The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-16
General Meeting Next Week,


The general creditors. receivers. lawyers
and depositors representatives will hold "A
joint meeting early next week. probably
Monday. By that time II Is expected that
Mr. Munich and his associates will have
an Idea OF what they can accept az n
frst payment. Siegel and Vogel will
Know what they can give and the creditors
VIII have definite reports from the ex-
perts which can be used as a basis for
! readjustment. reorganization or transfer.
II was said frankly yesterday that the
experts IN charge Of the bank and the
experts In the stores and other enter
prises have not yet been able to strike
balance which they can say Is correct.
They know In general way that about
$1.b0O,o00 Is owing to banks, for mer-
chandise and TO depositors. but they have
not yet been able to determine how the
Indebtedness should be divided among
the various enterprises. II was surmised
yesterday that they may never be able TO
work out this problem. No individual
knows and the books DO not show il.
The bankbooks 30 far az debit and
credit are concerned. are correct that IL,
80 much money came In from depositors
and SO much OF II was taken out. 1t cost
so much to run the business. The trouble
arises when the accountants try 10 find
out what became OF the money taken out.
An illustration OF the difficulty came
debtors were not known by name but
by numbers on the general books. There
were nine debtors. apparently running
from one to nine inclusive. A leather
clasped private ledger accessible only
to two clerks. held the key to these
numbers. No. was Simpson Crawford
Company. No. was the Fourteenth
Street Store. No. 3 was the Boston Store
and No. 4 Henry Slegel personally. The
general books contain only these num-
beers. f. l.. Champion. the cashier OF the
bank, has endeavored to clear up some
OF this mystery. but he has said frankly
that he cannot solve II all. because he
never knew exactly how II was done
How Funds Were withdrawn.
Daily reports OF tho bank balance were
made to Mr.. Vogel. Champion has told
Henry Melville. the bank receiver. When
the surplus reached into the thousa nds
more than enough to pay daily withdraw
ais. Mr.. Nogel would come and order that
Henry Siegel & Co. draw a draft on them
selves for particular amount One case
was $4,000. The draft would be drawn
and blind entry made. Subsequently
the draft would turn up with the indorse-
ment Of one OF the partners. In the mean
time an order would be given to charge
$4,000 OF the draft to the Fourteenth
Street Store and 100000 of It to Simpson
Crawford
The next day another order would come
TO credit the amount charged against II
TO ono Of the two stores and 10 charge
the whole amount TO the other. Tho diff
Guilty Is that the books OF the stores do
not always coincide with those OF the
bank
BY eliminating tho bank and It's claims
against the stores, II IL said, tho creditors
will remove the principal liabilities
against them and will enable them to go
TO powerful financial interests with
definite proposition.
complication has arisen over the ac-
counts OF benevolent associations In tho
stores which were depositors In the bank
The employees Of tho stores contrib ted