Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1906-09-01
BIG BANK FAILURE
IN PHILADELPHIA
Bad Loans Caused Real Estate Trust
Co 10 Close It's Doors.
DEAD PRESIDENT RESPONSIBLE

Philadelphia Aug. 29.-Unable 20
meet its obligations because OF the
large amount Of money loaned on in-
sufficient security by It's president now
dead. the Real Estate Trust Company
OF philadelphia, which up 20 last Sat
urday was considered one OF the
strongest financial Institutions In the
city. closed its doors. Soon after the
doors were closed George II. Earle.
Jr.. a prominent fnancier. was ap-
pointed receiver. The liabilities OF the
company are placed at $4,000 600.
Against which there are quick assets
of about 50 500 600 and collateral OF
about $4,000 900 which IS not negotia-
bic or readily convertible. The doubt
ful collateral is held mostly as security
Tor loans of about $500 900 made 20
r The man responsible for the failure
was Frank X. Nipple. one OF Philadel-
phia's best known citizens. who died
suddenly last Friday morning IN his
country home az Bryn Mawr. near
here. under circumstances which. in
the light OF the developments. lead 20
The suspicion that he may have com
tnitted suicide. Mr. Nipple. in add
zion 20 being president Of the Real
Estate Trust company. was treasurer
OF the board OF trustees Of the General
assembly Of the Presbyterian church
IN the United States and OF several
other church funds. and was a director
Of the Franklin National Bank Re
-
Presbyterian church were examined
by certified accountants and were
found 20 be correct but Il cannot be
stated positively whether all the Sc.
curities belonging 70 the General AS.
sembly are intact. although II Is hoped
they are.
Some Bad Loans.
For the loans Nipple accepted as
collateral securities OF the Majestic
Hotel. a big new apartment house op
Grated by Segal; the Swedish Steel
company. OF Lancaster. Pa. and 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 he gave IS good.
and that he will meet all his obliga
tions. There are others 20 whom Hin
pie loaned money on insufficient secur
ity. but their names have not been
made public and the sums are not be
lieved 70 be large.
Falslfied His Reports.
How far Nipple benefited IN the
loans made or whether he was merely
the tool or Others Is yet 10 be deter. /
mined. All the directors are remain.
Ing silent or that point. and also on /
the question OF whether there will
be any criminal prosecutions. IN order /
TO hide the true condition OF the com. !
pany and ssve himself Nipple resor,as i
70 the classification Of HIS reports. which /
We're accepted as true by the directors
lie used what the receiver termed =
double system" Of making reports
when the state bank examiner called
Nipple presented 20 him good securi.
ties 10 Offset the loans made. and when
the president made his reports 10 the
directors he would show them a bun
Die OF other securities and other psDer
and along with these he would exhibit
the certificate OF the bank examiner
which showed that the accounts the
examiner had investigated were cor.
rect. The directors. supposing the Sc
curities shown them were the same
approved the reports
Directors Learn True Conditions.
AS soon as the directors learned OF
he sudden death Of President Hipple
hey began an investigation OF his AZ.
iairs and were shocked when they
earned the true condition OF the com.
'any- This was after the close OF bust
hess on Friday A meeting of the
board was hurriedly called. and II was
iecided TO instruct tho officers of the
'ank that all deposits received after
he opening of business Saturday
morning should be set aside and Do.
,osited with the Franklin National