19163. Real Estate and Trust Company (Philadelphia, PA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 28, 1906
Location: Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model: gpt-5-mini
Short Digest: a70073da

Response Measures

None

Description

The Real Estate and Trust Company (often called Real Estate Trust Company in the articles) suspended operations in late August 1906 and a receiver (Geo. H. Earle, Jr.) was appointed. The failure was due to large bad loans and apparent looting/embezzlement (loans to Adolph/Segal and hidden shortages ~ $7,000,000). There is mention of depositor agitation and a crowd, but the closing is described as a suspension due to insolvency and led to receivership — a permanent closure. Dates derived from newspaper dates and text (bank closed its doors last Tuesday in Aug 31 articles -> ~1906-08-28).

Events (2)

1. August 28, 1906 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closure/suspension caused by a shortage of about $7,000,000 arising from heavy loans and misuse of funds by president Frank K. Hipple to promoter Adolph (Segal) and apparent looting/embezzlement.
Newspaper Excerpt: The Real Estate Trust Company ... suspended business shortly after 2 o'clock Tuesday afternoon because of inability to meet obligations to the amount of $7,000,000.
Source: newspapers

2. August 29, 1906 Receivership

Newspaper Excerpt: Receiver Geo. H. Earle, Jr., today took charge of the affairs of the Real Estate Trust company which yesterday failed because of the heavy loans made by Frank K. Hipple ... to Adolph Segal, the promoter, upon insufficient security.
Source: newspapers

Newspaper Articles (11)

1. August 29, 1906 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, August 29, 1906

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GOT CHURCH WITH Presbyterians, the Sunday School Hundreds of Fellow Church Members Lose Heavily DEAD MAN HAD MILLIONS To Look After and He Came Near Being Entrusted With Much More. Philadelphia, Aug 29 -So great was the confidence reposed in Frank K Hipple, late president of the Real Estate and Trust company which was yesterday forced to the fall because of the secret business transactions of Mr Hipple, that the institution was virtually the bank of the Presbyterian church. Not only the general assembly, which was a large deposit, but even the small Sunday school or ganizations and hundreds of individuals, with abiding faith in the integrity of the late president, had entrusted their funds and savings to the Institution It almost destroys a person's faith in human nature' said H. P. Ford, private secretary to Dr Alexander Henry, secretary of the board of publication and Sabbath school work of the Presbyterian church. 'As treasurer of the trustees of the general assembly, Mr Hipple had control of over $1,000,000 and as treasurer of the permanent committee on home missions and sustentation in the sy nod of Pennsylvania and the Presbyterian hospital of this city, other large amounts were at his command Since the failure of the Trust company it has been learned that only a few months ago the institution was under consideration as a possible depository for the foreign missionary funds of the Presbyterian church The influence of Mr Hipple, it is said might have eventually prevailed. The annual contributions to foreign missions amount to over $1,200.000 and its surplus on hand always equals half that amount It is likely that an investigation of the manner in which President Hipple came to his sudden death will now be made. Coroner's Physician Read of Norristown admits that Mr Hipple may have committed suicide. The friends who attended the private burial of the late president of the Trust company on Monday had knowledge of his difficulties, but none of them was aware of his great ly involved financial condition. He was not known to have been a stock speculator, although financiers say he was one of the many who lost heavily in Consolidated Lake Superfor company stock several years ago. Real estate investments seem to have engaged his attention and money al most exclusively. This is borne out through his connections with Adolf Segal and the latter's enterprises. Late last night Segal his counsel and District Attorney John C. Bell held a conference. Mr Bell said he had been called in by Segal because the promoter thought it entirely feasible to raise the $3,500, 000 need ed by the trust company. Mr Bell said he was in no way connected with the case other than that he might aid in raising the funds necessary to place the company again on a sound basis To-day the name of Adolf Segal is on the lips of everybody in Philadelphia. His rise from a toller over a soap cauldron in a 10 by 12 cellar in West Philadelphia less than twenty years ago to a handler of millions of dollars has certainly been spectacular. Although he has figured for years as a builder of sugar refineries, railroads, apartment houses, handsome residences and modest homes for workingmen, little was known of his personality until the newspapers to-day. After building a large independent sugar refinery in Camden N J. and selling it to the American Sugar Re fining Co at an alleged profit of $700,000. he built another in the sugar district of this city. But as far as is known the second venture was never bought by the purchaser of the first, although the statement is made that those whose money is tled up in the structure receive 6 per cent on their investment. The sugar refinery has been idle since its erection -two or three years ago. Segal has been the promoter of several enterprises in the state outside of Philadelphia It is said that the real estate trust company has been involved in all of them to some extent Two are situated in Lan caster county, one, the Swedish Cru cible Iron and Steel Works. and the other, the Safe Harbor Match Works The entire property was bonded for $2,000,000, the Real Estate Trust Co acting as trustee for the bond holders. The railroad has never been completed and operations at the plant have been suspended for two years. Another big enterprise was building operation at Altoona, Pa Segal secured a large plot of ground and planned the new town of South Altoona. It was planned to erect 664 houses built in rows, city style. People here did not take kindly to this method of living and refused to buy or rent them After about 150 were erected, the building operations ceased. leaving the foundations of a hundred or more exposed Few of the completed dwellings were sold and few rented. Most of them are vacant to-day. Segal is 46 years old. about 5 feet 10 inches in height. Directness and frankness of manner a habit of going a he directly had to the point of proposition to present man. are said

