Omaha daily bee., 1906-09-08
FRANK h. NIPPLE A FORCER
Quarter Of Million Of Bogus Notes Uttered
by Dead Banker Found.
INSTITUTION ,wllL BE RtoReASlzED
Directors viii Advance &3,OOO.O0O,
Creditors VIII Take stock and
DeposItors VIII he Paid
An Full.

PHILADELPHIA. Sept. 7.-Forgeries for
more than quarter of a million Of del
lars by Frank X. Nipple, the suicide presi-
dent of the defunct Real Estate Trust
company, have been discovered by Receiver
Earle. TIE latter made this statement
late tonight, adding that he had no idea
where Hipple's villainy would end. Nipple.
in order to meet his Immense overdrnfts,
used the names of some OF the nest prom
inent business men Of the city on notes
which in one case amounted to sl50.0o0.
The president had taken copies of the
signatures of a number of business men
while some of their checks or negotiable
securities passed through his hands, but
in every case he avoided the use of the
name Of Real Estate Trust company de-
positor.
When pinched for money to meet his
overdrafts or some big segal loan. Mr..
Earle said. as last resort Nipple would
draw up a note with the forged signature
attached. This he would take to the
cashier or paying teller. saying he had
personally made the loan and It was dis
counted. with the amount TO his credit
he would satisfy the pressing claim.
Earle VIII Accept Presidency.
I Receiver Earle said tonight that in order
to accomplish the reorganization OF the
Real Estate Trust company he would ac-
eept the presidency IL the depositors in
sisted.
Mr. Earle's decision to accept the presi-
dency of the institution came after much
pressure had been brought to bear upon
him and after his announcement made
earlier in the evening that he could not
accept. 1t is now believed that an early
reorganization of the company on the plans
mentioned in these dispatches is assured.
The directors. 1t is asserted, have pledged
themselves TO advance $S.000ooo. creditors
will take preferred stock worth $,5oo,0oO
and Segars securities will be sold for
81 500, GOD In this way the institution can
be again' placed on a sound basis.
Two Millions Missing.
That &Irne one secured s2.O0O.0O0 for ne
gotiating the loans made to Adolph Segal
by President Nipple Is believed by those
nov engaged in investigating the COM
pany's AFFAIRS. Segal's repeated assertions
that he did not borrow more than S2,o0o.0oC
ffom the trust company has caused the
lInvestiga tors TO exert every effort to dis
cover all OF the details connected with
these loans. and II 1t is found that others
benefited they9wili be made to return the
money. ~ s,
1t developed tpday that the last state
made by Banking Commissioner Reeder In
1909. ~ #S< aS SO
state Examfners Remiss.
Robert McAafee, who was state banking
commissioner from April 1908, to July
1906 made no sexamination. and Commits
sioner Berkey, who succeeded Mr.. McAfee
Z
two expert accountants appointed yester
day by Commissioner Berkey to investi
gate the conditions of the concern, at thu
end of their first days work announced
| that they found the trust estates of which
the Real Estate Trust company acted a
trustee TO be intact.
The committee appointed by the trustees
OF the general assembly of, the Presbyte
rian church to ascertain the condition o
the general assemblys trust funds. whicl
were in the custody of Hipple as treasure
of the board OF trustees, today made tn
following announcement:
Careful examination shows that the grea
bulk of the investments of the trustees
amounting TO sSss'oOo is intact The entir,
! treasurer is not likely to exceed $50 600.
District Attorney Bell said that until to
day he had only investigated the com
plicity of Frank X. Hipple.
Attorney Announces Plan.
From this time on he said, II will 81
right to the bottom of this whole anal
and find out the name of every. one con
nected with the running OF the institution
II evidence can be found against an!
directors warrants will be issued for then
without regard to their political or socia
/ standing.s[
| The two principal points Mr.. Bel
wishes to clear up are the criminal liabilit!
of the executive board Of the directors an,
whether two lawyer-drectors of the insti
tuition accepted fees to the amount o
$4,000 for passing upon the worth of tn
securities that figured in the transaction
between Nipple and Segal