The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-09-05
Promoter Segal, North and Col
lingwood Blamed for Phila-
delphia Failure.
DEFRAUDING COMPANY,
CHARGE IN WARRANTS
More Sensations Impend-The
Loss May Reach Ten
Millions.

having defrauded the depositors of the
Real Estate Trust company Of this city
out of many millions Of dollars, Adolph
Segal, promoter of many enterprises;
William F. North, the treasurer Of the
detunct trust company, and Marshall s.
We're arrested today at the instance of
District Attorney Bell, who has spent
nearly week in investigating the af-
fairs of the wrecked institution.
Segal was held in $4,000 bail, and
the two trust company officers in $10.-
900 each. They entered bond and will
be given hearing tomorrow.
This turn in the affairs of the COM
pany is only one Of the many sensations
expected to develop ID connection with
the failure, which it is estimated will
exceed $4,000, 00g before Receiver
Earle finishes hH investigation.
Others Are Accused.
The affidavits accompanying the war
Browning, depositor and creditor of
the Real Estate Trust company. They
aver that Segal, North and Collingwood
with Frank K. Nipple, the president of
the company, who committed suicide,
and with other unknown persons, de-
frauded the trust company tout Of
many millions of dollars' and that
>
their own use.
1t is further charged that segal was
IN abettor to the embezzlement and
that North committed perjury in know
ingly having furnished to- the commits
sioner of banking of Pennsylvania
false reports OF the value of the COM
pany's assets, resources and liabilities.
Collng.wood and North are also accused
or having received money from depos-
itors after they knew the company was
insolvent.
The, three men knew they were to
peared at the magistrate s office and
Prepared for Arrest.
sought out their bondsmen. After the
warrants were issued the district at
torney notified the attorneys for the
accused man, and they waived formal
service of the warrants. At noon the
three men, with their bondsmen, ap-
peared at the magistrates office and
entered bail. s
No other arrests are expected at this
time. and the "divers other persons D,
FOR the purpose of covering any other
persons who might hereafter be found
to have been implicated in the collapse
of the trust company.
segal Will Not Talk.
Adolph Segal, who is looked upon as
the principal in the failure of the in
stitution, had nothing to say after his
arrest. He contented himself by refer
rim gall persons to his ATTORNEYS.
Segal was promoter of many enter
prlses i nthis city and thruout the
state of Pennsylvania. To carry on his
operations he borrowed, Receiver Earle
says, more than $5,O0O,OOO, for which he
gave to President Nipple, the only man
! nthe bank he dealt with, securities
that were insufficient.
It was at first believed that Hipple
did not benefit by his dealings with
Segal,, but later developments showed
that he was deep in the schemes of
Segal and partner in some of his COM
panies.
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.
Probe segal Investments.
In recent interview he declared
that he was speculator in "brics, NOR
Tar 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 Sc
gals that were found in the Hipple
desk when the receiver opened it We're
those OF the Greene Go1d-Silver com
Pan!y, South Altoona Land company.
hnlckerbocker Construction company,
Empire Sugar Refining company, Met,
TGPi1 ta5 q. sugar Refining company,
ard Iron Mining company, American
Swedish Crucible Steel company, Penn
sylvania Sugar Refining company and
the Majestic Apartment House com
pany.
The district attorney has commits
stoned detectives to investigate all of
these concerns for the purpose Of de-
termlMng the approximate value of the
securities.
How much North and Collinpwood
benefited in the transaction of Hipple
and Segal, if at all, has not been de-
termined.