2. August 30, 1906 Los Angeles Herald Los Angeles, CA

Article from Los Angeles Herald, August 30, 1906

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Depositors Attempt to Injure Son of Banker Presbyterian Churches May Be Heavy Losers in the End Excitement Following Failure of the Real Estate and Trust Company at Philadelphia Grows With Each Hour By Associated Press. PHILADELPHIA, Aug. 29.-Receiver Geo. H. Earle, Jr., today took charge of the affairs of the Real Estate Trust company which yesterday failed because of the heavy loans made by Frank K. Hipple, late president, to Adolph Segal, the promoter, upon insufficient security. Until Mr. Earle completes the investigation the exact condition of the company's affairs cannot be told. The receiver, however, expressed the belief that the trust funds are intact. John H. Converse, a director of the company and one of the foremost Presbyterian laymen in the country, upon whose representation the receiver was appointed, said today he was satisfied that the securities of the various Presbyterian church boards were safe. The Presbyterian hospital, of which Mr. Hipple was treasurer, today elected the 1 delity Trust company as his successor and through the concern learned that the institution's securities, amounting to $1,500,000 are intact. While it is believed that the securities of the board of trustees of the general assembly are equally safe, it will be necessary to elect a new treasurer before the fact can be determined. It developed today that Mr. Hipple had on deposit for various Presbyterian church organizations $150,000 in cash. Included in this was the sum of $10,000 deposited by the Women's Foreign Mission society to be used in rebuilding the home for rescued Chinese slave girls in San Francisco, destroyed by the earthquake. One of the many rumors was that the banks had evolved a plan to raise a guarantee fund of $7,000,000 with which to rehabilitate the trust company, but this could not be verified. It is the hope of the directors, however, to reopen the doors of the bank, and, with this end in view they held numerous meetings today, conferring with Receiver Earle. Frank Wharton Hipple, son of the late president, who is a clerk in the bank, was set upon by a crowd of angry depositors as he was leaving the building today and would probably been roughly handled had the police not interfered.

