New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-26
SIECEL CASH OFFER
IS 81 IL PER CENT
Money for DepoSitors and
Notes if Two Big Stores
Are Reorganized.
CREDITORS TO DISCUSS
PLAN THIS AFTERNOON
r. s.. Company, as Custodian, TO
Iss-e Certificates Against
Proposed Notes.

....y r. Kohn. representing friends OF
ler., sreel and Prank D. Nosel yes
,,-., made the first definite offer Of SET
r,.-..t ve, presented 90 the 1900 de-
..,...ors OF the wrecked bank Of Henry
,,.. A. co. In substance. he offers 90
....t cash arj the balance i1 notes
... simpson Crawford and i4th street
..,r., are reoreor'zcd, and 81 per cent
c.,h and 20 rer cent in notes II re-
,....Izaton does not follow.
q. r.uru the Dcpcsitors Realization
,,.,.rou. Mr. Kohn's immediate princi-
...f asks that an tho assets Of the failed
isrk te turned over 90 90.
--l.rse include 800. 600 20 be paid BY the
,-.t.r ~ the bond filed with the state
controller 20 protect the deros'tors' $685.
dbl. tr cash held by Receiver Melville ana
s-fs 600 20 he paid for the claims OF the
t,-k aeainst the several siegcl stores as
-.v isl the stock OF the S!egol stores
-,-rorat.or. now held by the bank, and
q crlv nominal value, and release OF all
claims save IS !ndorsers OF the notes 10
% civor against Messrs. Siegel & NogeL
~ thc s454O00 thus obtained the cor
-o-,ron viii add S450.000 more and add
nonal sum sufficient 10 pay all the ex-
persts ~ TIC rece!vership.
The notes which the depositors are 70
receive under this offer are 70 be drawn
tv the corporation and Endorsed by Siegel
ard vorel. who will agree not 10 set up
any present or future bankruptcy proceed
irss as z bar 70 the collection OF the same
from them. The notes are 20 be deposited
under trust agreement with q New
York trust company, which Will Issue Ger
ffcatcs against them. on the notes pay
nerts o. ~ per cent will he due on March
= 1915 ~ per cent in 1916. 10 per cent IN
49,. . per cent in 1918 and 22ia per cent
IN 80.
The offer Is TO become effective only
AFTER il is approved by the United states
District Court and after that court and
the United States District Court in Bos-
ton approve settlements OF the claims
against the several stores held by the
bank Depositors have four months In
watch 10 file their assents. though the
r!ght 10 withdraw the offer in ten days
IS reserved by the corporation.
popositors who prove their claims bu;
who decline 10 assign the same TO the
corporation viii be paid by it such divi-
dend. az may be declared out Of the
assets Of the bank and Of Henry SIEGE
and Frank Z Vogel
Iy the terms Of the agreement those
depositors who come in under its terms
are assured substantially double the casf
pav1nent the now known assets Of The
frm and its members would make avail
able plus the chance that the notes VIII
De- paid as they fall due with interest.
Those who do not assent will receive
onlv their proportionate share of the
known assets. plus what unknown assets
nav DE developed, or, in 5he opinion OF
Ralph Wolf Of counsel FOR the deposl-
tors. about one-half rs much cash no"
and an unknown and doubtful amount
that may be available later
"Thc offer seems 10 me TO be a fail
one" said Mr.. Wolf last night. i'm OK
planning the proposition of the corpora
ton. which q a lay mind is as clear as
Harlem River water in spring time
Under IL the dopositors have chance
20 get double what the cash in sish'
promises. Under II the corporation re-
ce.yes "a the most cash 10 the amount of
srAru and binds itself to pay about
ts0ea
"Or. To- state It differently, it offers to
double the cash i'm sight. on top Of that
o offers IT'S notes. secured by the remain
ns assets of the bank and the joint and
several promises Of Siegel and NoGel 10
Pay. DO the corporation does not. Receiv-
% Melvilcs expenses. which viii be
heavy. are also to be taken care Of by
90 Anything less than this would not be
acceptable 90 us
Uepositors will meet in the LOFT huiidlhl
No g. West 18th street at o'clock thl'
afternoon 10 discuss the offer, and. juds
Ing from past performances, a lively time
is expected. That the offer Will he ob
iectel to by the group that is in the
habit of meeting there is almost mathe
maticsl certainty. but this group is no
leprescutatiyc of the rank and file Of th'
tepositiors. most of whom are employed
aud have 10 time 10 meet during working
hours To enable those depositors no
members OF the leisure class 10 pass upoi
the offer night meeting will probably
De called later.