Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1906-09-13

In the warrants was inserted for the
purpose of covering any other persons
VINO might hereafter be found to have
been implicated in the collapse of the
trust company.
Adolph :; gal. who Is looked upon as
the principal in Tho failure of the in
stitution. had nothing 10 say after his
arrest. lie contentcd himself by re-
feirinS al persons To his attorneys.
SeSal Is II promoter OF many
eHte'rri ses in this city and through
out the state of Pennsylvania.
70 carry on his operations he borrowed,
Receiver Earle says. more than So
0o0. 600. for which he gave President
Nipple. the only man in the bank he
dealt with. securities That were INSULT
cient. Ii was at first believed that
Hipple did not benefit By his dealings
With Segal. but later developments
showed he was deep in the schemes of
Segal and WAS Il partner in some of
his companies.
Segal, since the failure. has repeat
edly declared that all his transactions
We're regular and tina he had not com
was able to repay the trust company
al the money he had borrowed. In q
recent interview he declared he was u
speculator in bricks. mortar ana ma
chinery." an that he dealt in material
things, ana did not make his money
~ NtN''' 'A'' 'h' d i'.
Bankers Under Watch.
Philadelphia. Pa. Sept. 5.-Distric.
Attorney Hell. after an all day invests
cation of the affairs of the Real I,s-
tat" Trust company. which failed IL
week ago last Tuesday, today cstab-
lished direct evidence of criminal!ty
with more j on. person Responsible.
Arrests are certain soon. The suspect
ed persons have been placed under sur
VIGILANCE.
Il i~nterrogated Directors Junlin.
Houston. Benson and Porter ard a
number of under officials Of the trust
company To-Day. ] will examine Treas
urcr North and Assistant Treasurer
C~ollinGwocl tomorrow. ! have found
no evidence that the trust funds were
tempered with beyond the $4,000 all
ready reported. bu | have not conclude
ed my investigation OF his DEPART
ment."
Ii is the intention of the depositors
to place the burden of responsibility for
the failure on the shoulders of tho di-
rectors. Attorneys representing S5e0.-
600 of deposits declared they were in
Il position to prove the liability of the
directors. They propose in the event
of the directors being unable to evolve
Il satisfactory plan for the r~eorganiza-
ton of the to adopt measures
which shall insure some benefits to the
depositors.
HippIe-SeeaI Conspiracy.
When the district attorney was asked
how the Hipple-Segal conspiracy was
c"onsummated. he said:
BLANK notes with Segal's name at
tached have been discovered and l
think we are on the track OF an ex-
PLANTATION of the s2.30o,C COO difference in
the of loans as given by the
books of the bank and the statement of
Mr.. Segal.
Evidently Hippie and Segal were
parties in all the latter's Wildcat
schemes. Nipple. while he was not di-
Tectly implicated as 4 s~tockhoider or
director in the various companies or
Ganized with the funds of the com
pany. was represented In each OF them
through his son HI was treasurer of
o of the five companies.
"Segals method of doing business
was to buy up or organize a
at ar expense of $4,000. He would then
mortgage il for eight or ten times this
amount. issue bonds and pledge these
as collateral for more money.
"Mr. North appears to have been the
executor of the Hipplc-Segal plans and
Coliingwocd knew what North knew"