The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-08-29

was dono to absolve the directors from
criminal proceedings for receiving
money after they knew the trust COM
pany was insolvent. On Monday moro
than 100000 was deposited by patrons
of the bank, which was practically off
set by Withdrawals by persons who had
heard rumors of the company's condi-
ton. The money deposited since Sat
urday will, however, not be returned
TO the depositors, but will lie in tho
Franklin National bank until the courts
have decided whether il should be paid
back.
Needed Seven Million.
While the depositors were supposted.
ly placing their money with the Real
Estate Trust company the directors
were making strenuous efforts TO tide
the institution over the difficulty All
day yesterday they worked, but it be-
came apparent shortly after noon today
that tho crash was Inevitable. Appli-
cation papers for a temporary receiver
were prepared and left at tho Offices ot
the trust company, after which tho di-
rectors went to the meeting of the
Clearing house association to make a
last appeal for help. The newspapers
were aware Of the trend of events and
had men stationed at the bank build
ing ready to flash the closing of tho
bank, If it occurred There were prob
ably fifty bank presidents at the clear |
ing-house to meet the directors of ~ |
trust company. The latter stated that
they needed S7,00o,o00. but the best tho
banks could do was to guarantee $3,-
100000. This was not enough and as
all other means for raising money had !
tailed, Vice President Houston tele |
phoned to the bank to suspend business |
and send the receivership papers To
court. In an incredibly short time the
story was on the street and created
great CONSERVATION. Hundreds of per-
sons gathered about the building, clam
orlng for information, and the crowd
grew so great that q detail of police
was sent for to clear the street, There
was no disorder
John II, Michener. president of the
Clearing House association, in an inter
view tonight, said that the failure of
the association TO subscribe the So
100000 guarantee fund requested by
the Real Estate Trust company was due
pany, he said, offered $2,900,000 in gilt
edged securities, a twothrds interest in
the trust company's building, valued
at $2,000,000, and S5,300,000 securities
from Adolph Segal, valued by the di.
rectors of the trust company at $1,000
600 The Clearing house association
did not regard the Segal securities
worth more than sl,o00,000 and de-
Glined to subscribe more than total Of
100000 unless the remaing securities
were more substantial
Other Banks Protected
Samuel F. Houston, vice. president of
the company, said tonight that no other
banking institution In this or any other
city would be- in the least affected BY
The failure. Gilt-edge securities was
given for whatever money was bor
rowed from other banks. He said he I
hoped the company would be able to
resume business, but would make no
prediction on that point.
The board Of publication of the Pres
byterian church, which had between
$4,000 and $4,000 in deposit with the
fort to withdraw the money, but failed
by three minutes, Hearing rumors OF c
the unstable condition of the trust
company, members of the board in n
formed the officials of their intention to e
transfer the account to the Philadelphia E
National bank. A representative of i,
the latter institution made all haste to
the Office Of the trust company and ar
rived there three minutes after the V
doors had closed. "
The board of ministerial relief of the :,
church had $4,000 de- Il
posted with The trust company.
According TO last May g minutes Of cl
Lhe Presbyterian general assembly Mr. ii
Nipple was treasurer of the board of CT
trustees, and had in his charge funds cl
amounting to 1865 (s96. Sc
Was Case of Suicide. ''
Persistent rumors that President Hip lc
pie committed suicide were borne out
onight when it was authoritatively
stated that he took his life at his home
asst Friday morning. Mr.. Nipple is
said to have taken dose of laudanum
With suicidal intent. While still con.
'cious he filled his bath tub with water,
md lafer w found | T.
drowned In
Mr.. Hipple's family decline to make g
my statement on the subject, and the |
physicians interested in the case de-
line to be interviewed regarding the
suicide theory. W
Adolf segal tonight made the follow al
ng statement: co
tMv business relations with Mr.. 10
iipple Were only those of borrower
The loans of money made by the trust In
'ompany to me were all made in col vi
ateral in the usual course Of business. ar
canDot tell the exact amount of my as
and that of the companies gr
With which | am associated, but it / sc
surely is not over half the amount
tated in the newspapers think it ba
s about $3,0o0,000
Mr.. Nipple was not personally in Sc
crested with me in any of my enter m
rises to the extent of a dollar or
hare Of stock. | never paid him a
ent in commissions or gave him a bond
n share of stock or remuneration of
my kind whatever. ~
"For all my Indebtedness the trust BI
ompany is amply secured by collateral Il
yorth from sS,ooo.o0o to s9,o00,0OO. IT
This collateral consists largely Of first II
mortgage bonds secured upon my va T.
ious properties NJ
"My collateral cannot be converted In
nto cash Immediately, but by iudicious 4,
andling l am convinced that in OF
easonabie time its full value will be T,
ealized.' tiS
II
Irnnrnuannen enk 6tInH EnAa-4.I,