The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-09
JUDGE ORDERS ALL SIEGEL
DEPOSITORS PAID AT ONCE
Denounces Those Who Hold Out False Hopes OF
Gain by Delaying the
Distribution.

Judge Charles NJ Iiough OF the United
States District Court decided yesterday TO
give quick relief TO the depostors In the
bank Of Henry Siesei & Co. BY an order
which he signed late yesterday afternoon
he directed the receiver to pay back to
depositors Immediately such funds as he
finds available. more than 100000.
In doing 10 he denounced those who
have been counselling delay with the APP
parent hope Of fatter fees and incidentally
less money for depositors. II was moved
to this by the assertions Of lawyers who
are acting for poor depositors without pay
and by the fact that many depositors are
selling their bank books TO get money for
urgent needs.
While these proceedings were going for
ward In the Federal court Henry Segel
and Frank +. Vogel were pleading not
guilty to the fourteen new indictments re-
turned against them on Tuesday.
The delay in their appearance before
Judge Mulqueen provoked him to direct
the issue OF bench warrants. a further
delay in obtaining indemnity for their bail
bonds put them IN danger Of spending u
night IN the Tombs. Each finally got
s25,o bail
Joseph NJ. Proskaucr. counsel for Henry
Melville, receiver for the bank, appeared
before Judge Hough for Instructions as to
the disposal of 1855. 900 now In his hands
and of 100000. the forfeited bond OF the
bank, which the State authorities prob
ably VIII turn over to him In few days.
He advised the court that there were two
methods calculated to secure immediate
relief to the depositors. one the seauestra-
ton of the funds with a trust company,
the other direct payments by the receiver
He suggested that the American audit
Company would provide the requisite Of
fees for direct payment at 100 Broad
way, and that the depositors having been
listed In alphabetical order. "A certain
number of them could be asked to come
each day until all claims were satisfied
Opposition to this plan was voiced in
five affidavts presented by William II.
Bonynge, attorney for some of the de-
positors. These affidaNits set forth that
at meeting OF 500 depositors on April
l II was unanimously voted that no pay
ments be made until every possible asset
had come into the hands of the receiver
John NJ. Murray who represents 9sl
depostors said that while Mr. Bonynge
might represent the 800 at the meeting
OF April ! and while $500 might be rep
resented by him and other attorneys,
there were 1900 depositors who relied
sOitlN upon the court. he pointed out
the inevitable expense incident to a bank
rup'cy proceeding, the fees to the re-
ceiver. to the trustee. to the lawyers
and the expense of hearings besides He
couldn't see that there would he much
left for the depositors when a distribution
was finally ordered.
Calls False Hopes Cruel.
THAT IL a good point" observed Judge
Hough. THE statutory allowances to
trustee and referee are not inconsider-
able. ] am glad to speak in a tone that
may possibly be heard beyond the walls
of this building. Nothing is more cruel
than 10 hold out fallacious hopes TO
these depositors that a motor car here
and there or an insurance policy slowed
away Is going To benefit them one single
bit Every one who has looked into this
matter knows that as long as the rule
OF individual! assets for individual credi-
tors and OF firm assets for firm creditors
obtains those men owe more money man
the value of all the motor cars they
ever owned or ever could own in their