
"When did the directors of the trust
company last examine its affairs?"
Examined Years Ago.
His answer, mot for more than two
and a half years." caused the men who
guide the affairs of Philadelphia's
financial institutions to gasp.
Criticism of the members of the
Clearing House association was re-
sponsible for the information. Several
of the directors of the trust company
had said since the crash that the COM
pany could have been saved had the
local bankers advanced $7,0O0,O00.
A member of the Clearing House as
OF HNxrac
days meeting said:
"The directors of the Real Estate
Trust company knew as little about
the affairs of the company as any of
the bankers present. They did not ap-
pear to know whether the shortage
was $5,O0O,0OO or $10O00,00O, and it
would have been folly for us to have
advanced the cash when the affairs of
the bank were in such a deplorable
condition.
Had No Security to Offer.
1.-THE three directors of the company
who came before us with outstretched
hands for $7,00O,O01 had absolutely
nothing to offer in return but Dead
Sea fruit. They had not even conf
dence in their company's future to of
fer, for when they were asked if they
would pledge their fortunes to make
good losses that the allied banks might
sustain by going it blind their answer
was painful silence"
The statement of Receiver Earle that
President Nipple had stolen securities
valued at $685. and that the lending
of $5,O00,000 to Adolph Segal on in
sufficient security amounted to theft
created a profound sensation through
out the city.
The revelation was an especially cru
ell blow to his many intimate friends,
most of whom are prominent in the
Presbyterian church, either as clergy
men or laymen.
So high was their estimation of the
man who abhorred tobacco and liquor
and refrained from reading Sunday
newspapers that not only the various
organizations in the Presbyterian
church made the trust company theil
depository, but hundreds Of members OF
that denomination placed their money
in his company. The number of pas.
tors who used the bank to care for theiI
savings was exceptionally large.
Nipple Political Reformer.
In addition to his church work, Mr.
Nipple took an active interest in re-
form politics and is said to have been
a heavy contributor to the reformers'
campaign fund in last years contest In
this city.
The failure of the Real Estate Trust
company is likely to lead to a revision
of the state laws governing trust com
panies. Under the present laws trust
companies in this state are permitted
to do surety business, and move
ment is now on foot to separate the
two.