The evening world., 1914-01-29
'C|PHER CONCEALED
BALANCES FROM
Henry s|EGEL
Cashier Says Vogel Told Him
to Keep Figures From
Head Partner.
ClMBEL, A WITNESS.
Favors State Control of Private
Banks-Morgan Partner
Doesn't Want II.
ClMBEL A WITNESS.

baI1kS-MOIKan TdItIlcI
Doesn't Want II.
How the monsy Of dspositors IN the
bank Of Henry cisgsi q Co. was lent
to the various 0isgol stores. how
these loans were made solely at the
direction Of y. y. vogsl. Henry Sis-
gsl's partner. bow vogsl rsosivsd
each day . cipher statsmsat Of the
casA on hand In The bank and how
from this he planned his loans, how
be iasusd imperative orders that these
cipher statemsnts must not b
shown 70 Mr.. sisgsl or fall into
wrong hands," and finally how COL
lateral for the huge loans that IN.
ally wrseksd the bank was deposited
only . few days before the failure.
was told In detail to-day BY Frank
Z Champion. cashier. before Senator
rpalock's COMMITTEES TO Investigate
Private Banking. Henry eisgsrs
statement that never more than
twice . war did he know the exact
standing Of the bank seemed 70 10
vssissd By Mr.. Champion's tssti-
mony.
The cashier. tail. slender and Of
middle ags. gave his testimony slowly
AaA with the impression of trying to
b exact. He volunteered nothing
and Dsnatoe Pollock and Daniel p.
Hays. counsel TO the committee. drew
nom HIN every statement he made.
gxeIAhNs oUGgR svsrEM OF
cirHGR DALANcgs.
Revelations ooncerning NJ. veGsl's
banking came when Champion "a.
nittsd that the cash taken In daily
from dspositors Wa seldom banked
~ same day with the various No.
taoaal banks which the sisssi bank
used - dspositoriss. Cheeks were
sat but the cash. he admitted. was
kspt In ~ safe.
why DIDN'T you send ~ cash %
~ baaksr' demanded Mr.. Mays.
well. ~ mailed the checks and
~ dida't think Il safe 10 send cash
tAa& way. Thsu each day. also. ws
nads up . statement for Mr.. vogsi
Of ths cash On hand and hs author.
lssd ~ TO send II TO the Fourtssnth
0tssst Store and the Simpson. Craw.
ford stors."
Generally this money Was trans
ferrsd BY checks on the National
Park Bank signed BY Mr.. voesl. Who
aftsrward would notify the cashier to
what account to charge these pay.
msnts. They were made always on
the authority Of Mr.. vogel. though
The order was transmitted sometimes
through his secretary whom Mr..
vossi was absent. >"
Champion explained that elk OF
ssvsa years aso Mr.. vogsl had or.
dersd him 70 make up daily q state
msnt showing not only the amount
OF deposits and disbursements, but
also . schedule Of the money already
Issued to the sisgsl stores. even when
this was issued In exchange for q
check from the store ~ was often the
case. This statement vas In what
might b called . cipher.
oApERED TO CONCEAL STATE
MGNr FROM eiEoGt.
the names OF the stores were moi
used. We vssd numbsrs instsad," tss.
tined Champion.
80 that tho efIset was to make Il
. cipher. something that none oths,
than Mr.. vogsl could rsadf" asked
Mr.. Pollock.
"wsll. that might have been thu
effect He didn't say that h,
Wanted cipher, pssd for this purposs
bat 10 did order .as not to send thu
statsmsnts to Mr.. stegsi." t.r
Ths testimony astopishsd hi,
hearers and Mr.. Pollock and Mr.
Hays demanded almost In unison:
you mean TO say no ordered yov
not TO show this statement TO Mr.
siss.lr
"Yes, CIR. Very p0sitively."
| @ But whyf Wasn't Mr.. Siegsl {
pArtnsrf A. ] don't know.
q. But you are certain he tolG you
l. Positive. He didn't want thos,
schedules TO fall into Mr.. oiagsl'l
hands or into any wrong handa
ADvANcEs TO SToRGs o.
VERBAL oNoGRs.
Prom these schedules, the cashis
MD. Mr.. vogel was accustomed I,
decide the amount Of advances TO b
made 10 the various stores and Q sim
pie verbal order ssfacsd to have tn
proper check drawn. asnsd b. NJ
} voea and sent Sometimes casl
would b cent anl sometimes . chscl
from the store taken back In sxchAnss
~ oe1.ss times o note weulA - giysl
- eevsr t1aiS oasA.
; ~0vt when you 0ot . check bAcl
I thsso was no entry On your books 4
, sAow that you had exchanged sasl
} | for )tr' asked Mr.. Hays.