19160. Real Estate Trust Company (Philadelphia, PA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
August 28, 1906
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
37e57c2c

Response Measures

Full suspension, Books examined

Other: Directors sought clearinghouse aid and pledged personal funds; receiver appointed and reorganization plan issued.

Description

A small run/large withdrawals occurred on Aug 28, 1906, the company closed same day and a receiver was appointed. The failure was caused by internal fraud/embezzlement by President Frank K. Hipple (discovered after his death). Receiver George H. Earle reorganized the company and it was discharged as receiver and slated to reopen Nov 1, 1906.

Events (3)
1. August 28, 1906 Run
Cause
Bank Specific Adverse Info
Cause Details
Rumors and withdrawals followed discovery of serious irregularities and alleged embezzlement by President Frank K. Hipple after his death.
Measures
Directors instructed deposits received after opening to be set aside and deposited in Franklin National Bank in the names of the individuals; police were called to control crowds.
Newspaper Excerpt
There was a slight run early in the day and considerable money was drawn out by depositors.
Source
newspapers
2. August 28, 1906 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Investigation of the company and president's estate disclosed a serious condition; large alleged defalcations by President Hipple led directors to seek a receiver; receiver George Pearle/Earle appointed and the company ceased business pending reorganization.
Newspaper Excerpt
The Real Estate Trust company closed its doors this afternoon...the court had been applied to for a receiver.
Source
newspapers
3. November 1, 1906 Reopening
Newspaper Excerpt
The trust company...will reopen on Nov. 1. (common pleas court discharged George H. Earle, jr., as receiver...the trust company...will reopen on Nov. 1.)
Source
newspapers

Newspaper Articles (25)
1. August 28, 1906 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, August 28, 1906

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Philadelphia, Aug. 28.+ The Real Estate Trust company closed its doors this afternoon. The board of directors of each bank in the city will hold a separate meeting this afternoon to take action regarding the failure. President Dead. President Frank K. Hipple of the real estate company died suddenly last week and his demise has been the subject of much comment. It was reported in financial circles today an investigation of the company and the president's estate disclosed a serious state of affairs. It is understood the directors of the company have pledged themselves for several million dollars in an effort to preserve the institution. May Withhold Aid. A meeting of representatives of banks and trust companies is being held this afternoon to determine whether aid shall be supplied. The company, according to a recent statement, had deposits aggregating $37,500,000. Second in City. The Real Estate was second in point of standing to the Philadelphia Trust company. It has a capital and surplus of $2,900,000. and deposits of $7,500,000. It was established in 1885. Hipple was president up to the time of his death. The company had a large business in call loans, having about $6,700,000 trust loans outstanding, Refuse Assistance. The meeting of representative bank ers called to consider the situation, after an exhaustive examination, found themselves unable to lend the required assistance, whereupon the Real Estate company closed doors. There were rumors to the effect that Hipple's death, which was assigned to cerebral hemorrhages, was not the result of natural causes. Makes Statement. Vice President Samuel F. Houston in a statement said the affairs of the company are very much involved, and that the officials themselves were unable to conduct the business, and being unable to obtain needed assistance from the clearing house, the court had been applied to for a receiver. There was a slight run early in the day and considerable money was drawn out by depositors. Had Presbyterian Funds. Hipple was treasurer of the board of trustees of the general assembly of the Presbyterian church and it is said had all the funds on deposit in this company. Hipple had been engaged in large real estate deals and it is alleged lost millions of dollars. Had Other Paper. In addition to its deposits the company had $26,168,000 trust bonds invested and $60,483,000 held by the company as a depository and trustee for the issue of collateral trust bonds. Receiver Named. This afternoon George Pearle, Jr., president of the Finance Company of Pennsylvania, was appointed receiver for the Real Estate company. Stocks Go to Smash. New York, Aug. 28.-The stock market was affected unfavorably by the failure of the Real Estate Trust company of Philadelphia. Prices declined 1.55 per cent. There was tremendous liquidation in Reading and Pennsylvania, which demoralized the general market. New York Concerned. New York, Aug. 28.-There was some excitement this afternoon in banking over rumors of trouble in the

2. August 29, 1906 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, August 29, 1906

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was collared by a policeman and taken away. Remarks of a similar nature were heard from many and anger is fast increasing. Not even the former employes are permitted to enter the building, pending the result of the investigation. PHILADEDPHIA, Aug. 29.-George H. Earl, Jr., temporary receiver of the Real Estate Trust Co., which closed doors yesterday, this morning qualified for the position. Earl expresses the opinion that the concern will soon resume as the directors have de cided to meet all claims of the depositors,

