The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-20
PLAN TO CONTINUE
TWO SIEGEL STORES
Bank Depositors Promised 81
Per Cent. Cash and Balance
in Five Years.
$500. 900 FOB MORE GOODS
Receivers Show Total Loss Of
$2,955,O62-Threats Of
Violence at Meeting.

| Announcement was made before ex
Judge George c. Holt yesterday that II
the landlords and few other creditors
Of the siegel enterprises can be induced
to make certain concessions the Simpson
Crawford Company store and the Four
/ teenth Street Store In this city will con-
tinue in business.
New money will be put into the enter
prises. which will be directed by the
mercantile creditors, and out of II the
depositors Of the bank OF Henry Siesel
4 Co. will get an immediate cash pay
ment OF 32is cents on the dollar. with
the balance payable In five annual install
ments at interest
As no definite offers were made, some
depositors wound up the meeting with In
dignant protests, which eliminated after
ward In some emphatic threats Of bodily
harm. 1t was evident that some deposit
tors will object to receiving anything but
100 cents on the dollar as first pay
ment. There was only one dissenting
vote to a proposal TO permit the receivers
to buy 100000 worth of goods.
The meeting yesterday before Judge
Holt as master to take testimony for
the United States Court, was held in the
assembly room Of the Merchants Assoc
citation. Representatives of every inter-
est were present, including the depositors'
committee. headed by John =. Munich.
and score or more OF individual deposi.
tors. intent on obtaining some action.
Creditors Make Report.
Joseph b. fairfield. attorney for the
general creditors, and Pierre Jay OF the
bank OF the Manhattan company. chair
man OF the committee. attended to report
and Mr.. fairfield began proceedings His
committee represented the bulk Of the
claims against the companies except
mutual claims and the bank depositors.
They had concluded that II would be for
the best interest OF all to continue the
business. else the creditors would get little
or nothing in liquidation.
1t had been necessary to obtain con-
cessions from al, creditors. and with the
exception Of the landlords and one OF two
more interests these concessions had been
obtained. There was hope that in a very
short time everything would be arranged
The Boston store has been adjudged
bankrupt and II did not figure In the set
tiement plans yesterday
] II had been planned to organize a new
corporation under the laws OF New York
to conduct the Fourteenth Street Store
and the Simpson Crawford Company. This
. company will have a capital stock OF
sa.5ooooo. of which $1,000, 900 will be in
first preferred stock, 100000 in Sec
ond preferred stock and sc.500,0O0 in
common stock.
$1,000. 900 for Debts.
l The 100000 in first preferred stock
Is 10 be sold for cash TO be used in the
payment OF claims OF depostors and In
cash payments to general creditors The
second preferred stock and the common
"A ra 4. hA
the first preferred and In payment Of
general creditors. The Siegel Stores Cor
poration will receive sl.500.00O OF the
common stock.
Settlement OF the general claims against
the Fourteenth Street Store and the Slmp-
son-Crawford Company will be made on
the basis or 90 per cent In the Simp-
son-Crawford Company there will be a
cash payment of 20 cents on the dol
lar and 80 per cent. in the second pre-
ferred and common stock In the Four
teenth Street Store there will be a cash
payment of 10 per cent. and 20 per cent
III the second preferred and 20 per cent
in the common.
out OF the cash the creditor committee
considered that il could allot $4,000 to
the bank depositors in part settlement of
their claims amounting to something like
S2,tOO,OOO. IL was the very best that
could be done and Mr.. fairfield said he
believed the court would finally agree with
him.
Harry kohn, who represents the reali-
cation corporation, organized to handle
| the bank situation. said that IL the settle
ment were effected and reorganizat ion
approved. ne would be able to marshal
about $4,000. which would Justify pay
Ing the depositors 32'a cents on the dol
lar down, with the notes OF Henry Siegel
and Frank h. Vogel, due in five years. for
the balance.
Report Of Receivers.
William A. Marble and John =. Shep.
pard, Jr., receivers for the mercantile en-
terprises, filed report yesterday which
showed that the stores are now running
at n slight loss James y. Rosenberg
their attorney. said that il has become
apparent that they can be made to Day
There was urgent necessity for $500, 900
to purchase new stock in the stores, and
Judge Holt submitted the question whether
II should be authorized TO the creditors
| themselves. Mr.. Hartfieid and Mr.
Rosenberg told the creditors ii they did
not consent to this the stores must close
very soon and in liquidation the amount
received would he very small. A going
concern would make every claim more
valuable. There was one dissenting vote
to the proposition and the expenditure
was authorized
The report OF Messrs. Marble and Shep-
pard showed that on the books the liabili-
ties of the New York stores exceed the
assets by S2.955.062.66. The assets
OF the Simpson Crawford Company from
all sources WAS placed at s5,aOO.47 40
and its liabilities s5,s23,S5slO. In the
| Fourteenth street Store tho assets are
H.4l6,s33.l0 and the liabilities sS,7is,-
7+2.l6.
Trouble at yesterdays meeting started
when IL was revealed that Leo A. Price
who is managing the stores for the re-
ceivers gets $3.50 q week as salary he
fore the receivership Mr.. Price. who sold
Rothenberg a. Co. to Henry Siegel and
Frank T.. Nogel. was getting s66, 900 a
year. Announcement of the salary
brought a protest from William Brezzel
and some women dopositors. Mr. Rosen-