The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-09-08
NIPPLE FORGED NOTES
Receiver Of Defunct Trust Com
pany Discovers Papers With
False Signatures.
WELL KNOWN NAMES USED.


President Made Drafts by Means OF
Worthless Paper-Others Believed to
Have Benefited by SesaI's Loans.
Presbyterian Funds Safe.
Philadelphia, Sept S.-Forgeries fol
more than a quarter of a million of
dollars by Frank X Nipple, the suicide
president of the defunct Real Estate
Trust company, have been discovered
by Receiver Earle. The latter made
this statement, adding that he had no
idea where Nipples villainy would end.
Nipple in order to meet his imshense
overdrafts used the names of some of
the most prominent business men of
this city on notes which in some cases
amounted to $150000.
The president took copies of the sig
natures of number of business men
while some of their checks on nego-
table securities passed through his
hands, but in every case he avoided
the use of the name of a Real Estate
Trust company depositor.
When pinched for money to meet his
overdrafts or some big Segal loan, Mr..
Earle said, as a last resort Nipple
would draw up note with the forged
signature attached This he would
take to the cashier or paying teller
saying he had personally made the
loan, and it was discounted. With the
amount to his credit he would satisfy
the pressing. claim.
Would Accept Presidency
Receiver Earle said that in order to
accomplish the reorganization of the
Real Estate Trust company he would
accept the presidency if the depositors
insisted
Mr.. Earle's decision to accept the
presidency of the institution came after
much pressure had been brought to bear
upon him and after his announcement
that he could not accept. 1t is now be-
lieved that an early reorganization of
the company is assured. The directors,
it is asserted, have pledged themselves
to advance $3,000,00O, creditors will
take preferred stock worth $1,500,OOO
and SegaPs securities will be sold for
$2,500000. In this way the institution
can be placed on sound basis.
Benefited by segaFs Loans.
That some one secured $2,000,000 for
negotiating the loans made to Adolf
Segal by President Nipple is believed
by those now engaged in investigating
the company's affairs Segal's repeat
ed assertions that he did not borrow
more than $3,O0O,O0O from the trust
company has caused the investigators
to exert every effort to discover all of
the details connected with these loans.
and If it is found that others benefited
they will be made to return the money
1t has developed that the last state
examination of the trust company was
made by Banking Commissioner Rec
der in 1902 Robert McAfee, who was
state banking commissioner from April,
1908, to July, 1905, made no examina-
tion, and Commissioner Berkey, who
succeeded Mr.. McAfee, also failed to
examine the institution
The two expert accountants appoint
ed by Commissioner Berkey to investi-
gate the conditions of the concern at
the end of their first days work an
nounced that they found the trust es-
tates, of which the Real Estate Trust
company acted as trustee, to be intact.
Church Funds Intact.
The committee named by the trus-
tees of the general assembly of the
Presbyterian church to ascertain the
condition of the general assembly's
trustee funds, which were in the Gus
tody of Nipple as treasurer of the
board of trustees, made the following
announcement:
ITO the Presbyterian church:
Careful examination shows that the
great bulk of the investments of the
trustees, amounting to S963,00O, is in
tact. The entire loss through the mall
feasance of the late treasurer is not
likely to exceed $4,000.
1.-THE suspension of the Real Estate
Trust company has involved the de-
posit account of the trustees, amount
ing to $4,000, the whole of which at
the present time, it is hoped, will be
saved"
Examiner Berkey declared that his
experts examination of the Real Es-
tate Trust company's failure would not
stop with an investigation of the ac-
counts of that institution.
.'There are other trust companies in
this city, he said, 'sthat will require
looking into, but do not think it pru-
dent at the time to give their names,
as it might cause unnecessary alarm
and do harm to perfectly safe concerns.
MY investigation, however will be
thorough, and l will not stop at prose
cutions if l see it to be my duty,