3. August 29, 1906 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, August 29, 1906

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Porter; R. Dale Benson, president of the Pennsylvania Fire Insurance company; Joseph Def Junkin, an attorney; Edward P. Borden, Samuel F. Houston, who is also vice president of the company; former State Senator J. Bayard Henry and Frank C. Roberts. Death Revealed. As soon as the directors heard of the sudden death of President Hipple they began an investigation of his affairs, and were shocked when they learned the true condition of the company. This was after the close of business on Friday. A meeting of the board was hurriedly called and it was decided to instruct the officers of the bank that all deposits received after the opening of business Saturday morning should be set aside and deposited with the Franklin National bank in the names of the individuals presenting the money. This was done to absolve the directors from criminal proceedings for receiving money after they knew the trust company was insolvent. On Monday more than $160,000 was deposited by patrons of the bank. which was practically offset by withdrawals by persons who had heard rumors of the company's condition. The money deposited since Saturday will, however, not be returned to the depositors, but will lie in the Franklin National bank until the courts have decided whether it should be paid back. Crash Was Inevitable. While the depositors were supposedly 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 became apparent shortly after noon today that the crash was inevitable. Application papers for a temporary receiver were prepared and left at the offices of the trust company, after which the directors 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 building ready to flash the closing of the bank, if it occurred. There were probably fifty bank presidents at the clearing house to meet the directors of the trust company. The latter stated that they needed $7,000,000. but the best the banks could do was to guarantee $3,500,000. This was not enough. and as all other means for raishad failed, Vice President to the business and send the to court. In an pend papers Houston ing money telephoned incredibly bank receivership to short sus- and time the story was on the street created great consternation. Hundreds of persons gathered about the building clamoring for information. and the crowd grew so great that a detail of police was sent for to clear the street. There was no disorder. Statement Made to Court. The application for the receiver says the company 'has paid up capital of $1.500,000, an apparent surplus of an equal amount and deposits of about $10,000,000. The assets consist of real estate in Philadelphia, loans on collateral on demand and on time and other securities. President Hipple, the application says, "by false reports to the directors of the loans made by him brought about the condition of the company, which was first discovered by the officers of the bank subsequent to the death of the president." The court then appointed Mr. Earle receiver and he entered security to the amount of $1,000,000. After his appointment Mr. Earle held long conference with the directors and a officers of the company, at which the receiver was put in possession of the condition of the company as far as the officials of the concern could inform him. Statement of Receiver. At the close of the conference Mr. Earle made the following statement: "While I appreciate the danger of making statements until I have made a thorough examination. I think it my duty to state that in my effort to keep , Continued on Page 2.

4. August 30, 1906 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, August 30, 1906

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DEATH OF TRUST COMPANY PRESIDENT IN PHILADELPHIA CREATES ANXIETY MILLIONS ARE PLEDGED To Preserve Confidence In the Institution-Investigation of Company's Affairs and President's Estate Discloses Serious Condition. Philadelphia, Aug. 28.-President Frank K. Hipple of the Real Estate Trust company, died suddenly last week and his demise has been a subfect of much comment. It was report ed in financial circles today that the investigation of the company and the president's estate disclosed a serious state of affairs. c Pledge Millions. It is understcod that the directors of the company have pledged theme selves for several million dollars in an effort to preserve the institution. A meeting of the representatives of banks and trust companies is being held this afternoon to determine L whether aid shall be supplied. The 1 company, according to a recent state , ment, has deposits aggregating $7,500, y 000. 1 The Real Estate company was 1 second in point of standing to the S Philadelphia Trust company. It has a e capital and surplus of $2,900,000 and t deposits to the amount of $7,500,000. It a was established in 1885. Hipple being its president up to the time of his death. The company did a large busie ness in call loans, having about $6,500,:000 in trust loans outstanding. A It meeting of representative bankers was called to consider the situation and afr ter an exhaustive examination found h themselves unable to lend the required n assistance, whereupon the Real Estate company closed its doors. e Not Natural Cause. d There are rumors to the effect that Hipple's death, which was assigned to a celebral hemorrhage was not a result 1. of natural causes. Vice President e Samuel F. Houston in a statement d said the affairs of the company were very much involved: that the officials t found themselves unable to continue e business and being unable to obtain y the needed assistance from the cleare ing house, the court had been applied ato for a receiver there. There was a slight run early in the day and coner siderable money drawn out by deposier tors. e Treasurer of Assembly Board. nHipplé was treasurer of the board of d trustees of the general assembly of ly the Presbyterian church and it is said lehe had all the funds on deposit in this as company. Hipple had been engaged in large real estate deals and it is alleged lost a million dollars. The Real Estate Trust company closed its doors this afternoon. The d board of directors of each bank in the city will hold a separate meeting to es take action regarding the Real Estate company. th st In addition to its deposits, the com er, pany had $26,168,000 trust bonds in er vested and $60,483,000 held by the ft company as a depository and trustee for the issue of collateral trust bonds le, Receiver Is Named. d, ng This afternoon George H. Earl, Jr. sit president of the Finance company of Philadelphia, was appointed receiver afor the Real Estate company. The hdirectors of the latter are John S ek Betz, R. Dale Benson, Dr. S. Weir Mit a chell, Joseph D. Junkin, W. A. Hatten he Samuel S. Houston, Bayard Henry and Frank T. Roberts. rMarket Affected. on New York, Aug. 28.-There is som ite excitement this afternoon in banking circles over rumors of trouble in th in trust company of Philadelphia. he The stock market was effected un favorably by the failure of the Rea es Estate Trust company of Philadelphia ent nPrices declined 1 to 5 points. Ther a : was a tremendous liquidation in Read ning and Pennsylvania, which demot a alized the general market.

