The Birmingham age-herald., 1914-03-12
Action Grows Out of Re- ceivership Proceedings
 Against Business Firm
ANGRY DEPOSITORS
 SEARCH FOR BANKER
Stormy Session at Bankruptcy Hear ing When Many Are Elected The Crowd Threatens
 Siegel

New York, March 11-while Henry siegel. head of department stores in New York, Chicago and Boston, was testifying today in riotous bankruptcy hearing, the grand jury that has oeen Investigating the failure of the siegel stores in New York and the savings bank conducted in connection with them returned three joint indictments against him and his partner in the banking en- terprise, Frank +. Vogel
 Siegel and VogeI were arraigued on the charges and later released on S2o,- 900 bail each
 Three hundred angry depositors who had been forcibly elected from the bankruptcy hearing, hunted around the federal building for Siegel in vain. Al the time they were looking for him he and his banking partner were standing before Judge Rosalslxy pleading not guilty to the indictments.
 Larceny Charged
 One indictment charges SiegeI and Nosel with grand larceny in that they made false statements to the bank of commerce in order to borrow S25,000.
 
 CTS accepted deposits when they knew !. the bank of Henry Siegel & Co. to be insolvent
 Siegel testified at the bankruptcy proceedings that he did not invest any capital in the private bank that bore his name. He got about that far in his testimony when Miss Jessie Martin ,n- nounced that she had right to repre- sent the depositors at the hearing She was urged to remain quiet. When fhe refused to do so, she was led from the courtroom by United States Marshal Kenkel. Three hundred depositors who were standing around the corridors also were put out. They gathered in front of the window of Marshal Henkel's of- flee and shouted threats of violence against Siegel.
 Segel testified that he and Nogel tlled bond and purchased fixtures for ehe bank. Then, he admitted, they accepted deposits and made them act as a hoat- ing capital for the bank. Siegel de- clared he had no money to pay w at he owed and he declined to answer l ] question as to whether an entry as made on the books of the stores when they borrowed from the bank. on the ground that it might incriminate lfnl
 Agreed to Divide Profits
 In regard to his partnership with Vo- gel in the private bank. Siegel said he and his partner had agreed to divide the profits at the end of each year. He said his salary from various stores vas $46,0000 a year, and that his wife spent most of it.
 It was little after o'clock in the afternoon when one of District Attor- ney Whitman's detectives told Siegel's ] attorney that the indictments had been returned. The lawyer leaned over to Siegel and whispered the information to him. Siegel turned pale and from theh on stammered out his answers to ores- tions put to him.
 Siegel and Vogel were taken to the ground floor of the court building in a private elevator that they might dodge the mob of depositors When the pair arrived before Judge Rosalsky both ap- peared dazed. District Attorney Wh'c man was waiting for them. Attorneys entered a plea of not guilty for the two men. They were then given one week in which to withdraw the pleas if tkey so desired After having their bail ac- / cepted both men left the court. Neither would talk.
 Proceedings Not Ended
 The indictments by no means end the proceedings of the grand jury. It Is alleged that an investigation hy the district attorneys office has disclosed discrepancies of nearly $2.000.0O0 be- tween the books of the Siegel stores and banking enterprises and the finan cial statement used as basis of addi- tional credits before the failure. It is ] said the total of the discrepancies mas even reach higher figure.
 The Fourteenth street store. the Simpson Crawford company, the bank ing firm of Henry Siege. X Co. Henry Eiegel & Co.,, wholesalers, and the Mer- chants Express company. of this eity all allied with and controlled by the Siegel stores corporation, of which Henry Siegel is directing head and pres ident, and of which Frank F.. Nogel is vice president, went into the hands of receivers December 30. last. The same day a receiver was appointed for the department stores of Henry Siegel x Co in Boston. The Siegel store in Chi cago also controlled by the Siegel stores corporation, was not affected No settlement has been made With the de- sitors in the bank. whose deposits aggregated about $2.000,000. As has ' appeared in testimony in various pro- ceedings deposits in the bank were drawn freely by the various stores when funds were needed in their busi- ness operations The stores have been continued in operation by the receiv-