Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-28
TRUST COMPANY
SHORT 100000
Big Real Estate Concern Of
Philadelphia.
CLOSED ITS DOORS TODAY
Disclosures Today Show q Serious
State Of Affairs.
HEAD OF FIRM DIED LAST WEEK
Reported That Directors Of Concern
Pledged Themselves for Several
Millions to Save Business.
CLOSED ITS DOORS TODAY
Disclosures Today Show q Serious
State of Affairs,
HEAD OF FIRM DIED LAST WEEK

noon. 1t was the second in point of stand
ing Of the Philadelphia trust companies
1t has q capital and surplus Of s29Ooooo
| and deposits Of s7.500.O0o 1t was estab-
| lished in 1885. and Frank X. Nipple was its
president up to tho time OF his death last
Friday. The company did a large business
| In call loans, having about 100000 ..
such loans Outstanding
| An investigation by the trustees of the
company followed the death of Mr. Nipple
and disclosed such a state of affairs that
| meeting OF representative bankers was
| called for this afternoon to consider the
| situation. After examining the situation ex-
haustively these bank officials found them
selves unable to lend the required assist
ance and called a meeting OF their own
| trustees for $50 o'clock today. Meanwhile
| at 30 o'clock those In charge of the Real
/ Estate Trust Company found 1t necessary
| to close its DOORS
| There are rumors to the effect that Mr..
Nipples death, which was assigned to cere-
| bral hemorrhage, was not the result OF
| natural causes.
| NEW YORK, August aS-There was
some excitement this afternoon In banking
circles over rumors OF trouble in a trust
| company Of Philadelphia.
PHILADELPHIA, August 2s.-The presi-
dent of the Real Estate Trust Company re-
| ferred to in the New York dispatch died
| financial circles today that an investiga-
| ton of the company and of the presidents
| estate disclosed a serious state OF affairs
1t Is understood that the directors of the
company have pledged themselves for
several million dollars in an effort to pre-
| serve the institution.
A meeting of representatives OF banks
| and trust companies is being held this
| afternoon to determine whether aid shall
be supplied. The company, according to a
recent statement, had deposits aggregating
The death Of Frank H. Nipple. president
OF the Real Estate Trust Company of Phila-
delphia. which occurred suddenly Fri
day last, has been the subject of some COM
ment. Mr.. Nipple was at his desk as usual
| on Thursday and in apparent good health.
He passed Thursday evening as usual with
| his wife. retiring about o'clock.
1t was Mr.. Nipples custom to arise about
| $50 o'clock. and when he failed to come
downstairs at the usual time his wife went
| to her husbands room to call him. He
complained Of feeling i'll, and she telephoned
| for doctor. who came at once but In spite
| of all the physician could do Mr.. Nipple
sank rapidly and died about $50 am. The
doctor assigned cerebral hemorrhage the
cause.
Mr.. Nipple was practicing lawyer until
the Incorporation of the Real Estate Trust
Company in 1885. when he was elected its
president. He held the post until his death.
He was deeply Interested In charities. He
| the general assembly of the Presbyterian
| Church of the United States.
Clearing House Meeting Held.
A largely attended meeting of the Phila-
| delphia Clearing House Association was
| held here today. 1t is understood that the
| meeting was called to discuss the relations
| of the personal estate of the late Frank h.
| Nipple. late president of the Real Estate
| Trust Company, who died suddenly on FRI
day, August "a. to the affairs of that con-
| Germ. Thus far nothing has been given out
| for publication regarding the meeting. but
81, of ba Raa1 70
pany maintain their attitude of yesterday to
| the effect that the status of the institution
will not be affected by the death of Hlppc.
At todays meeting of clearing house
bankers there were between forty ana
| fifty bank presidents and vice presidents
and many cashiers of banks and trust
companies Nothing is known yet
| to the condition of Nipples estate. His
SON said today that he did not know
when the will would be probated.
1t was rumored today that the de-
velopments have not been as favorable
as had been hoped. but there is a strong
sentiment in favor of doing all possible
Guilty. The action of the clearing house
bankers will be guided by the condi-
! ton of the company's assets. These con-
sist largely OF a6oS ao sSoGO1Gu IN G
One of the bank presidents who was
at the meeting said:
"a meeting will be held by the CT
rectors of the banks and trust compa-
MES to decide on how much each VIII
put up in order to save certain trust
company.
incorporated in 1885, and was always
considered one of the strongest financial
| institutions in the city. Nipple was pres
ident continuously from the time OF its
organization. Trust companies make
statements to the banking commissions
of Pennsylvania twice each year. The
Real Estate Trust Company's last report
was made on May &c. At that time the
institutions condition was given as fol-
lows:
Resources-Cash on hand s376. 507 49, due
from banks and bankers. $331,613.62; call
loans upon collateral, s., 76l, 9i0.T9; time
loans upon collateral, $S42075; loans upon
bonds and mortgages, $150,O0O; investment
securities owned. viz. stocks, bonds etc.
s349O4751; real estate. furniture and nix
lures, 81 T26 O697S; overdrafts. $2l919: mis-
celtaneous assets, SALT ,304.6l; total, s1o,9oi-
Lablities-Capital stock paid in, ST.
Surplus fund. s1.O5o.OOO.
Undivided profits. less expenses and taxes
Deposits subject to check. s7,O71.73502
Deposits, special, $346 631 %.
Due to the commonwealth, $200OO0
Miscellaneous liabilities, $500, 512.5S
Total, $10.954. 74S.9
The amount Of trust funds invested by
the company is $26.167,6S2 This amour.
does not include trusts under corporation
mortgages or trusts OF securities amounting
to SEQ. iS3. 400 held by the company as de,
positary and trustee Tor issues OF coiatef'
trust bonds.
An. Official tatement.
Samuel F. Houston. vice president Of the
Real Estate Trust Company issued state
ment after the trust company had closed Its
doors in which he said that the anairs OF
the company were very much involved, ana
that the officials found themselves unable
to continue business.
ssIn round numbers" he said, the fall
ure will amount to $.OOOOU
"At q meeting of the banks of trust COM
panies of the Philadelphia Clearing House
TODAY an effort was made to raise money
TO tide the company over its difficulties, but
all we could get was $S,5O0.O00. or about
one-half what was needed. Consequently
the court has been applied to for receiy-
err"
Rumors Of the condition Of the bank
caused slight run early today and in the
last half hour thousands Of dollars were
drawn out by depositors.
Frank w. Nipple was treasurer OF the
board Of trustees Of the general assembly
OF the Presbyterian Church and. II j. sale.
a~A n11n <1,af ,.,Ac ar,