The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-15
Creditors Tentatively Agree
That Is the First step
10 BE Taken.
WOULD SAVE GOOD WILL
Private Bankers Of All Kinds to
Testify Before State SEN
ate Committee.


reorganization Of the enterprises. Money
70 he raised by Mcssrs. siegel and vosei
and their friends and the general cred
tors may bring about this situation.
The bank deposltors are TO be taken
care OF before anything else is done
They will receive n substantial percentage
OF their deposits down and security will
De given for payment OF the balance in
fine The deposltors' committee will de-
eide at n meeting tomorrow what would
he fair immediate dividend. and they
will be controlled in their deliberations by
the intimation that If they are unreason-
able and upset present plans they may
not get more than few cents on the
dollar.
J. Philip Munich. chairman of the de-
positors committee. made this statement
last night:
Il attended meeting OF the parties in
interest this afternoon and evening. Pres
ent were attorneys for the receivers,
Messrs. Rosenberg and Lewis William a.
Marble and John S. Sheppard. Jr, re-
reivers Pierre jay. chairman OF the gem
eral creditors committee, Joseph NJ
Hart1eld, their attorney Henry Siegel
and John Il. Stanchheld. his attorney
DcpOsitOrs to Answer Tomorrow.
The chairman Of the depositors' com.
mittee was asked what arrangements
could be made with the depos.tors for the
payment OF a substantial sum down while
security would be given for the payment
or the balance. There will be "A meeting
or the depositors committee at the office
or John Il. Murray of Coudert Bros. Fri.
gay afternoon to formulate an answer TO
this request"
Inc sudden favorable change for the
better In the Siegel enterprises Is due to
the decision reached by the creditors that
tnerc was no hope unless the private bank
situation could be eliminated The de-
SIsloh is based not only OH the opinion of
lawyers who represent all the parties in
interest but came also from every strong
financial interest approached with a view
to reorganization.
So long as the $4,000 persons were de-
inanding their s2.50O.OOO it was reasoned
that blot was on all the enterprises which
would make the good will Of the concerns
with which Mr.. Siegel was connected
vaIueless. In addition to this the knowl.
eose that the District Attorney was in.
Nestisatlng and likely to act any dny
was another blot
Inc ultimatum that Mr. Siegel and Mr..
Nogel must take care OF the banl, wns
delivered last week By the creditors and
me Two men at once replied they were
using al their energies TO 10 that very
.nihe' MI Nogel. who Is a brotler-,n-
law OF the late Nelson Morris Of Chicago.
went to that city and not only collected
all his own personal fortune but enlisted
the assistance OF his wealthy friends and
relatives Mr.. Siegel in New York CITY
uid likewise. rendering to the ATTORNEYS
AN inventory OF every dollar OF property
ne owned. In addition he had powerful
friends who promised him assistance
what these two men raised in the az
gregate has nor yet been made public. but
u was said last night that the sum was
large enough to make the general creditors
OF the New York and Boston stores con-
slider whether 1t would not be advisable
Tor them TO put In some more cash so
That the establishments may continue
Three Problems for Creditors,
Three things confronted the creditors
yesterday when they asked the bank de-
posters what they would do to assist in
reorganization.
The first was the impending litigation in
New York State courts criminal side in
the Federal courts. equity branch and
bankruptcy side.
II was decided that further legal COM
plications will In all likelihood upset
every plan and result In disastrous bank
ruptcy proceedings instead OF receiver
ships which will conserve assets This
fact was told plainly TO the depositors by
John b. Stanchheld. representing Mr.. !
Siegel.
The second point was how much money
the two partners could raise and this WAS
answered favorably. according 20 reports |
The third point was the necessity for
certain revisions and re- - In the ,usi-
ness or the companies. ,rticularly with !!
reference to the rent paid for the Four /
teenth street and Boston store. The gen. |
eral creditors are convinced that the rents
paid for the two stores are out of all |
reason. Boston, II In said. pays about
$3bO.OO0 year rent. while the Four |
teenth Street Store pays on about twenty |
two different leaseholds a sum OF money 1
which is said to be too great for the
business. The leases have still eleven |
years to run. but the landlords will be /
asked 70 make substantial reductions On |
the Simpson-Crawford Company store
there are ground rents to pay to the |
Aston estate and others. which are very
high.
Willing to Have DeDOsitOrs Paid,
The general creditors who represent
claims OF about $4,000. 900. have made IN |
their minds that they will be willing TO
have the bank depos,tors paid before they
will look for their share. Their experts
have told them, and the receivers have
corroborated 1t. that clearheaded business
methods will make each store a money
maker. They will not only get their
money in time. but they will have good
outlets for their goods.
Except for the statement OF Mr. MUNICH
last night there was no formal report OF
the meeting. which lasted for some hours
The Senate Banking Committee, headed
by Senator Pollock, did not take the testi.
mony of Mr.. Siegel. Mr.. Voge, and Oscar
Prall yesterday Instead, John b. Stanch-
neld, in a statement, impressed on tho
chairman the importance OF permitting his
clients TO withhold statements at this time
and deal with the various committees OF
creditors and with the receivers
Mr.. Siegel attended the session under
subpoena and listened to J. Philip MUNICH.
chairman Of the committee, testify about
his experiences as depositof, and the
experiences of some OF those he repre-
SCENTS. Mr., Siegel seemed to show the
strain under which he has been laboring.
The committee then dropped the Siegci
case and resolved to devote it's next meet
ms, tomorrow morning. TO an inquiry into
the general subject OF private banking.
Heads OF the various kinds of private
banks will be called. Wall Street men. East
Side bankers and department store men.
all OF whom are anxious to testify
Among the subp9nas issued were those
FOR W. II. Porter OF j. p. Morgan & Co.
James Speyer. Paul Warburg Of Kuhn.
Loeb Il Co. and a half dozen Others rem.
resenting large Wall Street establishments.
The other witnesses will represent tho