Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-03-12
Mob Of Angry DepoSitor8 in
DefunCt Bank Are Elected
From Bankruptcy Hearing
When Riot Is Threatened,
STARTLING STORY OF
HIGH FINANCE TOLD
Former Alleged Rich Man Had
Nothing but Nerve and Big
Salary Which Was Lived Up
by Wife, He Says,

tsS noRNse Jousnsl SPECIAL LEASED wtNsi
New York. March While Henry
Sicgei, head Of the large department
stores in New York, Chicago and Pos
ton, was tostifying today IN ifotous
bankruptcy hearing in the federal
building, the grand jury that has been
investignting the failure Of the Siegel
stores In New York and the savings
bank, returned three indictments
against him and his partner. Frank
=. Nogcl, in the banking enterprise.
Siegel and Vogel were taken to the
criminal court building where they
were arraigned and later released on
S25,000 BAH each.
Three hundred angry depositors
who had been elected from the bank
ruptcy hearing, hunted around the
federal building for sicge in vain At
the Time they were searching to Ques-
tion him. he aud his banking partner
We're standing before Judge Rosalskl
pleading not guilty"
False Statement Alleged.
one Of the indictments charges
Siegel and Nogel with grand larccny
in that they made false statements
to the Bank of Commerce in order to
borrow $4,000 The other indictment
alleges that the two bankers accepted
deposits when they knew the bank of
Henry Siegel ~ CO., TO nc insolvent
sicgel testified on The stand at the
bankruptcy proceedings that he did
not invest capital IN the private bank
that bore his name. Miss Jessie Mar
tin interrupted his testimony and
said that she had right 10 represent
the depositOrs at the hearing. She
was urged 60 remain quiet when
she refused, She was led from the
court room. Three hundred depositors
who were standing around the cow-
dors We're also put out for shouting
threats OF violence against Siegel
No Capital in Bank
siegel testified he and Nogcl filed
a bond and purchased fixtures for the
bank. Then he admitted they accept
ed deposits and made them act as a
capital for the bank. He de-
clared he had no money to pay what
he owed and he declined 10 answer a
question as 20 whether an entry was
made on the books Of the stores when
they borrowed from the bank. on the
ground it might incrimnate him.
Siesel said he had life insurance
policies made IN favor of his daughter
to the amount of $4,000 He once
owned some paintings. which he
said. his wife took four years ago.
He had no iewelry. In regard to his
with Nogel in The private
bank. he said he and his partner had
an agreement TO divide the profits !
at the end Of each year lie said his
salary from the Simpson Crawford
store in New York was ,000 a 4
month. tho Fourteenth street store. /
also in New York, $3.50 "a MONTH ana I
from the store in Chicago. $1,000 "a
month. His wife, he said. spent most
Of $4,000 a year for living expenses I
This amount represented his total IN
come.
Told of Indictments
when one of District ATTORNEY
Whitman's detectives. who had been +
sent to the federal building to watch +
siegel and his partner, told Slegels +
attorney that the indictments had
been returned. Siegcl turned pale and .
from then on stammered out his
answers to questions PUT TO him. Siegel
and Nogel were taken to the ground I
floor OF tho building In a private ele-
gator so they might oodge the mob f
Of depositors waiting for them When +
the pair arrived before judge Eosal-
sky both of them appeared dazed
4 representative of The law firm
of stanchield & Levy. the personal +
attorneys for Siegcl and Nogel, enter
ed "a plea of not guilty for the two
men They were then given one week
In which 20 Withdraw The pleas If
they so desired On to make such mo-
lions as might be- deemed necessary
After having their bail accepted. both f
men left the court Both declined to
.alk Il
Claimed to Be Worth Biz sum.
In the Indictment charging grand
larceny it Is alleged that at the time
he men applied for the loan from
HE Rational Bank Of Commerce. on
May IL. 1912, they said They had +
lbove their liabilities S1I5a.68g and
{ WAS charged they were insolvent 4
wen then The other indictments al f
eye that two dcpositors were allowed a
% deposit St00 each IN the SiegelI
iank on December 90. 1918. when
10Th Slege and Voeel are said 10
iave known the bank to De insol- b
'ent
The indictments by no means end
he grand jury proceedings II is al-
eyed that an Investigation by the dis
Tict attorneys office has disclosed +
Ilscrepaneles Of nearly $4,000. 800 be-
Ween the books of tho Sfepct stores ,