Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1906-08-29
TEE Trust COMPANY FAILURE.

| M was of7'Cu iu Luz tthtVteff 'ht
Estate Trust Company, of Philadelphia,
organized in 1885, the depository for
nearly $1,000 900 of the funds Of the
Presbyterian Church and holding $780,
600 of The money OF the eity Of Pbils
delphia and Sl75, 900 of Slate deposits,
Yesterday closed its doors. The failure
was causel by heavy loans made by the
late president, Frank X. Nipple, to
Adolf Segal. prom )ter, on alleged in.
sl4cient security. A desperate effort
was made 10 save the institution By the
hoard of directors through an appeal 10
the Clearing House Association, bat that
body declined to subscribe a guarantee
fund of 81, 600, 900 because of insufficient
security.
The liabilities are placed al $4,000
900. with quick asserts of $500, 600
and doubtinl collateral amounting to
IS, 900, 900.
Samuel +. Ho.iston, vice president of
the Real Estate Trust Company, issued
a statement after the trpst company had
closed its doors in which he said that the
affairs of the company were much iu-
volved and that the officials found them
selves unabis to continue business
Rumors of the condition of the bank
caused slight run early yesterday, and
in the asst ha If hour thousands of dollars
were drawn ohi by deposiiors,
George II. Earle, IT,, president of the |
Finance Company OF Pennsylvania, was
appointed receiver, and in ststement
TO the public he expressed the hope that
he may soon be able TO recommend a
plan to the depositors that will better
serYe their interests and terminate his
services.
President Nipple was always regarded
as a conservative fnancer, but following
his sudden death last Friday an invesii-
CATION by the directors developed the
fact that his loans to Segal had been
made regardless Of proper security, and
that he bad made false statements TO the
directors of the banks condition. Friends
Of the late president express the belief
hat Segal exercised hypnotic influence
over Mr.. Ripple.
Although The cause of Mr.. Nipples
ieath was given by his physician and
he coroner rs cerebral hemorrhsge, it
3 intimstea that be may have committed
uicide.
Mr.. Nipple, in addition to being
PRESIDENT of the Real Estate Trust Com. '
ANY, was treasurer of the trustees of [
he General Assembly of the Presby- +
erisn Church in The United States snd ]
{ several other church funds, and was a ]
ireDtor Of the franklin National Bank. y
gently Mr.. Nipples accounts with the n
Presbyterian Church we're examine by o
erti6ed accountants and we're found to 1
g correct, but II cannot be slsted posi- 1
ively whether all The securities belong II
lg to the General Assembly are intact
lie was one of the origins owners add a b
ifector of the Washington Alexandra Of
I'D Mt. Vernon Railway Company and I
the tine of bis death was secretary OF al
e Land aud River improvement oonl- is
any of New Alexandris. ia
10 addition 10 the deposits OF the
enersl Assembly, the Real Estate
rust Company had about s25. 600 Of >,
nds placed there by DR.. Robtr.s - -
siei clerk. The Presbyterian Hos co
tel OF Philadelphia and the presbs- Ia
rian Board OF Relief be said, ALSO " "
ID sums of money in the institution Fl,
The stock markets ofkew York ~ "a
we're effected materially By 30
. closing Of the doors of the tFu ~
'mpany. DIR