Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1906-09-03
BIG PHILADELPHIA TRUST COM
PANY FAILS.
.PRESBYTERIANS CAUGHT
General Assembly Had Nearly a
Million on Deposit in Closed In
stitution, and Other Christian Or
ganizations Stand to Lose-Dead
President Made False Reports.

Estate Trust company, organized III
1885, depository for nearly $1,000,000
of funds of the Presbyterian church
and holding 100000 of the citys
money and $175,OOG of state deposits.
yesterday closed it's doors. The fail
ure was caused by heavy loans made
by the late President Frank H. Hip
pie to AdoIph Segal, promoter, on
insufficient security. A desperate eff
fort was made to save the institution
by the board of directors through an
appeal to the clearing house associa-
ton, but that body declined to sub
scribe a guarantee fund of $7,000,00O
| because of insufficient security.
The liabilities are placed at S10,-
10000 with quick assets of $780,
900 and doubtful collateral $4,000, 900.
George ]. Earle, Jr., president Of
| the Finance company of PennsylVa-
MIA, was appointed receiver and in a
statement to the public he expresses
hope that he may soon be able to
recommend plan to the depositors
| IudI Will DSCCCI CLCAA AhCSAS 0Co ItAAN
| terminate his services.
President Nipple was always re-
garded as a conservative financier,
but following his sudden death last
Friday, an investigation by the direct
ors developed the fact that his loans
to Segal had been made regardless OF
proper security and that he made
false statements to the directors re,
garding the banks condition. Friends
of the president express the belief
that Segal exercised hypnotic influ-
ence over Nipple.
May Have Committed Suicide.
Although the cause of Nipples
death was given by his physician and
| the coroner as cerebral hemorrhage,
it is intimated that he may have
committed suicide. How far Nipple
benefited in the loans made, or
whether he was merely a tool Of
others, is yet to be determined. The
directors are silent on that point and
also on the question whether there
will be any criminal prosecutions.
| In order to hide the true condition of
the company and save himself, Nipple
resorted to Justification of his re-
ports, which were accepted as true
by the directors. He used what the
receiver termed a double system Of
making reports. When the state
bank examiner called, Nipple pre-
scented to him good securities to off
set the loans made, and when the
president made his report to the d1-
rectors he would show them bundle
lof other securities and other paper,
and along with these he would exhibit
the certificate of the bank examiner,
which showed that the accounts the
bank examiner had investigated were
correct The directors, supposing the
securities shown them we're the same,
approved the reports.
Discovered After Death.
The application for a receiver says
The company has paid up capital of
$1,500,O00 apparent surplus of an
equal amount and deposits of S10,-
coo, 900. The assets consist of real
estate in Philadelphia, loans upon col
lateral upon demand and on time and
other securities. President Nipple,
the application says, "by false re-
ports to the directors of loans made
by him, brought about a condition of
the company which was first discov-
cred by the officers of the bank sub
sequent to the death of the presi-
dent"
The court then appointed Earle re-
ceiver and he entered security to the
amount of $1,000,000.
Church May Lose Heavily.
Nipple, in addition to being presi-
dent of the Real Estate Trust COM
pany, was treasurer Of the board OF
trustees Of the general assembly OF
the Presbyterian church in the United
States and Of several other church
funds, and was a director OF the
Franklin National bank. Recently
Nipples accounts of the Presbyterian
church were examined by certified
accountants and were found correct,
but it cannot be stated positively yet
whether all the securities belonging
to the general assembly are intact.
Dr.. w. H. Roberts, stated clerk OF
the general assembly of the Presby-
terrain church, was greatly shocked at
the news of the failure. In addition
to the deposits of the general assem-
bly,, the Real Estate Trust also had
about 5000 of funds placed there
by Roberts as stated clerk. The
Presbyterian hospital of Philadelphia,
and the Presbyterian board Of relief,
he said, also had money in the failed
institution. Roberts was asked if he
could say whether the securities of
the general assembly. amounting to
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