5. August 31, 1906 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, August 31, 1906

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SUICIDE IS ADMITTED. The Late Bank Pres. Hipple, Philadelphia, Ended Tis Own Life. Philadelphia, Aug. 30.-The suspicion entertained that Frank K. Hipple. president of the embarassed Real Estate Trust Co., who was found dead at his home in Bryn Mawr, Pa., last Friday, committed suicide, was confirmed today by Joseph N. King. coroner of Montgomery county. When he made the announcement Dr. Albert H. Read, the coroner's physician, was standing near and he added: "You can say that Mr. Hipple blew out his brains." Since the death of Mr. Hipple, the family physician and the coroner maintained that he died of cerebral hemorrhage, while taking a bath. The coroner today said: "When I went to Bryn Mawr Fr to investigate the sudden death of Hipple and discovered that he had co.n mitted suicide,'I decided to suppress the fact for a few days in order to prevent a run on the Trust Company. I thought if there was anything wrong in Mr. Hipple's affairs, the directors would have a chance to make up whatever deficits there were." The coroner also stated that Hipple had placed the muzzle of a 38-calibre revolver in his mouth and shot himself. The ball passed upward and lodged in the brain. Mrs. Hipple was not aware that her husband had killed himself until the arrival of the family physician. Samuel F. Houston. vice president of the failed Trust Company. said today that the work on the plan to reopen the bank is being pushed. He said: "It is not necessary to have $7,000,000. but we want that sum guaranteed. If the guarantee is secured a large amount of cash would not be required as all danger of a run on the company would then be removed." Mr. Converse is authority for the statement that the failure was due entirely the loans of Segal. During the formal legal proceedings in court this afternoon to restrain the Real Estate Trust Co. from doing business and to continue the temporary receiver attorneys who claim they represent 10,000 depositors asked the court to appoint an auxiliary receiver. They suggested William A. Glasgow. The court took the matter under consideration.

6. August 31, 1906 Evening Journal Wilmington, DE
Article from Evening Journal, August 31, 1906

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AIDED ADDICKS IN GAS SCHEME Now Lawson Says Hipple Was His Ally in Bay State Gas Under date line of Boston, August 29, Thomas W. Lawson states that Frank K Hipple, late president of the defunct Real Estate Trust Company, of Philadelphia, was an ally of J. Edward Addicks in his Bay State gas scheme. Upon this subject Lawson talks as follows: "I deem it necessary to call attention to some facts in regard to the failure yesterday of the Real Estate Trust Company, of Philadelphia. "Hipple, president of the Real Estate Trust Company, was an ally of Addicks. Through the company Addicks put the gigantic Bay State Gas jugglery. "The Real Estate Trust Company was the institution whence came the $1,000,000,000 issue of Bay State stock. When this deal began there were but 100,000 shares outstanding. Presently it began to pour forth in such quantities that Wall street proceeded to investigate, "At every stage the inquiry ran into the Real Estate Trust Company and the 'say so' that the transaction was right. Finally a New York house laid before the exchange over 160,000 shares of the stock, and Bay State shares were thrown out of the New York and Boston Exchanges. Even then. there was no whisper against the integrity of the Real Estate Trust Company. So powerful, in fact, was this company that it brazenly continued to issue and guarantee the honesty of the product of Addicks' printing press until no man knew or could ascertain the amount of Bay State stock outstanding. To Addicks Personally When the receiver came into Bay State affairs it was discovered that there had been issued to Addicks personally, in a single day, 100 full books of certificates, amounting to $75,000,000. Yet there was no mention of the Real Estate Trust Company. "In 1896 it became necessary to turn over the Bay State Company to other people, and it was decided to elect Nathan Matthews, of Boston, its presiF dent, to save the whole structure of Addicks from a sudden blow. It was necessary that the Real Estate Trust Company certify to all the different documents. "So all hands went to Philadelphia, Addicks called up Hipple. 'Very sick in bed' came back the answer. 'Bosh,' said the only American who has been able to make gold eagles from passing windstorms "He marched the entire party up to Hipple's house, and he, with one of the e lawyers and the sick man in bed, were, for all of Addicks' purposes, the entire Real Estate Trust Company. All the e papers were properly certified and h guarantees given."

