The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-08-29
Real Estate Trust Company OF
Philadelphia Closes Its
Doors Suddenly.
MYSTERIOUS DEATH OF
PRESIDENT IS PUZZLING
Frank X. Nipple. Head of lnsti.
tuition. Made Bad Loans
and FaIsilied Reports.

PHILADELPHIA. Aug. 2s.-Unable
to meet its obligations because of the
large smount Of money loaned on in
sufficient security by its president, now
dead, the Real Estate Trust company
of Philadelphia, which, up to last SAT.
urday, was considered one of the
strongest financial institutions IN the
city,s closed its doors today. Soon
after the doors closed George II. Earle,
Jr., q prominent inancier, was appoint
ed receiver. The liabilities are esti-
mated at sl0000,000, against which
there are quick assets of about $4,000
900 and collateral of about SS,000,000,
which is not negotiable or readily con
vertible, This doubtful collateral is
held mostly as security for loans OF
about s5,30o,0o0 made to Adolph Sc
gal, promoter Of the city.
The man responsible for the failure
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 suspicion that he might have COM
| mitted suicide.
Mr.. Nipple, in addition to being
president Of the Real Estate Trust com.
| pany, was treasurer of the board Of
| trustees of the general assembly of the
| Presbyterian church III the United
States, and OF several other church
funds, and was director of the
Franklin National bank. Recently Mr..
| Nipple s 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 10
the general assembly are intact.
! Other Heavy Losses.
DR.. W. II. Roberts, stated clerk Of the
general assembly of the Presbyterian
church, who is at Mount Pocono, sail
that in addition 10 the deposits of The
company also had about $4,000 of
funds placed there by him as stated
clerk. The Presbyterian hospital of
| Philadelphia and the Presbyterian
board of relief, he said, also had sums
of money in the failed institution. DIR,
Roberts was asked whether he could
say whether the securities of the gen-
in Nipple g custody, were intact He
replied: 81 have no reason to believe
otherwise but cannot say positively.
We're the securities in such shape
that they might have been hypothecated
or transferred!'
that, but / do not think that they
were. -
Dr. Roberts was much affected BIZ 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.
For the loans TO Adolf Segal, Hppls
accepted as collateral securities of the
Majestic hotel, big new apartment
house operated by Segal the Swedish
Steel company of Lancaster, Pa, aud
the Pennsylvania Sugar Refining com
| pany of this city. The steel COMPANY
and the sugar refining concern have
never been placed in operation. Segal
claims the collateral be gave is good
and that he Will meet all his obliga
| tions.
Mystery Back Of Deals.
There are others TO whom Nipple
loaned money in insufficient securities,
but their names have not been made
public and the sums are not believed
to be large. How far Nipple benefited
in the loans made or whether he was
merely the tool of others is yet to be-
determined. All the directors are re-
manning silent on that point and also
on the question of whether there will
be any criminal prosecutions. In or
der to hide the true condition of the
company and save himself Nipple re-
sorted 10 the falsi6cation Of his reports,
which were accepted as true by the
directors. He used what the receiver
termed q ''double svstem'' of making
reports. When tho State bank e1amin
er called Nipple presented to him good
securities to offset the loans made and
when the president mado his reports to
the directors he would show them a
bundle of other securities and other
papers and along with these he would
exhibit the certificate OF the bank ex-
aminer which showed that the accounts
the examiner had investigated were
| frhn 1irnptnrs the
securities shown them were the same
approved the reports, Among the di-
rectors are;
s. Weir Mitchell, the eminent author;
John d. Convcrs, of the Baldwin Loco
motive Works and one of the most
prominent laymen III the Prespyterlan
church in the United States; John f.
BetZ. the millionaire brewer; William
4. Patton assistant 10 President Cas-
satt of the Pennsylvania railroad; For
mer Superior Court Judge w, w. Por-
ter; Il. Dale Benson, president of the
Pennsylvania Fire Insurance company;
Joseph Def ,Iunkip, an attorney: Ed
ward p Borden. Samuel f. Houston,
who is also vice president of The com.
pauv; Former State Senator j. Bayard
Henry, and Frank c. Roberts
Truo Conditions Learned.
As soon as the directors heard of the
sudden death of President Nipple they
began An investigation of his affairs
and were shocked when they learned
the true condition of the company.
This was after the close of business
on Friday, \ meeting OF the board was
hurriedlv called and it was decided to
instruct the officers of the bank that
all deposits received after the opening
of business Saturday morning should be
set aside and deposited with the Frank
lin National bank IN the names or tne
\ individuals presenting the money. IhlB