New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-08
Criminal Case May Cause
Concentrated Effort TO
Avoid Cells.
RUMORS MAY BALK
MONEY AND PLANS
Sale of Various Properties Out
lined-StOrmy Meeting
Held in Loft.

Because Of the progress made in the
criminal case against Henry Siegel, Frank
Il. Voge and others connected with the
wrecked bank OF Henry Siegel & Co.. law
yers interested in the various phases or
the Segel ENHANCEMENT were inclined
yesterday TO think that Siegel. Vogel and
their friends would let everything go by
the board and concentrate their efforts on
keeping those connected with the bank
out Of Jail
Whether or not this course will be fol-
lowed will be decided within the next for
ty-eight hours In that time those close
to Siegel and Vogel will decide whether
It is best to pay over $4,000 for the bene-
fit OF the depositors and arrange to sup
ply 5000 600 new capital for the stores or
not.
Thursday the securing Of new capital
for the reorganization Of the stores was
almost a mathematical certainty. Now
the Chicago friends who were to supply
this money. having heard reports from
this city indicating that a determined eff
fort to place some Of those connected
with the firm in Jail was being made.
sent trust agent to New York to look
into the matter and advise as to what
course to pursue.
This advice, one of the lawyers In the
case said yesterday, would. in oil proba-
bility, be against sending good money
after bad"
Furthermore the $4,000 which had
been offered the deposltors. is not in hand,
that it will be within a reasonable time.
Counsel for the Siegel interests are re-
ported to be in doubt as to whether it is
the part of wisdom TO pay over the money
and take chances on getting clear of Grim
| inal prosecutions, or holding IL for the
purpose of making a fight.
Stanchfield &. Levy. counsel for Siege
and his associates. are said to be inclined
to the latter course. Color was given tc
this report Yesterday by a report at the
depositors' meeting in the loft building
No. A. West street, where John Il. Col
| Inns said Mr. Levy had told him almost
as much.
Il saw Mr.. Levy this morning" he
told the depositors. and he told me that
Mr.. Segel was willing to pay over this
money if the depositors would join in
urging District Attorney Whitman to call
off the criminal prosecution"
Neither Mr.. Stanchield nor Mr.. Levy
was in his office yesterday afternoon 10
verify this statement. Mr.. Whitman was
reported also out OF town 1t is stated
however. that he will not be a party to
any such transaction, eager though he is
! rr
most he will do is to promise to give the
efforts of those who may be indicted &c
reimburse The depositors or others who
may have lost by their wrongful acts
every consideration they may in fairness
and law be entitled TO
The amount which Slegel and Vogel' q
| friends expected to put into the reorgani-
cation scheme was about 100000 The
members of this syndicate is almost
wholly that Of the group which put $1,000
900 into the Siegel-Cooper store. OF Chi
cago. early in January. when it looked as
though that concern might fail. receiving
in return $4,000 preferred stock in that
concern.
In the order which il is planned 10 pre-
sent TO Judge Holt tomorrow for the sale
of the Segel properties in this city il will
be asked that bids be sought % for the
stores as they are; (2) for the fixtures and
complete stock in each store. and CD for
the fixtures i'm each store, the goods in
each department of the two stores in lots
and 90 such other assets a. may be pos
ses sed. The court could then accept
whichever method of disposing OF the
property as would seem to promise the
| largest returns to the creditors.
| Prior 10 the presentation Of this order
to Judge Holt it is expected that the
depostors in the bank, who have been
called to meet on that day, will vote 10
accept the offer Of Siegels and Nogel's
| friends to pay them at least 30 per cent
/ of their claims in cash al once anc
/ the balance in notes, If that offer is still
/ the balance in notes, If that offer il
still standing at that time. 1t is not
expected that more than two hundred
/ depositors will be present at the meeting
/ but John p. Murray, OF Coudert Brothers,
and Ralph Wolf, OF Hays. Hirshfeld &
/ Wolf, representing protective committees,
will have the votes OF more than three
| thousand depositors to cast in favor Of
the offer, more than three times the num-
Der the opposition can muster. at the out
side
The opposition met again yesterday In
the loft in West 18th street. The meet
/ ing was stormy and prolific Of charges
Of crookedness. As on other days, In
spector Wakefield had members OF his
staff present TO keep the peace.
The holders Of the lease on the ole
Rothenberg store, now used by the Four
teenth Street Store, yesterday obtained
permission TO sue TO recover possession
OF the premises for non-payment OF rent
the first step toward the actual breaking
up of the stores
| Boston sent word yesterday that Joseph
! c. Pelletier. District AttorneN for SunOll
| County, had begun an investigation into
! the manner of conducting the Siegel store
i'm that city and the banking situation.