The herald and news. [volume] (Newberry S.C.) 1903-1937, 1906-08-31
LARGE BANK FAILURE
In THE QUAKER GIT
PRESBYTERIAN CHURCHlAMONG
HEAVY LOSERS.
Failure Will Probably Eyteed Seven
Million Dollars-Bad State
of Affairs.

pository Of nearly II million dollars
Of the funds of the Presbyterian
church and holding 100000 Of th'
money of the city of Philadelphia ant
$4,000 of State deposits, on Tues
day closed its doors. The failure wa:
caused by heavy loans made by Tho
late rrrc;lcnt, Frank X. HippIe, tt
Adolph Segal, promoter, on insuffi
cient security. A desperate effort
was made to save the institution by
the board Of directors through an ap,
peal to the clearing house association
but that body declined to subscribe a
guarantee fund Of $7,000,000. because
of insufficient security.
The liabilities are placed at $780,
100000, with quick assets Of $780,
600 and doubtful collateral amounting
to $S,O0O,00O.
George II. Earle, Jr.. president Of
the Finance company Of Philadelphia,
was appointed receiver, and in q state
mcnt to the public he expresses the
hope that he may soon be able to re-
commend plan to the dcpositors that
will better serve their interests and
terminate his own services. Presi-
dent Nipple was always regarded as
conservative financicr. but follow
ing his sudden death last Friday an
investigation by the directors devcl-
oped the fact that his loans to Segal
had been made regardless of proper
security and that lie made false state
ments to the directors Of the bank 5
condition. Friends Of the president
express the belief that Scgal cXcrciS-
cd hypnotic influence over Mr.. Hip
pie.
Although the cause OF Mr.. Nipple :
death was given by his physicians and
The coroner as cerebral hcmorrha"r, il
is intimatcd that he may have COM
mittcd suicide.
Bogus Collateral.
For the loans to Adolph Scgal. Hip
pie accepted as collateral securities
the Majestic hotel, Il big new apart
ment house, operated by Scgal; the
Swedish Steel company of Lancaster,
Pa, and the Pennsylvania Sugar Re-
tining company Of Philadelphia. The
steel company and the sugar refining
concern have never been placed in
operation. Segal claims the collat-
cral he gave is good and that he will
meet MI his obligations. There are
others to whom Nipple loaned money
on insufficient securities. but their
names have not been made public and
the sums are not believed to be large.
How far Hipplc benefited in the
loans or whether he was merely the
tool Of others directors are silent on
that point and also on the question
of whether there will be any criminal
true condition of the company and
save himself Nipple reS"rtcd to the
Justification of his reports. He used
what the receiver termed "doublc
systcm' of making rclmrtS When
the State bank examiner called. Hip
pie presented to him good securities
to offset the loans made and when
the president made his reports to the
directors he would show Them a bum
die of other securities and other paper
and along with these he would cx-
hibit the certificate of the bank cX-
aminer, which showed that Tie ac-
counts were correct. The directors,
Supposing the securities shown them
were the same. approved the reports.
Among these directors are DR.. S. Weir
Mitchell, the eminent author: John III.
Converse of the Baldwin locomotive
works; John +. Bets. the millionaire
brewer; William y. Patton. assistant
to President Cassatt Of the Pcnnsvl-
vania railroad: Former superior
Court Judge W. W. Porter: r. Dale
Benson, president Of the Pennsylvania
Fire Insurance company: Jos. ID. Jun
kin, an attorney: Edward p. Borden
Samuel +. Houston. VIII" is also vice
president of the company: Fomc,
State Senator j. Bayard Henry ant
Frank G. Roberts.
" The Directors Shackled.
AS soon as the directors were in
formed of the death of Nipple the,
began an investigation of their af
fairs and were shocked when the,
learned the true condition of his &C
counts. This was after the close O.
business on Friday A meeting O
the board was hurriedly called and i