Arizona republican., 1906-08-29

! belonging to the general assembly are intact.
 pr. w. H. Roberts, stated clerk of the general assembly of the Presbyter- ian church, who is at Mount Pocono. said that in addition to the deposits of the general assembly. the real estate company had about s25,00O of funds placed there by him as stated clerk. The Presbyterian hospital of PhiIadel- phia and Presbyterian board of relief, he said, also had sums of money in the failed institution. pr. Roberts was asked whether he could say whether the securities of the general assembly. amounting to S963,S96, in Nipples GUS tOdy, were intact. He replied:
 ''I have no reason to believe other wise, but cannot say positively"
 Were these securities in such shape that they might have been hypothe- cated or transferred?"
 ''I do not know positively as to that, but I do not think that they were"
 Dr. Roberts was much affected by the news of the failure. He had known MT. Nipple for many ycirs, and the failure and it's cause, he said, had greatly grieved him.
 For the loans to Adolf SegaI, Nipple accepted as collateral securities of the Majestic hotel, a big new apartment house operated by Segal; the Swedish Steel company of Lancaster. Pa, and the Pennsylvania Sugar Refining com pany of this city. The steel company and the sugar refining concern have never been placed in operation. Segal claims the paper he gave is good and that he will meet all his obligations.
 How far Nipple benefited in the loans made. or whether he was merely the tool of others, is yet to be determined. All the directors are remaining silent on that point. and also on the question whether there will be any criminal prosecutions. In order to hide the true condition of the company and save himself. Nipple resOrted to the falsify- ing of his reports, which were accepted as true by the directors. He used what the receiver termed a double system" of making reports. When the state bank examiner called, Nipple pre- scented to him good securities to offset the loans made and when the presi- dent made his reports to the directors he would show them a bundle of other securities and other papers, and along with these he would exhibit the certif- icate of the bank examiner, which showed that the accounts the exam finer had investigated were correct. The
  shown them were the same, approved the reports.
 As soon as the directors heard of the sudden death of President Nipple they began an investigation of his affairs and were shocked when they learned the true condition of the company.
 Application papers for a temporary receiver were prepared and left at the offices of the trust company, after which the directors went to the meet ing of the Clearing House association to make a last appeal for help. The newspapers were aware of the trend of events and had men stationed at the bank building ready to flash the news of the closing of the bank if it occur red. There were probably fifty bank presidents at the clearing house to meet the directors of the trust com pany. The latter stated that they needed s7.OOO, 900. but the best the banks could do was to guarantee s. 500,000. This was not enough, and as all other means for getting money had failed. Vice President Houston teIe- phOned to the bank to suspend pay