The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-07
GIGANTIC STEAL
OF TRUST COMP ANY
Three Officers Have Been Put
on Trial
OTHERS MAY BE ARRESTED
Presbyterians Lose Heavily, But Not
as Much as Was at First Eek
pected, In Philadelphia
Bank Failure.
OTHERS MAY BE ARIES TED

J.
the responsibility of the directors of the
wrecked Real Estate Trust company,
State Banking Commissioner Berlsey
came here today and appointed as special
bank examiners, Charles N. Collum and
NJ. c. Goldsmith, expert registered ac-
countants, who with the consent of Re-
ceiver Earle win tomorrow begin q thor
ough examination of the assets and liabil-
tiles of the defunct concern.
Receiver Earle tonight issued a state
ment announcing that he soon hoped to
be able to reopen the bank, and that all
depositors will be paid.
Mr.. Earle says the directors have re-
sponded to his solicitations to help reor-
ganize the company The amount of money
guaranteed was not stated To success
fully accomplish the rehabilitation of the
company the receiver says the creditors
must meet his efforts in the same spirit
in which they were received by the direc-
tors.
The preliminary hearing of Adolph Sc
gal the promoter; William f. North,
treasurer, and Marshall s. Collingwood,
assistant treasurer of the Real Estate
Trust company, took place today and the
three were held in heavy bail for trial.
These were the three most important
developments today in the affairs of the
Real Estate Trust company.
Directors Involved.
Commissioner Berkey declared practical
ly every director of the Real Estate Trust
company had certified to the correctness
of the reports filed with the state bank
ing department. These reports, he said,
were said to have been false If his ex-
animation sustains the falsty of the re-
ports, Mr.. Berkey said he would proceed
against the directors and make an issue
of their responsibility which has never
been decided by the courts of this state.
The evidence presented through witnesses
by District Attorney Bell at the hearing
of Segal, North and Colingwood today
disclosed the methods by which Segal and
Nipple wrecked the trust company. The
most damaging testimony was that to the
effect that both Nipple and Segal had
peatedly oVerdrawn their accounts with
the knowledge of the treasurer, and as
sistant treasurer. These overdrafts were
carried as cash accounts. On the day
Nipple died there was an overdraft of
$4,000 aaginst the president, which was
converted by Collingwood into a loan
showing Nipples accounts to be apparent
ly straight These overdrafts of Nipple
and Segal at times amounted to more
than $500 GOO.
There was on deposit in the bank APP
proximately 100000. and the loans made
TO Segal amounteds to 5000 200. Many of
the securities which have since been found
TO be insufficient were bonds and stocks
In the Segal enterprises, and were APP
proved personally by Nipple.
Many depositors who placed money in
the bank on Monday and Tuesday after
the directors Knew it was nsolvent were
allowed to withdraw their deposits to-
day
Trial Begins.
Rumors of arrests of directors of the
looted Real Estate Trust Co filled the air
today. District Attorney Bell declares in
most emphatic terms that no men will
be spared in the effort to bring to JUS
tice those responsible for the dissipation
of the depositors' money. The statement
has been made that two directors also
members of the bar have profited TO the
extent of $780, 900 in the past three years
by accepting fees from Adolph Segal for
passing on security rendered by him for
loans from the bank aggregating $780,
900. So far as is known. warrants have
not yet been issued for these men.
President Nipples plaintive cry from his
grave until Segal got ALL has aroused
the depositors to a high pitch of indigna-
tion: Lawyers representing many hum
dreds of them are taking an active part
company and facts are coming to light al
most hourly revealing new forms of
duplicity on the part of the men entrust-
ed with the deposltors' money. Investiga-
tons show that the footing of the trust
company will cost the Presbyterlans less
than 100000 and the leaders of that faith
are concentrating themselves that Pres
ident Nipple chose an opportune time for
committing suicide as far as the church
is concerned. funds and deposits being low
at this time of the year.
Was Money Mao.
Receiver Earle expresses the opinion
that President Nipple was money mad"
and there seemed to be end to the
variety of methods by which he juggled
with securities which fell into his hands
IT was established yesterday that the
substitution of bogus bonds for good
bonds among the trust securities of the
Presbyterian general assembly board was
accomplished by Mr.. Nipple through a
species of slight of hand. He went to
the box In the vault containing the trust
securities in question on the preteXt of
cutting coupons In order to cash them
and place the proceeds to the credit of
the board After the box was opened
Nipple informed the clerk that some-
body at the door wanted to see him for
a moment The clerk unsuspectingly left
Nipple alone for this brief interval The
time was Suff1clent TO enaDle MN 10 SUD-
stitute two bogus bonds for two genuine
bonds, which he afterward hypothecated
for the benefit of himself or Segal
The hearing of the cases of Adolph
Segal the promoter of many industrial
schemes; William r. North, treasurer of
the trust company, and M Collingwood
the assistant treasurer, on charges of aid
ing In wreclxlng the company, was held
today The court room was crowded with
men, we'll known In the financial world
Gigantic Conspiracy.
District Attorney Bell in outlining his
case. said he would prove that the ac-
cused men, with Nipple, were engaged
In a gigantic conspiracy to defraud the
Trust company. and that as "A result of
their acts more than $1,000 coo had been
abstracted from the institution and en-
bezzled for the use of one man--Adolph
segal. The active pei sons in the conspr-
acy, he said. were Nipple and Segal.
The passive agents were North and Col
lingwood. he continues, who wickedly
and wrongfully stood by and saw The
others loot the institution and never gave
q warning.
Mr. Bell said the institution had 5000 de-
positors and the deposits amounted to be-
tween &c. 100000 and 100000 Among the
depositors was Segal treasurer for his
various companies and Nipple and be-
tween them they had frequently over
drawn their accounts from $1,000 to more
than 100000. Nipples plan was to give
memorandum to the cashier for various
sums and the overdrafts would be carried
on the books as cash accounts. Then from
time to time the district attorney said