7. August 31, 1906 The Twice=a=week Herald Amarillo, TX
Article from The Twice=a=week Herald, August 31, 1906

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TRUST COMPANY II CLOSES DOORS. With Capital and Surplus of $2,900,000 Is Forced to the Wall. Philadelphia, Aug. 2.-The Real First Clearing House association that Estate Trust company closed its doors body stood ready to advance all the this evening. It has a capital and money required by the trust comsurplus of twenty-nine hundred thoupany, provided the proper security was offered. The directors of the sand dollars and deposits of more than $7,500,000. It was established trust company are severely criticised by members of the clearing house asin 1885 by Frank K. Hipple, who was its president up to the time of his sociation for their failure to acquaint death last Friday. There are rumors trust company and the transactions to the effect that Mr. Hipple's death of President Hipple. "They knew which was assigned O cerebral hemonothing more than we had heard," rhage, was not the result of natural declared Michener, "and they were causes. not even familiar with the securities Judge Audenreid, in the Common in their possession." Pleas court this evening, appointed George H. Earle, Jr., president of the It is stated that sufficient funds Finance company, receiver for the have been pledged to enable the Real Real Estate Trust company. In adEstate company to open its doors dition to its deposits the company had within forty-eight hours. As a pre$26,167,682 trust funds invested and liminary to this the court will be pe$60,483,400 held by the company as titioned to dismiss the temporary redepository and trustee for the issues ceivership. of collateral trust funds. On inquiry today among the promiPhiladelphia, Pa., Aug. 29.-A nent authorities of the Presbyterian crowd of depositors gathered early church as to the amount of church today at the corner of Broad and money involved in the failure, it is Chestnut streets, surrounding the learned that the sum will not exceed handsome sky scraper in which the $4,000. The trustees' money, amountdistressed Real Estate Trust coming to $963,869. is invested in mortpany is located. A squad of policegages, bonds and other securities and men surrounded the offices and kept these are all intact. the people back. There was no attempt at a demonstration. At the conclusion of a protracted

8. September 1, 1906 The Jersey City News Jersey City, NJ
Article from The Jersey City News, September 1, 1906

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HIPPLE'S FREE HAND Permitted by Directors of Failed Trust Company to Run Its Affairs. NO EXAMINATION IN YEARS. Clearing House Member Explains Why No Aid Was Rendered to Wrecked Institution - Hipple's Defalcations ShockAssociates-Failure May Lead to Revision of Banking Laws. Philadelphia, Sept. 1.-Additional desensational continue out in velopments, to crop connection in character, with of the It has become company. the failure Real been Estate known meeting Trust publicly that there had not a of the directors of the failed bank for three years, every detail having been left to the late nearly Hipple, president who of the company, Frank K. comIt was this caused the fairs mitted which suicide. Clearing state House of af- to association to hesitate about coming the aid of the trust company. the meeting of the clearing bankers house During Joseph D. Junkin, counsel for the Real Estate Trust company, was asked: "When did the directors of the trust company last examine its affairs?" Examined Years Ago. His answer, "Not for more than two and caused men the affairs of guide a half years," Philadelphia's the who financial institutions to gasp. Criticism of the members of the House association was refor the sponsible Clearing information. Several of the directors of the trust company had since the crash comsaid saved that the had the pany could have been local bankers advanced $7,000,000. A member of the Clearing House association who was present at Tuesday's meeting said: directors of the Real Estate Trust knew as "The affairs company little about of the of the company as any the apto know whether pear bankers present. They the did shortage not and was $5,000,000 or $10,000,000, it been folly for us would have affairs to have advanced the cash when the of the bank were in such a deplorable condition. Had No Security to Offer. "The three directors of the company who came before us with outstretched hands for $7,000,000 had absolutely to offer in return but Dead had not even in their company's dence nothing Sea fruit. They future to confi- of for when they were their fer, would pledge fortunes asked banks to if might make they losses that the allied it blind' sustain good by 'going their answer was a painful silence." of Receiver President had stolen The statement Hipple Earle securities that and that lending to Adolph on valued of $5,000,000 at $65,000 Segal the to theft in sufficient security amounted created a profound sensation through out the city. was an cruel to his many The blow revelation intimate especially friends, whom are prominent in the church, as most Presbyterian of either elergy men or laymen. So high was their estimation of the man who abhorred tobacco and liquor and refrained from reading Sunday newspapers that not only the various in the Presbyterian the trust company church organizations made of members their but hundreds of money depository, that denomination placed number their of pas in his company. The tors who used the bank to care for their savings was exceptionally large. Hipple a Political Reformer. In addition to his church work, Mr. took an active interest in re form and is said to been a contributor to Hipple heavy politics the have reformers' campaign fund in last year's contest In this city. The failure of the Real Estate Trust company is likely to lead to a revision of the state laws governing trust com Under the present in this state are companies panies. laws permitted trust to do a surety business, and a move ment is now on foot to separate the two.

9. September 4, 1906 Arizona Republican Phoenix, AZ
Article from Arizona Republican, September 4, 1906

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therefor. All indebtedness will be fully met on call from the receiver." Discussing the liabilities of the directors. John H. Converse, head of the Baldwin Lecomotive works and one of the board of directors, said today: "That which was done in the case of the Real Estate Trust company would be possible, under existing laws and regulations, in the affairs of any other trust company in Philadelphia. The directors went through the forms that are observed by other boards of directors. The fault is with the present system, which must be radically changed before it may safely be said that another real estate trust crash is out of the question." Mr. Converse denied a statement that the directors had held but one meeting in two years.

10. September 5, 1906 The Forest Republican Tionesta, PA
Article from The Forest Republican, September 5, 1906

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Saturday. Investigation into the Paterson Canoe club scandal showed that about 25 girls have been attacked on Laurel island. President Roosevelt has asked that the Roosevelt Home club of New York city be probed by the postoffice department. Rear Admiral Thomas in a letter to the mayor of Newport indignantly resents discrimination against bluejackets because of their uniforms. Frank Hipple, president of the wrecked Real Estate Trust company of Philadelphia, was an embezzler, the receiver declared, and killed himself to escape punishment. George J. Gould and D-Cady Herrick retired as directors of the Equitable Life Assurance society, Mr. Gould ending all connection between Wall street and the society.

