The Montgomery advertiser., 1906-09-06
'DEFPAUDED 1 <DEPOsITORS Adolph Segal Is Ar
 rested. ABBETTED FRANK K. HIPPLE Treasurer and Assistant of Trust Co. In Tolls. walter c. Browning Avers That Three Men With Deceased President Embezzled Several Million
 Dollars From Defunct
 Instftution.

Philadelphia, Sept 5--Charged 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 S. Col lingwood, the Assistant Treasurer. were arrested today at the instance of Dis trict Attorney Bell. who has spent nearly a week in investigation of the affairs of the wrecked institution
 segal was held in $25,000 bail, and the two trust company officials in $10,000 each. They entered bond and will be given 8 hearing tomorrow.
 This turn in the affairs of the com pany Is only one of the many sensa- tfons expected to develop in connection with the failure which 1t is expected will exceed Si0. 900 before the re- ceiver finishes his investigations.
 The afadavtts accompanying the war rants wer sworn to by Walter c, Browning, a depositor and creditor oi the Real Estate Trust Company. They aver that Segal. North. and Ceiling wood, with Frank K. Nipple, the pres suicide, and with other unknown per sons, defrauded the company "out ot many millions of dollars" and that they fraudulently applied the money to their own use.
 It is further charged that Segal was an abettor to the embezzlement of the many millions of dollars and that North committed perjury in knowing Iv having furnished to the commission CT of Pennsylvania false reports of the value of the compauy's assets. re. sources and liabilities Collingwood and North are also accused of having received money from depositors attes hthey knew the company was insolVene "Divers Other PersOns.n No other arrests are expected at this time. and the divers other persons mentioned in the warrants was insert ed for the purpose of covering any otn- er nersons who might hereafter ne found ta have been implicated in the collapse of the trust company.
 Adolph Segal. who Is looked on as the principal in the failure of the instltu- ton, had nothing to say after ms ar lest, He contented himself by refer ring all persons to his attorneys Segal Is A promoter of many enterprises .n this city and throughout the State or Penns ylvania To carry on his opera tions he borrowed, Receiver Earle says. more than $5.O0o,00O. for which he gave to President Nipple. the only ma a ir. the bank he dealt with. securities that were insufficient.
 
 benefit by his dealings with Segal. but later developments showed that he was deep in the schemes of Segal and a rartner in some of his companies.
 Segal, since the failure, has repeated lv declared that all his transactions were regular, that he had not commit ted an unlawful act. and that he was able tn repay the trust company all the money he had borrowed. In a recent Ao ha sreculator in bricks. mortar and ma- cninery," that he dealt in material things. and did not make his money by reading the stock ticker tape.
 wildcat Mine speculatiOns,
 Among the stocks and bonds Of Be- gals that were found in Nipples desk when the receiver opened 1t, were those of the Greene Gold-Silver Company: South Altoona Land Company; Kuick- erbocker Construction; Champion Iron and Separator; Empire Sugar Refining Company; Metropolitan Sugar KennlhB Company; United States Lead Corpora ton; Standard Iron Mining Company; American Swedish Crucible Steel Com rany: Standard Iron Mining Company; American Swedish Crucible Steel Com many; Pennsylvania Sugar Refining Company and the Majestic Apartment House Company. The district attorney has commissioned delectlVeS to lhNSsli - gate all of these concerns.
 How much North and CollinRwood benefited in the transactions of Nipple and Segal. if at all. has not been de- termin6d
 First mortgage gold coupons of the pennsylvaia Sugar Refining Company, face value, $25, ,G00. were sold at auc- tlon here today for $2.500. This is one of the companies promoted by Segal, some of the securities of which he gave as collateral for part of the loan he re- ceived from the Real Estate Trust Com rany.
 Alter attending a meeting of the Roard of Directors of the Trust Com. pany today, John M. Converse, one of the directors, expressed the opinion that .lepositors would be paid in full. He said the plan of reorganization outlined last night is being seriously considered. This plan calls for the is- suance to the large depositors blocks of preferred stock, thereby permitting the directors to have the use of part of their deposits in liquidating smaller claims. The plan also provides that the directors advance $3,000.00O in cash.
 District AttorneyBell and Receiver Earle continued their investigation to- day at the Trust Company's offices. As- sistant Treasurer Collinwood, after be- ing released on bail, appeared at the office and assisted in the examination.