Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1906-08-30
BIG PHILADELPHIA TRUST COM
PANY FAILS.
PRESBYTERlANS CAUGH |
General Assembly Had Nearly
Million on Deposit in Closed In
sttuton, and Other Christian Or
ganizations Stand to Lose-Dead
President Made False Reports.

1885, depository for nearly Sl000,O00
of funds Of the Presbyterian church
and holding 100000 of the city's
money and $4,000 of state deposits,
yesterday closed It's doors. The fail.
ure was caused by heavy loans made
by the late President Frank II. Hip.
pie TO Adolph Sega, promoter on
insufficient security A desperate Of.
fort was made to save the institution
by the board OF directors through All
appeal to the clearing house associa
tion, but that body declined to sub
scribe n guarantee fund OF $7,O0O,O
because Of insufficient security.
The liabilities are placed at $40.
100000, with quick assets OF $500
900 and doubtful collateral $4,000 600
George j, Earle, Jr., president Of
the Finance company Of Pennsylva
mia, was appointed receiver and In a
statement to the public he expresses
hope that he may soon be able to-
recommend n plan 10 the depositors
that Will better their interests and
terminate his services.
President Nipple was always re-
garded as conservative linancier,
hut following his sudden death last
Friday, an investigation by the direct
ors developed the fact that his loans
10 Segal had been made regardless OF
proper security and that he made
false statements to the directors re.
gardng the banks condition Friends
of the president express the belief
that Sega exercised hypnotic innu.
ence over Nipple.
May Have Committed Suicide.
Although the cause of Nipples
death was given by his physician and
the coroner ma cerebral hemorrhage,
II Is lntimated that he may have
committed suicide, How far Nipple
benefited In the loans made, or
whether he was merely tool OF
others Is yet to be determined The
directors are silent on that point and
also on the question whether there
will be any criminal prosecutions.
In order to hide the true condition OF
the company and save himself, Nipple
resortod TO classification Of his re.
ports which were accepted as true
by the directors He used what the
receiver termed a double system" OF
making reports. When the state
bank examiner called, Hippo pre-
scented to him good securities to OFF
set the loans made, and when the
president made his report to the dl-
roctors he would show them a bundle
OF other securities and other paper,
and along with these he would exhibit
the certificate Of the bank examiner,
which showed that the accounts the
bank examiner had investigated were
correct. The directors supposIng the
approved tho reports,
Discovered After Death.
The application for receiver says
me company has paid up capital OF
sL500,000, apparent surplus of an
equal amount and deposits of Sl0,'
100000, The assets consist of real
lateral upon demand and on time and
other securities. President Nipple,
the application says, "by false re-
ports to the directors Of loans made
by him, brought about n condition OF
the company which was first discov.
ored by the officers of the bank sub,
Soqueut to the death of the presi,
dent"
The court then appointed Earle re-
coIver and he entered security TO the
amount of Sl,0OO,OOO,
Church May Lose Heavily.
Nipple, In addition to being prest
dent OF the Real Estate Trust com.
pauy, was treasurer of the board of
trustees of the general assembly of
the Proshy terian church In the United
States and of several other church
funds, and was n director of the
Franklin National bank. Recently
Nipples accounts of the Presbyterian
church were examined by certified
accountants and were found correct,
but Il cannot be stated positively yet
whether all the securities belonging
20 the general assembly are intact,
Or. w II Roberts, stated clerk of
the general assembly OF the Presby
terrain church, was greatly shocked al
the news of the failure. In addition
to the deposits of the general assem-
bly,, the Real Estate Trust also had
about $4,000 Of funds placed there
by Roberts as stated clerk. The
Presbyterian hospital of Philadelphia
and the Presbyterian board of relief
he said, also had money in the failed
institution. Roberts was asked II hi
could say whether the securities o.
the general assembly, amounting tC
s963,S96, in Nipples custody, were
intact. He could not say positively