Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-07
GOING DOWN TO FIND
DEPTH OF TRUST RUIN
Prosecutor Bell Says He Will
Sound Bottom.
SPECIAL DEPUTIES SWORN IN
Expert Accountants to Make Exam.
ination for the State.
AFTER THE EXECUTIVE BOARD
Principal Point He Wishes to Clear
Up is the criminality Of Thas
Body Of Men.
Expert Accountants to Make Exams
ination for the State.
AFTER THE EXECUTIVE BOARD

ooi SNPSit dSSOullld1ltS
have been sworn in and strenuous
efforts are being made on the part
of the Philadelphia authorities to
learn the depth of the Realty Trust
failure. The criminality of the
executive board is what the prose-
cutting officer is trying to get at.
The institution may yet be re-
opened and the depositors paid in
full.
PHILADELPHIA, September 1T was
reported on the floor of the stock exchange
this afternoon that Receiver Earle has COM
pleted the reorganization of the Real Estate
Trust Company and that he will become the
president of the institution
PHILADELPHIA, September Three
separate investigations Of the wrecking of
the Real Estate Trust Company of this
city are now in progress, and II is ex.
pected that by the time the examinations
have been concluded every irregular trans
action and the name of every director. ofi.
Ger or employe of the institution who NAV
have had hand in the unlawful proceed
ings will be known to the investigators.
Receiver Earle is hard at work uncoverine
all securities and other papers to ascertain
their value, with a view of an early re-
trict Attorney Bell, with corps of assist
ants. Is pursuing his investigation to learn
whether any other persons connected with
the institution are criminally liable for the
running of the institution, and the state Of
Pennsylvania. through it's banking COM
missioner, John A. Berkey. this afternoon
began a thorough examination of the con.
dition Of the trust company.
The States Examination.
Commissioner Berkey today swore in an
special deputies Meyer Goldsmith and Chas.
N Vollum. expert accountants, to make the
examination upon behalf of the state. Their
instructions are to go thoroughly into the
company's affairs and to report every
transaction that appears to have been of a
doubtful character and to give the name OF
the persons responsible for the same 1t il
expected it will take about a week Cor them
to make their examination.
District Attorney Bell said that until to-
day he had only investigated the completely
Of Frank K. Nipple, the dead PRESIDENT;
Adolph Segal. the promoter. and w. F.
North and NJ. S. Collingwood, officers of
the bank Segal North and Collngwood
are now awaiting trial charged with assist
ing in wrecking the institution. From this
time on" he said, Il will go right to the |
bottom Of this whole affair and find out the ,
name of every one connected with the ruin
ing of the institution. II evidence can be
found against any directors warrants will
be issued for them without regard to their
political or social standing"
The two principal points he wishes to
clear up, said Mr.. Bell, were the criminal
liability of the executive board of the
directors and whether two lawyer-drectors
of the institution accepted fees to the
amount of s750,000 for passing upon the
worth of the securities that figured in the
transaction between Hfpple and Segal.
Directors Still at Work.
Directors of the trust company are still
at work on the suggested plan made pub
lie last night, by which it Is hoped they
will be able to reopen the institution and
pay the depositors in full. This plan pro-
vides for an issue of preferred stock to the
depositors, the raising Of 100000 by the
directors ana tne CONVERSION Oh
In securities into cash. The plan also pro-
vides that Receiver Earle shall become
president of the company.
John H. Converse, a director. said today
that he believed the depositors will adopt
the suggested plan unless certain creditors
who have engaged attorneys to bring suit
should press their action and thus tie up
the affairs of the institution until the
courts decide the suits.
Won't Accept From Segal.
Special Dispatch to The Stak
PHILADELPHIA, September 7-Work.
men are giving finishing touches to a fine
looking building on the campus of the Ma
tional Farm School near Doylestown. Pa,
which Adolph Segal is erecting for the in-
stitution. Across the facade of the main
entrance carved in marble are the words,
"Adolph Segal Hail.
I'VE will certainly not accept this build
ing from Segal." "ssaid one OF the board Of
directors, ''if 1t shall have been shown that
the money which went to build it in whole
or in part was not Segars own. We want
no gifts purchased with stolen nor tainted
money.
Should further disclosures throw the
least bit of criminal suspicion upon Segafs
methods or integrity we shall remit to the
receiver of the defunct bank such money
as has been expended upon the building.
SegaIs name In that case will be erased
from the building and his connection with
the PROJECT will thus be totally severed"