11. September 7, 1906 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, September 7, 1906

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RESPONSIBILITY FOR WRECKING TRUST CO. Will Be Rigidly Inquired Into by Officials at Philadelphia. Thorough Examinations Will Be Made of Defunct Concern. / RECEIVER EARL HOPES TO SOON REOPEN REAL ESTATE TRUST CO., FOR BUSINESS AND SAYS THAT ALL DEPOSITORS WILL BE PROTECTED. By Associated Press. Philadelphia, Sept. 6.-To determine the responsibility of directors of the wrecked Real Estate Trust Co. State Banking Commissioner Berkey today appointed as special bank examiners Charles M. Vollum and Meyer Goldsmith, expert registered accountants, who with Receiver Earl will begin a thorough examination of the assets and liabilities of the defunct concern, Receiver Earl tonight, after a conference with the directors of the trust company, issued a statement saying that he hopes to soon reopen the doors of the bank and that all depositors will be protected. The preliminary hearing of Adolph Segal, Treasurer William E. North and Marshall S. Collingwood, assistant treasurer of the concern, took piace today and the three men were held in heavy bail for trial.

12. September 7, 1906 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, September 7, 1906

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# PLANTING INDIA RUBBER TREES Planting India rubber trees is fast becoming a favorite enterprise for cap- italists. Groves are planted in India which now begin to bear, producing 14,010 pounds in 1905-06. Burma leases land in lots of 1,200 acres for rubber tree groves. In Ceylon the cultiva- tion of rubber is proceeding at a rap- id pace. In 1892 but 6,500 pounds were exported, but in 1905 the exportation was 140,100 pounds. By 1913 it is es- timated that Ceylon will be exporting $12,500,000 worth yearly. Java, Bor- neo and the Malay states have gone largely into the industry. Central America also has the rubber fever. The growing demand for rubber and the stiff price make the ownership of a grove of trees attractive. Recognized. - She-This is my por- trait with my two dogs. Do you rec- ognize me? He- Why, yes. That's you in the middle with the hat, isn't it? - Bon Vivant. On investigation it proves that no examination of the wrecked Real Es- tate Trust Company of Philadelphia had been made by the state banking department for three years, or by the board of directors for two and one- half years. Three of the directors Junkin, Porter and Henry, have ad- mitted that they had served at times as counsel for Segal, the promoter, whose operations caused the bank to suspend. Four of the directors are charged with having knowledge of the immense loans President Hipple made to Segal. Junkin, attorney and di- rector of the trust company, was also president of a Maryland real estate company, which borrowed $250,000 from the Real Estate Trust Company. Together with Directors Benson, Henry and Borden and President Hipple, Jun- kin took 50 per cent of the loan to Junkin's Maryland company for guar- anteeing its bonds if the loan was not paid. Junkin's Maryland company did not pay the loan and was foreclosed by the Real Estate Trust Company because Junkin and his fellow direc- tors and guarantors did not make good their guarantee. This is father's holiday; Little Willie is at play; Sister's making ragtime din; Brother's nine goes forth to win. Idle men on corners stand; Hear the music of the band: East and West, the unions say, This is labor's holiday. One all union rule ignores; Just keeps busy doing chores; Washes dishes, makes a bed, Cooks, that hungry folks be fed; Doing in each dusty room Calesthenics with the broom None to hint at strike or pay For an eight-hour working day. Union labels don't go here; No one works but mother dear! -New York World.

13. September 7, 1906 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, September 7, 1906

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ADOLPH SEGAL GOT THE MONEY Hipple Left a Confession Taking the Blame for the Trust Company Failure. HEARING OF THE PROMOTER HELD TO COURT IN $25,000 BONDS. Philadelphia, Sept. 6.-Receiver Earle's plan for the reorganization of the defunct Real Estate Trust company will be mailed to the depositors tomorrow. It provides for the reopening of the bank by the payment of 30 per cent in cash to depositors and 30 per cent in preferred stock guaranteed by collateral bonds, the remaining 40 per cent to be paid within sixty days. The directors of the Real Estate Trust company are to raise the capital necessary for this settlement.

