The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-06
THREE ARRESTED
IN PHILADELPHIA
Charged with Defrauding De-
poSitors in Trust Company
WILL BE HEARD TODAY
Officers Are Charged With Defrauding
Depositors out Of Many Millions
of DoIlars-Gold Coupons
Are Sold.

Philadelphia, September ). - Charged
with having defrauded the depositors of
the Real Estate Trust company of this
city out of many millions of dollars,
Adolph segal, a promoter of many enter
prises; William F. North, the treasurer of
the trust company and Marshal s. Col
lngwood, the assistant treasurer, were ar
rested today at the instance of District
Attorney Bell who has spent nearly a
week investigating the affairs of the
wrecked institution. Segal was held in
$4,000 hail and the two trust companions
in $4,000 each They entered bond and
will be given a hearing tomorrow.
This turn in the affairs of the COM
pany is only one of the many sensations
expected to develop in connection with
the failure which it is expected will ex-
coed $40, 900 before the receiver finishes
his Investigation
The affdavits accompanying the warrants
were sworn to by Walter C. Browning, a
deposltor and creditor of the Real Estate
Trust company. They aver that Segal,
North and Collingwood with Frank Is.
Nipple, the president of the company, who
committed suicide, and with other un-
known persons defrauded the trust COM
pany out of many millions of dollars
and that they fraudulently applied the
money to their own use. It is further
charged that Segal was an abettor to the
embezzlement of the many millions of dol
lars and that North committed perjury
In knowingly having furnished to the
commissioner Of banking of Pennsylvania
false reports of the companys assets, re-
sources and liabilities. Collingwood and
North are also accused of having received
money from depositors after they knew
the company was nsolvent.
No other arrests are expected at this
time and the divers other persons" men
toned in the warrants was inserted for
the purpose of covering any other persons
who might hereafter be found to have
been implicated in the collapse of the trust
company.
Had Nothing to Say.
Adolph Segal, who is looked on as the
principal in the failure of the institution,
had nothing to say after his arrest. He
oontented himself by referring all persons
to his attorneys. Segal Is a promoter of
many enterprises in this city and through
out the state of Pennsylvania. To carry
on his operations he borrowed, Receiver
Earle says more than 100000 for which
he gave to President Nipple. the only man
In the bank he dealt with, securities that
were insufficient 1t was at first believed
that Nipple did not benefit by his dealings
with Segal, but later developments showed
he was deep in the schemes of Segal and
a partner in some of his companies.
Segal. since the failure, has repeatedly
declared that 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. In a recent interview
he declared that he was a Spectator in
bricks, mortar and machinery" that he
dealt in material things and did not make
his money by reading the stock ticker
tape
Among the stocks and bonds of Segal' S
that were found in Nipples desk when tho
receiver opened 1t were those of the
Greene Gold-Silver company; South AL
toona Land company; Knickerboeker Con-
struction company: Champion Iron and
Separator company; Empire Sugar Rein
ing company; Metropolitan Sugar Refining
company; United States Lead corpora
ton; Standard Iron Mining company;
American Swedish Crucible Steel COM
pany; Pennsylvania Sugar Refining COM
pany and the Majestic Apartment House
company. The district attorney has com
missioned detectives to investigate all of
these concerns.
How much North and Collingwood ben
Gifted in the transactions of Nipple and
Segal, If at all, has not been determined.