The Jersey City news., 1906-09-06
SAYS SEGAL GOT ALL
Last Message of Nipple, Self
Slain Bank President, Ac-
cuses Promoter.
CHURCH CASH TAMPERED WITH

Bonds of Presbyterian General Assem-
bly, Pledged Below Face Value For
Loan-Directors of Failed Real Estate
Trust Company Consider Plan to Pay
Depositors In Full.
Philadelphia, Sept. CT have been
fooled. Segal got all the money. There
is no one to blame but myself"
This last message of Frank Il. Hip
pie will be presented, an accusing voice
from the grave, against AdoIph Segal,
financial hypnotist, when he is ar
raigned for wrecking the Real Estate
Trust company.
The promoter was arrested with the
treasurer of the ruined bank, William
F. North, and his assistant, Marshall
S. Collingwood
1t was the last message of the sui
eide president which caused John H.
Converse, hard headed business man
and even tempered exponent of uni
Versal charity, to cry out passionate
ON5o1 hy PAOl4LCO Il Iduh 1llDD4Ca
turned him from right to evil and made
of him thief"
The message was found In Nipples
room the morning he was found
stretched dead in the bathroom. F.
Wharton Nipple, his son, found it.
Message Blotted by Tear.
The message was a mere scrawl. 1t
was written in ink on the back of an
envelope Near the end of the last
sentence the ink spread out into a pale
blot, caused quite probably by the
splash of tear.
Examination of the box Of the gener-
al assembly of the Presbyterian church
in the vaults of the Real Estate Trust
company found the gross amount cor
rect, but three bonds had been sub
stituted for two others of equal value
Search for the missing bonds discov-
cred them in another bank in this city,
where Frank K Nipple had hypothe-
Gated them for loan amounting to
about $4,000 less than their face value.
They were worth something over $20,-
600.
The assumption is that Nipple had
taken so much money from his own in
stitution that he feared to get any
more and had therefore started to dip
into the funds of the church. 1t is GER
tain that he did so within the last two
months, for previous to the last meet
ing of the general assembly in May
auditors had examined the accounts
and certified to their correctness.
Speaking of the failure District At
torney Bell said, 81 am following an
accumulation of evidence that indi-
Gates wide circle of graft in this fail
ure and am learning something new
every day."
Segal Relied on Nipple.
Segal to carry on his many wild adj
ventures borrowed $5,3O0,OOO, for which
he gave to President Nipple, the only
man in the bank he dealt with, securi-
ties that are believed to have been in
sufficient. 1t was at first believed that
Nipple did not benefit by his dealings
with Segal, but later developments
showed that he was deep in the
schemes of Segal.
Segal since the failure has repeated
ly declared all his transactions were
regular, that he had not committed an
unlawful act and that he was able to
repay the trust company all the money
he had borrowed.
After attending a meeting of the
board of directors of the trust COM
pany today John H. Converse, one of
the directors, expressed the opinion
that depositors will be paid In full. He
said plan of reorganization is being
seriously considered
This plan calls for the issuance to
the largest depositors of blocks of pre-
ferred 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 100000 in
cash.
This turn in the affairs of the COM
pany is only one of the many sensa-
tions expected to develop in connec-
ton with the failure, which, it is esti-
mated, will exceed $1O,0O0O00.