The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-08-29

Philadelphia. Aug. 2s.-UnabIe tc
meet its obligations because of tine
large amount OF money loaned on in
SUFFICIENT security by it's president. now
dead. the Real Estate Trust company
OF Philadelphia, which up to last Sat
urday was considered one of the
strongest financial institutions i'm the
city, closed its doors today. Soon after
the doors closed George H. Earle, IT..
a prominent financier. was appointed
receiver. The liabilities are estimated
at $lO,OOO.O0O. against which there are
quick assets of about $4500.OOO and
collateral of about $S.000.O0O. which is
not negotiable or readily convertible
Ihis doubtful collateral is held most
~ as security for loans of about S.
100000. made to Adolph Segalnn, a pro-
moter Of the city.
President Nipple Responsible.
The man responsible for the failure
was Frank X. Nipple. one of Phila-
delphia's best known citizens. who died
suddenly last Friday morning i'm his
country home at Bryn Mawr, near here
under circumstances, which i'm the light
of today's developments. led TO the sus-
picion that he might have committed
suicide.
Mr.. Nipple. in addition to being pres
ident OF the Real Estate Trust com
pany 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 a director of the
Franklin National bank. Recently Mr.
Nipples accounts Of the Presbyterian
church were examined by certified ac-
< md = l.,
1T cannot be stated positively tonight
whether all the securities belonging to
the general assembly are intact.
General Assembly May Lose.
DR.. w. H. Roberts, stated clerk Of
the general assembly of the Presby-
teiran church. who is at Mount Focono
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 Phihdel-
phia and the Presbyterian board Of re-
lief. he said. also had sums of money
In the failed institution. DR.. Roberts
was asked whether he could say the
securities of the general assembly.
amounting to s96Ss96. in Nipples Gus
tody, were intact. He replied: "I have
no reason To believe otherwise. but
Were the securities IN such shane
that they might have been hypothecat-
ed or transferred"
II do not know positively as to that.
but I do not think that they were"
DR.. Roberts was much affected bv
the news of the failure. He had known
Mr.. Nipple for many years and the
failure and its causes. he said. had
greatly grieved him.
Claims Collateral Is Good.
For the loans to Adolf SegaI. Hipple
accepted as collateral securities of the
Majestic hotel. a big new apartment
house operated by Segal the Swedish
Steel company of Lancaster. Pa. and
the Pennsylvania Sugar Refining com
pany of this city. The steel company
and the sugar refining concern have.
never been placed in operation. SegaI
claims the collateral he gave Is good
and that he will meet all his obIiga-
tions.
There are others to whom Nipple
loaned mODey on insufficient Sc
curities, but their names have not
been made public and the sums are
not believed 10 be large. How far
Nipple benefited I'm the loans made
or whether he was merely the tool of
others is yet to be determined. All
TIC hiANNNbiS are remaining silent
that point and also on the question
of whether there will be any criminal
prosecutions.
Reports Falsifed.
In order TO hide the true conditions
OF the company and save himself Hip
pie resorted TO the Justification of his
reports. which were accepted as true
by the directors. He used what The
receiver termed a double system of
making reports. When the state bank
examiner called. Nipple presented 20
him good securities to offset the loans
made and when the president made
his reports to the directors he would
show them bundle Of other securities
and other papers and along with these
ne would exhibit the certificate of the
bank examiner which showed that the
accounts the examiner had investigat-
ed were correct. The directors. sup
posing the securities shown them were
the same, approved the reports
Some of the Directors.
Among the directors are Director S.
Weir Mitchell. the eminent author:
John n. Converse of the Baldwin Loco
motive works and one of the most
prominent laymen i'm the Presbyterian
church i'm the United States: John =.
Betz, the millionaire brewer: William
A. Patton, assistant to President Cas-
satt of the Pennsylvania railroad:
former Superior Court Judge w. W.