The Montgomery advertiser., 1906-08-29
INSTITbFK)N
 CLOSES DOORS Philadelphia Trust Com
 pany Ruined. RIPPLE WAS RESPONSIBLE E President Made False Reports to
 His Directors. Accepted Bad Securities and MisIed the Bank -xaminer, Using His Re-
 ports to Satisfy the
 Executive Board.

Philadelphia, Aug. 2s.--Unable to meet it's obligations because of the large amount of money loaned on in sufficient security by it's President. now deal, the Real Estate and Trust Com pany of Philadelphia, which. up to las. Saturday, was considered one of the strongest financial institutions in the l city, closed it's doors today. George H. Earle, IT,, prominent hnancter, was appointed receiver
 | The liabilities of the company are placed at $10.000.000, against which there are quick assets of about $3,500,- 900. and collateral of about $s.000.00o. which is not negotiableor readily con- wertible This doubtful collateral is held mostly as security for loans of about $5. 100000 made to Adiog Segal, a promoter, of this city.
 The man responsible for the failure was Frank K. Nipple, one of Phiiadel- phia's best known citizens. who died suddenly last Friday morning in his country home at Brawn Mawr near here, under circumstances which. in tho light of todays developments, lead to the suspicion that he may have com mitted suicide.
 Mir. Nipple, in addition-to being Pres ident of the Real Estate Trust Com pany, wa sthe Treasurer of the Board ot Trustees of the General Assembly of the Presbyterian Church In the United States. and of several other church funds and was director or the Franklin National Bank. Recently MT Nipples accounts of the Presbyte- rIan Church were examined and werc found to be correct. but 1t cannot be stated positively tonight whether all the securities of the General Assembly are intact.
 pr. c. H. Roberts. stated clerk of the General Assembly of the Preshyte- rIan Church. said the Presbyterian Hospital, of Philadelphia, and the Pres byterIan Board of Relief had sums of money in the failed bank
 Dr. Roberts had known Mir. Nipple for many years and the failure and its causes, he said. had greatly srtsvtc him.
 For the loans to Adlof Segal, Nipple accepted as collateral security O. the Majestic Hotel. big new depArtmonl operated by Segal: the Swedish Steel Company of Lancaster, Pa, and the Pennsylvania Sugar Refining Company of this city The steel company and the sugar refining concern have never been placed in operation. SeSal claims the collateral he gave Is good and that he will meet all his obliga- tions.
 There are others to whom Hpple loaned money on insufficient security but their names have not been made public and the sums are not believed to be large Ho wfar Nipple benefited nthe loans made or whether he is merely the tool of others, is yet to be determined.
 All the directors are silent on tha point and also on the question O whether there will be any crimina l nA frHNn tions of the company and save him self, Nipple resorted to the fabrica ton of his reports which were ac cepted as true by the directors. If' used what the receiver termed "dou ble system" of making reports. WheI the State bank examiner called Hippl' presented him good securities to offse the loans made and when the presiden mad ehis reports to the directors h. would show them bundle of othe securities and other paper and alont with these he would exhibit the cer tifcates of the bank examiner whicl showed that the accounts the exami ner had investigated were correct. Th' directors, supposing the securities shown them were the same. approved the reports.
 List of Directors. Among the directors are: Dr. S Weir Mitchell, the eminent author John Fl. Converse of the Baldwin Loco motive Works and a prominent lay man in the Presbyterian Church; Johl F. Betz, millionaire broker; William A Patton. assistant to President Cassat of the Pennsylvania Raiload; forme Superior Court Judge w. w. Porter R. Dale Benson, President of the Penn sylvania Fire Insurance Company; Jo seph Der. Junkin, an attorney; Ed ward P. Borden, Samuel F. Huston who is also vice-president of the com pany; former State Senator J. Bayart Henry, and Frank c. Roberts U
 As soon as the directors learned oi the sudden death Of President Nipple they began an investigation of his Sf- fairs and were shocked when they learned the true condition fo the com pany. This was after the close of bus mess Friday
 A meeting of the Board was hur- riedly called and 1t was decided tc instruct the officers of the bank that all deposits received after the open ing of business Saturday morning should be set aside and deposited with the Franklin National Bank in the names of the individuals presenting the money, This was done to ab- solve the directors from criminal pro- ceedings for receiving money after they knew the trust company was insolvent On Monday more than $l6O.OOO was deposited by patrons of the bank. which was practically offset by withdrawals by persons who had heard rumors of the company's con dftion. The money deposited since Saturday will. however, lie in the Franklin National Bank until the courts decide whether 1t should be paid back
 Tried to Tie 1t Over.
 While the depositors were supposed Ily placing their money with the Real Estate Trust Company, the directors were making strenuous efforts to tide the institution over the difficulty. All dav yesterday they worked, but 1t be- came apparent shortly after noon to- that the crash for was receiver were prepared and left al inc of1ce of the trust company after which the directors wont to the meet ing of the clearing house association to make a last appeal for help.
 There were probably fifty bank pres idents at the clearing house to meet tn, directors of the trust company. The lat tar stated that they needed S7,000, ,00t