Norwich bulletin., 1913-12-31
Receivers for
 SeigeI Stores
SUIT INSTITUTED BY THE HOLD
 ING COMPANY.
STAINING OF CREDITS
Conditions in New York Stores Made Readiustment of Finances Necessary Private Banking House Involved.

New York. Dec. 30.-TWo great de-
 partment stores in New York and one in Boston, an express company wholesale house and @ private bank
 ing house run in connection with the
 department stores. all allied with and
 controlled by the SiegeI Stores cor-
 poration, of which Henry Siegel of
 this city is directing head and presi-
 dent, were placed in the hands of re-
 ceiVers today through a suit instituted
 by the holding company in the federal
 courts.
 None of the concerns, according to
 statements of counsel is insolyenJ, and
 the action was taken to conserve their
 good wills to rehabiitate and reorgan-
 ize them.
 Annual Gross Earnings $4o,ooo,ooo.
 The assets and liabilities were not
 stated Curtailnent 9f banks credit
 made receiVerShip imperative. Their
 gross earnings heretofore have been
 estimated at S40,o00, ,000 annually.
 Two firms, the similarity Of whose
 corporate name in one case and stock
 ownership by the Siegel Stores cor
 roratiOn in the other, might result in
 the inference that they were involved
 in the failure. were quick to issue
 statements explaining their position. The CSreenhut- iegel-COoper company
 of this city has no connection, direct
 or otherwise, with the firms controlled
 by the Siegel Stores corporation; and in Chicago the store of Siege, Cooper
 S company, although its stock is own ed by the SiegeI Stores corporation. is
 pros ospering. Counsel here issued a statement to this effect. which was confirmed by Max Pam. general coun-
 sel for the Chicago store. The busi- ness there. he said, would be contin- ued without interruption. The store, he added, was in no sense a party to the suit.
 The Firms Involved. The firms for which receivers were appointed are;
 The Fourteenth Street store. New ' orh New York,
 Henry Siegel and Frank E. Vogel, doing a private banking business as
 H=ry Siegel B company, New York. Henry Siegel & company. whole salers, New York.
 Merchants Express company, New York.
 Henry siegel company, Boston, a department store.
 For al except the banking house William A. Marble and J. $. Shepard,
 Jr.. of this city were named receivers with bonds of S50,000 each. Henry N+A~N@ N@-~
 banking business.
 Bank Depositcrs Mostly Poor People.
 The amount Of its deposits was not announced, but they were estimated at $2, 100000, mostly in small accounts.
 It paid 1-2 per cent. interest and the majority of the depositors were com paratiVely poor people. Bank May Be Solvent. Mr. Melville said tonight that he was not fully informed regarding the con- dition of the bank in the Fourteenth Street store.
 If the store is solvent, the bank is all right" he said. A few depositors, mostly young girls and women, ap- piled for their money late today and were told they would have to wait un- til auditors had gone over the books. Counsel for the Siegel Stores cor poration issued this statement to- night:
 Statement of Corporation. The Siege1 Stores corporation is a holding company and is a creditor of the other companies and it's relations with the various branches of the busf- ness are such that it's success is de- pendent on the continuous success of the business represented by the other companies partnerships and indiyid- uals. Credits of the New York stores i have been so greatly strained that the business cannot be successfully con tinued without some readjustment of finances. although none of the com panes or partnerships or individuals is insoIyent. in bankruptcy sense of the term.
 The institution of the present suit and appointment of receivers is a friendly proceeding made in an effort to prevent disruption of the differ ent parts of the large enterprise and
 to preserve the enormously valuable good will of this great business for the benefit of it's creditors and customers and the public generally" Statement of Receivers. Messrs Marble and Sheppard had this to say:
 The situation in1presses us as ono where CO., operation by the creditors with the receivers iS essential and will aid materially in securing the best re- suits for all concerned. The relation ship between all of the three concerns involved in this receivership was very
 close, in that each store was either a creditor or Q debtor of the other store. 1 The creditors will be given all infOr- matiCn as soon as we ard our counsel i have an opportunity to collect and in the meantime the business will be car ried on by us.
 To Christianize the World.