3. August 30, 1906 Palestine Daily Herald Palestine, TX

Article from Palestine Daily Herald, August 30, 1906

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SHOT HIMSELF IN HEAD The Verdict of the Coroner in Hipple Suicide Case. Special to the Herald. Philadelphia, Pa., Aug. 30.-Coroner King, after an inquest over the body of President Hipple of the Real Estate and Trust Company, announced that Hipple committed suicide by shooting himself in the head. Coroner King says he suppressed the news of sulcide for seven days to prevent a run on the bank, acting on the request of a number of the directors of the bank and members of Hipple's family. He thought the directors would have time to make up the deficit and thus help the deposit-

4. August 31, 1906 Bismarck Daily Tribune Bismarck, ND

Article from Bismarck Daily Tribune, August 31, 1906

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WILL SOON BE EXPLAINED. Many Pecullar Affairs in Real Estate and Trust Company. Philadelphia, Aug. 31.-Now that Receiver Earle has taken charge of the Real Estate and Trust company of this city, which closed its doors last Tuesday because of a shortage of about $7,000,000, it is expected that many matters in the affairs of the company that are not clear to the directors or depositors will soon be explained. Among the first things to be done will be the opening of the strong box which belonged to the late Frank K. Hipple, the president of the trust company. No one, not even his family, it is said, knows what it contains, but it is hoped by the receiver that its contents will be such as to be of some aid to the receiver in straightening out the affairs of the company. Whether Mr. Hipple carried life insurance is not known to the directors of the company, and all information on that subject is refused by the family. The receiver reiterated to many anxious inquirers that on a hurried examination of the books and papers he feels quite certain that all securities and trust funds not belonging directly to the trust company itself are intact. The company had charge of trust funds and estates valued at more than $26,000,000 and the beneficiaries of many of these have been clamoring ever since the company closed its doors for positive information as to the security of these trusts. There is much speculation in financial circles as to the identity of the persons other than Segal who borrowed money from the Real Estate Trust company. The directors of the company refuse to make the names public for the reason that the transactions were regular and the loans amply protected. The failure was due entirely, it is said, to the loans to Segal.

5. August 31, 1906 The Madison Daily Leader Madison, SD

Article from The Madison Daily Leader, August 31, 1906

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WILL SOON BE EXPLAINED. Many Peculiar Affairs in Real Estate and Trust Company. Philadelphia, Aug. 31.-Now that Receiver Earle has taken charge of the Real Estate and Trust company of this city, which closed its doors last Tuesday because of a shortage of about $7,000,000, it is expected that many matters in the affairs of the company that are not clear to the directors or depositors will soon be explained. Among the first things to be done will be the opening of the strong box which belonged to the late Frank K. Hipple, the president of the trust company. No one, not even his family, it is said, knows what it contains, but it is hoped" by the receiver that its contents will be such as to be of some aid to the receiver in straightening out the affairs of the company. Whether Mr. Hipple carried life insurance is not known to the directors of the company, and all information on that subject is refused by the family. The receiver reiterated to many anxious inquirers that on a hurried examination of the books and papers he feels quite certain that all securities and trust funds not belonging directly to the trust company itself are intact. The company had charge of trust funds and estates valued at more than $26,000,000 and the beneficiaries of many of these have been clamoring ever since the company closed its doors for positive information as to the security of these trusts. There is much speculation in finan. cial circles as to the identity of the persons other than Segal who borrowed money from the Real Estate Trust company. The directors of the company refuse to make the names public for the reason that the transactions were regular and the loans amply protected. The failure was due entirely, it is said, to the loans to Segal.

6. August 31, 1906 Bismarck Daily Tribune Bismarck, ND

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WILL SOON BE EXPLAINED. Many Peculiar Affairs in Real Estate and Trust Company. Philadelphia, Aug. 31.-Now that Receiver Earle has taken charge of the Real Estate and Trust company of this city, which closed its doors last Tuesday because of a shortage of about $7,000,000, it is expected that many matters in the affairs of the company that are not clear to the directors or depositors will soon be explained. Among the first things to be done will be the opening of the strong box which belonged to the late Frank K. Hipple, the president of the trust company. No one, not even his family, it is said, knows what it contains, but it is hoped by the receiver that its contents will be such as to be of some aid to the receiver in straightening out the affairs of the company. Whether Mr. Hipple carried life insurance is not known to the directors of the company, and all information on that subject is refused by the family. The receiver reiterated to many anxious inquirers that on a hurried examination of the books and papers he feels quite certain that all securities and trust funds not belonging directly to the trust company itself are intact. The company had charge of trust funds and estates valued at more than $26,000,000 and the beneficiaries of many of these have been clamoring ever since the company closed its doors for positive information as to the security of these trusts. There is much speculation in financial circles &s to the identity of the persons other than Segal who borrowed money from the Real Estate Trust company. The directors of the company refuse to make the names public for the reason that the transactions were regular and the loans amply protected. The failure was due entirely, it is said, to the loans to Segal.

