The Montgomery advertiser., 1906-09-07
Preliminary Hearing in
 Philadelphia.
METHODS OF WILD cATTNG
Adolph Segal Says He Will Pay
 All That He Owes.
Nipple, the Suicide President, Accord Ing to Witnesses, Had Many Ways to Rob Banks Depos-
 itors of Their Money.

rests of directors of the looteo heai Estate Trust Company filled the air today. District Attorney Bell declares in most emphatic terms that no man x i'll be spared in the effort to bring to justice those responsible for the dis- kipatioa of the depositors' money The statement has been made that two di- rectors, also members of the bar. have profited to the extent of $iSe,eoO Tn the past three years by accepting fees rom AdoIph SegaI for passing on security rendered by him for loans from the bank, aggregating $5,300,000. So far 2 as is known, warrants have not yet been Issued for these men.
 President Nipples plaintive cry from his grave, 'Segal got aIi." has aroused the depositors to a high pitch of in- dignation. Lawyers representing many hondreds of them are taking an active part in the condition of the affairs of the trust company and facts are com ing to light almost hourly revealing new forms of dupiicity on the part of the, men entrusted with the depositors' money. Investigations show that the footing of the trust company will cost the Presbyterians less than $100,000, and the leaders of the faith are con graduating themselves that President Nipple chose an opportune time for committing suicide as far as the church fS concerned. funds and deposits being low at this time of the year.
 Receiver Earle expresses the opin- ion that President Nipple was money 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.
 Substitution of Bonds.
 Tt 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 MT. Nipple through a species of slight of hand. He went to the box in the vault con- taining the trust securities in question on the pretex of cutting coupons in order Q cash and place the proceeds to the credit of the Board After the box was opened Nipple Informed the clerk that somebody at the door want ed to see him for moment. The clerk unsuspectingIy left Nipple alone for this brief interval The time was sufficient to enable him to substitute two bogus bonds for two genuine bonds. which he afterward hypothe- cated for the benefit of himself or SegaL
 The hearing in the cases of AdoIph Segal, the promoter of many industrial enterprises. William E. North treas urer of the trust company. and M. S. Coilingwood. the assistant treasurer, on charges of aiding in wreeking the company. was held today. The court room was crowded with men well known in the financial world
 District Attorney Bell in outlining his case said he would prove that the accused men with Nipple were engag- ed in gigantic conspiracy to defraud the trust company and that as a re- suit of their acts more than $5,0Oe,- GOO had been abstracted from the in- stitution and embezzled for the use of one man-Adolph Segal. The act i've persons in the conspiracy, he said, were Nipple and Segal. The passive agents were North and Col Haywood, he continued, who wickedly and wrongfully stood by and saw the others loot tho institution and never gave a warning.
 Mir. Bell said the institution had S.. goo .depositors and the deposits amount ed to between $6.500,000 and $7,000, 900. Among the depositors was SegaI as treasurer for his various companies and Nipple and between them they had fre- ouently overdrawn their accounts from s1o0,o00 to more than ss00,0O0. Nipple plan was to give memorandum to the cashier for various sums and the over drafts would be carried on the books as cash accounts.
 Pretense Of Making Loans
 Then from time to time the District Attorney said Nipple would go through the hollow pretense of making a loan. using wildcat securities and thus re- duce the amount of the overdrafts. This was carried on for four or Ave years until now the amount of money borrowed by Segal amounts to $53O9,- 200. for which there is nothing to show but the wildcat securities.
 Attorney for segal asked that he be permitted to waive hearing but this was not allowed as the District Att torney said he wanted to get and pre- aerve at this time. certain testimony.
 Robert D. Ghriskey cashier of tho trust company. the first witness. told of frequent overdrafts by either segal individually or as treasurer of one of klg companies or Nipple He regularly took the overhaul checks to Nipple who would grow pale. pace the floor and then say:
 well, I guess we will have to pay this"
 The Nipple and segal overdrafts were lntermingled, he said, and were carried gO ona envelope as cash account The totaI was at times more than sS0o.000.
 4srhese overdrafts." he said. worried me and I frequently told North about them. He always referred me to HiD- pie. Sometimes I went to Collingwood the assistant treasurer, who agreed with me that the overdrafts was not aound business He knew what was Voinr on and often referred to Segal as sthe devils deputy once told Hippie that the cash balance was low, and he told me not to worry as the next day he expected to realizez million dollars on the sale of a sugar refinery. At an- other time told him of the low cash account, and was assured that the next day he expected $2.Ooo,0Oo. and that We would have more money on hand than we could invest.
 ,sWhen the overdrafts became too great, Nipple would come to me with a loan check. showing that the company had made a loan. He would take the memrAndum of overdrafts and give me the lonn check. thus showing that the money OverdraWn had been loaned These aoan checks were all on com panIes with which Segal was identi- fed"
 Receiver Earle Testifies.
 George H. Earle, Jr., receiver for ehe truee company, testified that he