New-York tribune., 1906-08-29
RUINS BANK AND DIES
LLABILTTIES or $4,000 900.
Philadelphia Trssst Co. WrecFsed by
President-Hints of Suicide.

company. organized in 1856. the depository for
nearly 100000 Of the funds of the Presby-
serian Church and holding 100000 OF the money
q the city Of Philadelphia and $4,000 OF state
ssposits. to-day closed SIS doors.
The failure caused by heavy loans made
W the late president. Frank X. Nipple. 20 Adolf
seral. promoter. on insufficient security.
Persistent rumors that President Hippls COM
,n,tted suicide were borne out tonight, when
:, was authoritatively stated that he took his
use at his home last Friday morning Mr..
Nipple is said 90 have taken g doss OF laudanun
with suicidal intent
While still conscious he filed his hathtub
vifh water and later was found apparently
drowned
MI Hipple's family decline 90 make any
statement the subject and the physicians In
terestea IN the case decline 30 be interviewed
regarding the suicide theory.
A desperate effort made 20 save the In
stitution by the board OF directors. through
appeal to the Clearing House Association, but
that body declined 10 subscribe a guarantees
fund Of 100000 because Of insufficient Sc
ourity.
Soon after the doors closed George H. Earle.
sr. a prominent hnancier. was appointed
ceiver
The liabilities Of the company are placed az
sl000O000, against which there are quick as
sets Of about sS. 100000 and collateral OF about
sSO00o00 which IS not negotiable or readily
convertible.
MF Nipple. in addition 70 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
Gently Mr.. Hipple's accounts for the Presby-
serisn Church were examined by certified ac-
oOuntants and were found TO be correct, but It
cannot be stated positively tonight whether all
she securities belonging TO the General Assem-
bly, intact.
DOUBT AS TO CHURCH FUNDS.
DR.. ". H. Roberts. stated clerk of the General
Assembly OF the Presbyterian Church, who is
at Mount Pocono. said he was greatly shocked
at the news Of the failure. In addition to the
deposits Of the. General Assembly, the Real
Estate Trust had about S25.O0O of funds placed
there by DIR. Roberts as stated clerk. The
Presbyterian Hospital of Philadelphia and the
Presbyterian Board Of Relief, he said, also had
Or. Roberts was asked if he could say whether
the securities Of the General Assembly. amount
Ing 10 S963.s96 in Hipples custody were intact.
he replied: Il have no reason 10 believe other
wise, but cannot say positively"
We're those securities in such shape that
they might have been hypothecated or trans
ferred?"
7 do not know positively as to that. but
do not think that they were
Of he failure. He had known Mr.. Nipple many
years, and the failure and its causes, he said,
greatly grieved him.
For the loans 10 Adolf Segal Nipple accepted
as collateral securities Of the Majestic Hotel. a
hg new apartment house operated by Segal:
the Swedish Steel Company. Of Lancaster, Penn,
and the Pennsylvania Sugar Refining Company
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-
iions.
There are others to whom Hipule lent money
on insufficient security. hut their names have
not been made public and the sums are not
believed to be large. How far Nipple benefited
IN the loans made whether he was merely
che tool Of others is yet he determined. All
The directors are silent on that point and also
o. the question of whether there VIII be any
criminal prosecutions.
FALSE REPORTS TO DIRECTORS
To hide the true condition of the company and
Esv himself Nipple resorled to the falsifica-
tion of his reports. which were accepted as true
BE- the directors. He used what the receiver
temed double system" Of making reports.
When the State Bank Examiner called Nipple
RESENTED him good securities TO offset the
SOsns made, and when the president made his
reports 10 the directors he would show them
bundle of other securities and other paper.
Along with these he would exhibit the certificate
Of The bank examiner which showed that the
accounts the examiner had investigated were
correct
The directors. supposing the securities shown
them were the same, approved the reports.
Among these directors are Dr. S. Weir Mitchell,
she author: John P Converse. of the Baldwin
Locomotive Works and one Of the most promi-
nent laymen in the Presbyterian Church in the
United States; John +. Betz, the brewer; WILL
lam 4. Patton, assistant TO President Cassatt
Of The Pennsylvania; ex-Superior Court Judge
W. v Porter r. Dale Benson, president of the
Pennsylvania Fire Insurance Company: Joseph
Dc F. Junkin, Edward p Borden, Attorney
Ssmuei r. Houston, who IS also e-president
Of the company; ex-State Senator J. Bayard
Henry and Frank &. Roberts.
- soon the directors learned of the sudden
eestn Of President Nipple they began an in
Festigation OF his affairs and learned the true
condition OF the company. This after the
close Of business on Friday A meeting of the
board was hurriedly called and il was decided
70 Instruct the officers Of tire bank that all de-
POSTS received, after the opening Of business
Ch Saturday morning should be set aside and
deposited with the Franklin National Bank IN