New-York tribune., 1914-11-24

Charles u. Newton, Of counsel for
| Siegei. had already made the opening
address IN which he spoke Of the de-
| fondant as this little stranger who
/ has come into our mids, 10 make his
defence because Of the clamor against
him in New York 49,,
Then came John II. Stanchheld with
the announcement that the defence
rested and WAS ready to proceed to ar
gument at once. This was an unek-
pectod bit Of strategy, ms the prosecu-
| tion expected 10 have over night 10 pre-
pare its closing,
Tho judge announced that each Sde
would have two hours 10 sum up, and
that the session would continue
through until after the jury had re-
ceived the case. The suddenness OF all
this took the prosecution somewhat Oft
its feet foy moment. for Arthur
4 Train buckled TO and worked up the
\ finishing touches OF his closing ad-
/ dress ms Stanchfeld argued.
Mr. Stanchfeld made the chief point
| of his argument that. although Siegel
was aware of the losses of his stores,
/ he had abounding faith in their ability
finally TO pull through. He therefore
! thought the bank which lent him
money on his note could not lose, but
would be amply protected by the eX-
/ pected future prosperity OF his stores
! if the loan continued unbroken until
/ the dawn Of prosperity arrived. This,
/ the gist of his argument ran, removed
! all taint of criminal intent to steal
money from the bank by means OF has
/ false credit statements.
"If YOU found that he believed he
could make n success OF his stores, he
/ is entitled TO an absolute acquittal,'
/ said Stanchfeld. "lf a man has lived
many years an active business life in
! The community and has acquired the re-
spect of his fellows. that is the great
est possession he has. When he stands
accused Of the paltry act Of stealing
/ the contemplate sum of S6S4 90,
charged i'm this indictment. il is the
law and common sense that his good
/ name stands sponsor for his honesty.
"The only trouble with Siegel was
he was too optimistic Of his ability 70
make a success of his stores. He was
/ q dreamer, with his head in the clouds.
/ He thought he could make the same
success in New York that he made IN
/ Chicago"
Stanchfeld as Critic.
/ In opening his address Mr.. Staneh-
field referred TO Mr.. Train as distin-
/ guished literary man, calling attention
+ to his latest story, "The Man VINO
Rocked the Earth" running IN "Ihe
Saturday Evening Post
cit is full of exaggerations; he deals
with superlatiyes, and IN TIM, Tlal ne
does the same thing he SAID.
The testimony of Oscar A. Prall, the
peoples witness, Stanchheld sald,
proved that Sieeel thought he could
pull the store through The hard times,
and that when he made the financial
statement he thought he could pay
every cent. Prall also said there was
no intention iu anybodys mind 10
steal. Stanchfed argued.
Passing TO the question of interstore
( liabilities which were never disclosed
in financial statements, he said there
was nothing wrong in the stores inter
/ changing money and that the total as
sets OF the Siegel enterprises were not
altered thereby.
There is no crime shown IN these
/ transactions between the stores he
said, although il Is a theory OF the
/ prosecution that some way they nave
o remote or near bearing on the case.
/ The Boston store needed money; the
/ Siegel bank lent il money, as it had a
perfect right, and it carried it openly
/ on It's books. In one or two years OF
prosperity they could have wiped out
9ll the Indebtedness combined"
There was a deliberate, legitimate
agreement. he said, that Siegel was to
receive a salary that in twenty years
would amount to Sl,0O0.000. THAT
was" he said, "a debt Of the stores 10
Siegel; vet he subordnated II in case
of trouble to other creditors. Is that
q badge of dishonesty
The purchase Of the Rothenberg
store. he argued, was q Legitimate
measure to increase the business or
the Fourteenth Street Store without
adding greatly TO overhead expenses.
As to the private bank Slegel con
Quoted in his 4th st. store Mr.. Stsnch-
field said that practically every large
department store IN New York runs one.
How Bank Lent Money.
The loans from the National Bank OF
! Commerce, he said, were extended TO
Siegel and Nogel because Of their ousl-
, ness reputation, and without regard to
q their financial statements. The loans OF
I 1913, he contended, were made because
Of the ten years of fair dealings that
2 preceded them. and not in reliance upon
t the alleged false financial statement.
"And Mr.. Alexander. president Of the
2 National Bank of Commerce he SAID
- event to Whtman's Office when he read
- of the effort on the part of SiegeI s
- business friends and relatives 10 pay
q off the depositors. Train said the con-
% dition of that payment was that Siegel
, be allowed TO 20 free. The only re-
quest was for postponement Of ac-
: tion on the indictment until Siegel and
Vogel could get money to pay of.
"No improperly vas asked of Mr.
Whitman, and it was cruel piece OF
I work.
|, Counting the interest it had re-
! ceived on Siegel's commercial deposits
through ten years, its dividends as a
> creditor. and the remnant deposit in
its hands at the time Of the failure
the National Bank of Commerce he
said, "had not really lost a cent by ITS
, dealings with Siegel."
Stanchfield went on 70 assert that in
the failure Siegel lost S4.000,000 Of his
; own money and S2,500,000 of his de-
positors. He was not a bookkeeper,
and could not understand the details
Of his stores accounts If he tried the
lawyer asserted.
As Mr. Stanchfeld came 20 a close
one of the jurors asked him II Sic
gels account at the bank was ever
overdrawn, and Stanchfeld said it was
not.
; Mr.. Train then took up the argu-
ment. lie laid stress on the fact that
there were no denials Of the evidence
against Siege! except his plea Of not
guilty.
He went on:
at is not denied that ne (SeReD in
, Gated the merchandise account for
Simpson Crawford S125,000 in 1904. He
had Prall change the actual figures
upon the inventories, working two days