The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-12

way OF tine Credlt statements winch were
actually used to get money from the
selves.
Asks About the Motive.
what was siesers motive for the
crime? First Siegel and Vogel paid
themselves huge salaries as officers. Sic
gel got $4,000 and Nogel $4,000 in 1918.
They were engaged in n coiossa, ana
hazardous business speculation. II Sic
gel did not borrow money and keep go
Ing he could not hope to get back tho
money he had already lost. lie and Vo-
gel could not pay themselves $1,000 a
year IN salaries and state prison stared
him I'm the face. What he feared has
happened In spite OF his frauds he was
forced to ask for n receivershp."
The prosecutor explained that the
charge against S,egel-specifically the lar
crny OF 1854. Oj--involved the obtaining
by him and Nogel of 100000 from the
National Bank OF Commerce by represent
ing their business 20 be prosperous when
Il was bankrupt in fact had been losing
n quarter of a million dollars every year.
Eight months after he got the money
the reccivershsp was requested and his
creditors got Il cents on the dollar for
what h. had toll them was as safe as
bond OF the Bank OF England
Ten years ago. Mr.. Train said. the con-
spfracy TO get money by fraud began
and became so automatic that without
giving any specific order TO any particular
clerk or officer it was done. The Four
tecnth street store began TO lose when II
was started In that year and had accumu-
lated loss OF si.500.0o0 when Il col
lapsed Its losses. the State contended.
were turned into profits IN S!egers prl-
vale o;iica. 40 money could be borrowed
from banks. Prall was paid $4,000 a year
for this work. said Mr. Train.
When Vogcl came from Chicago. Mr..
Train explained. Siegel induced him to
put $4,000 into the en,erpriss. The
who asked him: What IN he'll had been
done" IN thar year. Prall told him
about the alleged mutations. and when
Slegel got wind of II became alarmed and
asked Prall to keep the facts hidden.
Prall had TO tell him that the ''cat was out
of the bag"
I'm 1913" continued Mr. Train. "Prall
got up fake before closing statement
for Siegel and Vogel. He heard Vogel
say. The statements show the same old
losses What profit shall we show for
last year, To which Segel replied.
Make your statement for the years Just
as they are II we show any profit under
present conditions they will know we are
damned liars Vogel said. You can't
losses.
The s2.500.OOo savings deposits in the
Fourteenth Street Store Bank, said Mr..
Train, were distributed by Siegel to the
stores lent back and forth. and finally
disappeared through the Boston store. No
security ever was given, 1t was asserted
4 loan OF S15O,000 to the Chicago store.
ne said. was concealed by ;wenty-nine
different transactions. so that symbols and
numbers had to be used to keep It
secret.
Seven hundred thousand dollars was
loaned In this way without any book
reports. the prosecutor said. until
IN 1913 NoCel ordered the Indebtedness
apportoned to the stores
'When Slegel bought the Rothenberg
store" NJ Train maintained. "he tried
to get Leo Price. its owner to work FOR
him at a salary Of $4,000 "A year. know
ing the store had lost sl.5OO.00O and
connived Mt opening a duplicate set OF
books In which the losses OF the store
were concealed and Its assets correctly
stated He know he had the millions in
bank deposits in the Fourteenth street
Store and owed half a million more in
interest. and that the money had been
sunk in his enterprises without security
and unknown to the real banks. So he
split checks for odd amounts to conceal
the transfer OF funds to the stores"
The Boston store. the state contended
was busted higher than kite 1t had
lost s25O0.00O since 1906. when II was
capitalized at 100000 II was the Nj
| agara over which the money from the
other stores and the bank was swept. Ir
| 1918. according TO the State. the Four
teenth Street Store owed the private bank
| Sbl65ll19 the Simpson Crawford store
sl,424.0Sl.4i and the Boston store
s57f9251s