Daily press. [volume] (Newport News, Va.) 1896-current, 1906-08-29
DIRECTORS FAILED TO 90 DUTY
Of, the Millions in Securities Held by
the Institution Eight Millions Are
of Doubtful Enthusiastically Man
is Dead-stood High in Presbyter.
ian Church circles.
(By Associated Press.l

PHILADELPHIA, PA, Aug. Is
Unable to meet it's obligations he
cause of the large amount of money
loaned OH insufficient security by it,;
president, now dead, the Real Estate
Trust Company of Philadelphia, Broad
and Chestnut streets, which tp to
last Saturday was considered one of
the strongest financial institutions in
the city closed it's doors today
Soon after the doors closed George
Ii. Earle. Jr., n financicr was ap.
pointed receiver.
Liabilities Ten Millions.
The liabilities of the company are
placed ut $l0,000000 against which
there are quick assets of about So
100000, and collateral of about S.
100000 which is not negotiable or
readily convertible. This doubtful col
lateral is held mostly as security for
loans Of about $500, 900 made l.
Adolf Segal, Il promoter of this city.
The man responsible for the fail.
ure was Frank *. Nipple. one of Phil
adelphia's best known citizens who
died suddenly last Friday in his
country heme at Bryn Mnwr near
here, under circumstances which, in
the light of today's developments
lead to the suspicion that he may
have committed suicide.
High Churchman Too.
M In, III
president of the Real Estate Trust
Company, was treasurer of the board
OF trustees of the General Assembly
OF the Presbyterian Church in tho
United States ana other church so.
cieties, and was director of the
Franklin National Bank.
In addition to the deposits of the
General As cembly the Rcal Estate
Trust Co. also had about $4,000 of
funds placed there by DR.. Roberts as
State Clerk of the General Assembly.
Hospital Funds Involved.
The Presbyterian Hospital OF Phil
adelphia and the Presbyterian board
of relief had sums of money in the
failed institution. The securities of
the General Assembly, amounting to
1858, S96 were in Nipples custody.
How far Nipple benefited in the
loans made or whether he was mere.
ly the tool of others is yet to be
determined. All the directors arc
silent on that point and also on the
question of whether there will he
any criminal prosecutions.
Falsfied His Accounts.
In order to hide the true condition
Of the company and save himself Hin.
pie resOrted to the Justification of his
reports. He. used what the receiver
termed double system" OF making
reports. When the State Bank Exam
liner called Nipple presented to him
good securities to offset the loans
made and when the President made
his report to his directors he would
show them bundle of other securi-
ties and other papers and along with
these he would exhibit the certificate
of the, Bank Examiner which showed
that the accounts the Examiner had
investigated were correct.
Directors Negligent.
The directors, supposing the secmri-
ties shown them were. the same ap.
proved the reports. Among these d.
rctors are DR.. S. w. Mitchell, the
author, John f. Converse, of tho
Baldwin Locomotive Works; John +.
Belts, millionaire brewer; William
A. Patten, assistant to President Cas-
sett. of tho Pennsylvania railroad
former Superior Court Judge w. W.
Porter; r. Dale Benson, president of
the Pennsylvania Fire Insurance Com.
pany; Joseph D. Junkin, an attorney
Edward P. Borden, Samuel f. Hons
ton, who is also vice-president of the
company; former State Senator j..