New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-13
NO QUARTER FOR
SIECEL OR VOCEL
Duped Agencies, Merchants
and Bankers to Push
Bitter Fight.
SEEK PUNISHMENT
AS GUARD TO CREDIT
Statements Sent Out by Firm
Blamed by Victims-Would
Stop Similar Acts.

Whatever action depositors in the
wrecked bank of Henry Siegel & Co.
may take. the prosecution OF siegel and
his partner, Frank E. Vogel. will not be
abandoned. The Tribune has learned from
various sources the real force behind the
prosecution are the mercantile agencies
who were deceived into giving the Henry
Siegel enterprises high ratings and the
tanks and merchants who were swindled
through false statements of assets and
Liabilities and these ratings.
These interests. particularly some OF
the banks and the mercantile agencies
are particularly bitter against the men
now under Indictment Unlike some OF
the depositors in the bank they are not
deceived by any idea that very great
reparation in the form Of cash VIII be
made. Neither do they think that either
man could come back"
Several credit reporting agencies feel
that with Siegel and Vogel punlsheo
others who may be tempted to present
too rosy statements may halt.
With all this is a general desire ON the
part Of ne business community TO make
general var upon dishonest business
methods. This L. evidenced In the war
mat United States Attorney Marshall
is making upon alleged irregular bank
rupts and the ring OF bankruptcy lawyers
whom bis assistants learned have swim
died merchants and banks Of this city
out Of millions of dollars In property In
the last few years. In several or the
larger bankruptcies investigated by Mr..
Marshall false statements, such as Siegei
and Vogel resorted to for loans and cred
its we're employed.
Should Siegel and Vogel by any chance
escape the state authorities, Mr.. Mar
ehalrs Office stands ready TO secure IN
dictments charging the use OF the mails
with intent to defraud. Its case Is now
in such shape that It could be placed
before the Grand Jury at very short
notice.
The indictments in Cincinnati last week
OF officers Of the Bethmann-Johnson Com
many for fraudulent use of the malls was
on evidence worked up in this city by
counsel for the defrauded creditors
Nominally the amount involved IN that
case is less than $4,000. In fact the loss
10 bankers and others In this city may
easily total 100000. 1t is understood
some OF the most conservative lenders In
this city were misled by the high stand
ing Of the company in the past and the
misleading statement Il mailed TO oanK-
crs and others in New York.
Thus far the trade and credit organi-
zations have not formed any central or
-anization, though they are working In
oil N hNnaa for
such cases is among the possibilities. one
result of this plan would be the keeping
track of the actual debts outstanding In
certain trade lines.
This. 1t is admitted. may work some
hardships on ambitious houses with slim
resources. but the check upon prospective
bankrupts. particularly dishonest ones,
more than outweighs this condition.
The fraudulent bankruptcy cases re-
Gently investigated by lawyers for the
trade associations and the United States
District Attorneys staff here also led to
a movement on the part Of credit men 70
watch a factor hitherto ignored-the book
keeping departments of mercantile and
manufacturing houses. for in substantial
" every case OF fraudulent bankruptcy
thus far developed it has been found that
before the failure a change was made in
the bookkeeper or bookkeepers.
Men and women who have been with
firms for years are dropped on the excuse
that a new system of bookkeeping is 10
be installed. This usually is months be-
fore failure.
The new set of books opened up. the
old ones, which showed every tranEac-
ton and where the money and goods
went, are destroyed. Then when bank
ruptcy comes neither the books that
would tell are available and the old book
keeper, when found. has nothing to prove
his or her recollections of any account