Jasper County Democrat, Volume 9, Number 22, Rensselaer, Jasper County, 1 September 1906 — WAS RASCAL OR DUPE [ARTICLE]

WAS RASCAL OR DUPE

Another Trusted Financier Who Fails to Keep Hie Trust with Honest/. HE IS DEAD, MAYBE A SUICIDE Friends Said to Believe That He Had Been Hypnotized. Concern He Controled Short About >7,000,000 Over the Quick Assets Presbyterian Funds Involved. Philadelphia, Aug. 30. —It is stated that sufficient funds have been pledged to enable the Real Estate Trust company to reopen Its doors within fortyeight hours. As a preliminary to this the court will be petitioned to dismiss the temporary receivership. Philadelphia, Aug. 29. persistent rumors that President Hippie committed suicide were borne out when it was authoritatively stated that he took hie life st his room last Friday morning. Hippie is said to have taken a dosen of laudanum with suicidal intent While still conscious he filled his bathtub with water and later was found apparently drowned. Philadelphia, Aug. 29.—The Real Estate Trust company, organized in 1883. the depository for nearly $1,000,000 of the funds of "the Presbyterian church, and holding $300,000 of the money of the city of Philadelphia and $175,000 of state deposits, has closed Its doors. The failure was caused by heavy loans made by the late President Frank K. Hippie to Adolf Segal, a promoter, on insufficient security. A desperate effort was made to save the institution by the board of directors through an-appeal to the Clearing House association, but that body declined to subscribe a guarantee fund of $7,000,000 because of Insufficient security. Liabilities Aggregate >10,000,000. The liabilities are placed at $10,000,000, with quick assets of $3,500,000 and doubtful collateral amounting to $8,000,000. George H. Earle, Jr., president of the Finance Company of Pennsylvania, was appointed receiver, and in a statement to the public he expresses the hope that he may soon be able to recommend a plan to the depositors that will better serve their interests and terminate his services. President Hippie Hypnotized ? President Hippie was always regarded a conservative financier, but following his sudden death last Friday an Investigation by the directors developed the fact that his loans to Segal had been made regardless of proper security, and that he had made ft*lse statements to the directors of the bank’s condition. Friends of the president express the belief that Segal exercised a hypnotic influence over Hippie. Did He Commit Suicide ? Although the cause of Hipple’sdeath wa« given by his physician and the coroner as cerebral hemorrhage, It is Intimated that he may have committed suicide. When the directors met the Clearing House association the only absentee was Dr. S. Weir Mitchell, who is away from the city for the summer. MEANS TROUBLE FOR HUNDREDS Many Women nil tided—Clerk Caught in Kobbery—Presbyterian Funds. The failure undoubtedly means that hundreds of persons have cut short their vacation and are hurrying back from seashore and mountain resort. The institution was a favorite depository for women, and for well-to-do men who make use of purely personal accounts. The company was particularly attentive to this class of business; and perhaps no other bank In the city was so careful to always provide its women clients with clean, new money, even to tire nickels. For some days the books had been undergoing a thorough examination, but the clerks supposed this was due to a curious defalcation which was recently brought to light, but which was kept quiet. A young bookkeeper invented a new and Ingenious system of stealing which puzzled the bank officials and Is said to have aroused serious apprehension because of the difficulty In detecting or tracing Lt. His method was to forge the name of a depositor whose accounts were posted by him. To cover the forgery he would by a mental process Include the amount of the check Ln the total, being careful not to enter the amount of the bogus check After having secured the money he would tear up the bogus check when it reached his hands. By this method the ledger' and “scratcher” always agreed and the books balanced. Recently, while the forger was at luncheon, another clerk entered a number of checks In the former’s ledger, Including one that had been forged, and the scheme was thus detected. Bo far it is known that more than $3,000 was stolen from the bank by the clever young forger. According to last May’s minutes of the Presbyterian general assembly Hippie, who was treasurer of the board of trustees, had In bls charge funds of the church amounting to $908,898. The board of ministerial relief of the

Presbyterian church had sso,ooodepostted with the bankrupt company. SEGAL MAKES A STATEMENT K Says He Got Nothing from Hippie Except on 'Good Security. Adolf Segal made the following statement: “My business relations with Mr. Hippie were only those of a borrower, ns of money made by the trust company to me were all made on collateral in the usual course of business. I cannot tell the exact amount of my indebtedness and that of the companies with which I am associated, but it surely Is not over half the amount stated In the newspapers. T think It 1® about $3,000,000. “Mr. Hippie was not personally interested with me in any of my enterprises to the extent of a dollar or a share of stock. I never paid him a cent In commislcns or gave him a bond or a share of stock or remuneration of anj kind whatever.” He added that the company is amply secured by first mortgage bonds for every cent he borrowed.