15993. Henry Siegel & Co. bank (New York, NY)

Bank Information

Episode Type
Suspension β†’ Closure
Bank Type
state
Start Date
December 29, 1913
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
c98aa8bc

Response Measures

None

Description

Articles describe the Henry Siegel & Co. bank as closed (closed Dec. 29) and placed in receivership; numerous pieces of evidence cite insolvency and improper loans by proprietors rather than a depositor run or rumor. Receiver Henry Melville is repeatedly mentioned and funds/distributions to depositors are discussed. OCR typos (Siegal, Stegel) corrected to Siegel where context indicates.

Events (2)
1. December 29, 1913 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank effectively closed due to insolvency arising from proprietors' large unsecured borrowings and misuse of deposit funds (loans to Siegel enterprises), insufficient cash and assets to meet deposits; receiver appointed thereafter.
Newspaper Excerpt
the checks to pay the depositors who put money into the Siegel bank on December 29, the day It closed
Source
newspapers
2. January 9, 1914 Receivership
Newspaper Excerpt
Henry Melville, the receiver of the Henry Siegel & Co. bank, conferred ... the depositors went to the District-Attorney ... showing deposits made within a few days of the receivership, when they had no idea that the bank was in trouble.
Source
newspapers

Newspaper Articles (11)
1. January 9, 1914 The Evening World New York, NY
Article from The Evening World, January 9, 1914

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EXCESSIVE RENTS s ONE CAUSE OF SIEGEL FAILURE I I ( Stores Unable to Pay Profits . Because of Great Drain on . Revenues. The very high rentals paid for the premises of the Fourteenth Street Store and of the Simpson Crawford Company, at Nineteenth street and Sixth avenue, two of the establishments in the Siegel chain of stores now in the hands of receivers, were in large measure responsible, It was learned to-day, for the difficulties in which Henry Siegel finds himself just now. Although property in the neighborhood of these stores has not risen materially in value of late years, the rentals charged for the two structures e mentioned have remained at such a figure as to prove too much of a burden for them to carry. d On this account, any reorganization 5 plan must, to prove effective, take into consideration a marked reduction in the amounts specified in the leases. d This statement was made to-day by an d attorney conversant with the circumstances, who said the two stores cannot n stand the present burden of rent. Ξ“. Henry Melville, the receiver of the or Henry Siegel & Co. bank, conferred to: day with John P. Murray of the law d firm of Coudert Brothers, attorneys for is 1,500 depositors in the bank. The result of this talk was a request by Mr. s, Melville that the Coudert firm also act as attorneys for him as receiver of the bank. y 8 "I asked this," Mr. Melville said later, d"because the interests of the depositors ed and of the receivers are practically identical." : he The depositors met as usual to-day in he the Thirteenth street loft and talked & over their grievances. A committee was rd formed to go to the Coudert office to have a talk with Mr. Murray. It was ne headed by Jacob H. Latzer. in The committee of the mercantile and in banking creditors is awaiting the return from Boston of Pierre Jay, Vice-PrΓ©sident of the Bank of the Manhattan Company, who went there to confer with President Dwinnell of the First National Bank of Boston, one of the creditors. Word came to-day from Boston that an application had been made for an additional receiver for the Boston house, Henry Siegel Company, who will act with the two receivers already ap. pointed by the court. in To the office of the District-Attorney many of the depositors in the Siegal Bank went to-day to see DistrictAttorney Train to show him their bankbooks, showing deposits made within a an few days of the receivership, when they had no idea that the bank was in 000 trouble.

