The Montgomery advertiser., 1906-08-29

but the best the banks could do was to guarantee S3.500.000. This was not enough and as all other means of get ting money had failed. Vice President Houston telephoned to the bank to sus- pend business and send receivership papers to court.
 Soon after the story was on the street 1t caused eonsternation. Hundreds gath cred about the building clamoring for Information and police were needed to clear the street. There was no disorder.
 The application for the receiver says the company has a paid up capital Of $l,500.000, an apparent surplus or an equal amount and deposits of about $I0.000,000. The assets consist of real estate in Philadelphia; loans upon col lateral upon demand and on time, and other securities.
 President Nipple, the application says, "by false reports to the directors Of the laons made by him, brought about the condition of the company. which was first discovered by the ofh- cers of tho bank subsequent to the death pointed Mir. Earle receiver and he en- tered security of s1,o00.0oo.
 Mir Earle had a conference with the directors and officers fthe company. What information of the condition or the company they possessed was given the receiver, who, later, said that from the information given him he came to the conclusion that the company should not be permitted to fall; that the re- ceivership should not be continued any length of time. 'Tt Is my hope" he said, that as soon as I may verify my present beliefs. I can recommend plan to the depositors that will better serve their interests and terminate my services. It must not be forgotten that under a reasonable plan by which they will acquire all there is, they will re- ceive much more than any receiver can obtain for them, for they can by that method preserve their very large and valuable business. which will be oth- erwist lost I ask however. that un- til can be perfectly sure of the wis dom fwhat am recommending. the depositors will not be too discouraged or anxious about the situatin. The company, of course. has large assets that are certain, and believe examina- tin will show that large returns may be derived from the assets that are not certain"
 Mir. Converse Talks. J. H. Converse. who was associated with MT. Nipple in business and In the affairs of the Presbyterian Cnurch' said:
 ':As son as we learned of MT. Hip- ple's sudden death :he directors look ed into his affairs -elating to the bank. The discoveries led us to ap- point auditors who worked continuous iy from Saturday until Sunday night. The failure was due directly to large loans made by Mir. Nipple on insuffi- cient securities. We were not aware of this as his reports to us were aI- ways proper.
 'sThere were loans made to several men, among them Adolf Segal of this city. He secured loans aggregating S5, 200, ,00O. for which he gave securities of the Majestic Hotel in this city, the Pennsylvania Sugar Refining Company of Philadelphia and the Swedish Steel | Company of Lancaster, Pa The two | latter concerns have never been placed | In operation.
 What does MT. segal propose to dor"
 'seEaI promises to work out the mat
 ter satisfactorily but whether he can l dc so, cannot say.
 1 Asked If he thought the failure bad l one, he said: T cannot tell that now but I am hoping for the best" Mir. Converse, who is Chairman of the Trustees of the General Assembly oi the Presbyterian Church. said he believ- | ed the securities of the trust are safe The auditors employed by the company went over the trust funds ana other se' curities of the company amounting te
 over $26.000.O00 and found them in- | tact.
 The papers of the taustees of the church are among these accounts. The funds of tho trustees are still kept in.
 vested as far as possible. Whatever casf was in the bank was small and vii not be a seriou sloss, If loss at all. Security Insufficient.
 President Kitchener of the clearine
 house association said the failure oi | the associaation to subscribe the $1,'
 00O. 900 guarantee fund required by ths
 Real Estate Trust Company was due
 to insufficient security. The trust
 company, he said, offered $2.50o, 900 1T
 gilt edge securities a two-thirds ln'
 terest in the trust company's building
 valued at $2,00O,000 and $5,S00,Oo0 se
 curities from Adolf Segal. valued bJ
 the directors of the trust company al S3, ,0OO, 900. The clearing house asso
 citation did not regard the Segal secu
 rities worth more than $1,000,000 ant
 declined to subscribe more than $4.'
 100000 unless the remaining securi
 .tn. ,unra Yanra auhgfanfinl.