The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-13
Bank DcpOsitOrs File Two Petit
tons for Involuntary
Bankruptcy.
DEMAND FOR RECEIVERS
Melville Explains Methods Of
Banking to tho Senate
Committee.

| ruptcy against Henry Siegel and Frank r..
Vosel, oopartners and individuals, -as
bankers and wholesalers. filed yesterday
In the United States Circuit Court are
taken to Indicate that tho Federal Gov
eminent may investigate the business
methods Of the partners In tho two en-
| terprises.
In both petitions the court Ia asked to
appoint receivers In bankruptcy and
through that act the conduct OF the men
could be inquired into by a Federal Grand
Jury.
The Federal action had no effect on the
inquiry being conducted by District Attor.
ney Whitman and his aids. Assista mt
District Attorney Strong had among his
visitors yesterday +. l.. Champion and
w. J. Doherty. who ran. the Henry sie-
gel 4 Co. bank, and some merchandise
creditors. Definite action in the State
court is held up pending reports from
experts who are trying to ascertain tho
situation from the books of the m.r-
camille concerns and the bank.
The Senate Committee on Banking,
headed by Senator Pollock. held IA SEES
sion at the City Hall yesterday and ex-
amined Henry Melville. the receiver Of
the bank The most significant state
inent made by Mr.. Melville was that tho
bank lent money to the various Henry
Siegel enterprises up to a few days be-
fore the applications for receivers were
made" Witnesses subppnaed for the
meeting Wednesday morning will be Sic
gel, Nogel. Champion, Doherty and Osca-
a. Pral. who was an officer Of the
Fourteenth Street Store
DepOsitOrs Fear Discrimination.
The petitions fled In the United States
court evidenced the fear OF the deposttor
that the mercantile creditors might OBJ
tain some sort of n preference over
them. The first. that OF Esther Laufer.
Herman kronowit and Michael Huppert,
depositors TO the amount OF $3.50. was
filed by Abe Gruber II asked that m,
two partners and their partnership be
thrown into bankruptcy. although 1t WAS
stated that there could no no possible
criticism OF Henry Melville II was said
that they would not object II Mr. Mel
Vile were appointed as the Federal re-
ceiver.
The petition WAS ito obtain the benee,
OF the very broad and thorough inquisl.
torial powers Of the court so As 10
ascertain II any property has been Sc
GREETED or transferred or any fraud has
been committed" II was alleged that
property valued at $4,000 had been thus
transferred, but this was said to be for
NAL. TO comply with the statute
The second petition was filed on be-
half OF Max Stern, a deposition, and
George Leach and Lester Hirsch. mercan-
tile creditors. to the extent OF $500. r..
requests were the same as those Of the
hrst.
Inquiry May Ne Unlimited.
II a receiver In bankruptcy is APP
pointed, he can examine the defendants
as TO everything that took place from
the day they went into business up to
the present time. There are no limits to
the inquiry. II 1t In discovered that
money entrusted to them was used 20
aid insolvcnt enterprises, wrongfully lent
or In any way disposed Of except as n
reasonable merchant would dispose OF IL.
a charge OF "secreting assets can lie
brought and that would be for Fed
eral Grand Jury TO decide.
Not a word came out OF District Attor-
ney Whitmah's office yesterday except that
the Siegel matter was still under investi-
cation.
The Senate committee had Mr. Melville
on the stand in the afternoon lie said
he found that the bank had total deposits
of s2,55O. 333.6s. 1t was very difficult. Mr..
Melville asserted. 10 arrive at "A definite
understanding OF the situation The sys-
TEN of bookkeeping was elementary, a
general ledger being the main dependence
The loan and discount account showed
that $2,602.053.64 had been lent; the in
terest account called for $50. 1892 to he
paid the furniture was worth $2.023I7
there was sl4s1771 in cash. s972s7 In
cash items and an apparent shortage OF
SO In cash.
From the banR records 1t appeared that
the following amounts were due from
other banks, entirely as deposits
Security Bank. ..........,....... els,6tb.s3
National Park Bank .....,....... 2,76t36
Bank OF the Metropolis. ......,.,. o.092 %