The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-07

IRE KNOWN III banking CIRCLES AZ loan CneCkH
These checks, signed by Nipple, were re-
turned to the treasurer as though they
represented cash on hand, and they were
10 placed on the books Of the company.
IL wa nothing but a clever Juggle. No
cash changed hands. II was simply SUBJ
shutting one worthless piece Of paper for
another"
"Whcn you learned Of this thing what
did you dC?'
Il en- to Ripple. He was nervous
He said. We must honor these ~overdraf,s.
Pay out all the monev they call for 4
went TO North and told him | did not like
the way we were carrying the oVerdNlfts
as though they were so much actual cash.
North and C~Ouingwood said II wasn't right
but that IL was up to Nipple. They said
that devils deputy Segal IL getting il an"
Joseph Esherick, the general bOokkeeper
OF the company, showed how Nipple would
come to him with securities, which he said
were Segal's and say: These are ample
for tho oan." The loan would be made
IN Nipple would take away the money.
Later on it was found out that these securi-
ties were those advanced by legitimate
borrowers Of honest loans, and while they
were good collateral, they did not belong
to Segal at all. By this means such con-
usion has been wrought in the accounts
of the company that a settlement appears
w Oc dlHIlQNJ All lmDONclDlllNy
IT list Of the Segal loans and collateral il
given as follows:
Segal Company total loans-Knicker-
booker Contracting Comrany. 81 100, 900;
Champion Construction Company. S2,ll2.-
300; Commercial Contracting Company,
ts15 900; Adolph Segal (~personal). s4s7 500;
W. H. Whiteside, Segal's secretary, $500 600;
Joseph A. Baker, ST. 900; j. Wood. Jr.,
tl7 400; Joseph r. Wainwright, $3.50 900;
total, IS, 300, 200.
IT, - l..
Segal as security for these loans
American Swedish Crucible Steel Com
pany, So, l25, 900 first mortgage S per cent.
bonds: Metropolitan Sugar Refining
Company, $685. ,O9Q first mortgage SIS;
n Seo compa arT% ss aa .0Oo first mortSase sg 5s,
first mortgages on South Altoona prop
critics, $235.OOO; Champion Iron a Separ-
ating Company. s770.00 o q per cent. bonds;
also 10000 shares of the capital stock in
the same company; Pennsylvania Sugar
Refining Company, $525, 900 in 5 per cent.
bonds; Bell Ice Manufacturing Company,
$40. 900 s per cent. first mortgage bonds;
Majestic Apartment House, Sl,0OO,OOO 5 per
cent. first mortgage bonds.
Receiver Earle went on the stand inc
said that the securities were such that no
banking institution would advance a cent
on them. He said that Treasurer North
had known Of all Nipples crooked work,
but that he had kept silent about il. The
ANOtlNGl NANIAlliCu a hOS WINCH ny IllBIlit
early on the morning of the day he killed
himself. II read:
"Thero is no one to bla me but myself.
Segal got all the money. He fooled me-"
Wharton Nipple, son of the dead man,
identified this note.
II came out, too, in the course Of the hear
ing that Nipple had a lot Of blank notes
signed by Segal, which he filed in without
letting Segal know. 10 was said that the
SUI OF these reached over So 1000, 600, but
kAA N aNWW1 wyaa 800 AaAAhlaaAAA Nc
tTict Attorney Bell is trying to find out
where this money went. He Is said to be-
lieve that It was one of the agents operating
to keep closed the mouths Of those who
knew OF Nipples populations but who kept
quiet about them.
Tho plan of reorganization of the Real
Estate Trust Company, which is expected
to open its doors for business again after
only a short interval, was made public
tonight. II is as follows:
George II. Earle il to be the president of
the company. He is the present receiver.
The directors holding office pledge them
selves to raise 5000 900. Receiver Earle
says that there are in the hands Of the
company securities Of value amounting
TO $50, 600. The company will issue pre-
forrc1 stock to the amount Of 81. 500 goo,
which Is to 60 10 the large depositors, who
are ple1ge1 to take il.
JOSEPH Def. Junkin. ex-Judge Porter
and R. DALI Eenson. Ct the TTesent director
~ ~ w Nv Ni'' ! ~ NbiA AlNh HbNNO rFpAN
chosen by the deTositors. The directors
advancing the $4,000, 600 arc 10 he protected
bv the equity in the company's building,
which vii eaS lily cover that amount. They
also are to be protected by ten years income
from the trust funds. John H.. Converse
said tonight that the directors had pledged
this AMOUNT. hut he was unwilling to give
the individual suhsCriDtiDns
The trust funds are in had shape because
OF the personal steali1gs of Nipple. just
kyhof fha onpnnanu will ha 10 70 rDoLa vnDI /
IL uncertain. The sum provided for ac-
cording to tine ne W scheme is about IS, 200, 900. |
This in a little less than Segal got. How
much Ripple got away with is uncertain, |
again. Still Receiver Earle thinks that
the company can he put on its feet.
There has been some talk Of the sugar
interesting itself in the wreck for
a million and a half dollars to prevent
revelations Of what are declared to be
transactiors in violation Of the Sherman
antitrust law on their part in the matter
Of the Shackamaxon refinery which Segal
has turned over to Receiver Earle. The
exact application and relevancy Of this
statement has not been established and it
Is supposed to be more or less wild talk.
After the hearing the District Attorney
eaid:
"If bribes were given in the bank | will
discover the guilty ones and they will be
prosecuted. | intend to learn Just what
"a az T" ~ "a FilfAlNN VI III
men nearest to the thieving president,
II will investigate, moreover. indie
pendently Of the Parking commissioner
the conduct Of the directors. II they have
been guilty of wrong doing, if they received
in the Segal transactions. they, too.
he prosecuted. NOquarter will be shown
to any one in this investigation"
1t came out to-day that thrce months ago
Nipple tried secretly to lave placed on
Promoter Segal's life an insurance policy
for 500 1000. Ii was refused because Of
Nipples manifest agitation and uncertainty
a. 20 details. Investigation also showed
that Segal knew nothing Of Nipples efforts.
Tho insurance president to whom Nipple
said tonight: Frank was very
He told mc he wanted the $780,
so on Seqal's life and that Segal knew all
ABOUT II. He said an examination of Segal /
would be unnecessary and offcrsd a large
for thu accommodation. OF course |
reused"
II is thorgit by those who know of the
thai Hir pc in his last desperate
cOn1eived the idea Of insuring
life. then killing both Segal and
after arranging for tho insurance
10 60 to the dcDosit0rs.
w ]
Movements Cr Naval Vessels.
WASHINGTON, SEPT. s.-The TORPEDO boat
the supply ship Celtic, the sub