Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-09-06
LARGE AMOUNT OF
TRUST FUND GONE
REPORTS ARE PERSISTENT THAT
THEY HAVE BEEN DIPPED
INTO BY Nipple
Receiver Earle Says the Funds Have
Been Tempered With, But Can Not
Tell to What Extent Directors
Will Not Stand the Losses.

Philadelphia, Pa, Sept. 5.-PerSlS-
tent reports that the $2e,O0o,ooo in
trust now held by the Real Estate
Trust company had been dipped into
heavily by Nipple and his co-conspira-
tors filled the air yesterday and caused
Receiver Earles headquarters to be
besieged. The receiver could give lit
tie encouragement to inquirers.
1.-THE funds have been tempered
with, but to what extent 1 can not yet
TELL" he said.
The directors, who took Nipples
word for anything say that they hope
the trust funds have not been swamped
by wildcat investments, but there Is a
lack of definite and detailed informa-
ton. despite the fact that the bank has
now been closed VIC TX.
All day long the directors appeared
before the receiver while he separated
the sheep from the goats. Just who
the goats are does not appear, but 1t
can be stated that John H. Converse,
president Of the Baldwin Locomotive
works and great Presbyterian layman;
John F. Betz, the millionaire brewer;
DR.. S. Weir Mitchell and Samuel F.
Nouston, vice president of the COM
panyyyx have been for the time being de-
clared Nsheep.
Will Not Stand Losses.
All of these gentlemen except DR..
MITCHELL who is in Maine, held up their
hands in horror yesterday when
told that it was the report that the d.
rectors were going to make good the
depositors losses. Their answers were
strong and unequivccal
ITO do this" said Mr.. Houston,
"would be confession of guilty know
ledge of how the affairs of the bank
were being managed. We shall stand
firmly upon our legal rights and be re-
sponsible only as stockholders"
Mr.. Converse and Mr.. Betz confirm
ed this. They said none Of the direc-
tors had ever even thought of making
good the losses and that all of them,
In fact. considered themselves perse-
cuted men.
HDecidedly not" said Mr. Converse,
we have all talked itsover and have
decided to take business view of the
situation and stand upon our legal
rights. We will be responsible as
stockholders, which is double the val
ue Of our stock, and that is ALL"
Finds criminaIlty Evidence.
Should the directors pay their stock
holders liability double the amount of
the stock this would be an average of
$4,000 apiece, or $240,000, which is a
mere slice compared to the enormous
liabilities their alleged negligence caus-
ed.
District Attorney Bell after an all
day investigation of the affairs Of the
company yesterday established direct
evidence of criminality with more
than one person responsible Arrests
are now absolutely certain and 1t is
known that the suspected persons
have been placed under surveillance.
"The deposits have been swept
away" said Mr.. Bell. "They have been
looted. My investigation shows that
more than one person is implicated.
There will be arrests, but whether to-
day or later have not decided. Yes.
terday Intercepted Directors Junkin,
Houston, Benson and Porter and a
number Of underofficials of the trust
company. I secured much evidence
from them