Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1906-09-07
Stole the Same Securities
Several Times Over.
Investigation Throws New Light
on Looting Of Trust Co.
President Of Concern Fooled Clerk and
Substituted Bogus for Good Bonds.

Philadelphia, Pa, Sept. 6.-Rumors
of arrests of directors Of the looted
Real Estate Trust Co. fill the air today.
District Attorney Bell declares in most
emphatical tones that no man will be
| spared in the effort to bring to Justice
| those responsible for the dissipation Of
the depositors' money. The statement
| Is made that two directors who were
| also members of the bar have profited
to the extent of $750.OO0 in the past
| three years by accepting fees from
| Adolph Segal for passing on securities
| rendered by him for loans at the bank.
aggregating s5.500,00O. So far as is
known warrants have not been issued
for these men.
President Ripple's plaintive cry from
the grave, "Segal got all" has aroused
the depositors to a high pitch OF in
d1gnation. Facts are fast coming to
light, revealing new forms of duplicity
on the part Of men entrusted with the
depositors' money and the trust funds
of large and small estates. Investiga-
ton shows that the looting Of the
Trust Co. will cost the Presbyterians
less than 100000. Receiver Earle said
today:
Nipple was not content with steal
ing the same bond or stock certificate
once, but did it several times over.
He would. for instance. receive a
bond or certificate as collateral for a
loan. the security representing a safe
margin. Then if Segal came along
asking for loan and presenting insult
f1cient security, Nipple would take the
good security, deposit with a note of
mn MI -
note. In this manner the directors
were brought to believe that the sound
certificate was collateral for the loan
TO Segal. This sort Of plan was re-
peated by Nipple as often as Segal's
demands seemed to render 1t necessary.
1t was suggested that the substitutes
OF the bogus bonds for good bonds
among the trust securities of the Pres
byterian General Assembly Board, was
accomplished by Nipple through a
species of slight Of hand. He went
to the box in the vault, containing
the bond securities in question, with
the pretext of cutting coupons in order
to cash them. and place the proceeds to
the credit of the board. After the
box was opened Nipple informed the
clerk that somebody at the door want
ed to see him for a moment. The
clerk. unsuspectingly left Nipple alone
for this brief interval. The time was
sufficient to enable him to substitute
the bogus bonds for the genuine bonds.
which he afterward hypothetical for
the benefit Of himself or Segal
District Attorney Bell in outlining
MS case, says he would prove that the
accused men with Nipple were engage
ed IN a gigantic conspiracy to defraud
the Trust Co., and that as a result
OF their acts more than $1,000, 900 had
been distracted from the institution
and embezzled for the use Of one man
Adolph Segal. The active persons in
the conspiracy, he said were Hipple
and Segal. The passive agents were
North and Collingwood, he continued.
Robert D. Ghriskey. cashier OF the
Trust Co, the first witness, told OF fire.
quent overdrafts by either Segal, in
dividually or as treasurer Of one Of his
companies or by Nipple.
The Nipple and Segal overdrafts we're
he said. The total amount
was at times more than $500, 900. These
overdrafts." he said. worried me and
frequently told North about them.
He always referred me to Nipple.
Sometimes I sent to Collingwood, the
assistant treasurer who agreed with
me that the overdrafts were not sound
business. I once told Nipple that the
cash balance was low and he told me
not to worry as the next day he ex-
pected to realize a million dollars on
the sale of sugar refinery.
George H. Earle Jr.. receiver for the
Trust Co, that in interrogating Treas
urer North. the treasurer told him he
knew. the concerns condition. North
said he did not report 1t as he UNDER
stood the directors were aware Of the
condition.
William E. North, treasurer Of the
Trust Co.. and M. 8. Collingwood. as
sistant treasurer, who were arrested
CONTINUED on Page Two.)
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