The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-09-01
YAWNING
FOR BANK BOARD
Nipples Directors May Suffer for
Failure.to Hold Regular
.-.~ Meetings. -

.-.~.... ,MeeClnBs. sr
Philadelphia, Sept. l. The creditors
of the Real Estate Trust company
which failed last Tuesday, up to the
present have for comfort only the
opinion Of the receiver and the di-
rectors that the depositors will get most
Rexerend .WmssHenry Roberts, stated
clerk of the Presbyterian general as
s,embly has made formal application to
Of the general assembly. These wers
in custody of President Nipple and
they amount to nearly $1,00O,60O.'
The receiver is particularly anxious
to open the strong box and desk Of
President Nipple but does not want to
do so in the absence of representatives
of the late president. He has therefore
notified the. attorneys Of the Nipple
family of his desire.
Philadelphia, Sept. Additional de-
vefopments, sensational in character.
are coming out in connection with the
failure, OF the Real Estate Trust COM
:, During the meeting Of the clearing
house bankers, Joseph De F. Junkin,
COUNSEL for the Real Estate Trust com,
e,amaed W. was 46 your tsust last
~. ABOUT 9 three years ago. slowly re-
This frank admission caused a mild
sensation among the bankers present,
but when he was. asked, "When did the
directors Of the trust company last ex-
anime its affairs?'' his answer. UNot
for more than two and a half years.
caused the men who guided the affairs
OF Philadelphia s financial institutions
to gasp.
Receiver Investigates Directors. -
/ Receiver Earl expresses safprise' that
William T. North, treasurer ST the com.
~pany, and Horace Hill, auditor, did not
acquaint the directors with the ycondi-
ton OF affairs. Before any of the loans
were paid to Segal it was Treasurer
North>s duty to approve them, and
Auditor Hill, Mr.. Earle thought, in ex-
amlnlng the accounts, must have OBJ
served the extensive amounts paid to
Mr.. Hill declined to be interviewed.
He said he had made a statement to
the receiver and that Mr.. Earle had
instructed him not to talk
Receiver Earle denied this and said
ne would be glad if anyone possessing
AuAoA udGlOu WOulO CdlK. I'LL was HlD
Pies personal choice for the position
of auditor.
Receiver Earle said he unearthed in
TIE bank securities aggregatings about
$l,OOO, 900, face value, in the name of
Adolph Segal. Until he investigates
more fully he will not be able to say
how much they are worth.
Adolph segal, whose borrowings from
the trust company was the principal
of hn fol hoe olo
policy Of silence.
Mr.. Earle reiterated his belief that
the officers Of the" bank must have had
knowledge Of President Nipple g trans
actions.
81 am investigating, he said, "the
charge that some Of the directors, tax
ing advantage of their exclusive, prior
ment, sold stock and withdrew deposits
in order to save themselves and others.
~ have notryet received reports in
this connection, but If any are guilty
they will have, to suffer- !" S..
Charges stagger the city,; ."
The statement of. Receiver Earle that
Nipple had stolen securities valued at
$4,000, and that the. lending of S.
100000 to Adolph Segal on Insufficient
security amounted to- as much as theft,
created a sensation thruout the city.
The revelation WIGS an especially cruel
blow to his many intimate friends, most
Of whom are prominent in the Presby-
terrain church, either as clergymen or
laymen. So high was their estimation
Of the man who abhorred tobacco and
liquor and refrained from reading Sun
day newspapers, that not only the va
rious organizations in the Presbyterian
CHURCH made, the trust company ,stteir
|: depository, but hundreds Of t1enbS rsaof
that denomination placed tkeT mefey
in his company.
T he number of pastors who used the
bank to care for their savings was ex-
ceptionally large.
Tn addition to his church work Mr..
Nipple took an active interest in re-
form politics and is said to have been
heavy contributor to the reformers'
campaign funds.
A co-Receiver Asked by Depositors.
The criticism. heretofore expressed bv
depositors Of the failure Of the direc-
tors of the company to discover Hip
p1e's transactions has increased, and
many Of the largest creditors are an
CRY at what they term: theme gligence
Of these men. There is NV pe9ding
before the local? courts anssapplication
for the appointment Of assEco-receiver
who shall directly represent the de-
!: positors and inform them, Of the true
condition of the company.
/: The receiver has Become so alarmed
at the criticism expressed by creditors
that he has issued a statement to de-
DOSitOrs asking them not 10 take mart