The Democrat-sentinel. [volume] (Logan, Ohio) 1906-1935, 1906-08-30
CAN NOT MEET
OBLIGATIONS
Philadelphia Real Estate Trust Com
pany Closes Its Doors.
A RECEIVER is APPOINTED

Large Amount Of the Funds Of the
Institution Loaned on insufficient
Security Said to Have Been the
Cause Of the Crssh--FaiIure Caused
CONSERVATION.
Philadelphia. Aug. 29. - The Real
/ Estate Trust company OF Philadel
/ phia, which was considered one of
the strongest financial institutions IN
the city, closed its doors, being un.
/ able to meet its obligations because
/ of the large amount of money loaned
/ on insufficient security by its presi.
dent, now dead, A receiver has been
/ appointed for the institution
The liabilities are placed at s1O,.
100000, against which there are quick
assets of about s3,5OO0OO and collat-
eral of about sS.OO0.OO which is not
negotiable or readily convertible This
doubtful collateral is held mostly as
4 security for loans Of about $1,000, 900
made to Adolf Segal, a promoter of
this city.
The man responsible for the failure
was Frank x. Nipple, one of Philadel-
| p best known citizens, who died
las friday morning in his country
home at Byrn Mawr, near here, under
circumstances which in the light Of
recent developments lead to the sus-
picion that he may have committed
suicide.
Mr. Nipple, in addition to being
president of the Real Estate Trust
company, was the treasurer of the
board of trustees Of the general as
sembly of the Presbyterian church in
the United States, and of several 9TH
er church funds, and was a director
OF the Franklin National bank Re-
Gently Mr.. Nipples accounts with the
Presbyterian church were examined
and were found to be correct, but it
cannot be stated positively wheth-
er all the securities OF the gen
eral assembly are intact.
Dr. w H. Roberts, stated clerk of
the general assembly of the Presby
terian church, was surprised at the
news of the failure. In addition to
the deposits of the general assembly,
the Real Estate Trust company had
about S25,U00 Of funds placed there
by Dr. Roberts as stated clerk. The
Presbyterian hospital of Philadelphia
and the Presbyterian board OF relief,
he said, also had sums of money In
the failed bank. DR.. Roberts was ask
ed if he could say whether the Sc
curities Of the general assembly,
amounting to $9G3,S 1876, in Nipples
custody were intact He replied, Il
have no reason to believe otherwise,
but cannot say positively"
Soon after the closing the story was
on the street and caused CONSERVATION.
Hundreds gathered about the build
ing clamoring for information and
police were needed to clear the street.
There was no disorder.
President Michner of the Clearing
House association said the failure of
the association to subscribe the
S7,000,OO0 guarantee fund requested
by the Real Estate Trust company
was due TO insufficient security. The
trust company he said, offered ST.
100000 in gilt edge securities, a two
thirds interest in the trust companys
building valued at $2,OO0,00O and So,
100000 securities from Adolf Segal
valued by the directors of the trust
company a $3,000,O00 The Clearing
House association did not regard the
Segal securities worth more than ST.
100000 and declined to subscribe
more than s4O00.00O unless the re-
naming securities were more sub
stantal.
Encountered Strong Ocean Current.
Honolulu Aug 29.-Captain Houd-
lett OF the Oceanic Steamship com.
pony liner Sierra, which arrived here
from Australia and New leland says
that during the last two days he ex-
perienced an extraordinary northwest
current II was the strongest he had
ever encountered, throwing his vessel
so miles out of her course in one day.
He attributes the stranding of the
Manchuria to the same current. The
condition OF the Manchuria remains
unchanged.
Pro and Con.
London, Aug 29,-Dr. Napier, pro
fessor Of English and Anglo-SaXon in