New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-19
COURT RULING WILL
MAKE SIECEL TALK
Must Tell of Assets Under
Decision Barring Plea
of Privilege.
HEARING WEDNESDAY,
ON DEPOSIT CLAIMS
Lawyers Come to Agreement as
TO Observation-Disclosures
of Stores Completed.

Under a ruling by Judge Hand yester-
day m a case Of the Chemical National
Bank and the Merchants Association
growing out OF the failure OF Tobias,
Greenthal & Mendelson, clothing manu-
facturers, Henry Siegel must answer
questions to show what became of his
fortune and Of the properties he con-
trolled. Judge Hand held that a bank
rupt cannot take refuge in the plea that
&c answer might ucriminate him.
This ruling. said TO be the most impOr-
taut yet made under the bankruptcy law
was on the petition of James y. Rosen-
berg. counsel for Robert c. Morris, trus-
tee IN bankruptcy. for Tobias. Greenthal
x Mendelson, for the Chemical Bank and
for the Merchants Protective Association.
that Charles A. Tobias. head Of the firm,
be compelled to tell what had become of
his assets Tobias had claimed constitu-
tional exemption.
The nero claim Of privilege" says
Judge Hand. us not enough to protect a
bankrupt IN declining to answer ques
tons. He must submit TO a full cross
examination as to his property
IS counsel also for the receivers Of the
nth Street store and the Simpson Craw
ford Company, means that a bankrupt
cannot make a farce OF the law by refus-
ing 10 tell what he has done with his
possessions"
The committee OF depositors in the
Henry Segel bank announced last night
that the sum due to the bank from mer-
camille creditors has been found TO be
larger than has been thought. and as a
consequence a more satisfactory offer has
been made by the Depostors' Realization
Corporation. They refused TO make
known exactly what the offer is.
The Segel case went before the United
States Court yesterday. when Judge
Hough issued an order paving the way
for an early settlement OF the claims OF
the deposltors i'm the Siegel bank, the
lawyers representing the banking and
mercantile creditors having reached
tentative agreement. Judge Houshs order
provides for a hearing on March %. at
which an order of settlement will be pre-
scented for his approval What the terms
would be none Of the lawyers could say
Yesterday. They have agreed that bank
deposits went into tho stores to a great
extent, that depositors have a claim
against the stores, and that Il is only fair
that some agreement be reached whereby
they receive at once what is coming 70
them, avoiding litigation that would eat
up a large part, If not all Of that which
might be paid 70 them.
The amount TO be paid bank depositors
cannot be determined until the bids for
the properties have been received and dis
posed OF. 1t Is the purpose Of the order
TO have bids and the compromise offer
presented at the same time.
THE depositors of the bank are mostly
poor people" said Mr.. Rosenberg. land
Messrs Marble, Sheppard and myself are
anxious that they should get It without
delay. If we can reach a fair agreement
and I think we can, the matter can be
disposed Of very shortly"
Siegel and Vogel. through their counsel.
Stanchfield & Levy, obtained an order
yesterday giving them another week in
which to decide whether they will stand
on their pleas OF not guilty entered
week ago.
The inventories Of the 14th Street Store
and the Simpson Crawford Company were
completed yesterday, but have not been
tabuated. The stock will be open to IN
spection by bidders to-day. Leo A. Price,
who has been figuring on bidding for the
Fourteenth Store as a whole, expects TO
get an answer from the owners Of the
realty to-day on his offer to take the
property at reduced rent