Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-09-04
EARLE FINDS BAD
BANK SITUATION
FARTHER HE PROBES TRUST
COMPANIES AFFAIRS THE
WORSE THEY ARE FOUND
Fifty Thousand Dollars of Trust Funds
Are Taken-John c. johnson Hired
to Give Legal Opinion as to Who
Shall Be Sued.

the discoveries in the Investigations
thus far made, Raceiy er Earle cf the
Real Estate and Trust company, has
engaged Attorney John G. Johnson to
render his legal opinion as to the re-
sponsibility for the collapse of the
bank. Upon Johnson's findings will
depend the question of suing the direc-
tors. Suits will be entered, declared
Earle, so as to collect every asset of
the company.
Trust Funds Taken.
Asked if criminal proceedings were
contemplated, Earle replied that that
was the question for the district at
torney to decide. "The deeper
probe into the affairs Of the company"
added Earle, "the worse I find them.
The trust funds which I heretofore
thought were intact have been tamper-
ed with and $4,000 taken"
Had Not Been Examined.
Philadelphia, Sept. 1t developed
yesterday that the affairs of the Real
Real Estate Trust company, which
closed its doors last Tuesday, had not
been examined by the state board for
three years or by its board Of directors
for more than two years and a half.
The information was given by the
Clearing House association by Joseph
Def Junkin, counsel for the trust COM
pany, on last Tuesday afternoon, when
a plea was made by the company's d.
rectors for assistance. 1t was for this
reason the clearing house refused to
assist the trust company.
The information was made public by
80 IL ,,,sx,- I, i,, 10
Tense against criticisms by directors
and depositors that the association
could nave saved the institution. He
said:
1.-The directors of the Real Estate
Trust company did not know whether
the shortage was $5,O00,000 or $10,000,-
900. Junkin could not tell us why the
state board of examiners and the board
of directors of the trust company had
failed to do their duty for nearly three
years.
1.-THE three directors of the company
who came before us with plea for
81, 100000 had absolutely nothing to Of
fer in return but dead sea fruit. They
had not even confidence in their COM
pany's future to offer, for when they
were asked If they would pledge their
fortunes to make good any losses the
allied banks might sustain by going it
blind their answer was silence. I'm
der these circumstances the clearing
house could not be expected to go to
the aid Of the trust company"
More segaI Paper Found.
Receiver Earle said he found yester.
day securities aggregating about
81, 100000 face value in the name of
Adolph Segal. Until he investigates
more fully he will not be able to say
how much they are worth.
II am investigating charge that
some of the directors, taking advan.
tage of their exclusive, prior knowl.
edge of the company's embarrassment,
sold stocks and withdrew deposits In
order to save themselves and Others
said Receiver Earle. IF any is guilty
he will have to suffer-"
1t Is reported that several OF the
directors had knowledge that some Of
Nipples transactions were unsafe, but
they had such confidence in his integ.
rity that they did not suspect the true
state Of affairs.
1t became known today that EN-.
ployes Of the company left checks with
their fellow employees when they went
on vacation for an immediate with
drawal Of their deposits if their sus
picions that the company was about to
suspend were confirmed.
The receiver has become SO alarmed
over the position assumed by deposit
ors that he has issued statement ask
ing them not to take part in litigation
at the expense of their funds before
they have talked with him.
Church Leaders Uninterrupted.
! RsceiYer Earle declared that Frank