The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-12
G(REENHUT MANAGER
PAID $4,000 A YEAR
Also He cot ) Per Cent. Of
Profits: $4,000 Salary for
Captains Son.
RANK DEALS DISCLOSED

-, i.s officers cNpeCtcd would he ac-
=, ,o, 10. ha,Li,a hu.,,..,
eofnP''S",'' ,, 49,, :, ,,s,,,,.,
vas condu'''" ''" '''' e"''' vi ''''''".-
ire tho assets oi the panR upon inc pusi-
ness OF W" '''po' '''o' -''' VI "'''' "''
matters the creditors nave peen assert
ips since the failure. should be inquired |
90 ,bcv may determine exactly
INV -
Row WAS wv! '"''' W ''se '"'''
money.
ono Of these matters is the amount OF
--,..- ,,.,.i ~ Gan, Grccubu, as nresi
&c, - ,ic ronnauv and TO his assoc
-. t.rdcr the questioning of James
=. poso,,h,ro rounscI for ihe trustees
y ,,.a.,,t,,,, iid no, hesitate IN s,v
W. he n,id cool salaries when no con-
va, a., MOI, worth while The SALARY
s., -, ti,, ne tho s,nrkho,ders and
go =, direr,ors--ho did moi vote al
,.c,,rs v,s 500 ooo 4, year. They
,.,. =. oi,b hin, tn saw hox much tho
- oeicers should got
Ne sor Rcuedi.t 4 ,;reenhut who
49,, 20 ~. hearing with his father. he
.on t.o ooo There vas n murnur
e,,l ,bo roam, whom cant. ,;rcenhut
J tbc salary of BENJAMIN Uillman.
r,,,-aL manager OF tho stores, was
e.. ooo ,o.r ,,i,b ! nor cont of the
"a nd
,.,d a., i.nov If su,,h salaries wcrc not
h, 700 bi-p TO-. mon in iOe dry coois
go
, "
"Not AZ all. said tho Captain.
Some men in this business get even
more than that II they arc the right
k'nd OF men. II Is usual. ! should say.
10 "ay 4 salary OF $4,000 year IN an
81
o. business. Mi Hillman was worth Il.
lie probdbl, saved u two or three times
that amount 10y the economies he
effected. |, isn't question of the
amount Of salary. Its question OF the
rghI KIND OF man"
The merchandise creditors or the
company have alleged that the assets OF
thc dry goods house were used In pay
ing Oh the debts Of the private bank.
which vas conducted at the - re until
March last capt. Greenhuts eNplana-
ton Of how the depositors were pail
confirmed this allegation. lie explained
that a. corporation the company
could not conduct a private bank. so
Il wa, arranged that the officers OF the
corporation should form copartner-
shlp and conduct private bank FOR
the benefit of the customers OF the store.
A. copartners TIE individuals would he
the bank Therefore y written agree
ment vas made by which the profits
from The banking business should go 10
the J. r. Greenhu; Company and the
company in turn should agree 10 re-
imburse the copartners for any losses
IN the bank.
Capt. Greenhut explained that all
went well until the failure OF the
segel-Voeel bank. Neither he nor any
member OF his family. he said. ever
borrowed a cent from the bank. nor did
III. J. 3. Greenhu; Company. The
number Of depositors rose to 10000 and
the bank made money. most o! which
was turned over TO the j. X Greenhut
Company. Then came the Segel failure
and the irrcpressible impression that
Henry Siegel was member OF the
J. 4. Greenhut Company. Tho result
was run on the bank.
Capt Greenhut said II was impossible
10 dispose Of the banks securities
quickly He called on the company :
banks and they told him he could have
ell the money he wanted IL he would
give his individual Endorsement. He
sa!d he determined TO pay the bank de-
posters at whatever cost. The j. B.
Greenhut Company's securities were de-
posted as collateral and the money was
raised Within two weeks. he said
pcs!ted was paid of. All would have
gone well. he thought had not a new
law governing private banks been
passed Before the bank could get the
certificate OF the State Superintendent
the bank had to have capital. The
amount was slO5, 900 and Cap. Green.
hut said he paid IL out of his owr
pocket Then the securities were
marked down and cash was called fol
g. take their place
Facing this situation. Capt Greenhu'
said he raised $3.50, 900 last August. Tn,
derosltors kept coming for their money
and by December the deposits aggre
gated 81 200 0OO II was decided To civ,
formed that this would be done The,
MSse urseo 10 uraW OUT ,helr money am
~ "'eu 'Ia' no ',''eiesN "ou'u ue ~,
&c JahuarE l. IN 'anuary, -, w
a, ao a' - ust Io',p'n. n"u 'V r.
s',-'''upV 10 me d. ID. niee'l , ,o!. F.
.s"I On APP u'ecnnu' 'i,uoI se'h sa :,
~ .opa, .''eis u'u.u Je .'u..''''' az a. =
80 80 I.ies ~ LIE Ian $500 vi
W zen 'Ie ','a' ~, ~ va" 10, 800 An,
SF nea Wv 'oai' nau ue" 20
."n |" s-oU'vov, anu .nls aU rI WV
IVA ny pa'u OH 10y o oneI ~, va
=, ,s.o oc on securi,es o.'s'" ~ a,uu q
foV" were put up nus loan W.
pau OH Sne" 'ne 'auue
,o,. ureenhu, " ua'eSe
10 nau n,,,as ~, NO
y. Wv. aSs'ts y, 'ne pii,a.e c"'n " "
~ es W tne o. %. o.e.u,
60 ~. saf Wa s 80. ~ y
soy ""''ne. ."e wy. Wy,
- w ~ 800 o.,