The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1906-08-31

SOAAApoIAy was l1SOlyenT I'm
MONDAY more than $4,000 was de-
posted by patrons Of the bank which
was practically offset by Withdrawals
by persons who had heard rumors of
the condition. The money
deposited since Saturday will. how
ever not De returned to the depositors.
out VIII lie in the Franklin National
oank until the courts have decided
whether it should be paid back.
while the depositors were
~ placlng their money with the Real
EStdte trust Company, the directors
were making strenuous efforts 10 tide
the institution over the difficulty. All
day yesterday they worked, but it be-
came apparent shortly after noon to-
day that the crash was inevitable. An
plcatlon papers for a temporary re-
celVer were prepared and left at the
o1hceS Of the trust company after
which the directors went to the meet
ing Of the clearing house association
to make a last appeal for help. The
newspapers were aware Of the trend
Of events, and had men stationed at
the bank building ready to flash the
closing Of the bank if it occurred.
There Were probably fifty bank presi-
dents at the clearing house 70 meet
the directors Of the trust
The latter stated hal they needed
100000, but the best the banks
could do was to guarantee $4,000, 900.
This was not enough, and as all other
means for getting money had failed
Vice President Houston t~elephoned t.
the bank to suspend business and
SEND the receivership papers to court.
The application for the receiver says
mat the company has a paid up CAPT.
tai Of $500, 600, an apparent surplus
of an equal mount, and deposits of
about $1O,OOO,O00. The assets con-
slst of real estate in philadelphia.
loans upon collateral upon demand
and on time, and other securities.
President Nipple, the application says,
by false reports to the directors, of
the loans made by him, brought about
the condition Of the company which
was first discovered by the officers Of
the bank subsequent to the death of
the president The court then ap-
pointed Mr.. Earle receiver and he en-
tered security to the amount Of ST.
O00,O
After his appointment Mr.. Earle
held a conference with the directors
and officers of the company at which
the receiver was put in possession Of
the condition of the so far
as the officials Of the concern could
inform him. At the close Of the con-
< tIlCc NIL. EdIlc made the following
statement:
I appreciate the danger of
making statements until l have made
a thorough examination, | think it
my duty to state that in my effort to
keep this institution open | have nee
essarily ascertained a great deal on
corning it's condition. This knowledge
brought me to the conclusion that the
company should not be permitted to
fail, and that conclusion still is 50
strong with me hat I believe, although
it may be against my w interest,
hat the receiVership should not be
continued any length Of time. 1t is
my hope that so soOn as l may verify
my present beliefs, l can recommend
a plan to the depositOrs that will bet
ter serve their interests and terminate
my services
John H. Kitchener, president of the
clearing house association, in an in
terview tonight said the failure of the
association to subscribe the $1,000, 900
guarantee required by the Real Estate
Trust Company was due to insufficient
security. The trust company, he
said, offered $4,000, 900 in gilt
edge securities, a tWo-thrids inter-
est in the trust cOmpany's building,
valued at $4,000, 600, and $1,000, 600
securities from Adolf Segal, valued by
the directors of the trust company at
$4,000, 900. The clearing house asso-
citation did not regard the Segal Sc
curities worth more than $1,OOO,OOO,
and declined to subscribe more than a
total of $4,OOO,OOO unless the remain
ing securities were more subStantlal.
Samuel F. Houston, vice president
of the company, said tonight that no
other banking institution in this or
anv other city would be in the least
affected by the failure.
The late Frank K. Nipple was
of best known ~financiers of this city.
He was born in this. city in 1899 and
was admitted to the bar in 1868. AL
the incorporation of the Real Estate
Company in 1885 he was elected its
president which office he retained un-
til his death.
Mr.. Nipples death occurred d
w last Friday morning at his summer
home in Rryane MaWr, Montgomery
county. The cause of death was given
as cerebral hemorrhage by his physl-
clan. DR.. William c. Powell.
Rumor that Mr.. Nipple had com
mitted suicide were quickly silenced
bv DR.. Powell and Coroner King, VINO
declared that death was due to natural
causes, The coroner issued a Certlf-
care that Mr.. Nipple had died Of
cerebral homorrhage or apoplexy. DR..
Alfred H. Read, of NOrristoWn, the
~coroner's physician, stated today that
after viewing the body in the presence
of DR.. Powell, he had agreed that
death was due to natural causes. HAD
no been aware hat there was any
! mystery about Mr.. Nipples death. ne
said. he would made a post
mOrtem eXamlnatlOh.
Persistent rumors that President
Hipple committed suicide were borne
out tonight when it was a~uthoratlvely
slater that he took his life at his home
last Friday morning. Mr.. Nipple IL
said to have taken a dose of laudanum
with suicidal intent. While conscious
he filed his bath tub with water ana
later was ound apparently uro"heu'
Mr.. Hipple's family decline to make
any statement on the subject and the