New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-01
NO CHECK ON NIPPLE
ROCKS RARELY EXAMINED
directors of Wrecked Trust Co. D'd
Not Meet in Three Years.

Not Meet an Ihree 4 ears. Z
philadelphia. Aug. Si--Aooiuonsi oeFelop-
sensational in character, continue to crop
mems -,oc,,on with the failure Of the Real
,,s,ot. Trust Company. which institution cioseu
,,s doors on Tuesday Of this week
az - :, hecame known. for the first time
~ e,,enension OF the trust company. that
-, had not been a meeting OF the directors OF
- fofed hank for nearly three years every de-
,al NJ its affairs having been left to the presi-
a., of the company. Frank X Hipple. 1t was
80 STATE Of affairs which caused the Clearing
SIS Association TO hesitate about coming to
IL ala Of the trust company at the meetlng on
Tuesday.
I,,,rinp the meeting Of the Clearing House
bankers Joseph De F. Junkin. counsel for the
Real Estate Trust Company was asked
.,7,-ba- was your trust company last examined
bv the state board"
. About three years ago" slowly replied Mr.
Junkn.
This frank admission caused mild sensation
.o,c tl,a bankers present. but when he was
80 When did the directors Of the trust COM
-, last examine its affairs his answer. Not
e. more ihau TWO and half years. caused the
,,e, Who guide the affairs Of Philadeiphias
e,sncial institutions 10 gasp.
l,i.icis,,, Of the members of the Clearing
49, Association was responsible for the in
.r-,afion being given out to-day by one Of the
Leaning members Of the association. Several of
,ba directors ~ the trust company had stated
si1oe fhe crash that the company could have
-, saya5 had the local bankers advanced
s. o0N0oo-
A member of the Clearing House Association
who was present a. Tuesdays meeting, said to-
DAY:
-,
pany knew as litfIe about the affairs Of the
company as any Of the bankers present. They
did not appear 10 know whether the shortage
-yas 5000 Nln or Slo00ooeo and II would have
taar raIiv FOR as 20 have advanced the cash
,r.t.7 the affairs of the hank were in such a
5..-l,rsb HE condition Mr.. Junkin could not tell
rs why the state board Of examiners and the
hoard # directors Of the trust company had
faiei m do their duty for nearly three years.
yTha three directors OF the company who
oarne before as with outstretched hands Tor
= e 0p0tan had absolutely nothing to offer in
refurr hu- dead sea fruit They had not even
confidence i'm their Company's future To offer.
ar when they were asked IL they would pledge
ft.ir fortunes 10 make good losses that the
allied banks might sustain hy going II blind"
their answer was a painful silence.
T. T-7dar such circumstances the Clearing House
could not be expected 70 come 10 the aid Of
fhe trust company
The statement Of Mr.. Earle. receiver of the
-rerked Real Estate Trust Company. of this
titv that Frank Il HipDle. he late president of
S65aa0 and that The lending of S5,00O00O TO
Adolph Segsl on irsufficenr security amounted
20 theft created profound sensation through
orr the city to-day. The reve' alton was an
especially cruel blow - Hipples many. intimate
friends. most of whom prominent in the
Presbyterian nurcn. either as Clergymen or
-oyu1en. 50 high was their estimation of the
man who abhorreG tobacco and liquor and re-
Trained from reading Sunday newspapers that
not only the various organ rizations in the Pres
lyterian Church made the trust company their
depository but hundreds of members Of that
denomination placed their money in his COM
pany.
The number Of pastors who used the bank for
their savings vas exceptionally large Most of
them refused 10 entertain the theory that Nipple
ended his life and il difficult to make
them believe that his secret operations were as
irregular as they are alleged to he.
Tn addition 70 his church work, Mr.. Nipple
took an active interest in reform politics and is
said - have been a heavy contributor to the
ref1rners' campaign fund, in last years notable
contest en- this city
i is alleged that several Of the directors had
knowledge that some of Hipples transactions
were unsafe, hut they had such confidence in
his integrity that they did not suspect the true
state Of affairs OF entertain the belief that his
operations were Irregular,
u became known to-day that the employees of
the company were aware there was something
wrong with The accounts Several of them
went 50 far 70 leave checks with their fellow
employee, when they went or vacation. for an
immediate Withdrawal Of thei. deposits, if their
suspicious confirmed.
George II. Earle. r. the receiver is directing
his efforts toward ascertainng If other officials
or employees q the bank had guilty knowledge
of President Hippe's transactions. He expresses
surprise that William = North treasurer of tho
company and Horace Hill, auditor, did not aC-
quaint the directors with the condition Of affairs
II they were aware ~ the entanglen1ents
Before any Of the loans paid TO Segal ol
other borrowers il was Mr Norths duty TO ap-
prove them. and Mr.. Hill, Mr.. Earle points out
IN examining the accounts must have observed
The extensive amounts paid TO one The
facI remains, however. that intimation was
E1Fen BY either man the directors of the large
loans made TO SegaL