14. September 8, 1906 Pullman Herald Pullman, WA
Article from Pullman Herald, September 8, 1906

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# LATE NEWS NOTES. A conspiracy has been suppressed in the province of Ilcocos Norte, on the Island of Luzon, by the prompt action of Governor Florey in arresting 15 of the Filipines said to be implicated. The public power house of the Kansas City & Leavenworth Railway company at Walcott, Kan., 15 miles west of Kansas City, was burned recently, with all its valuable machinery. Loss, $300,000. It is announced in Goldfield that the films for the moving pictures became exhausted after the 38th round. As a result the concluding rounds of the great fight will not be shown in these pictures. President Rickard states that the receipts for the fight amounted approximately to $780,00, and that the number of spectators at the ringside aggregated 7000. This is the greatest amount of money taken in for a prize fight in the history of the ring. He says he does not make any charges against Siler, but I know that Nelson did not foul Gans. I don't care who says that he did. A thousand strong, the second contingent of Farley strikebreakers have landed in San Francisco. The report is confirmed from Honlulu that the transport Sehridan practically will be a total loss. Conditions existing at this time call for an increase in the pay of the army, says Brigadier General Constant Williams, commanding the department of Columbia, in his annual report. Receiver Earl of the Real Estate Trust company of Philadelphia says that the farthed he probes into the affairs of the defunct company the worse he finds them. He thinks the trust department intact, but the bank department is hopelessly involved. Indications are that Hipple's stealing exceeds $1,000,000.

15. September 9, 1906 The Sun New York, NY
Article from The Sun, September 9, 1906

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ious financier" of Philadelphia among the business men with whom he dealt in Virginia. He was also trustee for the Washington, Alexandria and Mount Vernon Electric Company, and this gave him the opportunity to work his swindle with the paid bonds. In the stated case found to-day Hipple made a loan of $65,000 to himself and as security gave the trust company 6 per cent. bonds of the Electric Company of a par value of $48,000. But the whole issue had been paid off and was worth less than confederate money. Just who passed on these old bonds District Attorney Bell is trying to find out, and as a result of his discovery a number of officers of other banks who had dealings with Hipple will spend Sunday looking through their securities. The next issue of bonds of the Electric Company, the 5s, are still running and selling at par. None of these is among the collateral. As for Hipple's system of forgery, it could readily have been continued for a long time without discovery. He had taken copies of the signatures of a number of the most prominent business men of Philadelphia while their checks were passing through the bank, but in every instance he avoided the use of the name of a depositor of the Real Estate Trust Company. When pinched for money Hipple would draw up a note, forge the signature, take it to the cashier or paying teller, inform him that he had personally made the loan, and to put in the account as a discounted paper. With this amount to his credit he would satisfy the claim that was pressing him at the time. For this branch of the business Hipple kepta private book. in which he entered the amounts of the forged notes and when they became due, and at no time did he allow one of these spurious papers to get away from him. He always explained to the employee of the bank who cashed the note that it was a private matter between the maker of the note and himself and that he desired it to be entered as such. When the bogus note became due Hipple invaria bly either met it with some of the Segal paper, or if this was not expedient he would make out another note with the forged signature of some ot her business man. Incidentally Hipple had been so consciencious in looting the trust company that when a balance of $11,000 remained out of a loan sunk into one of Segal's enterprises he carefully placed that amount in the bank to his own account. The trustees of the General Assembly of t he Presbyterian Church have issued an authoritative statement giving the loss in the crash of the Real Estate Trust Company as $49,000. The $49,000 does not. of course, include the total loss to Presbyterian institutions. It represents only the actual loss to the executive body of the church. When the total loss to Presbyterian organizations, boards. churches, pastors. &c., is computed it will reach nearly $400,000. Depositors to-day refused the directors' plan of reorganization, which provided for an issue of preferred stock to depositors in the place of their deposits and a morton gage it - Broad the and Real Chestnut Estate streets Trust's and property the profits for ten years from the trust accounts. By this plan the depositors figured that

16. September 9, 1906 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, September 9, 1906

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REORGANIZE COMPANY. Receiver Earle Will Do All Possible to Protect Depositors. Philadelphia, Sept. 8.-While the State Bank Examiners are going through the books and papers of the wrecked Real Estate Trust Company, looking for further evidence of criminality, Receiver Earle is busy perfecting his plan to reorganize the company. All the directors said today they fully expect the institution to resume business within two weeks. District Attorney Bell continued his independent investigation today. He said, however. that he is relying to R considerable extent on the Investigations being made by the State's experts as the tangled affairs of the institution are geting too deep for a "mere lawyer." The deeper the probers go into the affairs of the ruined company. the more amazed they become at the boldness of its late President. Simultaneous with the looting of the bank and when it was apparently on the verge of colapsing, Hipple would do something to boost the credit of the company and hoodwink the directors. It was disclosed today that he had recommended to the directors a 1 per cent. dividend on the stock of the trust company last July because of the great prosperity of the institution. At the same time he asked the directors to increase the salary of certain employes, that they, too, could share in the prosperity. Adolph Segal, who succeeded in borrowing $5,500,000 from the institution through Hipple, is ill in his living apartments at he Hotel Majestic, which he owns. His condition is not serious.

