Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-09-07
RE ARRESTS EXPECTED SOON
Directors Who Are Lawyers Said to Have
Taken Large Fess from segal.
PRELIMINARY HEARING OF PRISONERS
President Nipples Account Was Over
drawn $4,000 When he Died.
cOLuNGwOOD Flx.S UP THE RECORD
Ohicial Under Arrest Converts This
Into Loan which Makes
Rocks Appear Apparently
straight.

PHILADELPHIA Sept. 6-To determine
the responsibility of the directors OF the
wrecked Real Estate Trust company, State
Banking Commissioner Berkey came here
today and. appointed as special bank ex-
sminers Charies NJ. Vollum and Meyer
Goldsmith, expert accountap who with
the consent OF Receiver y y will begin
tomorrow thorough exa. ~ of the
detunct concern. u &.
Receiver Earle tonight. after CI III nee
with the directors of the trust :
announced that he hopes to open
soon and that all depositors will b> u e,
tected. Mr. Earle says the directors
responded to his solicitations to help l z
organize the company. but did not state
what amounts they have guaranteed. In
order to accomplish the rehabilitation the
receiver says the creditors must meet his
efforts in the same spirit as the directors.
segars Preliminary Hearing.
The preliminary hearing of Adolph Segal.
the promoter; William F., North, treasurer,
and Marshall s. Collingwood, assistant
treasurer took place today. They were
held in heavy bail for trial.
When 1t became known that Banking
Commissioner Berkey had decided to in
terest himself in the affair there mme-
dately arose many rumors concerning
probable criminal action against the di-
rectors. That these reports were not un-
founded was made plain by Mr.. Berkey.
He stated that the law gives the examiners
the right to interrogate under oath any di-
rector officer or employe of the trust COM
pany OF of any other company holding as
sets of the defunct concern. During the
past few years, Mr.. Berkey declared prac-
tically every director of the company had
certified to the reports filed with the state
banking department. These reports, he
said. appear to have been false. II his ex-
animation sustains this falsity Mr.. Berkey
declared he would proceed against the di-
rectors.
Nipple Oyerdraws Account
The evidence presented by District At
torney Bell at the hearing of Segal, North
and Collingwood disclosed the methods by
which segal and Nipple wrecked the trust
company. The most damaging testimony
was that HippIe and segal. had repeatedly
Dvefdrawn their accounts with the knowl-
edge of the treasurer and assistant treas
urer. These overdrafts were carried on
cash accounts. On the day Nipple died
there was overtiraft of $4,000 against
the president which was converted by Col
lingwood into a loan. showing Nipples ac-
count to be apparently straight. These
overdrafts of Nipple and Segai at times
amounted TO more than SSOO,OOO.
There was on deposit in the bank ap-
proxlmately 100000 and the loans made
to segal amounted to IS. 5.3O9, 200 Many of
the securities which have since been found
insufficient were bonds and stocks in the
Segal enterprises and were approved per-
sonally by Nipple.
Bank May He Reopened.
Although Receiver Earle appears hopeful
of opening the bank at an early date
many of the creditors express some doubts
as his ability to do so because of the un-
certainty of the Segal sugar refinery here
as an asset. 1t has developed that Segal' 5
equity in the plant is represented by 70
per cent OF the stock. This has been
handed to Mr. Earle who is desirous
OF securing control. Just how he will at
tain this is not known. but there are
rumors that he intends to bring suit
against the American Sugar Refining COM
pany, which holds the controlling interest.
In a court of equity and also under the
Sherman act. Mr.. Earle declined to dis
cuss this matter
Many depostors who placed money in
the bank Monday and Tuesday after the
directors knew that It was insolvent, were
allowed TO withdraw their deposits today.
There were IA deposits and of this num-
Der 1873 We're returned.
RumOrs of other Arrests.
Rumors of arrests of directors OF the
looted company hll the air today. District
Attorney Bell declares in most emphatic
terms that no man will be spared In the
effort to bring to justice those that are
responsible for the dissipation of the de-
positors money. The statement is made
that two directors, who are also members
OF the bar, have profted to the extent OF
SIb0,0OO In the last three years by accepting
fees from' Adolph Segal for passing OF
security rendered by him for loans from
the bank sggregating $5,SoO,ooo. So far as
is known, warrants have not yet beer
issued for these men. but the public is
awaiting with breathless interest sensa'
tional arrests of directors who stood high
In the community before the cash ant
exposure came.
President Hpples plaintive cry from the
grave, "Segal got ALL" has aroused tho
depositors to a high pitch of indigna ton
Lawyers representing many hundreds Of
them are taking an active part in the I'm
vestlgaaion OF the affairs OF the trus
company and the facts are coming TO ligh
almost hourly. revealing new forms o
dupllcity on the part Of the men entrusted
with the depositors money and the trus
funds OF large and small estates.
PresbyterIsns Get on Easy.
Investigation shows that the looting o
the trust company win cost the Presby
terians isss than $4,000 and the leader
OF that faith are congratulating them
selves that President Nipple chose an op
portune time for committing suicide a
far as the church was concerned. tn
funds and deposits being low at this tim
OF the year.
Receiver Earle expresses the opinion tina
President Ripple was money mad" AM
that there seemed to be no end 10 tn
variety OF methods by which he juggle'
with securities which fell into his hand
and concerning which he sought to de
ceivs the directors.
He was not content with stealing tn
same bond or stock certificate once" sal
Mr. Earle. but stole II several time
over.
He would. for Instance. receive bon,