Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-09-07
BERKEY TAKES HAND


CONTINUED . o.. First Page)
or certificate as collateral for a loan, the
security presenting a safe margin. Then.
as Mr.. -segal came along asking for a lean
and pfesenting Insufficient security. Mr..
Nipple would take the good security de-
posted with a note OF another man and
place II with segal's note. -,g
Directors Deceived.
I'm this manner the directors were
brought to believe the sound security was
collateral for the loan TO SegaE This, sort
of operation was repeated by Mr.. Nipple
as often as Mr.. Segal's demands seemed to
render IT necessary"
Mr.. Earle said that these practices OF
Nipple had left the notes and papers re-
lating to loans in almost inconceivnble
confusion. 1t was established yesterday
that the. substitution of bogus bonds
for. good bonds among the trust
securities OF the Presbyterian gen
eral assembly board was accomplished
by Mr.. Nipple through a species Of sleight
of hand. He went to the box in the vault
containing the trust securities in quess
ton ON the pretext OF cutting coupons in
order to cash them and place the proceeds
to the credit of the board After the box
wss opened Nipple Informed the clerk that
somebody at the door wanted to see him
for q moment. The clerk unsusL ctingiy,
left Nipple alone for this brief interval.
The time was sufficient to enable him to
substitute two bogus bonds for two genue
inc bonds which he afterward hypothe-
Gated for the benefit OF himself or segal
..s ~ Accused I'm Court.
The heaTiIs "a Cdsts --uolph Segal
William f. North and NJ: S. Collinswood
who were arrested yesterday on charges
of aiding in the wreeking Of the company,
was held before Magistrate KOchersperger
today. The court room was crowded with
men we'll known in the financial world.
District Attorney Bell, in outlining his
case, said he would prove that the accused
men, with Nipple, were engaged in glgan-
tic conspiracy to defraud the trust COM
pany and that as a result of their acts
more than $4,000 had been distracted
from the institution and embezzled for the
use Of one man-Adolph. segsl The active
persons in the conspiracy, he said. were
Nipple and segal, The passive agents were
North and Collingwood, he continued. who
wickedIy and wrongfully stood by and saw
the others loot the institution and gave no
warning.
Mr.. Bell said the Institution had o.aO
depoSitors and the deposits amounted 10
s.. 10000.
For the money borrowed by Segai there
is nothing to show but wildcat securities
At the conclusion of the hearing the
three prisoners were held for trial. their
bail being renewed. .s..s.t o.. ~---..
-tI Tells OF oVerdrafts. .-' f'.'
Robert ID. GhTisl1ey. cashier OF the trust
company, the frst witness, told OF FREE
quent- overdrafts by either SegaI. indi-
viduaIiy, or as treasurer OF one of his
companies. or Nipple. He regularly took
the 'oyerdFaft checks TO Nipple. VINO would
grow pale pace the floor and then, say,
well, 4 guess we will have to pay this"
These overdrsfts worried me and l fire.
quently told North about them. He al
ways referred me to Nipple. Sometimes
went TO Coflingwood, the assistant treas
urer. He agreed with me that the over
drafts were not sound business. lie knew
what was going on and often referred 20
Segal as the DEVILS deputy"
George II. Earle, Jr., receiver for the
trust company followed He told how he
examined all offfcers 10 learn whether they
were conversant with the true condition
OF the company.
When Earle was asked what he thought
of the worth OF the 'SSgal securities. he
said. '7 rs g. f"@ ts1'- ~
"Nos banker would dream or taking IA
quantity OF such industFial. securities
from. any one, two or three persons "s'f q
Before leaving itiTs' stand Receiver 1arTe'
gave the district attOrneyeit the envelopes
on the back OF which Ras wri tteh Hippt4's
confesSioasi PAYING Telfer Feat herson. cor.