The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-08

capitalists. and vii, not irure directly TO
the benefit of the bank depositors. This
confirms In part what, THE Sun printed
Yesterday about the Nelson Morris heirs
not being behind siegei and vogei
I'm addition" the statement Of Mr.
whitman reads. the indictments show
That the practice Of obtaining money In
this fashion BY alleged false statements
OF financial conditions has been going on
for years.
During the last year all three stores,
Including Simpson Crawford Company,
were operated at gigantic losses. and the
only explanation OF the continuance Of the
business is that Sicgcl and vogei knew
that to close down any one OF the stores
would result in a disclosure Of the frauds
that had been going on for years. not only
In connection with the manipulation of the
books of all three companies, the obtaining
OF huge sums by false and fraudulent
statements OF conditions. but In the an.
nual reports and returns required by the
United States Government. the State OF
New York and the Commonwealth Of
Massachusetts,.
THE indictment charging larceny on
April 20. 1918. from tho National Bank
Of Commerce 10 typical. 1t appears from
tic dheBdtiOls IN tnht tnu1Ctntnt tnat OF
that day the Fourteenth Street Store APP
piled to the National Bank OF Commerce
for a loan OF 325.00O. and to induce the
bank to make the loan offered note of
the Fourteenth Street Store Endorsed by
Siegel and Vogel.
"A statement Of the assets and liabli-
ties Of the Fourteenth Street Store was
also offered, from which II appears that
the excess Of assets over liabilities Of that
store on February. Of that year amounted
to Si.177.4SS.
THE National Bank Of Commerce. be-
fore making the loan, desired to be as
sured as to the ability Of Siegel and Vogel.
the indorsers, to pay the notes in the
event that the stores should not pay H.
"Siegel and Nogel thereupon produced
statements by which 1t appeared that the
Henry Segcl Company was worth $685..
320.51 above all its liabilities. aud Simp
son Crawford Company. 32.2s5.7S1.7s
Having examined :he three statements
and believed they were true the bank
then made the loan.
stores Were InsOlvent.
AS matter OF fact the Fourteenth
Street Store. the Simpson Crawford Com
pany and Henry Siegel Company wei'
all at that time insolvent, and know
| by the defendants to be So Simpson
Crawford Company had lost $l25.oOf
during the fiscal year Of 1914
The amounts alleged to have been on
! tanned from banks by fraud, the date,
and the stores pledged. on which the join
indictments of Siegel and Nogcl were
based were as follows:
National Bank Of Commerce. New York
/ April 20. 1913. se5.o0o. all three stores
/ National Bank OF Commerce. september 10
| 1918. $4,000.
National Park Bank February Is. 1919
! 500 600.
/ Garfield National Bank. March II. 1919
\ 500. GOO all three simpson Crawford
| Company.
| Union Exchange National Bank. Novem
Der Z, 1873. 325. 900. on the Fourteenth Stree,
I Store.
| Union Exchange National Bank, Novem.
/ Der ~. 1913, $4,000, on the Fourteenth
| Street Store.
Bank OF the Metropolis. May 90 1918
$4,000 on the Simpson Crawford Company
Bank of the Metropolis. June i6, 1913
500 900 on the Simpson Crawford Store.
| National Park Bank. February -. 1919
$4,000 on fie simpson Crawford Company
on these nine grand larceny indict-
ments were found.