The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-12-31
None of Concerns Insolvent,
According to Statements,
but Action Is Brought to
Reorganize Them.
FIRM IN CHICAGO
is NOT AFFECTED
Suit Alleged to Be Friendly
and for Purpose of Prevent
ing Disruption of Large
Business Interests.

Business Interests.
NEW YORK, Dec 30-~Two great
| department stores in New York and one
| In Boston: an express company,
! wholesale house and private banking
house run in connection with the de-
| partment stores, all allied with and con-
trolled by the Siegel Stores corporation,
of which Henry Siegel of this city, is
directing head and president, were
placed in the hands Of receivers today
through suit instituted by the hold
ing company IN the federal courts.
None Of the concerns, according to
| statements of counsel, is insolvcnt and
the action was taken to conserve their
good will, to rehabilitatc and reorganize
them. The assets and liabilities were
not stated. Curtailment of bank credit
made receivershIp imperative. Their
gross earnings heretofore have been es-
timated at S40,000,000 annually.
Stores Not Involved.
Two firms, the similarity of whose
corporate name IN one case and stock
ownership by the Siegel corporation in
the other, might result in the inference
that they were involved in the figure
were quick to issue statements explain
ing their position. The Grecnhut Siegel-
Cooper company OF this city has no CON
oil bnr ,yiE ha
firms controlled by the Siegel Stores
corporation; and in Chicago the store of
Siegel Cooper and company, although its
stock is owned by the Siegel Stores cor
Poration, is prosperIng. Counsel here
issued statement to this effect, which
was confirmed. by Max Pam, general
counsel for the Chicago store. The
business there, he said, would be con,
| tinued without interruption, The store,
he added, was in no sense party TO
the suit
The firms for which receivers were
appointed are: The Fourteenth Street
store, New York; the Simpson Crawford
company, New York, Henry, Siegel and
ing business as Henry siegel and com.
pany, New York: Henry Siegel and
| company, wholesalers, New York; Mer~
chants Express company, New York;
Henry Siegel company, Boston, a dc.
| partmont store.
Receivers Are Named.
| For all except the banking house,
William a. Marble and j. S. Sheppard,
| Jr,. of this city were named receivers
with bonds of $4,000 each, Henry Mel
vile was placed in charge of the bank
| ing business. The amount of its de-
| poslts were not announced. but they
| were estimated at 62,000,000, mostly in
small accounts. 1t paid a y per cent
interest and the majority Of the de-
positors were comparatively poor
| people.
| Mr. Melville said tonight that he was
not fully informed regarding the con.
| dition of the bank in the Fourteenth
Street store.
of the store is solvent the bank is
all right he said.
A few depositors, mostly young girls
| late today and were told they would
have 10 wait until auditors had gone
over the books.
Statement Is Issued.
| Counsel for the Siegel Stores corpora.
ton issued this statement tonight;
! The Siegel Stores corporation is
| a holding company and is credi.
| tor of the other companies and its
| relations with the various branch
| es of the business are such that its
| success Is dependent on the coutin.
uous success of the business repre-.
yeuted by the other companies,
partnerships and individuals. Cred.
It's Of the New York stores have
been so greatly strained, the bust
moss cannot be successfully con
\ tinued without some readiustment
| although none of the companies
partnerships or individuals is insol-
vent in bankruptcy sense of the
| terms,
The institution of the present
suit and appointment Of receivers
| is a friendly proceeding made in an
/ effort to prevent a disruption Of
the different parts of the large en-
terprise and 10 preserve the euor-
mously valuable good will Of this
great business for the benefit of its
creditors and customers and the
public generally.
Messrs. Marble and Sheppard bad
| this to say:
The situation imprcsses us as one
| where cooperation by the creditors
with the receivers is essential and
will aid materially in securing the
hest results for all concerned The
relationship between all three con
Germs involved in this receIvership
was very close, in that each store
was either n creditor or a debtor
Of the other store. The creditors
will be given all information as
soon as VIC and our counsel have
J. an opportunity To collect IL and in
+ the meantime the business will be
carried on by us.