17. September 13, 1906 The Caucasian Raleigh, Goldsboro, Clinton, NC
Article from The Caucasian, September 13, 1906

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AFTER THE DIRECTORY State Banking Commissioner Berkey Appoints Two Experts-Accounts of Hipple and Segal Overdrawn More Than $800,000 at Times. Philadelphia, Special.-To determine the responsibility of the direcfors of the wrecked heal Estate Trust Company. State Banking mmissioner Berkey came here Turnsday and appearted as -De bank examiners Charles M. Vollum and Flever Goldsmith, expert registered accountants, whol, with the consent of Receiver Karie, will at once a thorough examination of the assets and liabilities of the defunct co corn. Receiver Earle after conference with the directors of the trust company, issued a statement announcing that he hopes soon to re-open the doors of the bank and that all depositors will be protected. Held in Heavy Bail. The prel'minary hearing of Adolf Segal, the promoter; Win. F. North, measurer, and Marshali S. Colling wood, assistant treasurer, of the Real Estate Trust Company, took place and the three were held in heavy bail for trial. The evidence presented through witnesses by District Attorney Bell at the hearing of Segal, North and Collingwood disclosed the methods by which Segal and Hipple wrecked the trust company. How Wreckers Worked. The most damaging testimony was to the effect that both Hipple and Segal had repeatedly overdrawn their accounts with the knowledge of the treasurer and assistant treasurer. These overdrafts were carried as cash accounts. On the day Hipple died there was an overdraft of $64,000 against the president which was converted by Collingwood into a loan showing Hipple's account to be apparently straight. These overdrafts of Hipple and Segal at times amounted to more than $800,000. There was on deposit in the bank approximately $7,000,000 and the loans made to Segal amounted to $5,309,200. Many of the securities which have e since been found to be insufficient were bonds and stocks of the Segal 1 enterprises and weer approved personally by Hipple. Although Receiver Earle appears 1 hopeful of opening the bank at an e early date, many of the creditors express some doubts as to his ability to t do so. S Many depositors who placed money in the bank on Monday and Tuesday y after the directors knew that it was s insolvent were allowed to withdraw d their deposits.

18. September 13, 1906 The Fulton County News McConnellsburg, PA
Article from The Fulton County News, September 13, 1906

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# THE NEWS OF THE WEEK. Domestic. On warrants charging embezzlement and making false returns, sworn out by a depositor of the wrecked Real Estate Trust Company, Adolph Segal, promoter; William F. North, treasurer, and M. S. Collingwood, assistant treasurer of the wrecked institution, were arrested and arraigned before Magistrate Kochersperger at Central Police Court. They were released on bond. Former friends of Herman Oelrichs said after the funeral that his entire estate, amounting to more than $2,000,000, would revert to his 15-year-old son Hermann, who would come into full possession of the property upon attaining his majority. The value of Adolph Segal's bonds and stocks was shown in Philadelphia when "$25,000 worth of Pennsylvania Sugar Refining Company first mortgage 5 per cent. gold coupons, due in 1931, brought $2,500 at auction. Miss Anne Morgan, aged 37 years, died suddenly of heart trouble, the attack following a dream that a colored man entered her room. The trial of Harry K. Thaw for the murder of Stanford White will not take place in New York until after the election. The striking street car men of San Francisco have agreed to return to work upon the condition that differences be arbitrated. A junta is said to be collecting funds and supplies in New Orleans for a revolution in the Central American republics. In the Irrigation Congress at Boise, Idaho, Senator Heyburn made an attack upon the President's forestry policy. The court review has set October 19 as the date of the hearing of the appeal of Rev. Dr. Crapsey, of Rochester, who was found guilty of charges of heresy. Collins Humbert and Lenardo Vilareal were arrested in Tucson, Ariz., on the charge of attempting to organize a revolutionary movement against Mexico. Robert Cotton, colored, who last year murdered his wife, literally cutting her body into pieces, was executed in Vinita, I. T. He confessed. Robbers bound and gagged Cashier P. W. Vanancher and leisurely looted the State Bank of Ranier, Ore. Miss Frances Wadsworth, of Newark, N. J., was drowned while bathing at Bradley Beach. A Mexican gunboat seized the American fishing smack Aloha and put her crew in prison. Rev. Dr. Francis R. Beattie died in Louisville, Ky. Joseph DeF. Junkin, a director and solicitor of the Real Estate Trust Company, admitted that the Arling-Brook Real Estate Company, of Baltimore, of which he was the head, had borrowed $250,000 from the trust company. In a letter to Charles A. Stillings, public printer, President Roosevelt wrote that if the changes in spelling advocated by the Simplified Spelling Board meet popular approval they will be made permanent. Mrs. Anna Edelhartz was killed and Miss Anna Robinson seriously injured in a street car panic in Chicago, caused by a short circuit in the controller box. After a two-hour search bloodhounds found John Dowd, a boy who had wandered from his home, in Sandersfield, New York, several days ago. A statement of the Department of Commerce says that cotton was king, according to the export record of the past fiscal year. In a fight with state police at Punxsutawney, Pa., Italians killed two officers, fatally wounded another and shot three more. In a fire at Louisville, Ky., Henry Taylor was suffocated and three other persons overcome. The property loss is $5,000. Mrs. Jane Austin, "the washerwoman heiress," is dying at her home, in McKeesport, Pa., of blood-poisoning.

19. September 13, 1906 Mrs. Grundy Tracy City, TN
Article from Mrs. Grundy, September 13, 1906

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The coroner in Philadelphia now says that Frank D. Hipple, late president of the Real Estate Trust company, that failed, committed suicide by blowing out his brains. It was reported at the time that Hipple died from heart failure. The coroner says he suppressed the truth for fear of a run on the banking institutions.

