The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-27
SIEGEL CREDITORS
! FAVOR LATEST PLAN
Offer for Simpson Crawford
Said to Await Only Judges
Approval.
DEPOSITORS TO CONSENT
L. A. Price Announces Opening
Of ROthenberg l. Co. on
Fourteenth Street.

me REORGANIZATION pans or the Slegel
Stores Corporation to continue the simp-
son Crawford store were approved by
nearly every one concerned yesterday ana
now apparently await only the order of
United States District Judge Hough on
Monday. This means that the dcpositors
IN Henry Sisgel n Co. Bankers. will get
at least is cents on the dollar for their
claims.
Besides II the Offer Of $3.50. 900 put up
some time ago by friends OF Henry Siegel
and Frank r.. Vogel is renewed-and that,
II, Ia said, will depend entirely on circum-
stances surrounding the prosecution OF
the indicted merchants-the depositors
will get 35 cents on the dollar in cash.
The District Attorneys Office has made
II known. however. that a plea OF guilty
60 the indictment charging a misdemeanor
with promise that the indictments
charging felony will be dropped will not
be considered The Grand Jury will get
additional Information to-day and super
seding Indictments against Siegel and
Vogel are expected TO follow next week
The Boston indictments will b. held up
Il Is said. until after the prosecution In
this city. although 1t is said that the
books OF the Boston concern are IN worse
shape and that 100000 was borrowed
from Massachusetts banks on statements
similar to those on which the indictments
were found here.
Joseph NJ. fairfield. counsel for the
mercantile creditors, sent out a statement
OF the reorganization plan to the mercan-
tile creditors OF the Simpson Crawford
store last night after a conference with
Pierre JAY chairman of the mercantile
creditors committee James y. Rosen-
berg. counsel for Sheppard and Marble.
the mercantile receivers. and Mr.
Hutchinson. representing Robert Fleming
h Co.. the London bankers who sold
about $500. 600 Of the Simpson Crawford
stock in England and who propose now
10 show their good faith by investing
$4,000 In the new company. John Olaf
lin Is ready to advance 500, 900 and Max
Pam $4,000.
DepositOrs' Counsel Agree.
Joseph Proskauer. counsel for Henry
Melville. the bank receiver. has acquiesced
In the plan with John L. Murray of Cou-
dert Bros. and William Bonynge, both
OF whom represent most OF the bank de-
positors 1t il therefore regarded as al
most certain that Judge Hough will agree
TO the reorganization.
deflnit. settlement OF the dpositors
claims against the Siegel assets was made
at 3325, 900 cash. with the 500 600 bond
deposited with the State and s25, 900 cash
on hand this settlement gives the de-
positors about Is cents on the dollar II
10 per cent. cash dividend will be de-
Clartd for them at once. The cash for
The depostors Is TO be divided. $40 GOO
from the Boston store. $4,000 from
Simpson Crawford and $4,000 from the
Fourteenth Street store. II WAS said yes-
terday that the s325.000 would be in the
hands OF the bank receiver next week II
the court favors the offer.
Capital 60 he &3,5OO,OOO.
The new company to continue Simpson
Crawford will be Incorporated for about
$500. 900. one-half OF the common stock
Isl, SOC. 00O)--to go to the Siegel stores
Corporation which will mean that the
bank deposltors will eventually get more
than the estimated cash settlement II
will have tangible assets OF $1,000 900
with no debts. None % those who had
any part in the former management will
be connected with the new company
Nearly 90 per cent. OF the mercantile
creditors had signincd their Willingness
last night TO take the all stock option
25 per cent In first preferred, rs per cent
in second preferred ard 30 per cent in
common. The others have been circu-
larized by post cards. but the SO per cent
needed is believed to be practically as
sured. The committee has estimated "A
possible 25 per cent. dividend on the
Simpson Crawford assets, with the usual
delay OF administration. II Is also likely
that Alexander McLachlan, president Of
the O'Neill-Adams Company, will take
charge OF the new company on Il per-
centage basis.
Commissioner Gilchrist adjourned the
eiegel hearing scheduled for yesterday
until next Thursday afternoon. William
Bonynge. who made the petition for in
voluntary bankruptcy against Siegel and
Vogel for a group OF depositors had not
heard definitely as to Nogels chance OF
getting here on Monday. but Mr.. Gil
christ believes he will show up. II not
n physician will be directed to examine
him in Chicago and report to Mr. Bonynge
and Mr.. Gilchrist Mr.. Bonynge wants
TO examine Vogel before he continues
With Siegel
L. 4. Price to Open store.
Leo A. Price. il is announced, will open
The old Rothenberg store as Rothenberg
a. Co. In week or ten days at 34-i2 West
Fourteenth street and 33-I5 West Thirteenth
street with most Of the original Rothen-
berg employees, who went to the Four
teenth Street Store with the sale of the
property Of the Siegel interests
James N. Rothenberg, counsel for the
mercantile receivers, announced the sale
of the merchandise OF the Fourteenth
street store as ordered by Judge Hough.
for next Tuesday at IL A. NJ Auctioneer
Charles ShongoOd will conduct the sale
by departments, but the fixtures may 20
IN bulk.