The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-25

j. S. CONFRONTS
HENRY SIEGEL
Federal District Attorney to
Inquire Into Alleged
Misuse Of Mails.
MAY HASTEN PAYMENTS
TO BANK DEPOSITORS

Henry Segers conviction and sem
tence at Gcncsco Monday night Will not
insure tho orstwhile private banker and
ary goods merchant against further
prosecution tascd on circrnst' noes sur
rounding the failure of his enterprises
There is still Il possibility that the Fed
,ral authorities may entertain charges
against Slegcl for using the mails to
acfr,ud Assistant United states AZ
,orucv Roger Wood. head of the GRIM
NAL branch of the United sta cs District
Attorneys office. said last night his
office had tn matter under a0visement.
ANY Grand Jury proceeding begun by
the Government would he undertaken
on tho theory that Siegcl used the
mails to induce people to buy stock IN
the Siegcl stores Corporation. the hold
ing company for tho various SieSel
.rternrise. II proof can bc shown that
Sierel at any time used the mails IN
connection with his banking business or
in sending out false financial statements
TO nave the way for the negotiation or
loans which were swallowed up in the
facts could also be cited as Violations of
the postal law.
The crime of which SicEel stands con-
yicted : only "A misdemeanor under the
State law. Fraudulent use of the mails
is felony and punishable by several
years in prison and a substantial fine.
siegers sentence. imposed ~ Justice
Clark IN the Genesoo court, is ten
months in Jail and $1,000 fine. Free
ouentlv persons convicted Of misuse N
tho mails in the Federal courts here
have been sentenced to five years and
fined heavily.
The Federal authorities OF course will
take into consideration tho fact that
Segels sentence = To- be stayed until June
10 give the convicted man chance 10
max. restitution to the depustors IN the
SegeI bank It has been suggested that
y S,esol IS successful In his efforts TO
reimburse these dcpnsltors he may win
the clsmeucy Of the court.
In the event no effort Is made by
Scsol 10 this end i'm the time allotted the
convicted man will HAY" 70 serve his
'ull ten months. u Is pointed out. Low
eve. that tho possibility Of a sentence
OF nvc years for misuse OF the mails
would he far greater incont.v" to the
reimbursement " the dcposltors than ten
months in jail.
Tho Federal District Attorneys ohce
Will 20 into tho matter thoroughly with
Tho county District Attorney and Will I'M
nuostionahly consider any OF the latter'
" shes Assistant Distric; Attorney Ar
thur Train. who prosecuted the SleEel
case viii he asked to turn over. Tor
the purpose Of any Federal investigation,
tina, may he undertaken. all evidence OF
m .use Of the mails.
Hundreds Of letters. 1t IS said. were
srri 10 heavy depostorS in tho S!esel
hank and employees of tho Siegel stores
urging them to invest their money IN
.he S'ogel stores Corporation. one OF
the, letters. It is said. was ent to August
Albert IS wears old, ~ 81 seventh street
Who had s2i.l55 IN the Sicgel bank Al
tNc time of its failure Except for the
interest on $4,000 mortgage which hr
Rod. Albert. Il is said. lost i'm the Siege
crash an tho means he had Of supporting
his scvonty-two-year-Old wife and ar
unmarried daughter.
Tho lct'ct sent % Albert was datec
1urs { 1909. was written or stationery
~ the simpson Crawl, Ri Company am
horo What appeared to he Henry SicgeI'
signature in ink II sets forth the ad
vantages ~ holding stock in the Sieg"
stores Cooperation. saying the preferred
stock hearing interest at per cent,
would ho first claim on tangible asset
NJ nearly S. 600 900, or tho combined as
sets Of the Chicago stor" SimpS"n-'raw
lord Company and the Fourteenth stree
Store ~ New York
BEFORE tie letter reached him Albert T.
said 80 have been Introduced to Siegcl b.
Frank J.. Champion, cashier of the Siege
Nlnk Si,gel II is said. talked to hin
% tho splendid opportunity for inNestini
= money IN prosperous stores.
S,rsol arrived in New York At 10 ocloc
las HiIh' from Genesco.