Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-29
TRUST FAILURE
BIG SENSATION
Directors Hope Shortage Will
Not Prove SO Bad
AS WAS FIRST REPORTED
Receiver Qualified for Philadelphia
Concern.
FILED BOND FOR ONE MILLION
Confidence Expressed Church Funds
and Investments Are Intact
Police Kept Crowds In Check.
BOND FOR ONE MILLION

PHILADELPHIA. Penna-. August 20
At the conclusion Of q protracted con-
ference with the directors Of the embar-
raised Real Estate Trust Company this
afternoon Receiver Earle said that. in his
estimation. the recefvership viii be only
temporary and that the bank will be able
to resume business at an early day. He
said 1t would take several days before he
will be able to make definite statement.
He spoke optimistically and said he did
not think the failure would prove to be
as bad as It at first looked.
Regarding the condition Of trusts in the
custody Of the company, Mr.. Earle said:
while have not had an opportunity to
examine the books I have every reason to
believe that all trust funds are intact"
Thus far there has been no hint that
securities deposited collateral for loans
were tempered with by the late President
Nipple or that trust funds were mfsap-
piled. The hopeful view of Mr.. Earle Is
shared by financial interests generally.
It was reported that an effort was being
made to help out the bank with the view to
reopening 1t within forty-eight hours. but
it was denied by the heads Of the larger
banks. Some directors, however, have not
abandoned hope of accomplishing this OBJ
ject and have been using their personal IN
fiuence with the object of raising the re.
quired $33CO,OOO to meet similar amount
subscribed by the clearing house associa-
ton yesterday and thus make up the de-
hcfency Of $7,OCO,O00 in the banks funds.
One prominent banker subscribed $3OO.OO0
today and others are willing to advance
large sums.
John H. Converse, one Of the heads OF
the Presbyterian Church. and director OF
the failed company, is confident the church
funds and investments are intact. Mr.. Hip
pie was treasurer and custodian OF these
funds.
The banks failure continues to be the
sensation Of the hour and Is the general
topic of discussion everywhere.
A large but orderly crowd surrounds the
building and except for an occasional out
break from some excited individual 10
easily kept In check by the police.
Receiver Earle this afternoon appeared In
court and qualified as receiver. He fled a
bond of 81 900 600 and Immediately wenl to
the company's offices, where he took charge
and called the directors into conference.
The Church Money Involved.
Inquiry today among prominent authori-
ties Of the Presbyterian Church and direc-
tors of the Real Estate Trust Company as
to the amount of church money involved in
the failure showed that the sum will be
small compared with the large sums OF
money in the possession Of the church. The
work of the Presbyterian Church In the
United States Is carried on by eight general
boards. with the general assembly as the
central body. AS w. H. Roberts, the stated
clerk of the general assembly, lives in this
city. the headquarters of that body are To-
Gated here.
Four of the boards, home and foreign
missions. church erection and the college
board, are located In New York, and their
funds are in that city. The board for free
men has its headquarters in Pfttsburg,
where the treasurer resides. The three
boards in this city are education, ministe-
rial relief and publication.
John H. Converse, chairman of the trus-
holder in the Real Estate Trust Company,
said today that the trustees had on de-
post In the trust company about $4,000
which is involved in the failure. The re-
to $963. 800. is invested in mortgages. bonds
and other securities. An examination of
these securities by auditors as late as last
Sunday showed that they are all intact.
The Way Matters Stand.
On this point Mr.. Converse said: 1.-THE
way the matter stands now only about 81
600 Of the general assemblys funds are In
volved and will have to take the same
chance as the money Of other depositors.
This money. 1t must be understood, is not a
total loss.
Il firmly believe the depositors will re-
ceive most of their money back. will not
mention percentage, as that is too early
to figure out feel sure that none of the
securities of the general assembly shave
been tempered with. They are all in the
name of the trustees Of the general as
sembly. OF which Mr.. Nipple was treasurer
and not a member"
Two of the three boards In this city used
the Real Estate Trust Company as de-
positary. They are the board Of ministerial
relief, which had $4,000 on deposit when
the company closed Its doors, and the board
Of publication, which had baance of only
few thousand dollars in the institution.
The board Of education had no money in
the trust company.
At the offices of the board Of ministerial
relief 1t was announced today that the ben
eficiaries of the board would not lose a
cent. nor would their payments be delayed
a day. There are ample funds on hand
to meet all demands for three or four
weeks, and In the meantime special meet
ing Of the board will be held to convert
some Of it's investments, which amount to
The Woman's Foreign Missionary Society
has an account Of several thousand dollars
with the trust company.
The Ripple Will
The will of the late President Frank K.
Nipple was filed today. The document was
executed July 1, 1906 and Is brief, being
in Mr.. Nipples handwriting. It reads:
II. Frank H. Nipple, do hereby give. be-
queath and devise all my estate, real, per-
sonal and mixed. unto my son. Frank
Wharton Nipple, his heirs and assigns,
knowing that he will give one half thereof
unto his aunt Sallie. II she be living. and
hereby appoint my son to be the executor
of this will"
The son qualified.
The estate is valued, as follows: Personal
property. 100000 and upward; real estate.
$50 900.
The son had a rough experience today
when he emerged from the bank building.
man in the crowd saw him and shouted:
There goes the son of the rogue who said
he had no faith in men who smoke cigars
and chew tobacco" Immediately mob
took up the cry and made a rush for young
Nipple. For a few moments 1t looked as
though he would be roughly handled, but
the police succeeded in beating the mob
back and rescuing the frightened man from
it's wrath. He was hustled into a carriage
and taken away.
The Swedish Company Mortgage.
LANCASTER, Pa. August 29.-The mort
gage against the Standard Mining and Iron
Company, now the Swedish Cruclble Steel