The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-12

this indictment are Charlie, Grimm, WILL
lam johnson, Oliver ]. Pilot, Arthur
sachs Edward Z. Evans. Robert q. Nc
Meekln, sydney J. Hermann. Herbert Il.
Howell and Henry e. Rice.
In the indictment the fact that the
amounts actually due were stated with
precision was a mystery until after the
men had been arraigned before Judge
Rosalsky. Then Mr whitman removed
the seal OF secrecy. The little ledger and
the statements Of the two confidential men
had supplied everything which expert
accountants without the power OF i'm
posing an oath had not been able to
"a
Losing Venture for Xears.
The New York and Boston stores of
the Siegel companies have been actual
losers for years The whole system Of
financing grew up out OF that fact. They
persisted In going ahead although there
was hardly hope that they would ever
win out. The Fourteenth Street store,
bad as II was. was equalled by the
Simpson Crawford Company and the
Boston store was worse
The losses annually ran up above $780,
900. This had to he made up The
private bank was one recourse. From
the moment II was opened on no capital
III money was thrown heller SHELTER into
the enterprises The Siegel Stores Cor
porAtion was organized with $4,000, 600
capital of which $4,000, 900 was preferred
Stock. That preferred stock was sold and
the money put into the business. stu II
vas not enough. IL was necessary for the
stores to buy goods and to 40 to the
banks 1t was then the juggling and
bookkeeping began.
In the year 1911 the Fourteent street
store had an actual loss of 100000 The
little book showed that. There was q
meeting in February. 1919. at which this
fact was made clear.
you must show 4 profit OF $4,000"
was the command to one OF the men. and
this bookkeeper taking up the books
twisted figures changed liabilities into as
soeo and showed, so that any bank man on
inspection could see. That the store
actually earned a few dollars less than
the sum demanded. The same plan was
followed In other years similar system
was In vogue for the SImpson-Crawford
Company and for Boston. according to
the District Attorneys office.
Financing OF this character required q
peculiar order OF talent and so the
partners insisted upon good pay. Siege
drew a yearly salary OF 100000 and Voge
$4,000. They paid Leo A. Price $4,000
year. lie was the merchandise mar
from whom they had bought Rothenberl
4 Co. He had nothing to do with Thu
financing
Hank Away. i0s0lSent.
The hank was !nsoy.ut from the start
the witnesses have SAID, although IL wal
taking money every day from some OF tn
$4,000 depostots,
There was one instance which explained
Why the experts were never able TO follow
some OF the loans. sums In varyinI
amounts had been taken from the banl
until on this particular series $4,000
was due. II had been taken out In differ
ent amounts on checks drawn to the orde
Of Frank T. Voe0, Nogel distributes
these checks here. and there and oh
stores. borrowing II In turn sont thci
checks to the bank. These checks we,
never cashsd, but were carried As Gas
on hand" when the $4,000 wa
reached some one demurred What are "
going TO do with this stun" he asked
This was answered quickly. All Ia
checks were destroyed. thus wiplng on
the Indebtedness.
When the siesel stores Corporation wa
organized $3.50. 900 OF the preferred s,oc
was sold abroad. They took this $3.50, Oh
and $4,000 more and bought NJ son
bonds outstanding against the Simpson
Crawford Company. the stock OF while
was owned by the stores corporation
Thsss bonds were cancelled and the asse
Of the company marked up $500 900 TT
came was done with the 100000 taken
buy up some outstanding notes The not
were destroyed and the stock marked ,
another 100000,
THE surface has Just been scratched
Mr. Train said last night, 1--WE are ju
beginning TO understand We will CO.
unue the investigation into tho Smpso
Crawford Company. the Boston store al
sisgs'. bssess comEnAnsasuss 0iiuhr''