New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-23
Banker Testihes He So Re
garded Them and Used
Them in His Enterprises.
ANGRY DEPOSITORS
SPURN PROMISES
impatient at Patience Policy on
Finding Their Claims Get
Second Place.

rivo hundred deposltors of tho dcfunct
per~, Sieecl & Go. bank gathered in a
loft ,t No 6 West 18Th street Yesterday
afternoon and berated Mr.. siegel ana
Frank T. NogeI hts associate. who hs'
testified before the United states referee
that thc, REGARDED the 10000 deposits
% .thc,r money" The depositors were
reused So a FRENZY and marsh names were
applied 20 the bankers
owe regarded the deposits in the oahN
as our private money" Sieeel had 'eSu-
fed we thought We had a right 70
lend II 70 the stores and we did.
Mss Jennie Martin led the fight against
the patience policy. advocated by ). Fhi'p
Munich. chairman OF the depositors com
niittee OF ten. lie had told the deposltofs
70 meet next Wednesday. He promised
them some assurance Of payment from
the bankers then.
MIR Siegel is a man We trusted before
said Miss Martin. and why should we
trust him any longer We should insist
on something more than promises
Miss Martin then announced that
public mass meeting Of sympathy for the
siegel depositors Will be held sunday al
ternoon under the direction of Miss LII
tan Wsld. OF the Henry Street Settle
ment. Miss Wald promised that Aeuteh-
ant Governor Robert Wagner Raopi
wise. the Rev. Karl IRELAND. pastor Of
a. GEORGES Church. and others VIII
speak.
The promise by lawyers for Mr. Siesei
and Mr. Vogel that within forty-eight
hours they will have a definite proposal 10
make ~ the depositors and other creditors
d,d not appear 20 appease the lou" per
sons who have nothing but their pass
hooks 10 show for their faith in tho Slegei
hank. IN view Of the statements Of Siesel
and Vogel under oath that they intended
that the bank deposits should come sec
ond In a liquidation OF debts.
..yve agreed" Mr. Siegel said YESTERDAY
at the hearing before Special Master in
Bankruptcy Holt IN the Bar Association
Building. that the commercial banks
debts and merchandise creditors should
come first. the bank depositors second
and the stockholders third in the settle
ment"
Pressed nv attorneys Siegel said there
never had been a written agreement just
an "understarding He also said he felt
that the stock deposited in the bank as
security for the loans extended the three
eieeel stores by the bank was ample Sc
rurity
..Do Won still think it Is good?" asked
Attorney Proskauer.
.I certainly do" he replied. And !
CHI
chance III nay 100 cents on the dollar.
Just before that Mr. siegel admitted
that there was a charge Of $4,000 against
him on the banks books.
What was done with that money!
asked John p Murray, representing
Henry Melville the bank receiver.
cit went into the stores and other
places. such as living expenses ana the
Ike" answered siegel.
Mr.. siegel said he had drawn nothing
from the bank or the stores since their
suspension. He says he has no property
left. his 800 coo home at Madison avenue
and s2d street. his 10000 place at Nam
aroneck and his office building at Seventh
tayenue and 10th street all have been
( hypothecated
where are you living nowY" asked At
torney Murray.
AT the Majestic Hotel"
How are you paying your oills?'
"I am not paying them" said siesel.
"a. Herman, friend, is paying them
TO- me-"
siegeI vas asked If he had transferred
amy property 20 his wife.
( sryo,' he replied. she has turned owe,
feverything 10 me-"
! Mr.. steesl, on the stand, volunteered TO
/ Dil everything ne knew Of the books. He
confessed his Inability 10 clear up the
rnuddls discovered. and eaid Mr.. Vosel
was responsible FOR the book end. He said
DO did not look at tho bank statement
moro than twice year. He kept his own
bank accounts separate, he said.
He said his aggregate salary from the
siegel stores md bank was $4,000 q year
siessi and vogel will be recalled for sx-
animation on February 4.