The evening world. [volume] (New York, N.Y.) 1887-1931, 1914-03-12
pleas of not guilty for each defend.

pleas Of not guilty for each defcnd-
snt.
Some surprises were contained In
the text of tho indictments against
Siegel and vosel. The charges that
they they violated section 2y5 OF tho
Penal law In receiving deposits after
Insolvency are based on tho allega-
ton that on Dec. 20. 1918. they rc-
ceived 500 from Charles Grimm anil
500 from william johnson. This was
nine days before Henry Melville was
appointed receiver for the bank and
ono banking day before Sicgel and
vogcl began the sequestration OF de-
posits. This they started Dec. %, and
an earlier date was sought. so that II
might not be set UP In their behalf
that they had not jeopardized moneys
received during tho last week Of tho
banks operation.
SAY STATEMENT ERRED NEARLY
100000.
A similar precaution was taken In
establishing the charge Of grand
larceny. The specific allegation is
that Siegci and Vogel on May II. 1919,
got a loan Of $4,000 from the Ma
tional Bank OF Commerce on tho
strength OF a statement Of financial
condition hearing date OF Feb. .. 1912.
vogoi testified In his examination
before Special Master Holt on Jan. q,
that banks began 20 curtail credit OF
tho Siogcl stores q year before re-
ccivcrs wore appointed. and TO block
any contention that the banks knew
what they were about the loan OF
May II, 1919. was picked out.
The note given for this loan was
made by Tho Fourteenth street
Store, Oscar A. Prall. Treasurer;
Frank T.. Vogel, Vice. President" 1t
was Endorsed by Henry Slegel and
Frank z. vogei. Tho statement. on
the strength Of which the loan was
made, declared tho net resources OF
the store to be Si.ibS.6 ss.os. which Is
declared In the indictment to be dis
crcpancy Of 81. s.S2s.1s. the store be-
Ing In reality insolvent Ivy esi6. 2Ss.li.
Both merchandise and cash on
hand were overstated, II II alleged
bills and accounts payable scaled
down and other big debts entirely
concealed.
HAD EARNED NO PRoFiTe FOR
FIVE YEARS.
II has been shown In the testi-
mony that the statements made tt
the banks when Siegel AMI Voge
sought new credit or tho extension
OF credit already established bore n
reference to actual conditions. The,
showed nothing. the Grand Juror
were told, but some condition that hac
been arbitrarily agreed upon ~ liko
lly TO achieve the end that was need
cd at the particular time.
Five such statements were signef
by Vogel during 1912. During 1871
siegel signed two and Vogol one. tn,
statemsnts Of 1918 showed . profit o
$4,000 for tho Fourteenth Stree
Store during the preceding year. In
stead OF this profit accountants hav'
, 100000. 1t u declared that the stor
has earned no profits within tho pas
|. i've years and that II u doubtful
! tho Simpson Crawford Company ha
either.
4 The evidence heard by the Gran
Jury hns fixed at 10000 q year tn
: amount Of salary received by Siege
; although he has testified That he re
ceived but $4,000. Vogel's salary ha
, been hxed ut $4,000. while Leo 4
. Price. who became general manage
Of the siegel stores when the Rothen
' berg q Co. store was bought q yea
, ago, has bsep receiving 10000. TIL
question has been raised In the Gran
= JurY ~ the stores have not. pcrhap.
besx run during tho last three year
for tho chief purpose OF paying thss
: salaries. ..'
Deputy Attorney General Mo0uai,
In charge Of the New York Cit
I ONCE, has been instructed ny AttoI
. nsy- General Carmody to proceed 4
the recovery OF the 100000 repre-
sented by the bond put up by siee
. and Vogel with the State Comptroiie
u The United States Fidelity m
Guaranty Company has never rec
secured for this bond. and II has n,
Q been paid. The Attorney General
= Office will sot In pshaif Of the de0os