7. September 1, 1906 The Cairo Bulletin Cairo, IL

Article from The Cairo Bulletin, September 1, 1906

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DIRECTORS WERE ONLY MERE DUMMIES AND FAILED TO. DIRECT THE BANK WHICH COLLAPSED WITH A CRASH. NO MEETING IN YEARS And Knew Nothing of the Company's Affairs-Refused to Stake Their Fortunes to Make Good the Money Stolen. Philadelphia, Pa., Aug. Addiional developments. sensational in character C ntinue to crop out in con nection with the failure of the Real Estate and Trust company. Today it became known publicly, for the first time since the suspension of the com pany, that there had not been a meet ing of the directors of the failed bank for nearly three years-eve detail having been left to President Hipple It was this state of affairs which caused the Clearing House association to hesitate about coming to the aid of the trust company at the meet ing Tuesday. A member of the Clear ing House association who was present at Tuesday's meeting said today "The directors of the Real Estate and Trust Company knew as little about the affairs of the company as any of the bankers present. They did not appear to know whether the shortage was $5,000,000 or $10,000,000 and it would have been folly for us to have advanced the cash when the af fairs of the bank were in such a de plorable condition. Directors Had Cold Feet. "The three directors of the company who came to us with outstretched hands for $7,000,000 had absolutely nothing to offer in return but dead sea fruit. They had not even confidence in their company's future to offer. for when they were asked if they would pledge their fortunes to make good the losses that the allied banks might sustain by 'going it blind their answer was a painful si. lence. Under such circumstances the Clearance House could not be expect ed to come to the aid of the Trust company. Find Woman in the Case. The woman in the case of the Real Estate and Trust company failure and the suicide of the president, Frank K Hipple, has been discovered. it is believed in the person of Miss Wright. cf Bryn Mawr. Miss Wright conducts a select boarding school for girls. The dead president and high Presbyterian lay man, who is now known to have been an embezzler, gave financial assist ance to the school and visited the in stitution two or three times each week. During the formal legal proceedings in court this afternoon to restrain he Real Estate and rust company from doing business and to continue the temporary receiver attorneys who say they represent 10,000 depositors asked the court to appoint an auxillary receiver. They suggested Will liam A. Glasgow. The court took the matter under consideration Now that Receiver Earle has taken charge of deta'ls at the Real Estate and Trust company offices it is expect ed that many matters that are not clear to the directors or the deposit ors will be explained. Mr. Earle has placed a staff of his own clerks at work and they may be able in a few days to give depositors an idea what they need expect in the way of dividends. Among the first things to be done will be the opening of the strong box which belonged to the late Frank H pple. president of the truet company. Not one, not even his family it is said. knows what it contains but it is hoped by the receiver that its confents will be such as to be of aid to the receiver in straightening out the affairs of the company. Whether Mr. Hipple carried life insurance is not known to the directors and all in formation on that subject is refused by the family. May Operate Segal's Plants. John H Converse, president of the trustees of the general assembly of the Presbyterian church, and a direc for O (the Real Estate and Trust com bany, said today he had no reason to change his statement that the securi lies of the general assembly amount ing to nearly $1,000,000. are safe There is much talk among certain financiers and others of the possibil ty of the rehabilitation of the com many. but nn feasible plan has been presented. Receiver Earle says he working on a project. which. if it can be put through will bring a quick re turn to the creditors of the institution It is thought that his plan would be to operate the enterprises promoted by Adolph Segal. who borrowed more than $5 000,000 from President Hipple to carry on his operations. the rev enge derived to be placed to the credit of the company's depositors.

