The Jersey City news., 1906-08-29
FAILS FOR MILLIONS
Philadelphia Trust Company, Un
able to Meet Its Obligations,
Closes Its Doors.
PRESIDENT CALLED SUICIDE.
Death of institutions Head Took
Place Under Suspicious Circum-
stances-Loss May Reach 100000
Loans on Doubtful Security Made to
Promoter-church Funds involved.

stances-Loss May Reach SI,OOO,OOO
Loans on Doubtful Security Made to
Promoter-church Funds involved.
Philadelphia, Aug. 20. Unable to
meet it's obligations because of the
| large amount of money loaned on in
sufficient security by its president,
Frank X. Hippie now dead, the Real
Estate Trust company Of Philadelphia,
which up to last Saturday was con-
sidered one of the strongest financial
| Institutions in the city, has closed its
doors. Soon after the doors closed
| George H. Earle, Jr., prominent
financier, was appointed receiver.
The liabilities of the company are
placed at $10,00O,000, against which
there are quick assets of about $780,
600 and collateral of about $S,000,000,
which is not negotiable or readily con-
vertible. This doubtful collateral is
| held mostly as security for seans of
lbout $5,300,000 made to Adolf Segal,
a promoter of this city.
President Blamed For Failure.
The man responsible for the failure
was Frank K Nipple, one of Philadel-
phia's best known citizens, who died
suddenly last Friday morning in his
country home at Bryn Mawr, near
here, under circumstances which in the
| light of late developments lead to the
suspicion that he may have committed
suicide
cfn fhn% n
Nipple committed suicide seemed to be
borne out when it was stated that he
took his life at his home last Friday
morning. Mr.. Nipple is said to have
taken dose of laudanum with sui
cidal intent. While still conscious he is
said to have filled his bath tub with
water and later was found apparently
drowned.
Mr.. Hipple's family decline to make
any statement on the subject and the
| physicians interested in the case de-
cline to be interviewed regarding the
suicide theory.
Mr.. Nipple in addition to being pres
ident 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 Frank
lin National bank. Recently Mr.. Hip
| pies accounts of the Presbyterian
church were examined by certified ac-
countants and were found to be cor
rect but it cannot be stated positively
whether all the securities belonging to
the general assembly are intact, all
though it is hoped they are.
Church Money Involved.
DR.. w H. Roberts, stated clerk of
the general assembly of the Presbyte-
rian church, who is at Mount Pocono
| said he was greatly shocked at the
news of the failure In addition to
| the deposits of the general assembly
the Real Estate Trust company also
had about $25,000 of funds placed
there by DR.. Roberts as stated clerk.
The Presbyterian hospital Of Phila-
delphia and the Presbyterian board Of
| relief, he said, also had sums ofSmon-
| ey in the failed institution. Dr. Rob
erts was asked if he could say whether
the securities of the general assembly,
amounting to 1868, 1885, in Nipples Gus
| tody were intact. He replied, Il have
no reason to believe otherwise, but
cannot say positively"
| Were those securities in such shape
that they might have been hypothe-
| Gated or transferred?"
| Il do not know positively as. to that,
/ but do not think that they were.
4 Samuel r. Houston, vice president of
the trust company, said: "In round
| numbers the failure will amount to
| $7,000,000. AT a meeting of the banks
| and trust companies of the Philadel-
| phia clearing house an effort was made
to raise money to tide the company
/ over it's difficulties but all we could
| get was $3,500,O00, or absut one-half
what was needed
False Reports Made.
In order to hide the true condition Of
the con,nany and save, himself Nipple
I resorted to the Justification of his re-
/ ports, which were accepted as true by
/ the directors. He used what the re-
SSA' " SSi iiiAOd q uOuUlC Vi
/ making reports When the state bank
examiner called Nipple presented to
him good securities to offset the loans
made, and when the president made
! his reports to the directors he would
/ show them bundle Of other securities
and other paper, and along with these
he would exhibit the certificate of the
bank examiner, which showed that the
accounts the examiner had investigat-
ed were correct. The directors, suppos-
ing the securities shown them were
the same approved the reports
Among the directors are Dr. S. Weir
Mitchell the eminent author; John r
/ Converse of the Baldwin Locomotive
works. one of the most prominent lay
men in the Presbyterian church in the
/ United States; John f. Betz, the mil
lionaire brewer; William A. Patton,
assistant to President Cassatt of the
Pennsylvania; former Superior Court
Judge w. w. Porter, r. Dale Benson,
/ president of the Pennsylvania Fire In
surance company; Joseph De f. Jun
kin, an attorney; Edward p Borden,
Samuel F. Houston, who is also vice