The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1906-09-07
MILLIONS TIED UP.
Philadelphia's Real Estate Trust
Company Closed Its Doors Fol-
lowing Presidents Death.
SHORTAGE is 100000.
Clearing House Attempted to
Raise Amount Necessary to Keep
Institution AfOat, But Could
Only Secure Half Enough.

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 COM
pany of Philadelphia, which up to
last Saturday was considered one or
the strongest financial institutions in
the city, closed its doors Tuesday.
Soon after the doors closed George
H. Earle, jr., prominent financier.
was appointed receiver. The liabili-
ties of the company are placed at $1O,-
100000, against which there are
quick assets Of about $3,500,000 and
collateral of about $S,000,0O0, which
is not negotiable or readily convert
ible. This doubtful collateral is hello
mostly as security for loans of about
$5,300,000 made to Adolph Segal, q
promoter of this city. The man re-
sponsible for the failure was Frank
K. Nipple, one of Philadelphia's best
known citizens, who died suddenly
last Friday morning in his country
home at Bryn Mawr, near here, I'M
der circumstances which, in the light
of later developments, lead to the
suspicion that he may have commit
ted suicide,
An investigation by the trustees OF
the company followed the death OF
Mr.. Nipple and disclosed such state
of affairs that a meeting of represen-
tative bankers was called for Tues
day afternoon to consider the situa-
ton. After examining the situation
exhaustively these bankers found
themselves unable to lend the required
assistance and called meeting of
their own trustees for $3.50 Tuesday.
Meanwhile at 2:20 those in charge OF
the Real Estate Trust company found
it necessary to close it's doors. There
are rumors to the effect that Mr.. Hip
pies death, which was assigned to
cerebral hemorrhage, was not the re-
suit of natural causes.
Samuel F. Houston, vice president
of the Real Estate Trust company is
sued a statement after the trust COM
pany had closed it's doors in which he
said that the affairs of the company
were very much involved and that the
officials found themselves unable to
continue business.
I'm round numbers" he said, 1.-The
failure will amount to s7,O00,000. At
a meeting of the banks and trust COM
panies of the Philadelphia clearing
house Tuesday an effort was made
to raise money to tide the company
over it's difficulties, but all we could
get was $3,500,000, or about one half
what was needed" Consequently the
court has been applied to for re-
ceiver"
Mr.. Nipple, in addition TO being
president of the. Real Estate Trust
company, was the treasurer of the
board of trustees of the general as
sembly of the Presbyterian church in
the United States and several other
church funds, and was director OF
the Franklin National bank Recently
Mr.. Nipples accounts of the Presby'
terrain church were examined by GER
tlfleQ accountants ana IOuuu 10 pe
correct, but it cannot be stated posi-
lively now whether all the securities
belonging to the general assembly
are intact.
DR.. w. H. Roberts, stated clerk OF
the general assembly of the Presby-
terian church, who is at Mount Pc
como, said that in addition to the de
posits of the general assembly, the
Real Estate Trust also had about
$4,000 of funds placed there by him
as stated clerk. The Presbyterian
hospital of Philadelphia and the Pres
byterian board of relief, he said, also
had sums of money in the failed in
stitution.
Persistent rumors that President
Nipple committed suicide were borne
out Tuesday night when it was au
thoritatively stated that he took his
life at his home last Friday morning
Mr.. Nipple is said to have taken a
dose of laudanum with. suicidal in
tent. While still conscious he filled
his bath tub with water and later was
found apparently drowned.