The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-24
Definite BASIS
MAY Be PROPOSED.
Prospect of Early Adjustment
Of Tangled Affairs of
Siegel & Co.
NEW COMMITTEE IN CHARGE
Circulars Sent to All Depositors
Acquainting Them With
Plans.
Especial to The Times Dispatch

Especial to The Times Dispatch.I
New York, January 23.--Two do
velopments to-day made brighter the
prospect OF an early adjustment OF
the tangled financial affairs of Henry
Siegel & Co. One IVES tho announce
ment that committee Of three promf-
ncnt and public spirited men had vol
unteercd to act as the representatives
of tho depositors of the Sicgel bank
In negotiating with representatives of
the firm and the mercantile creditors
for terms of settlement. The other was
the well-founded report that within
n day or two n definite basis OF pay
ments to all creditors and depositors
would be proposed.
Tho new committee is headed by T..
w. BloominRdale. director of tho
Equitable Life Assurance Society: Cen
eral Theodore a. Bingham. former po-
lico comm lssioncr, and Theodore L.
Gilman. former State comptroller.
Their counsel Is Hays. Hcrshfeld and
Wolf OF lis Broadway. and George
c. Harding. OF 165 Broadway. is
thofr secretary. The present deposit
tors committee. which has made no
Roadway in tho direction Of Il settle
ment. represents n small percentage OF
tho $4,000 depositors, little moro than
10 per cont. The new committee will
! endeavor to obtain tho authority Of at
least majority Of the depositors to
act for them IN the negotiations
General Bingham. Mr.. Gilman and
myself" said Mr.. Bloomingdalc. came
| Into this matter mt the request OF "a
great many dcpositors who expressed
! dissatisfaction with the failure OF tho
| present committee TO accomplish any
| thing. They seemed to feel that tho
present committee had not a sufficient
| representation among the depositors,
and that we would be able 10 better
| carry on negotiations for nm carly
| settlement"
| 4 force OF clerks was busy to-day
sending out circulars TO deposltors ac
! quaintina them with the creation OF
! the new committee and Its object Dan
! lei y. Hays, OF tho law firm which viii
advise the committee. is counsel for
! the Senate committee that is now in
vestigatinR private banks In this city
| with n view to recommending any
needed Legislation on the subject.
While no ono of the seeyral counsel
| In the Sicgol miX-up could be found
! to-day TO state for publication the
basis Of settlement that II is under
stood the representatives OF the firm
/ are prepared to submit to the creditors.
there IS good reason to believe that At
least the first cash payment Will be
! about as follows:
| Ten per cent to creditors OF tho
stores in this city, tho balance to be
| paid with stock OF tho new store, that
viii result from the reorganization Of
| tho SinpsonCrawfo Company and
the Fourteenth Street store.
About % per cent cash to the de-
positors. tho balance TO be secured by
notes. with stock OF the new store for
collateral
TO accomplish these results. IL is
estimated that close 10 100000 III
cash must be raised by Henry Siogcl
and Frank f. Nogel, tho members OF
the FIRM.
y week ago it was reported that
100000 Ind been obtained from friends
and relatives. and since then this sum
has been largely increased, until II ia
understood nearly the entire amour;
needed il in sight.
This plan of adjustment does not
affect the Boston store. which Is TO be
reorg1nizcd independently, or the Chi
cago establishment. which is Raid 10
be in n sound condition. and TO which
Henry Siegel probably will devote all
his time.