Los Angeles herald., 1906-09-07
PHILADELPHIA BANKS FUNDS
GO TO SEGAL
Exposure Of Several Officials Prom.
ised, All of Whom Were but
Dupes Of the Real
cuiprIt
BY Associated Press.


most emphatic terms that no man Will
be spared in the effort to bring to JUS
| tice those responsible for the dissipa-
tion of the depositors money.
| The statement Is made that two di-
rectors, who are also members Of the
bar, have profted to the extent Of $780,
| 900 In the past three years by accepting
fees from Adolph Segal for passing on
securities rendered by him for loans
from the bank aegregating $5,3O0,0O0.
| So far as Is known warrants have
not been issued for these men, but the
public is awaiting with breathless in
terest sensational arrests of directors
who stood high in the community be-
fore the crash and exposure came.
| President Nipples plaintive cry from
his grave, "Segal got ALL" has aroused
| the depositors to q high pitch of in
dignation. Lawyers representing many
hundreds of them are taking an active
part in the investigation of the affairs
of the trust company and the facts are
coming to light almost hourly revealing
new forms OF duplicity on the part of
the men intrusted with the depostors'
money and the trust funds of large and
small estates.
Investigation shows that the looting
Of the trust company will cost the Pres
byterians less than 100000 and the
leaders of that faith are congratulating
themselves that President Nipple chose
an opportune time for committing sui
eide, as far as the church is concerned,
the funds and deposits being low at
this time of the year.
HippIe Was Money Mad
Receiver Earle expresses the opinion
that President Nipple was money
mad" and that there seemed to be no
end to the variety of methods by which
he juggled with securities which fell
into his hands and concerning which
he sought to deceive the directors.
HE was not content with stealing
the same bond or stock certificates
once" said Mr. Earle, "but did 1t sew
stance, receive bond or certificate as
collateral for a loan, the security rep
resenting safe margin.
Then If Mr.. Segal came along ask
ing for loan and presenting insuffi-
Client security, Mr.. Nipple would take
the good security deposited with note
Of another man and place 1t with Sc
gals note.
I'm this manner the directors were
brought to believe that the second Sc
curity was collateral for the loan to
Segal. This sort of operation was re-
peated by Mr.. Nipple as often as Mr..
SegaPs demands seemed to render it
necessary"
Mr.. Earle said that these practices of
Nipple had left the notes and papers
relating to loans in almost inconceiv-
able confusion, 1t was established yes
terday that the substitution of bogus
bonds for good bonds among the trust
securities of the Presbyterian general
assembly board was accomplished by
Mr.. Nipple through species of seight
of hand.
He went to the box in the valut con-
tanning the trust securities in question
on the pretext of cutting coupons in
order to cash them and place the pro-
ceeds to the credit of the baord After
the box was opened Nipple informed
the clerk that somebody at the door
wanted 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
two bogus bonds for two good ones,
which he afterward hypothecated for
the benefit of himself or Segal.
Charges Gigantic Conspiracy
The hearing in the cases of Adolph
Segal, William F, North and M S,
Collingwood, who were arrested yester-
day on charges of aiding in the wreck
ing of the company, was held before
Magistrate Kochersperger today The
court room was crowded with men well
known in the financial world.
District Attorney Bell, In outlining
his case, said he would prove that the
accused men with Nipple We're engaged
in gigantic conspiracy to defraud the
and that as a result of their
acts more than $500, 600 had been abb
from the institution and em-
bezzled for the use of one man, Adolph
Segal. The active persons In the con-
spiracy, he said, were Nipple and
Segal.
The passive agents were North and
Collingwood, he continued, who wick
edly and wrongfully stood by and saw
the others loot the institution and gave
no warning.
Mr.. Bell said the institution had $500
depositors and the deposits amounted
to $7,000,0oO.
For the money borrowed by Segal
there is nothing to show but Wildcats.
At the conclusion of the hearing the
three prisoners were held for trial.
their bail being renewed
Robert Gheirsky, cashier OF the Trust
the first witness, told of fire.
quent everdrafts by either Segal, in-
dividually or as treasurer of one of his
or Hipple's. He regularly
took the overdraft checks to Nipple.
who would grow pale. pace the floor
well, l guess we will have to pay
this"
"These overdFafts." he said worried
me and / frequently told North about
1t, but he referred me to Nipple.
Sometimes | went to Collingwood, the
assistant treasurer, who agreed with
me that the overdrafts were not sound
business.
"I1e knew what was going on and
often referred to Segal as the DEVILS
dupe.'
Sega Got All Money
The day Nipple killed himself there
was an overdraft of $64,3O0 standing
against Hipple's name. Collingwood,
as soon as he learned of his death,
converted the oVerdrafts into a loan,
thus showing on the books that Nipple
had not overdrawn his account
r. Wharton Nipple. son Of the suicide
president of the company, identified the
on the paper containing
the confession as his fathers. The
Is as followsi
ITO the Real Estate Trust company:
No one Is TO blame but myself. SegalI
got all the money. l was fooled in
lending it to him. thinking his business
was good"
When the district attorney COM
pleted HIS case ne asked the magistrate
to hold the prisoners for trial In the