8. September 3, 1906 The Cairo Bulletin Cairo, IL

Article from The Cairo Bulletin, September 3, 1906

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MANY IN PLOT TO LOOT DEFUNCT BANK SAYS DISTRICT ATTORNEY WHO DECLARES HiPPLE WAS NOT THE ONLY ROBBER. INVOLVED DIRECTORS And Prosecution Threatened Against Men Who Stole Millions From Philadelphia Concern-Sen. sational Statement. Philadelphia, Pa., Sept. 2. -"Accord ing to the evidence in mv possession. the collapse of the eRal Estate and Trust company appears to be the sult of stupendous looting. I intend to proceed to the limit against the persons liable.' This tatement was made ton'ght by District Attorney Bell. after a day spent in examining the evidence hanied him yesterday by Receiver Earle of the defunct company. That Frank K. Hipple, the suicide president of the institution was not alone responsigle of rthe crash, both the receiver and district attorney are sat'sfied. The bank's officers may not bear he burden of responsibility alone The receiver and district attorney have devoted much time to consider ing the liability of the directors, and developments today indicate that at least two of them may be called upon for an explanation of their action in certifying to the corectness of the bank statements since it has proved false. Several of the directors of the defunct company met in the office of Joseph D. F. Junkin, director and solicitor of the company, who admitted that the Real Estate company of which he was the head-ha borrowed $250,000 from the bank. After the meeting Junkin issued a statement explaining the transaction. Vice President Houston declared that if any of the directors borrowed money from the bank it will be returned as soon as the receiver calls for it. Says Law is at Fault. Director John M. Converse, head of the Baldwin Locomotive Works said: "That which was done in the case of the Real Estate company is por sible under the existing laws and regulation 'in affairs of any other trust company in Philadelphia. 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. "Confidence and trust is the life of business. In the case of the Real Estate Trust company that confii dence was reposed in President Hip ple. 'Knowing Hipple as I do I would implicity rely upon any statement that he might make. I deny that the directors had but one meeting in two years No institution with which am familiar had more regular or more fully attended meeting. Except, perhaps. for a recess of two months in the summer. the board met with ab solute regularity."

9. September 4, 1906 Ottumwa Tri-Weekly Courier Ottumwa, IA

Article from Ottumwa Tri-Weekly Courier, September 4, 1906

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TRIAL OF CHRISTIANITY. In a recent article written by the Rev. Philip S. Moxon, D. D., on "The Trial of Christianity," he says that it is not Christ nor his teachings that but the spurious Christianleaves human ity is on which trial, wicked society oppres- still the prey of greed and the sion. To the question, Why are people, in increasing numbers, drifting away from the church? he answers: "Because they have begun to suspect the genuineness of a religion which of finds profit in the practical denial its own primary principles. In innumerable instances, professed Christians the chief exploiters of their fellow are men for gain, and the chief supporters of political corruption." The article was written and published before the closing of the doors of the Real Estate and Trust company in Philadelphia. But following right after it comes the suicide of President Hipple of that institution, a man who said he had no faith in men who smoked cigars and chewed tobacco. At the same time he was speculating with other people's money, posing as a model of holiness and systematically falsifying the books of the bank, according to the findings of the receiver. the Dr. Moxon's conclusion as to reason of the drift away from the church is in a measure true, but not all men will agree with him that the drift is the result of a suspicion of the genuinness of the religion. Neither surprised when they know men who are are living that are Christianity they certain lives professing far from not the teachings of Christ. Men do object to hypocrites in the church That half much as is preached about. and as set up as a straw man down. But men do with churches the Hipple stripe. the church doors is disgusted asks men knocked often that of humble that be cater No become closed them- one to them, but let them It upon selves with the rest of the sinners. is the fact that men are compelled to bow down and worship such men as of Hipple, who pose as of the holy holies that make men, not suspicious the of the religion, but disgusted with manner in which affairs are administered in its name. So it i not the fact that such men in he church, that cannot be but it is the place the liberty they are others under the and given ing helped, are given, oppress recognized embodiment cloak the they given O. of are be- K. to of the church as the of all that is good and holy. Such men should be in the rank with the meek and the lowly who come to the church for a merciful God to forgive instead of for the purpose their in search sins trust them. of the people who may be as men are to be made that it is until the crash from the plundering how The statement such the question public asked known, all comes. kept who and to is always some one and as a rule he to find out that the answer can't be true of knows, people There 'Why that nearly tells him." who enough knew How is, the man comes forth often the crooked transactions and when of why he did not make his knowlasked public, says, "I knew people in would edge not believe it. He is a pillar church and I never go to church, taken the and my word would not be against there his." is no suspicion of the reliNo, but men who are honest and upright, gion, though they may "smoke a cigar to or chew tobacoo" prefer often not