2. January 13, 1914 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 13, 1914

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HELPED SELVES TO THOUSANDS. Proprietors of Henry Siegel & Co Bank Took "Loose Change" Whenever Needen, Without Leaving Security--Day with the New York Senate Committee. New York, Jan. 12.-Henry Melville, receiver for the Henry Siegel & Co. bank, told the committee on banks of the State Senate today that "Whenever any of the proprietors felt the need of any loose change to the amount of a few thousand dollars he went to the bank and took what he wanted without giving any, note of security of any kind." Mr. Siegel himself, the receiver said, had borrowed $754,191 without security except a written agreement pledging in $340,000 shares of the common stock of the Siegel Stores Corporation against these loans. The hearing was held by the Senate committee to get testimony for use in revising the state banking laws in relation to the privileges of private banks. The whole day's session was spent in investigating the affairs of the bankrupt Siegel enterprises. Mr. Melville said the transactions he described were legal under the present law, but admitted that conditions were "unfortunate." The Siegel bank, according to the receiver's testimony, had deposits of $2,550,333, distributed among 15,000 customers of the Fourteenth street store in this city. Mr. Melville said that this money was loaned also to the two Siegel stores in New York and the one in Boston. The actual assets of the bank, he said, were $14,000 in cash, $25,000 in banks and a cash bond of $100,000.

3. January 13, 1914 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, January 13, 1914

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FREE TO TAKE WHAT MONEY THEY WANTED Proprietors of the Henry Siegel & Co. Bank of the Free-and-easy Kind. NEW YORK, Jan. 12.-Henry Melville, receiver for the Henry Seigel & Co. bank, told the committee on banks of the state senate today that "whenever any of the proprietors felt the need of any loose change to the amount of a few thousand dollars, he went to the bank and took what he wanted, without giving any note or any security," Mr. Siegel, himself. the receiver said, borrowed $754,191 without security except a written agreement pledging 34,000 shares of the common stock of the Siegel Stores corporation against these loans. The hearing was held by the senate committee to get testimony for use in revising the state banking laws in relation to the privileges of private banks. The day's session was spent investigating the affairs of the bankrupt Siegel enterprises Mr. Melville said the transactions he described were legal under the present law, but admitted conditions were "unfortunate." The Siegel bank, according to the receiver's testimony, had deposits of $2.530,333, distributed among 13,000 customers of the Fourteen street store in this city. Mr. Melville said that this money was lent also to the Slegel stores in New York and the one in Boston The actual assets of the bank, he said, were $14,000 in cash, $25,000 in bonds and a cash bond of $100,000. Mr. Melville said that since he had been appointed receiver he had made several attempts to communicate with Henry Slegel and F. E. Vogel, co-partners in the banking company. but without success. The committee will continue the hearings.

4. January 13, 1914 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, January 13, 1914

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Loose Banking Charged. NEW YORK Jan. 13.-Henry Melville, receiver for the Henry Siegel & Co. bank. told the committee on banks of the state senate that "whenever any of the proprietors felt the need of any loose change to the amount of a few thousand dollars he went to the bank and took what he wanted without giving any note or any security. Mr. Siegel himself. the receiver said, borrowed $754.191 without security except a written agreement pledging 34,000 shares of the common stock of the Siegel Stores Corporation against these loans.

5. January 15, 1914 New-York Tribune New York, NY
Article from New-York Tribune, January 15, 1914

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SIEGEL GETS TIME TO PAY CREDITORS Attorneys Agree on Programme at Conference of All Interests. PAYMENT IN FULL PROMISED TO ALL Counsel for Banker, in Letter, Ask That No More Suits Be Started. Attorneys for creditors of the Siegel Stores Corporation and depositors in Henry Siegel & Co.'s bank met last evening in the Bank of the Manhattan Company and agreed to a programme by which Henry Siegel and Henry Vogel will have time to reach a basis of adjustment. The conference was attended by James N. Rosenberg, attorney for the receivers; Joseph M. Hartfield. attorney for the mercantile creditors' committee: John P. Murray, of Coudert Brothers, No. 2 Rector street, attorney for the bank depositors' committee: William A. Marble and John S. Sheppard, receivers of the Siegel Stores Corporation, and Henry Melville, receiver of the Henry Siegel & Co. bank: Pierre Jay, vice-president of the Bank of the Manhattan, chairman of the mercantile creditors' committee, and Henry Stegel. At the conclusion of the conference the attorneys authorized J. Philip Munch. chairman of the depositors' committee, to make this statement: "The meeting was held to determine what arrangements agreeable to the chairman of the depositors' committee can be made for the payment of a substantial sum to the depositors and when. Another meeting will be held within a week to determine what amount shall be paid and when, and to arrange for security for the payment of the balance to the depositors." Prior to this meeting Munch and Miss Etta Mahoney, of the depositors' committee, had a personal interview with Siegel and his attorneys. John B. Stanchfield and Louis Samter Levy. "Mr. Siegel had tears in his eyes when he talked with us," Munch told the depositors at a meeting at No. 45 West 13th street. "He told us he would pay us 100 cents on the dollar. All he needs is time, he told us, and I am in favor of giving it to him." Hugh Pertchard. of No. 102 West 93d street, a depositor, made a speech, advising patience. Miss Mahoney described the interview to the women depositors. Munch made public a letter he received from the attorneys for Slegel. It was the first statement made to the depositors on behalf of the banker and will be communicated to them this afternoon. In this letter the attorneys reiterate Siegel's promise to make good all deposits. They also emphasize the necessity of giving him time, and state that they will be embarrassed by court proceedings. This is the letter: "In reply to your request as to the

