The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-09-06
Patrons of Defunct Real Estate
Trust Company Demand the
Punishment Of Guilty.
NONE WILL BE SPARED:
MORE MAY BE ARRESTED
Prominent Men of PHILADELPHIA in
Danger-Gigantic Conspir-
acy, Bell Charges.

Philadelphia, Sept. .6.-Rumors Of ar
rests of directors of the looted Real
Estate Trust company fill the air today.
District Attorney Bell declared in the
most emphatic terms that no man would
be spared in the effort to bring to JUS
tice those responsible for the dissipa-
tion of the depositors' money
The statement is made that two direc-
tors who are also members of the bar,
have profted to the extent of $4,000
In the past three years by accepting
fees from Adolph Segal for passing on
security rendered by him for loans from
the bank aggregating $5,3OO,o00.
New Frauds Revealed.
So far as is known, warrants have
not yet been issued for these men, but
interest sensational arrests of directors
who stood high in the community before
the crash and exposure came.
President Nipples plaintive cry
from his grave, "Segal got all,' has
aroused the depositors to a high pitch
Of indignation. Lawyers representing
many hundreds Of them are taking an
active part in the investigation of the
affairs of the trust company, and facts
are coming to light almost hourly re-
Veallng new forms of duplicity on the
part Of the men entrusted with the
depositors' money and the trust funds
OF large and small estates
segal Has Hearing. j.
The hearing in the cases of Adolph
Segal, the promoter of many industrial
enterprises, William F. North, treasurer
OF the trust company, and M. S. Col
hngwood, the assistant treasurer, who
were arrested yesterday on charges of
aiding in the wrecking of the company,
was held before Magistrate Kockersper-
ger today and lasted several hours. The
courtroom was crowded with men well
known in the financial world who came
to listen to the story of the closing Of
the company. Segal, the principal liv-
ing figure in the case, was surrounded
by several attorneys with whom he had
recently consulted. - II
Gigantic Conspiracy. j.
District ATTORNEY Bell in OUTLINING
his case seaid he would prove that the
accused men with Nipple were engaged
In gigantic conspiracy to defraud the
trust company, and that as a result of
their acts more than $5,Ooo,OoO had
and embezzled for the use of one man
-AdOlph SegaI
The active persons in the conspiracy
he said, were Nipple and Segal. The
passive agents were North and Colling-
wood, he continued, who wickedly anil
wrongfully stood by and saw the others
loot the institution and never gave
warning.
Church Deposits Low.
Investigation shows that the looting
Of the trust company will cost the
Presbyterians less than 100000, and
the leaders of that faith are congratu-
lating themselves that President Nipple
chose an opportune time for committing
suicide, as far as the church is con-
cerned, the funds and deposits being
low at this time of the year.
Receiver Earle expresses the opinion
mad,' and that there seemed to be no
end to the variety of methods by which
he juggled with securities which fell
into his hands and concerning which he
sought to deceive the directors. "He
was not content with stealing the same
bond or stock certificate once,' said
MIR. Earle, "but did it several times
over
Tricks Deceived Church.
1t has been established that the sub
stitution of bogus bonds for good bonds
among the trust securities Of the Pres
byterlan general assembly board was
accomplished by Mr.. Nipple thru spc-
cies of sleight-of- hand
He went to the box in the vault con-
tanning the trust securities in question
On the pretext of cutting coupons in
order to cash them and place the pro-
ceeds to the credit of the board. At
ter the box was opened Nipple informed
the clerk that somebody at the door
wanted to see him for moment. The
clerk unsuspectingly left Nipple alone
for this brief interval.
The time was sufficient to enable
Nipple to substitute two bogus bonds
for two genuine bonds, which he after
ward hypothecated for the benefit of
himself or Segal.