10. September 6, 1906 Wood County Reporter Wisconsin Rapids, WI

Article from Wood County Reporter, September 6, 1906

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BIG BANK WRECKED. A PHILADELPHIA CONCERN IN $7,000,000 FAILURE. Real Estate and Trust Company Goes Down with a Crash-Millions Are Gone; President a Suicide-Mnch Church Money Tied Up. The Real Estate Trust Company. the second largest concern of its kind in Philadelphia, suspended business shortly after 2 o'clock Tuesday afternoon because of inability to meet obligations to the amount of $7,000,000. There are reports of gross misuses of the institution's millions and criminal prosecutions are possible. The bank is the depository for more than $1,000,000 of the funds of the Presbyterian church, $380,000 in tax receipts of the city of Philadelphia and $175,000 of cash of the State of Pennsylvania. The failure, which is reckoned the greatest in the history of Philadelphia, was due primarily to the suicide Friday of the president of the trust company, Frank H. Hipple. Mr. Hipple, according to the diagnosis made at the time by his physician and the coroner of Norristown, died of hemorrhage of the brain, but it has since been authoritatively stated that he had taken a dose of laudanum and then gotten into a filled bath tub, where he was found, apparently drowned. Mr. Hipple was one of the best known financiers of the city, was identified also with many charitable and religious institutions and was regarded as most conservative. He was treasurer of the board of trustees of the general assembiy of the Presbyterian church, treasurer of the sustenation committee of the synod of Pennsylvania, treasurer of the Presbyterian hospital there and American treasurer of the western section of the Alliance of Reformed Churches holding the Presbyterian system. Large sums belonging to these bodies will be tied up or entirely lost in the failure. Mr. Hipple's financial downfall was due largely to his advancing of money of the bank in aid of enterprises of Adolph Segal, owner' of the Majestic hotel and a promoter known for the boldness of his operations. Friends of the dead banker express the belief that Segal exercised a hypnotic influence over him.

11. September 12, 1906 The Cairo Bulletin Cairo, IL

Article from The Cairo Bulletin, September 12, 1906

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DIRECTORS ARE SAFE FROM PROSECUTION IN CONNEC. TION WITH COLLAPSE OF PHILADELPHIA BANK. Evidence Accumulates That Shows Hippel, Despite Use of Bank Funds, Was the Victim of Expert Note Shavers. Philadelphia, Sept. 11.-In view of the agreement of the directorate of the wrecked Real Estate and Trust company to put up sufficient money to rehabilitate the bank, and for the still more important reason that his investigation has not revealed any criminal intent upon the part of that body, District Attorney John C. Bell announced today there would probably be no further prosecutions I: was also officially announced that enough depositors had agreed to the reorganization plan to make it a sue cess. Evidence that Hipple had long been in the hands of note shavers has been unearthed Even George H. Earle. Jr., now the receiver of the trust company, was offered some of Hipple's note before the bank failed. A man wanted him to accept a $35,000 note for $25. 000. It was generally in this ratio or thereabouts the notes were disposed of. It has also been ascertained that within a week before the bank closed one of these agents, a professional man in reduced circumstances. suc ceeded in placing a note of Hipple's (Continued on Fourts Paga,