Los Angeles herald., 1906-08-29
CHURCH MONEYS ARE INVOLVED
Institution Was the Depository for
Presbyterian Funds

PHILADELPHIA, Aug. 28.-Unable
to meet it's obligations because of the
large amount of money loaned on
insufficient security by it's president,
now dead, the Real Estate Trust COM
pany of Philadelphia, which UP 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
H. Earle, jr., a prominent financier,
was appointed receiver.
The liabilities are estimated at $10,-
coo, 600, against which there are quick
assets of about 81, 500, 900 and collateral
of about $8,OOO,00O, which is not nego-
table or readily convertible. This
doubtful collateral is held mostly as
security for loans of about $1,000, 900
made to Adolph Segal, promoter of
this city.
The man responsible for the failure
was Frank K. Nipple, one of Philadel-
phia's best known citizens, who died
suddenly last Friday morning in his
country home at Bryn Mawr, near here,
under circumstances, which, In the light
of today's developments, led to the sus-
picion that he might have committed
suicide.
Was Prominent Presbyterian
Mr. Nipple in addition to being presi-
dent of the Real Estate Investment
company was treasurer of the board of
trustees of the general assembly of the
Presbyterian church in the United
States and of several other church
funds, and was director Of the Frank
lin National bank. Recently Mr.. Hip
pies accounts of the Presbyterian
church were examined by certified ac-
countants and found to be correct, but
it cannot be stated positively tonight
whether all the securities belonging to
the general assembly are intact.
DIR. w. H. Roberts, stated clerk of
the general assembly of the Presbyter-
ian church, who is at Mount Pocono,
said that in addition to the deposits of
the general assembly, the real estate
trust also had about $4,000 of funds
placed there by him as stated clerk.
The Presbyterian hospital of Phila-
delphia and the Presbyterian board of
relief also, he said, had sums of money
in the failed institution. DIR. Roberts
whether the securities of the general
assembly amounting to 1868, S96, in
Nipples custody, were intact. He re-
piled:
"I have no reason to believe other
wise, but cannot say positively"
"Were the securities in such shape
that they might have been hypothe-
CdIeu OF lTdllblGITSQ!
"I do not know positively as to that,
but l do not think that they were"
DIR. Roberts was much affected about
the news of the failure. He had known
Mr.. Nipple for many years and his
failure and its causes had greatly
grieved him.
For Segal's Loans
For the loans to Adolf Segal Nipple
accepted as collateral securities of the
Majestic hotel, a big new apartment
operated by Segal, the Swedish Steel
company Of Lancaster, Pa, and the
Pennsylvania Sugar Refining concern,
which had never been placed in opera
tlon Segal claims the collateral he
gave is good and that he will meet all
his obligations.
There are others to whom Nipple
loaned money on insufficient security,
but their names have not been made
public and the securities are not be-
lieved to be large.
How far Hipple benefited by the
loans or whether he was merely the
tool of others is yet to be determined.
All the directors are remaining silent
on that point and also on the question