The Sisseton weekly standard. (Sisseton, Roberts County, S.D.) 1892-1929, 1906-09-07
STOLE FIVE MILLION DOLLARS
RECEIVER FOR DEFUNcT TRUST
COMPANY MAKES THE
CHARGE.

Philadelphia, Aug. 31-Hope for
speedy resumption of business by the
Real Estate Trust company, Which
closed its doors On Tuesday afternoon
this is the net result of numerous
conferences yesterday between direct.
ors of the company, its principal cred
itors and between officers of big bank.
ing institutions both in this city and
in New York Although no formal def.
mite statment was made concerning
the developments of the day, it is
known.
That directors of institutions which
have trust funds in the vaults of the
company are satisfied that their hold.
ings are not seriously affected by the
crash and have expressed their desire
to cooperate in the rehabilitation Of
the concern.
Frank Wharton Nipple. son OF the
late president. who is a clerk in the
bank, was set upon by crowd of an.
cry depositors as he was leaving the
building yesterday, and probably would
have been roughly handled had the DO.
lice not lnterfered.
Stolen by Nipple.
Philadelphia, Sept. Determination
of the list of securities held by the
defunct Real Estate Trust company
yesterday developed the fact that
Frank K. Nipple, president of the in.
sttution. who committed suicide, was
an embezzler. The authority for this
statement is George H. Earle. Jr., re.
ceiver for the trust company. Mr..
Earle declined to say what securities
are missing, but he declared Hipple
had hypothecated $4,000 worth of the
paper, securing $4,000 for the securi-
ties. which he never returned. Re
ceiver Earle further declared that
President Nipple embezzled the ST.
100000 he loaned to Adolf Segal, tho
promoter. These loans. Mr.. Earle as,
serted. We're personal transactions
Although made in the name of the
bank, the directors had no knowledge
of them. consequently the money was
stolen by Nipple" said Mr.. Earle.
Charges Stagger the City.
The statement of Receiver Earle
that Frank K. Nipple, the late presi-
dent of the concern, had stolen securi.
ties valued at $4,000, and that the
lending of $5,000,O0O to Adolf Segal
on insufficient security amounted to
as much as theft. created profound
sensation throughout the city yester-
day. The revelation was an especial
1,- Ia L..
friends, most of whom are prominent
in the Presbyterian church, either as
clergymen or laymen.
The criticism heretofore expressed
by depositors of the failure of the d.
rectors OF the company to discover
Nipples transactions have increased,
and many of the largest creditors are
gence Of these men Il
Charges Against Directors.
Philadelphia, Sept 2-Additional
developments, sensational in charac-
ter. continue to crop out in connection
with the failure of the Real Estate
Trust company, which closed its
doors last Tuesday
Monday it became known that there
had not been meeting of the direct
ors for nearly three years, every DE-
tail having been left to the president
OF the company. Frank K. Hippie
Receiver Earle said he unearthed
yesterday in the bank securities az
gregating about $1,oOO,OO0, face value,
in the name of Adolf Segal. Until he
| Investigates more fluffy he will not
be able to say how much they are
| worth
Mr.. Earle reiterated his firm belief
that the officers of the bank must GER
tainly have knowledge of President
Nipples transactions with Segal and
others.
Il am Investigating" he said. "thc
charge that some of the directors,
taking advantage of their exclusive
prior knowledge of the company's
embarrassment, sold stock and with.
drew deposits in order to save them,
selves and others.
II have not yet received reports, in
this connection, but if any are guilty.
they will have to suffer-"