New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-11
Friends of Bankrupts De-
eide to Withdraw, Pend
ing Grand Jury Action.
DEPOSITORS WILL
LOSE, COUNSEL SAY
May Get Only S Per Cent OF Their
Momey-Indictments Expected
Some Time To-day.

ment or Henry SleSti anu
Vogel for making. false statements IN
order 10 obtain credits for the Siegel
stores. exclusively announced In Inc
/ Tribune Yesterday, the friends OF those
mon have Withdrawn their offer TO pay
$50. 900 in cash to the depositors IN
the bank of Henry Siegel q co. ms
means the abandonment OF the plan ny
which the depositors were to receive ~
per cent of their claims in cash at once
and notes payable in five years for the
balance.
Abandoned, also, is the plan of these
friends and relatives and mercantile
creditors to put 100000 into new
corporation TO take over and manage
the two stores.
Stores Must be Closed.
/ As matters stand, the affairs of the
several firms and corporations must
/ now he liquidated in bankruptcy ana
the stores closed permanently. Ac-
cording TO lawyers for the depositors'
protective committee their clients can
/ nope Tor OnlH - ~ -'f2 f'i ~
most i'm cash at the end Of three years
with the chances favorinS their receiV-
ing less than per cent.
Indictment of those involved in the
Siegel failure is expected this after
noon. This action will be based upon
statements on which mercantile credit
was obtained In one instance, = was
stated. the discrepancy between the
actual condition Of the corporation OBJ
tanning the loan and the statement was
I 81. IOO. 600. the statement showing
large surplus over liabilities and the
books large deficit.
The decision to abandon both rehs bill
itation plans. which were closely
interlocked. was reached late yester
day afternoon. when William II. Cald-
well. president Of the Depositors' Re
alization Corporation, company
formed to handle the settlement with
( The bank depositors. sent his letter to
! Henry Melville. receiver for the bank,
and to Judge George &. Holt. TO whom
/ the matter was referred as a special
master in equity of the United states
! District Court:
"In view OF the opposition on the
( part of some of the depositors TO the
acceptance of the offer of settlement,
! end the tendency Of legal proceedings.
which threaten TO interfere with the
possibility of Messrs. Segel and Voeel
! Of ha
, ferred payments, their friends and rel
atives. making the contributions for
I the settlement do not consider 1t feas-
ibe to carry out the proposition under
the existing circumstances"
Must be Free to Work.
Following the decision to take this
action. John r. Plat. of Chicago, who
came TO New York TO arrange TO pay
over the $4,000 to the depositors and
/ the money subscribed by Chicago
friends of Siegel and Nogel To the fund
to re-establish the stores, left New
York for Philadelphia. He is not ex-
pected TO return to New York.
THE letter of Mr.. Caldwell, as ! read
! it," said Louis :. Levy. Of Stanchied
& Levy, counsel for Siegel, Nogel and
others involved in the failure, means
exactly what it says The offer is
withdrawn because of the pendency Of
legal proceedings. The offer cannot
he carried out if these men are TO be
kept busy the next two years or more
hghting criminal proceedings.
ITO make good OH the promise TO pay
the notes that would be given it would
be necessary for Siegel and Vogel to
work and earn the money. If they did
not earn the money their last stage
would he as bad as the frst-the 10
900 depositors would still be clamoring
for money they would not have 10 give
them. \ man under indictment and on
trial has troubles enough to take up his
time and leave none for business.
AS it is. | nor any lawyer in posses
sion Of his senses would advise his
client 10 indorse 81 .J00,O 900 or 81. 30
600 of notes that he knew he would be
unable TO pay because of being de-
prived Of chance to earn money to
meet them with"
Lucky to Get 10 Per Cent.
II am sorry to have to say it," said
Ralph Wolf. Of Hays, Hrshfeld e.
Wolf. but this means that the cred
itors of the bank will he lucky II they
get 10 per cent of their claims
Ninetysix per cent of the 300 cred
itors our firm represents that answered
cur queries were in favor of accepting.
The vote was 1,213 in favor Of accept
ing and ~ against.
Il won't say. though. that | am very
much surprised From the start | re-
allied that delays were dangerous and
that the noisy minority might succeed
IN making 60 much noise that the offer
would fail"
BAR ELECTS WICKERSHAM