Evening star., 1906-09-03
AFTER RETURN OF H1pPLE PELF.
Directors Of Defunct Trust, in Panic,
Appeal to Receiver.

Appeal to Receiver.
| Promptly following revelations regarding
| the manner in which the directors of the
Real Estate Trust Company at Philadelphia
| loaned themselves the company's money
the announcement was made yesterday
| that the directors concerned would repay
the $2J0.000 put into the Arlingbrook Real
Estate Company. The directors concerned
| appeared to be almost in a state of panic
yesterday. They met and remet. Then
conferred. prepared statements, tore them
up and made new statements.
Then they decided to make no statement
at all beyond an announcement that the
money which they as individuals persuad-
| ed themselves as directors to lend to them
selves as officers of a private company
would be returned to the defunct trust COM
pany. Receiver Earle has called for re-
turn of the loan.
The receiver disappeared for the day. The
directors concerned made frantic efforts to
reach him. They wished to see him before
making any statement. but not finding the
receiver they fell back upon an announce
| ment that they would pay over the money
to him.
At 3 o'clock yesterday afternoon Joseph
De F. Junkin. president Of the Old Airing
ton Real Estate Company. that received the
loan of $3.50, 600, had a statement prepared,
explaining the directors position. Then the
statement was submitted to R. Dale Ben
son and Bayard Henry, whose brother was
interested in the company.
After discussing the statement for a long
time it was decided to revise it.
While the revision was in progress Mr..
Junkin telephoned to District Attorney Bell
and had a long talk with him. Finally, late
last evening, Mr. Junkin issued this state
ment:
after mature consideration. and in the
| full knowledge that I have done nothing
wrong. have decided that 1t is best not to
make at this time any public statement con-
cerning the matters printed In the newspa-
pers of this morning. 1 stand ready at all
times to give to the receiver of the Real
Estate Trust Company full statement of
all my actions, both as director and coun-
sci of said company, and to account to him
therefore. All Indebtedness in which men,
bers of the board are interested will be
fully met on call from the receiver"
Vice President Houston of the defunct
trust company, in an interview, declared
| that If any Of the directors have borrowed
money from the bank it will be returned as
soon as the receiver calls for it.
Depositors representing 100000 intrusted
to the bank have engaged Samuel Glenn
ent, former assistant district attorney, to
prosecute the directors. -<,-sst
A statement made by John H. Converse,
head Of the Baldwin Locomotive Works and
one of the board Of directors-of the COM
pany indicates the line Of argument which
members of the board are likely to advance
to meet criticism of their management. 1t
is not, he declares. that which other trust
company DOaruS nllSnt not 90 DuE tflAI al
ditional legislation Is needed to restrict the
powers of such companies.
II must confess" said Mr.. Converse,
that 1 am amazed that this could have
been carried on under the eyes OF the board,
but 1t was because of our unbounded conf
dence in Nipple. Nevertheless, 1 believe it
will be shown that Nipples downfall did
not begin many years ago. but within a
comparatively recent period
'"Then, too, the fact that there was no
official examination of the affairs Of this
company for two years is sufficient proof
that the system is wrong. When the eX-
aminer came before the board of directors
he was asked how this was possible. He
explained that the bank stood so high that
he did not think examination was ur-
gent, and he said further that there are so
many companies that with the force at his
command he could not get around to them