The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-09-07

ment. The clerk unsuspectingly left
Nipple alone for this brief interval
The time was sufficient to enable him
to substitute two bogus bonds for two
genuine bonds. which he afterward hy-
pothecated .or the benefit of himself
or SegaL
seeaI In Court.
The hearing in the cases of Adolph
Segal, William F. North and NJ. S.
Collingwood, who were arrested yes
terday on charges of aiding in the
wrecking of the company, was held be-
fore Magistrate Kochersperg 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, were en-
gagged in a gigantic conspiracy to de-
fraud the company. and that as a re-
suit OF their acts more than So. 300 900
had been distracted from the institu-
ton and embezzled for the use of one
man, Adolph Segal. The active per-
sons In the conspiracy, he said, were
Ripple and Segal. The passive agents
were North and Collingwood, he con-
tinued, who wickedly and wrongfully
stood by and saw the others loot the
institution and gave no warning Mr..
Bell said the institution had $500 de-
positors. and the deposits amounted to
100000. For the money borrowed by
Segal, there is nothing to show but
wildcats.
Evidence of Cashier.
Robert d. Ghirskey. cashier of the
trust company the first witness, told Of
frequent overdrafts by either Segal, in
divdually, or as treasurer of either one
Of fc 1r,Na,v "a -
larly took the overdraft checks to Hip
pie. who would grow pale, pace the
floor, and then say, We'll, 1 guess we
will have to pay this
These overdrafts," he said worried
me and 1 frequently told North about
them. He always referred me TO Hip
pie. Sometimes ! went to CollinRwood.
the assistant treasurer. who agreed
with me that the overdrafts were not
sound business. He knew what was
going on and often referred to Segal as
the devils deputy"
Receivers Testimony.
George II. Earle. receiver for the
trust company, followed. He told of
how he examined all officers to learn if
they were conversant with the true
condition of the company
When Mr.. Earle was asked what he
thought of the worth of the. Segal Sc
curities, he said:
mo banker would dream Of taking a
quantity Of such industrial securities
from any one, two or three persons
Before leaving the stand, Receiver
Earle gave the district attorney the en-
velope on the back of which. was writ
ten Nipples confession
Paying Teller Edgar Featherson cor
roborated the testimony of Cashier
Ghirskey regarding the overdrafts.
The day Nipple died he said there
was an overdraft Of 300 standing
against Nipples name. Collingwood as
soon as he learned of his death con-
verted the overdraft into a loan, thus
showing on the books that Nipple had
not overdrawn his account
A Waterman in the trust company
testified that Segal often visited Nipple
In the bank building on Sunday morn
ings, holidays and Saturday afternoons,
but seldom during business hours.
Nipples Confession.
F. Wharton Nipple, son of the sui
eide president of the company, identi-
fed the handwriting on the paper con-
tanning the confession as his fathers.
The confession is as follows:
TO the Real Estate Trust company:
No one is to blame but myself SegaI
got all the money. I was fooled In
lending 1t to him, thinking his business
was good
When the district attorney completed
his case. he asked the magistrate to
hold the prisoners for trial in the same
bail as that demanded yesterday, name
ly, $4,000 for Segal and $4,000 each for
North and Collingwood. This was done.
but not before counsel for Segal had
made statement that Segal would
prove his innocence in court. Counsel
said he had been instructed by Segal
TO say that he had property valued at
$l0,OOO,OOO and that all his debts would
be paid in full.