The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-08
NO IMMUNITY FOR DIRECTORS.
IF ANY GOT TRUST co. LOOT THEY
WILL BE PROSECUTED.

Prospects for ReorE OTPhiladolphfA
Concern Grow Dtm-ReceiVer Earle
ReJects Presidency -Dtrectors Refuse
20 Make Up DepositOrs' Losses.
PHILADELPHIA; Sept. REORGANIZATION
OF the Real Estate Trust Company assumed
to-day a dim and distant aspect. One
reason IL that the directors are unwilling
to put up the millions required unless
guaranteed immunity from civil and crimi-
nal suits. This immunity neither Banking
Commissioner Berkey nor District Attorney
Bell will give.
Furthermore; Receiver Earle has de-
clined the presidency Of the r~eorgsnised
concern, and without him little confidence
would be felt in any plan.
The District Attorney said to-day:
Whether the directors make restitution
or not, il they are found TO have partici-
pated in the loot they will be sent TO jail
Il nave learned continued the District
Attorney, that Col. r. Dale Benson, Frank
Nipple, Joseph Def. Junkin, Samuel Hous-
ton and H. p. Borden were the directors who
have been sending false reports to the
Banking Commissioner They signed the
reports and certified that the statements
within them were true
Bank Commissioner BerNey said, he was
after those same five who formed the ex-
ecutive committee Of the board Of direc-
tors. He put his experts at work on the
bank affairs early this morning.
Segal is Frustrated az his dream pal
ace, the Majestic, on which Nipple loane
q, 200 600, and which is assessed at 500 900.
Fears are felt for his sanity. It was dis
covered to-day that Nipple had tried fruit
lessly to insure Segal in two companies
other than the one mentioned in n SUN
this morning.
Receiver Earle announced again tonight
that he proposed to sell the minority in
terest. in SeGRl's Shaokamaxon sugar re-
finery to the sugar trust, and II the trust
did not buy he would proceed at once against
that concern under the Sherman act.
Depositors at a meeting urged the re-
oeiyer not to sell for less than 81 500 900.
Former Judge Gordon and Attorney Joseph
S. Auerbach Of New York. representing the
interests, were m conference thus
New York tonight, and Il ID understood
carried the receivers threat.
1t 10 admitted that foisting the Shack
amazon refinery On the trust il little other
than official blackmall. I'M situation came
| about as follows: When the receiver tailed
up the SegaI assets he found that only 40
per cent. OF the refinery stock was owned
nv him. : SeRal then confessed that he had
eold 81 per cent. to Havemeyer Tor 81 500 900.
This controlling interest was as good as
the whole because with it the refinery could
not be nun without the trusts consent.
Mr.. Earle then conceived the plan OF forcing
the trust TO pay the remainder, and as a
club used the threat of prosecution. The
receiver said tonight that he believed the
nlst would buy rather h fight
Another Segal asset was discovered by
the receiver to-day in the shape Of q sugaI
refinery on the Jersey side Of the Hudson,
~opposite Grants Tomb. Sega bought
this plant for 81 ESQ, 900, despite the fact
hat its owners had just paid SlL1SO,0O
for Il. Under the name Of the Empire
sugar Refining Company, Segal organized
with 81. 500, 900 common stock and t2,OOoIOOC
| of bonds. Segal never operated the plant
and apparently was not able TO unload
ON the sugar trust. At present IL Is actually
running but merely under an option held
| nv Charles NJ. Warner Of the Warner Quinlan
| Company OF asphalt fame. II Is under
stood that he will buy it II it proves to be q
money maker.
PrrrsBURo, Sept. 7.-Negotiations have
been closed between an association Of
depositors Of the defunct Enterprise
National Bank Of Allegheny whereby the
directors will pay the depositors in full
Thew have already received 10 per cent
and the receiver expects soon 70 pay II
per cent. more.
President Fred Gwinner headed tbs
movement to pay on the depositors. He
has already taken care Of the people whS
deposited their money at his solicitation
and score s Of others who appealed to hin
ON the plea OF poverty.