The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-08-29
TRUST COMPANY FAILS;
LIABILITIES S10,OOO,0O0
Continued from Page /.

thlS institution open ian effort made for |
public reasons, as 1 have no private
interests therein), i have necessarily |
ascertained a great deal concerning its |
condition. This knowledge brought me
to the conclusion that the company
should not be permitted to fail, and |
that conclusion still is so strong with |
me that l believe, although ii be
against my own interest that the re-
Ownership should not be continued any |
length Of time. 1t is my hope that |
as soon as i may verify my present |
beliefs, 1 can recommend a plan to |
the depositors that will hettar serve |
their interests and terminate my serv-
ices. 1t must not be forgotten that
under a reasonable plan by which they |
VIII acquire all there is, they will re-
ceive much more than any receiver can
obtain for them, for they can by that
method preserve their very large and
valuable business, which otherwise will
be lost. In my judgment, a receiver
ship is always the most costly and tar
dy method Of administering corporate
affairs and / trust that l may be able
to make it plain that there is hone
full method that will be less expensive
and capable of melting higher results.
/ ask, however. that until / can be per- |
fectly sure OF the wisdom of what / am
recommending the depositors will not
their situation. The company, of
course, has large assets that are GER
tain and I believe examination will
show that large returns may be derived
from the assets that are not certain"
Hoping for the Best.
John II. Converse was greatly
shocked by the failure. He was an
Intimate friend of Mr.. Nipple and was
a fnd NIT ~,
ness, but in the affairs of the Pres
byterian church.
Asked if he thought the failure a
bad one, Mr.. Converse said:
Il cannot tell that now. but I am
hoping for the best"
Mr.. Converse, who is chairman of
the trustees Of the general assembly
of the Presbyterian church, was asked
for a definite statement regarding the
funds and securities OF the church,
but said he could not give one at this
time
THE best l can say" he said, lis
that / believe the securities of the
trustees are safe. The auditor en-
ployed by the company went over the
trust funds and other securities of the
company, which amount to more than
s26,O00,0O0, and found them intact. The
papers OF the trustees of the church
like il understood that the funds OF the
trustees are all kept invested as far
as possible and that very little cash
IS kept on hand. Whatever amount of
cash was in the bank was small and
will not be a serious loss, if a loss ct
ALL"
Security Not Sufficient.
John H. Kitchener, president of the
Gearing House association. in an in
terview tonight said that the failure
of the association to subscribe the ST.
100000 guarantee fund requested by the
Real Estate Trust company was due
to insufficient security. The trust com
pany, he said. offered s.. 100000 in gilt
edge securities, a two-thirds interest
in the trust eompany's building, valued
at S2,00O,OO0 and $5,3OO,000 securities
from Adolph Segal, valued by the di-
rect0rS at tie tCCCSt c00IQa0Y &c e.
000, 000 The Clearing House assocta-
ton did not regard the Segal securities
worth more than 100000 and declined
to subscribe more than a total of $4,-
100000 unless the remaining securities
were more substantial.
Vice President Talks.
Samuel f. Houston, vice president of
the company, said tonight that no
other banking institution i'm this or
any other city would be in the least af-
fected by the failure. Giltedge seeuri-
ties was given for whatever money was
borrowed from other banks.
He said he hoped the company would
be able TO resume business, but would
make no prediction on that point
The board of publication of the Pres
byterian church, which had between
$4,000 and $4,000 on deposit with the
Real Estate Trust company, made an
effort TO withdraw the money, but
failed by three minutes. Hearing ru-
mors of the unstable condition of the |
trust company, members of the board |
informed the officials of their intention
TO transfer the account to the Phila- |
delphia National bank. A representa-
tive of the latter institution made all |
haste to the office of the trust company
and arrived there three minutes after |
the doors had closed.
The board of ministerial relief of the |
presbyterian church had $4,000 depos- |
tied with the trust company.
Nipple Was Treasurer.
According to last Mays minutes of |
the Presbyterian general assembly, Mr. |
Nipple was treasurer of, the board of |
trustees, and had i'm his charge funds |
amounting to $963S96, distributed as
follows.
Bonds and mortgages, first liens OH
property, $116,016.67; invested i'm secur-
ties, $196, 1876; advances to secure be-
quests. $3,32507; paid to secure property
under foreclosure, S44,31549; in trust for
benefit of board of ministerial relief
real estate mortgage. $4,000, and nine
properties in Philadelphia value not
given; piece of property in PhiladeI-
phia for the benefit of the Mariners
value not given.
Many Vacations Spoiled.
The failure undoubtedly means that