20. September 29, 1906 The Sun New York, NY
Article from The Sun, September 29, 1906

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Except from very rare and exceptional causes, such as sudden panics or runs due to false rumors, there is never any reasonable excuse for the failure of a bank or trust company. It is almost always the result of inexcusable folly and incompetence, or dishonesty and fraud, and often due to all of these combined. When a bank does fail it is the fault of the board of directors. - Comptroller of the Currency RIDGELY. As the failure of the Real Estate Trust Company was not due to a panic or to false rumors, and as Mr. RIDGELY was speaking to Philadelphia bankers, he must have had that institution in mind.

21. October 3, 1906 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 3, 1906

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RECEIVER FOR SUGAR. Idle Philadelphia Factory of Trust is "Turned Over to Earle. Philadelphia, Pa., Oct. 3.-Judge Willson of the common pleas court yesterday appointed Receiver George M. Earle, Jr., of the wrecked Real Estate Trust Company receiver of the Pennsylvania Sugar Refining Company of this city, the plant built by Adolph Segal, the promoter, which later passed under control of the American Sugar Refining Company. The name of Edward C. Babcock of New York, a holder of 6,900 shares of

22. October 26, 1906 The Fargo Forum and Daily Republican Fargo, ND
Article from The Fargo Forum and Daily Republican, October 26, 1906

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RECEIVER LET OUT NO LONGER NEEDED IN TRUST MATTER. Philadelphia Courts Discharged the Receiver of Hipple's Wrecked Trust Concern, Which Has Been Reorganized and Will Resume Business. Philadelphia, Pa., Oct. 26.-The common pleas court today discharged George H. Earle, jr., as receiver of the Real Estate Trust Co. of this city, which failed on Aug. 28, because of the financial irregularities of its president, Frank K. Hipple, who committed suicide shortly before the failure. The trust company, under the reorganization plan perfected by Earle, will reopen on Nov. 1.

23. December 21, 1906 New-York Tribune New York, NY
Article from New-York Tribune, December 21, 1906

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WOULD SUE THE SUGAR TRUST. Pennsylvania Company Alleges Its Operation as Refinery Was Illegally Prevented. Philadelphia, Dec. 20.-George H. Earle, jr., receiver for the Pennsylvania Sugar Refinery, presented a petition in the Common Pleas Court here to-day asking permission to bring suit for damages against the American Sugar Refining Compary for illegal exercise of its control of a majority of the stock of the Pennsylvania company in preventing the operation of the refinery of the company. Mr. Earle was appointed receiver of the Pennsylvania Sugar Refinery Company after the collapse of the Real Estate Trust Company, when it was found that stock of the refining company had been given to the trust company as security by Adolph Segal. Mr. Earle asks authority to have the trust company, as trustee under the mortgage securing $3,000,000 of bonds of the sugar company, to foreclose. The receiver says: My investigations show that Gustav E. Kissel, of New York, surreptitiously acting as agent for the Sugar Trust, made a loan to Adolph Segal and got trust securities and bonds of the Pennsylvania Refinery Company and, with John E. Parsons, held a controlling interest in the board of managers of the company and voted to make the refinery inoperative. The conduct of the alleged trust, Mr. Earle says, has not only been illegal, but criminal, and he seeks authority to bring action. Its conduct, he alleges, contributed to the failure of the Real Estate Trust Company.

24. December 21, 1906 The Laramie Republican Laramie, WY
Article from The Laramie Republican, December 21, 1906

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Philadelphia, Pa., Dec. 21.-Their desire to thwart the threatening ambitions of Adolph Segal, the wizard promoter who inspired the Sugar trust and certain of its New York agents to form a conspiracy that led to the ruin of Frank K. Hipple and the looting and wrecking of the Real Estate Trust company, was the sensational charge made today in behalf of George H. Earle, receiver of the Pennsylvania Sugar Refining company and president of the reorganized trust company. Net Spun by Sugar Trust. In direct terms, the entire net of crime that caused the suicide of Hipple and the downfall of the big financial institution is alleged to have been spun by the Sugar trust, its officers or agents. The men connected with the trust directly named as the active conspirators are Gustave Kissel, John E. Parsons and Theodore A. Havemeyer, all of New York city. Leave to Proceed. Mr. Earle was granted leave to proceed at once, civilly or criminally, against the big trust and the men named. Not only will millions in damages be asked, but action will be taken to force the dissolution of the corporation that has a monopoly on the sugar products of the United States.

25. January 19, 1907 Evening Bulletin Honolulu, HI
Article from Evening Bulletin, January 19, 1907

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# GOVERNMENT WILL ATTACK # SUGAR TRUST Washington, Dec. 22. -The Federal authorities will in the near future institute proceedings to dissolve the American Sugar Refining Company, better known as the sugar trust. The chief evidence upon which the Government will rely to sustain its case will be that conveyed to it by William R. Hearst and the New York "American." Supplemental to this will be the evidence submitted by George H. Earle, receiver of the Real Estate Trust Company of Philadelphia, the looting of which by its president, Frank K. Hipple, is a matter of record. Within the