The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-07
AN AMAZING STORY OF THEFT.
COURT HEARS HOW REAL ESTATE
TRUST 60. WAS LOOTED.
segal. North and ConingwOod Held Over.
drafts 90 Nearly . Mullen HO0orod for
SegaS and HlpDte-Ofher OGcials Pro
tected Presldent's Robbery for Years.

drsfts % Nearly . Mullen HODorod for
segaS and HIpDte-Other Ofhcials Pro-
tected Prosldsnt's Robbery for Years.
PHILADELPHIA; Sept. 6.-Adolpb Segalj
charged with completely In the thefts that
caused the ruin Of the Real Estate Trust
Company; william r. North, treasurer, and
N. s. Collingwood, assistant treasurer Of
the company, were arraigned before Magis-
trate Koc~hersperger to-day, and. after
witnesses had told the true story Of the
enormous stealings from the ruined oom-
pany, were held for the Grand jury. Ball
was fixed for them all and was provided.
SegaI Is held under s2s, 900 bonds, and the
others for $4,000 each.
The hearing was attended by az many
persons as could get into the court room,
and they heard a remarkable story OF the
almost insane plundering OF the bank by its
president. Frank X. Nipple. only a few
days dead by his own hand.
II was brought. out that as many az a
dozen persons knew in one way or another
Of the operations by which Nipple violated
his trust and involved the company In
losses that ANN be estimated.
II was testified that Segal was allowed
to overdraw hs account for hundreds Of
thousands Of dollars. that he was permitted
to obtain loans for himself on securities OF
real worth advanced by other men as col
lateral for their loans, and further that
President Nipple. by the presentation OF
worthless loan checks, was permitted to
overdraw his account almost a million
dollars.
II vas shown that all this was done for
years, despite the fact that many minor
officials had protested against it to Presi-
dent Nipple and to the treasurer and the
assistant treasurer. The extent Of the
operations and their daring conHounded
those who heard them set forth calmly in
court.
District Attorney John G. Bell as soon
as the three prisoners were called to the bar
arose and made a statement to the Magis-
trate which set forth clearly the entire
case.
st would perhaps DO better" he said;
speaking directly to the Magistrate, -and
lead to a clearer understanding Of the case
If I briefly outlined the story Of the gigantic
fraud and looting OF this concern. When
the trust company closed it's doors 1t had
about 5000 ~depositors.' These defendants
and the late President Ripple were engaged
in a conspiracy by which they succeeded
in robbing these dspositors Of something
like %, $780, 900. I shall prove all that and
more, too. / shall show that money was
j ~fnaudulently withdrawn and smbezzled and
was applied to the use Of a single man,
Adolph Segal. The actual parties were
Nipple and Segal, the more passive agents
North and Collingwood.
The treasurer and assistant treasurer
stood By n permitted this gigantic swim
die 70 90 on, and even at times contributed
checks for as much "a $4,000 signed by
themselves to aid the looting. l have
North's confession made 70 Receiver Earle
that all along he knew OF the methods Of
Nipple and Segal and never spoke a word
nor raised a hand, but complacently allowed
the depositors year after year to be robbed.
Now. to 90 more into detail. Among the
depositors were Segal. all Of Segals wildcat
enterprises and Nipple. Segal's accounts
were repeatedly overdrawn. One check
alone OF his for sl4O 600 was paid by Nipples
direction when Segal had not one cent in
the bank and owed It thousands OF dollars
already. Nipples own balance was some
times overdrawn $500 900: notes for 800, 900
were put in the cas- drawers, and these
Overdrafts were carried along as so much
actual money, When these overdrafts were
made the paying teller used to go to North
and ~COllingwood and ask what he should
do with those Segal checks which he knew
10 be worthless. Pay them, said North and
ColIingwood. and they were. paid.
From lime to time Nipple would go
through the hollow pretence Of makinga
loan and would apply the check given In
exchange for the perfectly worthless
security to lifting those overdrafts. But
North and C~ollingwood knew exactly
what was going on and, by following Hip
pies Instructions 70 the letter, as well as In
other ways, helped to loot the company.
THE loan checks were always paid out
OF the depOsitors' balances, and the notes
we're usually blanks signed by Segal and
filed in by Nipple to any amount. It was
by that system the bank was robbed. There
would be an enormous overdraft by Segal.
His check would be honored. Then there
would be a loan on a filed in check and
worthless collateral, followed by a good
check upon the depositors' money. Every
cent went to Segal. and by the time the bank
was forced 70 close It's doors the amount
thus distracted had reached nearly
IS, SOC. 600.
-Segal's due bills meanwhile were carried
as cash. North swore to them 10 the direo-
tors and TO the State Banking Department
as cash. That is why he is accused Of per-
jury. He made false returns not only as
TO the cash, but as TO the character Of the
collateral as well. Because SeRal used
Nipple as a tool l van him held for en-
bezzlement az well as conspiracy. All
three aided In the looting, and I AJAX that
all three be held for the Grand Jury..I
wish now 10 call witnesses in order that their
testimony may be got on record without
delay
The cashier; @. Il. Risky, was the first
witness called. He told how Nipple Gus
tomarily filed out blank notes indorsed by
Segal and Endorsed them to Offset Segal's
overdrafts and then placed these absolutely
worthless notes as part OF the cash supply
OF the bank, He said b a the Chamnion