Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-05
THREE MEN HELD
FOR REALTY WRECK
Estimated Philadelphia Failure
Will Exceed 100000
HEAVY BAIL IN EACH CASE
Adolph Segal Alleged to Be the Princi-
pal Offender.
HEAVY BAIL IN EACH CASE
AN ABETT0R TO EMBEZzLEMENT
North Said to Have Committed Per
fury in Furnishing False State
ments to Bank Commissioner.

Ill &C dllSSlS WIN AoA sAA>
colossal Realty failure in Philadel-
'phia today, and the accused men
were admitted to heavy bail
$4,000 being asked in one in
stance. Adolph Segal is regarded
as the principal offender, and Dis
trict Attorney Bell is said to have
very damning testimony against
him. He is a promoter of many
schemes, and in his desk were
found the securities of numerous
concerns.
PHILADELPHIA, September 5.-Charsed
with having defrauded the depositors of the
Real Estate Trust Company Of this city
out of many millions of dollars, Adolph
Segal, a promoter Of many enterprises;
William F. North, the treasurer Of the
trust company, and Marshall 8. Colling-
wood. the assistant treasurer were ar
rested today at the instance of District At
torney Bell who has spent nearly a week
in investigating the affairs Of the wreckeA
institution Segal was held in $25 600 bail
and the two trust company officers in $1O
600 each. They entered bond and will be
given a hearing tomorrow.
This turn in the affairs of the company
Is only one of the many sensations ex-
pected to be developed in connection with
the failure. which, 1t is estimated will ex-
ceed $4,000, 600 before the receiver finishes
his investigation.
The arrest of Segal, North and Ceilings
wood had been expected for several days,
but the district attorney would not name
them until last night.
Mr.. Bell reached his Office unusually
early today, and Immediately set about
preparing the warrants for the arrest OF
the three men named. While they were
being prepared Magistrate William 8.
Kochersperger was waiting in the city hall
to sign them and have them served.
Many Millions in the Fraud.
The afidavits accompanying the warrants
were sworn to by Walter c. Browning,
deposition and creditor of the Real Estate
Trust Company. They aver that Segal
North and Collingwood. with Frank X.
Nipple. the president Of the company, who
committed suicide and with other unknown
persons. defrauded the trust company "out
Of many millions of dollars" and that they
fraudulently applied the money to their own
use. 1t is further charged that Segal was
an abettor to the embezzement of the
many millions of dollars, and that North
committed perjury in knowingly having
furnished to the commissioner of banking
of Pennsylvania false reports of the value
of the company's assets, resources and liza
bilties Collingwood and North also
cused of having received money from de-
pOSitnrS after thpv knew
tnsolvent.
Sought Bondsmen.
The three men knew they were to be ar
rested and early in the day they sought out
their bondsmen. After the warrants were
Issued the district attorney notified the at
torneys for the accused men and they
waived formal service of the warrants. At
noon the three men. with their bondsmen,
appeared at the magistrates office and en-
tered bail.
No other arrests are expected at this
time, and the divers other persons men
TONED in the warrants was inserted for the
purpose OF covering any other persons who
might hereafter be found to have been i'm
plicated in the collapse of the trust COM
pany.
Adoph Segal, who is looked upon as the
principal IN the failure of the institution,
had nothing to say after his arrest. He
contented himself by referring all persons
to his attorneys. Segal is a promoter of
many enterprises in this city and through
the state OF Pennsylvania To carry on his
operations he borrowed, Receiver Earle
says, more than 5000. 600, for which he
gave to President Nipple, the only man in
the bank he dealt with. securities that were
insufficient 1t was at first believed that
Nipple did not benefit by his dealings with
Eegal, but later developments showed that
he was deep in the schemes of Segal and
q partner in some of his companies.
Says All Was Regular.
Segal. since the failure, has repeatedly de-
clared that all his transactions were reg
ular, that he had not committed an unlaw-
full act, and that he was able to repay the
trust company all the money he had bor-
rowed. In a recent interview he declared
that he was a speculator in bricks, mortar
and machinery" that he dealt in material
things and did not make his money by read
Ing the stock ticker tape.
Among the stocks and bonds OF Segal that
were found in Hpples desk when the re-
ceiver opened II were those OF the Greene
Gold-Slver Company. South Altoona Land
pany, Champion Iron and Separator Com
pany, Empire Sugar Refining Company,
Metropolitan Sugar Refining Company
United States Lead Corporation Standard
Iron Mining and Furnace Company, Ameri-
can Swedish Crucible Steel Company. Penn
sylvania Sugar Refining Company and the
Majestic Apartment House Company. The
district attorney has commissioned detec-
tives to investigate all of these concerns for
the purpose of determining the approximate
value of the securities.
How much North and Colingwood ben
Gifted in the transactions Of Hipple and
6egal, IL at all, has not been determined