Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1906-08-29
Real Estate Trust Company, of
Philadelphia, Failure Shows
Shortage of $1,000, 600.
PRESIDENT A SUICIDE 4?
Frank X. Nipple Died Suddenly at
Bryn Mawr Under Circumstances
Which Lead TO the Suspicion That
He Took His Own Life-Rcceiver
for Concern Hopes to Pay 100
Cents on DolIar-Enormous Loans

PHILADELPHIA, Aug. 29.-Unable
to meet its obligations because of the
large amount of money loaned on in
sufficient security by its president, now
dead, the Real Estate Trust company
of Philadelphia, which up to last Sat
urday was considered one of the stron-
gest financial institutions in the city,
has closed its doors. Soon after the
doors closed George II. Earle, Jr, n
prominent financier, was appointed re
ceiver.
The liabilities of the company are
placed at 100000 against which
there are quick assets of about S3,500,-
600 and collateral of about $S,000000,
which is not negotiable or readily con-
vertible. This doubtful collateral is
held mostly as security for loans of
about $5,300,000 made to Adolf Segal,
a promoter of this city.
The man responsible for the failure
was Frank X. 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
belief that he killed himself.
1t is authoritatively stated that he
took dose of laudanum with suicidal
intent; that while still conscious he
filed his bathtub with water and later
was found apparently drowned.
1t is said he had used practically all
of the $7,000000 deposits belonging to
the trust in wildcat speculation.
Rumors that Mr.. Nipple had COM
silenced by Dr. Powell and Coroner
King who declared that death was due
to natural causes.
Mr.. Nipple In addition to being presi-
dent of the Real Estate Trust compa-
ny was treasurer of the board of trusr
tees of the general assembly of the
Presbyterian church in the United
States and of several other church
funds and was 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 he stated positively
whether all the securities belonging to
the general assembly are intact.
AS treasurer of the board of trus-
tees of the Presbyterian general as
sembly Mr.. Nipple had on March |,
1906, $500 in cash and 100000 in Sc
curities.
Samuel f. Houston, vice president of
the trust company, said: ''In round
numbers the failure will amount to
$7000,000. At meeting Of the banks
and trust companies of the Philadel-
phia clearing house an effort was
made to raise money to tide the COM
pany over its difficulties, but all we
could get was $3,50O,000, or about one
half what was needed"
In order to hide the true condition of
the company and save himself Nipple
resorted to the Justification of his re
ports, which were accepted as true by
the directors. He used what the re-
ceiver termed a double system" of
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 securl-
ties and other paper, and along with
these he would exhibit the certificate
of the bank examiner, which showed
that the accounts the examiner had in
vestigated were correct. The direct
ors, supposing the securities shown
them were the same, approved the re-
ports. Among these directors are DR..
S. Weir, r. Mitchell. the eminent au-
thor; John X. Converse of the Baldwin
Locomotive works and one of the most
prominent laymen in the Presbyterian
church in the United States, John f.
Betz. the millionaire brewer; William