Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1906-08-30
Receiver Takes Charge Of
MuddIed Affairs of Real
Estate Trust Company OF
Philadelphia.
HOW BADLY BANK Is
BUSTED NOT YET KNOWN
Prominent Presbyterian DireC-
tor Says Huge Deposits OF
That Church Are Safe
SegaI Sells South Altoona,

SegaI Sells South Altoona.
Philadelphia. Aug. 29.-Receiver
George H. Earle, Jr, today took
charge of the affairs of the Real
Estate Trust company. which yester-
day failed because of the loans made
by Frank K Nipple, late president, to
Adolph Segal promoter, upon insult
ficient security. Until Mr.. Earle COM
pletes his investigation the exact con-
dition of the affairs cannot be told.
The receiver, however, expressed the
belief that the trust funds are intact.
John II. Converse, a director of the
company and one of the foremost
Presbyterian laymen in the country,
upon whose petition the receiver was
appointed today said he was salts
fled the securities of the various Pres
byterian church boards are safe.
The Presbyterian church. of when
Mr.. Nipple of was treasurer, today
elected the Fidelity Trust company,
concern learned that the Institution $
securities amounting to $1,000, 900,
are intact.
While 1t is believed that the securl-
ties of the board of trustees of the
| general assembly are equally safe,
| 1t will be necessary to elect a new
| trustee before the fact can be deter
mined 1t developed today that Mr.
Nipple had on deposit for various
| Presbyterian church organizations
! $l50000 in cash. Included in this
was the sum of $4,000 deposited by
the Womans Foreign Mission society
to be used in rebuilding the home for
rescued Chinese slave girls i'm San
Francisco, destroyed by the eartn-
quake.
One of the many rumors today was
that the local banks had evolved a
plan to raise guarantee fund of
| $7,000,000 with which to rchabilitate
the trust company, but this could not
be verified. 1t is the hope of the dl-
reetors. however, to reopen the doors
of the bank and with this end in
view they held numerous meetings to-
day, comforting with Receiver Earle.
| one of the meetings was attended by
Adolph Segal and later 1t was learn
ed that he had sold the town of South
|
rowed from the trust company. The
purchaser, it is said, paid $500, 600
for the various properties.
Frank Wharton Nipple, son of the
late president who Is a clerk in the
bank was set upon by crowd of an
gr depositors as he was leaving the
building today and would probably
have been roughly handled had not
the police interfered.
There was no evidence of apprehen-
sion in the stock exchange. Bankers
pointed out that there never was an
instance in which any institution OF
the trust cOmpany's size had so few
brokerage loans outstanding. This
exercised a reassuring effect on the To-
cal stock market. The receivership did
not apply to the real estate trust COM
pany stock, which had been selling at
close to $500 a share, but for which
there were no bids today.
So great was the confidence in
Frank X. Nipple, late president of the
company which yesterday was forced
to the wall because of the secret bus
mess transactions of Nipple, that the
institution was virtually the bank Of
the Presbyterian church. AS treas
urer of the trustees of the general as
sembly Nipple had control of over
$1,000000 and as treasurer of the
permanent committee on home mis-
slons in the synod of Pennsylvania and
the Presbyterian hospital of this city,
other large amounts were at his COM
mand. The coroner's jury admits that
Hlpple may have committed suicide.
Financiers say Nipple lost heavily in
Consolidated Lake Superior company
stock several years ago However,
real estate investments seem to have
engaged his attention and money al
most exclusively This Is borne out
through his connections with Adolph
Sega and the latters enterprises. To-
day the name Of Segal Is on the Inns
of everybody in Philadelphia. His
rise from a toiler over soap cauldron
In a fen by twelve cellar in West Phil
adelphia less than twenty years aga
to be handler of millions Of dollars
has been exceedingly spectacular. II
is the expressed opinion of bankers
that the failure does not involve any
other banking house In the city. Ac-
cordlng to John X. Michener, presi-
dent OF the clearing house association
that body stood ready to advance Ill
the money required by the trust com
pany provided the proper security was
offered. The directors OF the trust
company are heavily criticized by
members of the clearing house associ-
alton for their failure to acquaint
themselves with the condition of th'
company and the transactions Of Pres
ident Nipple. "They knew nothing
more than we had heard" declared
Michener. "and they were not even
| familiar with the gapuritipe I'm their