Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1906-09-13
"SEGAL GOT ALL
Bank President Nipple Made a Con-
fession Before He Suicided-Evi-
dence that Other Officials Helped
Him to Wreck the Real Es-
tate Trust Co.

Philadelphia, Pa. - To determine
the responsibility of the direct
ors of the wrecked Real Estate Trust
Co., State Banking Commissioner
Berkey came here Thursday and ap-
pointed as special bank examiners
Charles NJ. Vollum and Meyer Gold.
smith, expert accountants, who with
the consent of Receiver Earle will to.
day begin thorough examination Of
the defunct concern.
Commissioner Berkey, in an inter-
view, stated that the examination
should not occupy more than four or
five days. The law gives the exam
iners the right to interrogate under
oath any director or employe of the
trust company or of any other COM
pany holding assets of the defunct
concern. During the past few years,
Mr.. Berkey declared, practically every
director of the Real Estate Trust Co
had certified to the correctness of the
reports filed by the company with the
state banking department. These
reports, he said, appear to have been
false. If his examination sustains the
falsity of the reports, Mr.. Berkey de-
clared he would proceed against the
directors and make an issue of their
responsibility, which has never been
decided by the courts of this state.
Receiver Earle last night, after
conference with the directors of the
trust company, said that he hopes
soon to reopen the doors of the bank
a:d that all depostors will be pro-
tscted. Mr. Earle says the directors
have responded to his solicitations to
help reorganize the company, but he
did not state what amount of money
they have guaranteed
The preliminary hearing of Adolph
Segal, the promoter; William F.
North, treasurer, and Marshall s.
Collingwood, assistant treasurer of
the Real Estate Trust Co., took place
Thursday and the three were held in
heavy bail for trial
The evidence presented through
witnesses by District Attorney Bell at
the hearing of Segal, North and Col
lingwood yesterday disclosed the
methods by which Segal and Nipple
wrecked the trust company. The
most damaging testimony was that
both Nipple and Segal had repeatedly
oyerdrawn their accounts with the
knowledge of the treasurer and assist
ant treasurer. These overdrafts were
carried as cash accounts. On the day
Nipple died there was an overdraft of
$4,000 against the president which
was converted by Collingwood into a
loan, showing Nipples account to be
apparently straight. These over
drafts of Nipple and Segal at times
amounted to more than 100000.
There was on deposit in the bank
approximately s7,000,000 and the
loans made to Segal amounted to So.
309,200 Many of the securities which
have since been found to be INSULT
cient were bonds and stocks in the
Segal enterprises and were approved
personally by Nipple.
President Nipples plaintive cry
from his grave, "Segal got ALL has
aroused the depositors to high pitch
of indignation. Lawyers representing
hundreds of them are taking an active
part in the investigation of the af.
fairs of the trust company and facts
are coming to light almost hourly re-
vealing new forms of duplcity on the
part of the men entrusted with the de-
positors' money, and the trust funds
OF large and small estates.