Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-02
Nipple NOT LONE CULPRIT
Others Had q Hand in the Colossal
Failure.
LOCAL ROAD NOT AFFECTED
Washington, Alexandria and Mount
Vernon Ofacials Declare That the
Company viii Not Be Hurt.


Frank K, Nipple in the wrecking
of the Real Estate Trust Company
are to be brought to account, it is
reported. Receiver Earle put GER
tain evidence in the hands of the
district attorney yesterday looking
to that end. A special dispatch
from Philadelphia states that the
Washington, Alexandria and Mt.
Vernon Railroad will not be 4af-
fceted by the wreck.
PHILADELPHIA, Pa, September l.
Justice is to be melted out to the men re-
sponsible, with Frank K. Nipple, the sui-
eide president Of the Real Estate Trust
Company, for the collapse Of that institu-
ton. An announcement was made today
that the evidence so far unearthed by Re-
ceiver Earle has been placed in the hands
Of District Attorney Bell, who is expected
to cause the arrest of the wreckers- The
names of the men under suspicion were not
made public.
Since his appointment Receiver Earle
has maintained that it could not have
been possible for President Nipple to SO
entangle the trust company's affairs
without the knowledge of others con-
nected with the institution. Acting on
this impression he has been persistent in
his efforts to discover evidence of collu-
sion. Directors, officials and clerks of the
trust company were called before Mr.
Earle today and examined. 1t was after
o'clock tonight when he had concluded
this part of his investigation, and at $40
o'clock District Attorney Bell entered Mr..
Earle's office. After a conference lasting
two hours Mr.. Bell left. and the an
nouncement was made that all the evil
dence so far obtained had been placed in
the district attorneys hands.
This sensational turn in the affairs of
the trust company came after Receiver
Earle had engaged John G. johnson as
counsel to render an opinion as to the re-
sponsibility for the failure of the company.
Much Importance is attached to the fact
that among the witnesses who appeared be-
fore the receiver today were four of the
directors who are said to have heard OF
Hippie's heavy loans to Adolf Segal, the
promoter. at least several weeks ago. An
other witness was William F. North, tile
treasurer, who Is supposed to approve all
loans made by the trust company. Theo-
dore Prosser, the company's real estate of
ficer. who is supposed to have approved the
mortgages on the properties offered by
Segal as securities for his loans, was also
examined.
During the day Receiver Earle said
1.-THE deeper I get into this thing, the
worse things look. &
1.-The trust funds which I heretofore
thought intact have been tempered with
and $4,000 taken. This sum was dis.
tributed among $26,000,0 900 the bank had
in trust and the loss will not be heavy on
any one"
Mr.. Nipples desk was opened today. and
in 1t was found a statement by Horace
Hill, the company's auditor. which, Mr.
Earle says, Is materially different from
the statement Mr.. Hill gave him.
The Washington, Alexandra and Mount
Vernon Railroad Company will in no way
become involved in the affairs of the
wrecked Real Estate and Trust Company
of Philadelphia, whose president, the late
Frank K. Nipple, was secretary of the road
At the office in this city of the president Of
the railroad, Clarence P. King. it was en-
phatically stated to Star correspondent
that the suicide of Nipple and the downfall
Of the trust company would have no enect
on the road whatever. The policy OF the
Washington, Alexandria and Mount Yer
non would be continued as heretofore. The
company, it was announced, stood ready to
meet the interest on outstanding bonds OF
the road, and all holders of stock coulo
collect the interest due at the Real Estate
Trust Company office upon presentation al
the office of the Trust Company of NORTH
America in this city.