The free lance. (Fredericksburg, Va.) 1885-1926, 1906-09-01

They Held Numerous Meetings to
Evolve plan to Raise 100000.
It Is Believed Trust Funds Are In
tact.
Philadelphia. Aug. 30. - Receiver
George II Earle. Jr.. took charge o.
lhc affairs Of the Real Estate Trust
company. which failed because Of the
heavy loans made by Frank K. Nipple.
late president. 10 Adolf Segal "A pro-
motor upon insufficient security Until
Mr. Earle completes hts investigation
the exact condition OF tho company
affairs cannot be- told. The receiver.
however. expressed the belief that tho
trust funds are intact
John ii. Converse a director of the
company. and one Of the foremost
PRESBYTERIAN laymcn In the country
and upon whose petition the receiver
was appointed. said he was satisfied
that tho securities Of the various
Presbyterian church boards are safe.
The Presbyterian hospital, OF which
M Nipple was treasurer, elected the
Fidelity Trust company as his sue
cessor. aud through that concern
learned that the institutions socuri-
tics amounting to sl.5OO.OO0 are in
tact. While it Is believed that the So
curltics Of the board Of trustees OF the
General assembly are equally safe, II
will be necessary 10 elect new treas
urcr before that fact can be deter
mined. 1t developed that Mr.. Nipple
had on deposit for various Presbyter-
ian church organizations $4,000 In
cash. Included in this was the sum
of $4,000. deposited by the Womcn's
Foreign Missionary Society, 10 bee
used in rebuilding the Home for Res
cued White Slaves in San Francisco,
destroyed by the earthquake.
One Of the many rumors was that
the local banks had evolved a plan %
raise guarantee fund OF SI0OO.OVV
with which to rehabiitate the trust
company. but this could not be yeri
fed II Is the hope OF the directors.
however. 10 reopen the doors OF the
bank and with this end In Wow they
held numerous meetings. comforting
with Receiver Earle One Of the
meetings was attended by Adolf Segal
aud later It was learned that he had
sold the town of South Altoona, Pa,
which he built with money borrowed
from the trust company The purchas-
ers. It IS said. paid 100000 for the
various properties.
Frank Wharton Nipple son OF the
late president. who is a clerk IN the
bank. was set upon by a crowd of
angry depositors as he was leaving the
building. and would probably have
been roughly handled had the police
not interfercd.
There were no evidences Of appre-
hcnsion IN the stock exchange. Bank
ers pointed ont that there never was
an instance in which an institution 81
the trust cOmpanys size had So fe"
brokerage loans outstanding. This ex-
orcisod a reassuring effect on the local
stock market which recovered from
tho decentralization Of Tuesday The
recovery did not apply TO Real Estate
Trust company stock, which had been
selling close to $500 share. but for
which there were no bids.
Adolf Segal. who is the central fig
ire in the collapse Of the Real Estate
Trust company. stated that some days
ago he placed in the hands OF the Off
cials OF that company several million
dollars worth OF bonds in order to
make hts borrowings absolutely secure.
There were no conditions attached.
he declared. They were 20 be used to
the best advantage Of the company
feel have done everything in my
power 10 relieve the Real Estate Trust
company"
Continuing. Mr.. Segal said: Il am in
terested IN from 20 to 30 big compan-
les Several months ago a number OF
Pittsburg capitalists entered into an
agreement with me for the purchase
Of my real estate holdings in Altoona
Pa. The purchase price is 100000, but
the money has not yet been paid.
Mr. Segal declined to give list of
his securities consisting OF bonds and
mortgages which the trust company
holds. He said that f. w. Nipple. son
Of the late President Nipple. has occu-
pied the position of secretary in one
Of his companies. but declared the
position was purely honorary and that
no salary was paid the young man.
1T was rumored that | intended
leaving town. concluded Mr.. Segal.
Il intend TO stay right here and see
this matter through"