The Montgomery advertiser., 1906-09-01
Receiver Earle Doesn't Spare Words.
THE PREACHERS ARE SHOCKED
Many Refuse to Believe Stories oi His Crookedness.
Good Securities of PhiIadeIphia Trust Company Were stolen and Re-
 placed With segaI
 Notes.

Philadelphia, Aug. 31.-The statement of Receiver Earle of the Real Estate Trust Company of this city that Frank K. Nipple. the late President of the company, had stolen securities valued at $65, ,000 and had loaned S5,O00, ,000 to Adolph Segal. on insufficient security, which amounted to as much as theft, created a profound sensation through out the city today.
 The revelation was an especially cruel blow to his many intimate friends, most of whom are prominent in the Presbyterian Church. either as clergymen or laymen. So high was their estimation of the man who ab- horred tobacco and liquor and refralned from reading Sunday newspapers, that not only the various organizations in the Presbyterian Church made the trust company their depository, but hundreds of members of that denomination placed their money in his company.
 The number of pastors who used the bank to care for their savings was ex- ce ptionally large Most of them re- fused to entertain the theory that Hip pie ended his own life. and it was dif- ficult to make them believe that his se- cret operations were irregular. as they are alleged to be.
 Tn addition to his church work, Mir Nipple took an active interest in reform, politics and Is said to have been a heavy contributor to the reformers' campaign funds of late years. notably in the contest in this city.
 Sore on Directors.
 The criticism, heretofore expressed by depositors of the failure of the direc- tors of the company to discover Hip ple's transactions, has increased and many of the larger depositors are an grv at what they term the negligence of these men. There is now pending before the local courts an application for the, appointment of a co-receiver. who shall directly represent the depos- itors and inform them of the true con dItion of the company A decision is expected today.
 It is alleged that several of the direc- tcrs had knowledge that some of Hip ple's transactions were unsafe. but they had such confidence in his integrity that they did not suspect the true state of affairs or entertain the belief that his operations were irregular. It has become known that the employees of the company were aware there was some tking wrong with the accounts.
 Several of them went so far as to leave checks with their fellow employees when they went on vacation for an im- mediate withdrawal of their deposits if their suspicious were confirmed
 The receiver has become so alarmed at the criticism expressed by creditors that he has issued a statement to de- positors asking them not to take part in litigation at the expense of their funds before they have talked with him
 The failure of the Real Estate Trust Company is likely to lead to q revision of the State laws governing trust com panies Under the present laws, trust companies in this State are permitted to do a surety business and a move ment Is now on foot to separate the tive
 Directors Never Met.
 Additional developments, sensational in character. continue to crop out in onnection with the Real Estate Trust Company.
 Today 1t became known publicly for the first time since the suspension of the trust company, that there had not been a meeting of the directors of the Hailed bank for nearly three years,