Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1906-09-04
BIG BANK WRECKED.
A PHILADELPHIA CONCERN IN
100000 FAILURE.


(nurcn Ifed D..
The Real Estate Trust Company. the
| second largest concern of its kind in
Philadelphia suspended business short
~ after O'Clock Tuesday afternoon be-
cause of inability to meet obligations to
the amount of S7.000000. There are re-
ports of gross miSuses of the inStitu-
TONS millions and criminal prosecu-
tons are possible The bank is the de-
pository for more than S1,0G0.000 of the
funds of the Presbyterian church, $780,
600 in tax receipts of the city of Phila-
delphia and $4,000 of cash of the
State of Pennsylvania
The failure, which is peckoned the
greatest in the history of Philadelphia.
was due primarily to the suicide Friday
of the president of the trust company
Frank ii. Ripple. Mr.. Nipple. accord
ing to the diagnosis made at the time
by his physician. and the coroner of
NOrristown, died of hemorrhage of the
brain, but il has since been authorita
lively stated that he had taken a dose
or laudanum and then gotten into a
filled bath tub. where he was found. an
parently drowned.
Mr.. Nipple was one of the best known
financiers of the city, was identified also
with many charitable and religious in
situations and was regarded as most
conservative. He was treasurer of the
board of trustees of the general assem-
bly, of the Presbyterian church. treas
urer of the sustenation committee of
the synod of Pennsylvania. treasurer of
the Presbyterian hospital there and
American treasurer of the western sec
ton of the Alliance of Reformed
Churches holding the Presbyterian sys-
TEN. Large sums belonging to these
bodies will be tied up or entirely lost
in the failure.
Mr.. Nipples financial downfall was
due largely to his advancing of money
of the bank in aid of enterprises of
Adolph Segal. owner of the Majestic
hotel and promoter known for the
holiness of his operations. Friends of
the dead banker express the belief that
Segal exercised a hypnotic influence
over him.
Deficit May He Millions.
The liabilities of the trust company
are placed at $1000O,O0O, against which
there are quick assets of about 81. 800
600 and collateral of about $S.000,000,
which is not negotiable or readily con-
vertible. The doubtful collateral is
he'd as security for loans of about So
100000 made to Segal. In addition
there are loans of 100000 made to
others by Nipple and hidden from the
directors
The announcement of the suspension
of the trust company followed a meet
ing of the representatives of the banks
and trust companies forming the clear
ing house association. at which unsuc-
cessful efforts were made to obtain
pledges of money enough to help the
Real Estate Trust Company over its
difficulties
There had been rumors that the Hip
pie estate was badly tangled. Until al
most the hour of the failure. however.
the fact that the trust company held
large amounts Of paper of doubtful
value was kept a secret. in the hope
that the local financiers would agree
to underwrite notes and securities be-
longing to the concern and its directors
so as to cover the 100000 needed.
Those who attended the clearing
house meeting, however. subscribed only
half of this amount, and, foreseeing no
other source of relief for the present
the officers of the company Immediately
applied for the appointment of a re-
ceiver.
The application was heard by Judge
Audenreid. and he appointed George
II. Earle, Jr., president of the Finance
Company of Philadelphia. as tempo
rary receiver, fixing his bond ut ST.
100000
Immediately after the closing of the
banks doors crowd of 300 depositors
blocked the entrance and clamOred for
admission. 1t was necessary to call
squad of policemen to calm them. but
there was no attempt at violence A
run had been in progress since the bank
opened in the morning, due to rumors
as to the stability of the institution.
which were circulated persistently after
the death of Mr.. Nipple. The demands
of the depositors did not cause alarm.
however. until after noon when they
became so clamorous as to hasten the
suspension of the bank
The board of publication of the Pres
byterian church. which had between
$4,000 and $4,000 on deposit with the
trust company, made an effort to with
draw the money, but failed by three
minutes. Hearing rumors of the I'M
stable condition of the company. MEM
bers of the board notified the officials
of their intention to transfer the ac-
count to the Philadelphia National
Bank. A representative of the latter
institution made all haste to the office
of the trust company and arrived three
minutes after the doors had closed.
Short News Notes.
Edenwold, the stock farm near Nash