Smyrna times., 1906-09-12
WILL REOPEN
LOOTED BANK
Directors of Philadelphia Concern
Agree to Receivers Plan.
TO SUBSCRIBE OVER 100000

company, which was wrecked by its
suicide president, Frank K. Nipple
principally through heavy loans made
TO Adolph Segal a promoter, on
flimsy collateral, have agreed to Re-
ceiver Earle's plan for reorganizing
the company. Mr.. Earle received a
telegram from DR.. S. Weir Mitchell,
the only member of the board of direc-
tors who is away from the city, agree
ing to the proposition that the direc-
tors contribute the amount deemed
necessary by the receiver. DR.. Mitchell
expresses his willingness to bear his
portion of the burden. The other direc-
tors had previously assented to the
plan.
Receiver Earle spent Sunday at his
home in Bryn Mawr working on the
details of his proposition, which he
hopes to be able to present to the
directors very soon. He also expects
to call a general meeting of stock
holders and depositors in order to
thoroughly acquaint them with his pur-
pose.
at is slow work" he said. Il am not
in a position at present to say any
thing more definite than has already
been published concerning my propo-
sition, but l wish 1t understood that
the directors in signing the agreement
have pledged themselves to raise the
amount which l consider necessary.
This money is given absolutely. with
ont promise of return or security.
They are putting up the money from
their own pockets 50 as to make up
the losses which have been sustained
through the bad Sesal loans"
The loans made to Segal by President
Nipple aggregate more than $5,000,000
and his securities are believed to be
worth about $4,000, 900. Consequently
the directors will subscribe something
more than 100000. 1t was stated
that some of the Segal securities, which
are considered OF little value, would be
given the directors for the money ad-
vanced by them. Receiver Earle de-
MED this.
Mr.. Earle was emphatic in his denial
suggested certain men for the Office of
president of the reorganiEed company
81 have never suggested anyone" he
declared. THAT is neither my province
nor business. Every man who has
force enough to be president must have
some enemies, and if his name is con-
nected with the plan it would invite
TIL. n
have their own will in this matter"
A statement issued by Rev. DR.. Rob-
-Erts, stated clerk of the General Assem-
bly, of the Presbyterian church, an
nounces that in addition to the $50, 600
of the trust funds of the trustees of the
church which were lost in the collapse.
deposits amounting to about $1,000
are also involved. These deposits were
the current funds of the board of min
isterial relief. the trustees of the board
of publication and dSabbath-school work,
the trustees of the general assembly,
the stated clark of the general assem-
bly, and the Women's Foreign Mission
airy Society.
1t developed that the last state exam.
ination of the trust company was made
by Banking Commissioner Reeder in
1902. Robert McAfee, who was state
banking commissioner from April, 1903
to July, 1905, made no examination
and Commissioner Berkey. who sue
ceeded McAfee, also failed to examine
the institution. The two expert ac
countants appointed by Commissioner
Berkey to investigate the condition OF
the concern, at the end of their first
days work announced that they found
the trust estates. of which the Rea
Estate Trust company acted as trus
tee to be intact
The preliminary hearing of Adolpt
Segal, the promoter; William F. North
treasurer, and Marshall S. Colling
wood, assistant treasurer of the Rea
Estate Trust company. took place. anC
the three were held in heavy bail fo
trial
Commissioner Berkey, in an inter
view, stated that the examination
should not occupy more than four o.
five days. The law gives the exam
oath any director, officer or employe O
the trust company or of any othe
company holding assets of the defunc
concern. During the past few years
Mr.. BeFkey declared, practically ever
director of the Real Estate Trust com
pany had certified to the CORRECTNESS
of the reports filed by the compan
with the state banking department
These reports, he said, appear to hav
been false. If his examination SUI.
tains the falsity of the reports, MI
Berkey declared, he would procee
against the directors and make a
issue of their responsibility. which ha
never been decided by the courts c
this state
Many depositors who placed none
in the bank on Monday and Tuesda
after the directors knew that it wa
fnaOlyent were allowed IN withdra,