The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-13
FINAL CRASH OF
SIEGEL STORES
Court Orders Both Sold at
Auction Before
March q.
DOORS SHUT TOMORROW
1890 Employees, Mostly
Women, to GO-Sacri-
flee Inevitable.
$1,5OO,00O THEFT ALLEGED
More Details Of Amazing Sys-
TEN Barcd-Felony Charges
Piling Up.
$1,5OO,0OO THEFT ALLEGED

The fnal crash OF all the Siegel enter
prises came yesterday when Judge Hough
N the United States Court ordered the
receivers to sell at auction the Fourteenth
etreet Store and the Simpson Crawford
Company by March %. The Boston store
10 TO be sold Saturday.
The stores will be closed Saturday night
and nearly 1900 persons, two-thlrds OF
whom are women. will be thrown out Of
work. Ultimately about $500 will be let
out.
The indications are that the depositors
Of the private bank OF Henry Siegel 4
Go. may some day receive about 10 cents
on the dollar. with correspondingly
small dividend for the general creditors.
The cases against Henry Siegel and
Frank E. vogei. already thrice indicted
and under $4,000 bail. were multiplied
yesterday as their confident men opened
wider that little secret ledger which told
the merchants they were doing a losing
business for years.
To the evidence Of Prall and McMeek!n,
Who knew the inside of the New York
business, was added to that of William
Friday. who was general manager Of
the Boston store.
As n result District Attorney Whitman
sent one man to Boston and another to
Chicago to deve Into the affaiis Of the
establishments in those cities.
More Indictmen ts lmpe naing.
The Grand Jury will be asked to vote
twelve additional indictments against both
men. nearly all of them on felony ,charges.
Evidence Is available on which to base
many more II circumstances demand them.
Among the cases which are to be
pressed are the following:
One accusing the two men as RESPONSE
Bile officers Of taking $780, 900 cash from
the stockholders Of the Siegel Stores Cor
poration.
A perjury charge accusing both Siegel
and Vogel OF making false affidavi;s OF
the financial condition of the Boston stor /,
to the National Bank OF Commerce In
19l3 and 1913.
A false statement OF the financial con-
dition of the simpson Crawford Company
made to New York bank April II, 1918,
In which there was discrepancy OF
el.771.52S.S4.
Another statement Of the same COM
pany made to another bank February 3,
1912. In which there was discrepancy OF
$l.70s.333.7s.
A Fourteenth Street, Store statement
made February /, 1913, to a bank. In
d
329.02 as shown by the secret ledger.
There Is still another charge that the
dividends on the $2,cO0,00O per cent
preferred stock of the Siegel Stores Cor
poration were paid out OF the funds Of
the private bank.
DepOsitOrs Are stunned.
The rapid developments OF the last few
days seemed yesterday to have stunned
dAnn lbs ~ (.r
she $4,000 which the Depositors' Real
Jzation Corporation offered AS cash div.
aQend OF 81 ~ per cent. c. me the realiza-
tion that they were likely to get nothing.
There was an entire change OF front. the
IRE eaters were in eclipse and a committee
was appointed TO ask the representatives
OF the two men IL they would renew the
offer provided the depositors would In.
tercede with the authorities In behalf Of
Siegel and Vogel
The Attorney General began suit In
the Supreme Court to recover the 500, 900
bond deposited with the State Comptroller
BY the bankers. This will mean a new
receiver and further inroads into the
sum to be distributed.
There was no one. creditor. lawyer. re-
ceiver or expert. to say yesterday before
Judge Charles NJ. Hough that there wal
any hope OF reorganizing and continuing
any OF the Siegel enterprises In this city
or Boston. The two stores. the Mer-
chants Express. the wholesale company
all were not only heavily in debt but were
admitted to he losing money as we'll
Former Judge George Holt In his report
declared there was no other way out OF 4
and Judge Hough ordered the receiver.
TO sell and to close up the two big es.
Establishments.
The saes are to be completed b,
March "a and the inventory by March 10
The merchandise. stock. fixtures and tn,
Eood will. II any. are to 60 in blocks. tn,
whole or any part to one bidder Offer.
a purchase must be accompanied by
certified check for 100000 and the re
celvers can reject any or all bids.
There are no buyers in sight for tn,
entire stock Of either establishment, blu
II was reported yesterday that Leo A
Price, who sold Rothenberg 4 Co. to tn,
Fourteenth street Store and thon bec1m,
its manager. may go into business agar
by reviving the old nrin.
While all this was going In the civi
court yesterday Assistant District Attor
ney Arthur c. Train, In charge OF thu
prosecutions, was getting ready for mor'
indictments. The number of possible
counts is limitless." 1t was said at tn,
close OF the day.
The District Attorneys Office attaches
great Importance to the charge of tn,
grand larceny Of si.50o.OO0 one OF tn,
revelations of the day -hs basis Of thu
charge In as follows.
The Slegel Stores Corporation made
100000 Of lis $io,00O,O0O capital stool
preferred stock and sold 1t for cash
much OF II abroad. Sir Thomas Upton
II Is said, bought some Of IT, The Smp
son Crawford Company was owned out
right by the Siegel Stores Corporation
but In It's turn owned the Simpson Realt,
Company. The Simpson Realty Compan!
had 3s50.000 In bonds outstanding Tn,
officers OF the companies all OF whom
were the same, took $s50.000 out OF tn
Stores Corporation treasury. bought vi
the realty company bonds and cancelle,
them. They then marked up the value o
the Simpson Crawford Company $3.50, 00
on the books Of the Stores Corporation
but no tangible return was ever made u
the preferred stock holders and the.
gained no benent thereby. s!miia
thing was done with $500 In note
outstanding Of the Simpson Crawfor,
Company. the money was taken iron
the treasury OF the Stores Corporation
the notes We're bought and destroyed an,
the value of the Simpson Crawford Com
pany LOSING concern. was marked u
tSb0.oo0 more % the books.