New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-12
Both Indicted on Grand
Larceny and Banking
Fraud Charges.
MORE INDICTMENTS
ARE EXPECTED SOON
Confidential Aids Bare
Frenzied Finance to
Grand Jury.
BANKER FACES MOB
AT FEDERAL HEARING
Prosecutor Shows Amazing Jug.
Cling of Figures to
Cover Losses.

>OfSi LOOSNcs
Henry Siegel and Frank +. Nogei
yesterday pleaded not guilty TO an in
dictment charging grand larceny In
procuring $4,000 for the Fourteenth
Street Store from the National Bank
Of Commerce and to two indictments
charging them with receiving deposits
as private bankers after they knew
they had become insolvent, and wero
held in $4,000 for trial by Judge otto
A. Rosalsky. The penalty for grand
larceny is ten years in state prison.
for the receiving of deposits while in
solvent, from one to five years in state
prison, or a fine Of from 5000 TO 5000.
The indictments, exclusively fore
cast in The Tribune Of Tuesday, are
but the first Of many. Others will b.
returned as soon as the indictment
clerks can draft them, and the grand
Jury is still at work looking into othe.
phases Of the tangled Siegel- Voge.
enterprises.
These indictments are but preliml-
nary" said Arthur c. Train, Assistant
District Attorney, as he explained the
transactions upon which they are based
in the presence Of District Attorney
Whitman. They have been presented
and bail fixed to hold them-the put
ting of salt on their tails, as II were"
The evidence on which the indict-
ments made public yesterday are based
and on which others will be voted shows
a remarkable combination OF Get Rich
Quick Wallingford" and Potash &c
Perlmutter" methods Of doing busi-
ness. Accounts were padded, false ac-
counts opened and statements for the
guidance Of banks and other merchants
made up "out of whole CLOTH" 10 quote
Assistant District Attorney Train, who
says expert accountants were always
on hand to make such changes as
might be ordered.
Frenzied Finance Methods.
"On one occasion, when a statement
for the banks for year just ended was
being prepared" said Mr.. Train, in ex-
planning the case. the Potash Of the
firm said after looking over the real
figures: Same old loss. What's the
plan this year"
"Tf you don't show loss. Henry
said the Perlmutter, people will say
you are liar
but the statement showed profit
Just the same"
The additional indictments will cover
the affairs OF the Boston store OF the
Henry Siegel Company. tho Simpson
Crawford Company, and In all proba-
bilty the affairs OF the Slegel-Coopei
Company Of Chicago, and the SIEGE
Stores Corporation will furnish evi-
dence on which other bills will be
based.
Persons other than Siegel and Vogel
will be involved in the forthcoming in
lictments. Some who were used as
accomplices in the alleged frauds have
given the District Attorneys office
every aid, and will be star witnesses
for the government when the cases
come 20 trial.
The chief witnesses heard before the
grand jury on the indictments present
ed yesterday were Charles Grim and
william Johnson, who, on December 20
last, made deposits Of 800 each in the
bank OF Henry Siegel & Co.; Oscar A.
Pral and Robert f. McMeekin, conf
Dental employees Of Siegel and Nogel;
II. f. Howell, OF the National Bank OF
Commerce: II. y. Rice. Sidney Her
man. a friend OF Siegels: o. ]. Pilot,
Arthur Sachs and Edward c. Evans.
The indictments were actually re-
ported yesterday while Segel was q
nervous witness in bankruptcy pro-
ceedings before Commissioner Alexan-
der Gilchrst, jr, in the Federal Build
ing. Preparations had been made by
angry depositors In the bank TO moi
him. but they were checked by Mar
shall Henkel, who had large stan oi
deputies on duty. To get 10 the hear
ng room one had TO pass a guard at
elevator or stairway. another at the
,xit from elevator or stairs, others at
he entrance TO the corridor on which
Gilchrist's Office abuts.
and Marshal Henkel and several aids
Just outside Gllchrists door. At times
L was necessary to use force to keep
iepositors moving, and at other times
he language used by men and women
shocked even the veteran marshal
Starting of Bank Shown.
This hearing brought out little that
was new except that Siegel and Vogel
started the bank without any capital.
Questions put by Irving l.. Ernst. Of