The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1909-07-07

uim keep MS investment, out II
lost its head and purchased it a
a large profit to Segal In 1896
Whereupon Segal at once started
another refinery.
/. "Segal had many enterprises
Among them was the purchase o.
the palace of q rich man named
VIM. l.. Elkins. Upon this prop
erty Gustav Il. Kissel of New
York held a mortgage for $3.50,
600. Segal determined to build q
magnificent hotel on the proper.
Ity, and as a first step notifies
Kissel that he desired to pay the
$250,00o mortgage. Kissel mott.
fled Segal, who was about to oper
his refinery, that he would like
also to lend him the money tc
construct his hotel. Segal told
him he would have to have hall
a million.
"Kissel urged him to make the
hotel handsome, and offered first
lthree-quarters of million, 9
,nililon, and then a million and a
quarter, and said he represented
Itch trust companies in New York
who wanted to put out large
sum of money. Segal agreed to
take the largest sum named.
And then Kissel, for the first
lime, said: Whilst the compan-
les that l represent will take a
mortgage on this property, we
ought to have a margin'-or a
sweetener, i think, was the phrase
used-'in some other FORM and
merely casually and incidentally
asked IL Segal had a control of
the sugar refinery. Segal said
that he had control of the stock
and 100000 of the bonds, and
Kissel then suggested that Sc
gal merely put these in to make
the loan safe, assuring him that
at any time the loan was paid
they would come back to him and
it would do him no harm. Segal
assented.
Then when Segal's mind was
keen on going ahead with his ho-
tel, Kissel told him the lenders
were afraid the sugar trust would
be embittered, and he demanded
that four of the seven members
of the board be appointed by the
lender. This request also was
granted.
No sooner had Kissel and his
three directors gotten into the
board than they voted that it was
inexpedient to run the factory.
although the prices for sugar
were then remunerative, and sd
remained for long time.
| During the loan negotiations
4 sugar trust agent discovered
that there was prior lien on thu
property held by Nipples bank
and this agent actually Gamer II
the trust company, with the
knowledge that there was such d
mortgage, and in some way got
from Nipple, without payment OF
a cent, a policy of the company
that there was no such mortgage,
or guaranteeing him against 1t.
From that day to the day that,
goaded by these people, he put a
bullet through his brain, Nipple
was in their power.
"Segal, being in fact welded to
his new enterprise, was faced
first by demand from the sugar
trusts agent (who, of course, le-
gally could only make the de-
mand for his principally that Sc
gal pay 100000 commission for
the loan of $1,250,00O. OF
course, he could not comply with
the demand. The trust agent met
this by agreeing personally to
lend him the 100000 on con-
dition that he would pay him
either $4,000 or $500 a month
commission on the 100000 that
he had no right to; and in this
way, having closed down one OF
Segal's enterprises, and having
him tied up in the construction OF
the other, and having Nipple in
his power through the giving oil
the fraudulent policy, he extorted
from Segal another 100000 In
monthly payments. He also ex-
ltorted from Segal a promise that
he should have a further commits
lsion of s1,300,000 of the stock OF
the sugar refining company, max.
ling the commissions in stock, bo-
muses., etc., up to this point ST.
100000 on a loan of $1,250,OO0
rYou will see that the trust now
had these people where 1t could
lexterminate them, and 1t proceed
led to do SO.
II have been told in the pres
|ence of witnesses that without
|crediting / cent On the loan, these
|sharks, on loan of $1,250,006,
lin addition to the interest at 6
Iper cent-which was the legal
limit, and which was paid dur
ling the first year-there was ex-
ltorted from these men (which,
Iof course, must have chiefly come
tout of the trust company sum
In the neighborhood of $1,000
1000 on this particular transac-
ltion; and. though have not quite
cleared up, the assertion is made
that under one pretense or anoth7
er, whilst they kept their claim
flor the whole $1,250,000 good.
Ithey succeeded In getting in the
nefghborhood of $2,000,000. OF
course, no one short of q man
with the wealth of some of the
trust magnates could survive this.
cat last on some of these iile-
Igal commissions the sugar agents
made further demands and tried
ITO make Nipple, who had exhaust
ed the company's cash, give up
isome of the bonds of the refin-
ery. Two days before Nipple
blew out his brains, by kilograms
aud by threatening proceedings
against the president Of this shah-
Il In o. fxI1sf ,ro11o m nv and Of b ~ r1al-