New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-27
PLAN TO SATISFY
SIECEL DEPOSITORS
Offer of Is Per Cent Cash
and Rest in Two-Year
Notes Expected.
OTHER CREDITORS
ARE NOT so LUCKY
Simpson Crawford Co. May Pay
40 Per Cent and 14th Street
Store as Per Cent.

ClOIC 20 u VIM
4 plan for settlement with the BANK
depositors aud mercantile creditors OF
Henry Siege. and Frank T.. Nogel was
submitted yesterday to the receivers ana
may be acted on within few days The
rlan outlined TO Henry Melville. receiver
Of the bank indicated that the 5000 per
sons who deposited $s5oo,ooo might set %
per cent cash and the remainder in notes.
dated 1916 and later.
An offer OF this sum is expected 10 be
made by attorneys for Siesel and Nosei
I'm time 70 be announced at the depositors
meeting tomorrow afternoon, at NO. %
West 18th street II this settlement IL
made Melville will ask Judge Hough TO
ratifv a sale or the banks assets TO the
commercial receivers. Sheppard and Mar
hle. who with the assistance Of the part
ners Will try 10 work out settlement
with the mercantile and commercial oanA
creditors.
4 draft OF this offer. which has been
prepared. calls for a settlement Win
creditors Of the Fourteenth Street store
on a basis Of IS per cent, per cent cash
and the remainder IN one. two ana th'ee
year notes. Creditors Of the simpson
Crawford Company may get 40 per cent
on a basis Of per cent cash and notes
for the remainder.
All OF these arrangements are conun-
gent. however. on the ability OF the at
torneys TO get concessions from the
owners Of the property occupied by the
Fourteenth Street store. There are eight
landlords and the property is covered by
twenty-five leases
Mr.. Melville recognized the dlhcuiN
that would be encountered in making the
settlement. Should he recommend sale OF
the assets the court would probably
ratifv the action after notice to the de-
nositors. but great delay might result II
even one depositor objected. AS one ma"
said Yesterday there appear 10 De
enough creditors to so around the bank
ruptcy bar
ANY creditor may object TO a settle
ment but the consensus Of lawyers was
that II the offer were accepted and Siesel
and Vogel permitted 10 reorganize ana
conduct their business, in time all claims
would be paid.
one feature developed by the account-i
ants is that more than 10000 in deposits
may never be claimed They represent
small sums forgotten by depositors anu
deposits of persons who have died ana
whose affairs were not settled by admin
istratcrs.
While the receivers and lawyers were
irving to untangle the muddle Of the
Sicgel bank. Henry W. Pollock, chairman
OF the State Senate Committee on Bank
ing. was formulating plans for a revision
of the banking law which Will give the
state supervision over department store
and other private banks The Senate
committee met yesterday in the City Hall
and adjourned until Thursday. owing to
the absence of Daniel T. Hays counsel
for the committee. No witnesses were
examined.
At Thursdays hearing Ellis Gimbel, oil
GimbeI Brothers. will be a witness. Their
bank was not represented at the last
hearing Of the committee. but will be
taken Up before the committees recon-
mendations are given 10 the Senate.
Other witnesses viii be Thomas w. La
mont and William II. Porter, Of the bank
ing house Of J. ?. Morgan & Co. other
private bankers have been subpenaed.
The committee has decided TO exempt
these banks by providing that the new
.aw will not apply TO banks in cities OF
he first class which do not accept de-
posits OF less than 500; do not pay IN
.erest on balances Of less than 5000, and
which have capital stock Of $4,000. In
cities Of the second class capital stock
81 $4,000 will exempt banks, and In cities
Of the third class and villages a capital-
cation Of $50 900 win suffice.
All other banks, which will include pri-
vate banks, department store banks and
depositories Of similar nature, will be put
under control Of the state superintendent
Of Banking. who will be authorized TO
Examine their bankbooks at any time and
take charge II he deems 1t necessary
directing the investment of deposits I'M
der broadly drawn regulations. If ne
doesn't like the Investments, loans or
other disposition Of deposits he may com
pei the banker TO change them.
One clause will require that such banks
invest % per cent Of their deposits in
such securities as are now held By saw
ings banks and keep 20 per cent i'm re-
serve. OF this last named sum one-quar-
ter must be retained in the vaults OF the
bank for payment on demand. 1t was
suggested that no private bank be permit
ted 10 hold real estate more than five
years. but this was found impractcable, a
member OF the committee stated,
The members of the committee believe
that the right to supervise the banks will
be a big step forward. At present the
state has no right TO Jock into the condi-
tons Of the banks The only stipulation
is that a bond of $4,000 be fled with the
state. The Segel bank did this and the
bond held by Mr.. Melville is practically
is only asset.
The Pollock bill will be introduced next
week and submitted as a part OF the
general revision of the state banking laws
which has been undertaken by the Van
Tuyl commission.