The Birmingham age-herald., 1913-12-31
Allied Interest of Siegel
Stores Corporation De-
clared InsOlvent
CREDIT CURTAILMENT
is CAUSE OF ACTION
Step Taken to Conserve Good Will
and to Reorganize Concern,
According to CounsePs
Statement

New York. December S0.-Two great
department stores in New York and one
in Boston, an express company. q
Wholesale house and a private banking
house, run in connection with the de-
partment stores. all allied with and
controlled by the Seigel Stores corpora
tion, of whicf, Henry siegel Of this city
Is directing head and president. were
placed in the hands of receivers today
through a federal suit instituted by the
holding company.
None of the concerns. according to
statements of counsel. is solvent. aud
the action was taken to conserve their
good will, to rehabilitate and reorgan-
ize them
The assets and liabilities were not
stated. Curtailment of bank credit made
receivership imperative.
Gross earnings heretofore have been
estimated at s40,00o,O0 annually.
Two firms, the similarity of whose
corporation title in one case and stock
ownership by the siegel stores corpor-
alton in the other might result in ths
inference that they were involved In
the failure, were quick to issue state
ments explaining their identical POSI-
tion.
The Greenhut -Siegel Cooper company
of this city has no connection with
the firms controlled by the Siegel stores
corporation and In Chicago the store
of Siegel, Cooper q Co, although It's
stock is owned by the siegel stores
corpora ton, is pfospering.
Counsel Issues Statement
Counsel here issued u statement 10
this effect which was confirmed by Max
Pam, general counsel for the Chicago
store.
The business there he said would be
continued without interruption. lie ad-
ded the store WAS in no sense a party
to the suit,
Firms for which receivers were ap-
pointed are: The Fourteenth Street
store, New York; the simpson, Craw
ford Co, New Yorls Henry Siegel anf
Frank r.. Vosei, doing private bank
ing business as Henry Stegel & Co,
New York Henry Siegel q Co, whole
salers New York, Merchants Express
company, New York; Henry siegel Co,
Boston, a department store
For all except the banking house.
william A. Marble and J. S. sheppard
Jr., were named receivers with bonds
of $4,000 each.
Henry Melville was placed in charge
Of the banking business. Amount of its
deposits were estimated at s2,000000,
mostly in small accounts outstanding.
1t paid 4 y per cent interest and most
of the depositors We're relatively poor
persons.
Not Fully Informed
Mr. Melville said tonight he was not
fully informed on the condition 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, applied
for their money late today, and We're
told they would have to wait until an-
ditors had gone over the books"
Counsel for the Seigel Stores corpor-
alton issued this statement tonight:
"The Siegel Stores corporation is a
holding company, and is a creditor of
the other companies and it's success is
dependent upon the continuous success
of the business represented by the other
companies. partnerships and individ-
uals Credits of the New York stores
have been so greatly strained that the
business cannot be successfully con
tinued without some readjustment OF
finances.
"The institution of the present suit
and appointment Of receivers is
friendly proceeding.
Messrs. Marble and Sheppard had this
to say:
THE situation impresses us as one
where cooperation by the creditors
with the receivers is essential and wtu
aid materially in securing the best re-
suits for all concerned. Creditors will
be given all information as soon as
and our counsel have an opportunity
to collect it, and i'm the meantime the
business will be carried on by us"