6. January 16, 1914 New-York Tribune New York, NY
Article from New-York Tribune, January 16, 1914

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Money Raised in Chicago to Make 20 Per Cent Payment to Depositors. GRAND JURY ACTION HAS BEEN POSTPONED Stores Likely To Be Reorganized if Plan Is Not Halted by Legal Tangles. Assurance given to the District Attorney's office yesterday that depositors of the Henry Siegel & Co. bank would be given a partial payment of their accounts very soon and that Henry Siegel and Frank E. Vogel were raising money with which to make the payment has indefinitely postponed grand jury action against the bankrupt firm and given new hope to the depositors. John B. Stanchfield, of Stanchfield & Levy, attorneys for Henry Siegel and his associates in the department store business. conferred with District Attorney Whitman. Later in the day it became known that Vogel had met with some success in Chicago in raising money and that he would return to New York the latter part of the week with $500,000 to aid in the liquidation of the bank's accounts. He is being aided in Chicago by Levy Mayer, an attorney who will come with him to New York. A meeting of the creditors of the Siegel Stores Corporation. the Henry Siegel & Co. bank, the Simpson Crawford store, the Fourteenth Street Store and the Boston Store will be held early in the week and at that meeting the first payment proposition will be made. It is the understanding now that the $500,000 which is expected to be raised and moneys which Receiver Henry Melville has will permit of a 20 per cent payment to depositors of the bank. The deposits aggregated $2,500,000, and it is generally accepted that the depositors will be satisfied first.

7. January 16, 1914 Northern Wisconsin Advertiser Wabeno, WI
Article from Northern Wisconsin Advertiser, January 16, 1914

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OWNERS USED FUNDS OF SIEGEL BANK Receiver Says Proprietors Helped Themselves. NO NOTES OR OTHER SECURITY Borrowing of $754,000 on Pledge of Common Stock of Store Called Unfortunate-Loans Are Held Within the Law. New York, Jan. 14.-Henry Melville, who is receiver for the Henry Siegel & Co. bank, told the committee on banks of the state senate Monday that "whenever any of the proprietors felt the need of any loose change to the amount of a few thousand dollars he went to the bank and took what he wanted without giving any note or security of any kind." Siegel himself, the receiver said, borrowed $754,191 without security except a written agreement pledging 34,000 shares of the common stock of the Siegel Stores corporation against these loans. Siegel himself, the receiver said, borrowed $754,191 without security except a written agreement pledging 34,000 shares of the common stock of the Siegel Stores corporation against these loans. The hearing was held up by the senate committee to get testimony for use in revising the state banking laws in relation to the privileges of private banks. The whole day's session was spent investigating the affairs of the bankrupt Siegel enterprises. Melville said the transactions he described were legal under the present laws, but admitted conditions were "unfortunate." The Siegel bank, according to the receiver's testimony, had deposits of $2,550,333, distributed among 15,000 customers of the Fourteenth street store in this city. Melville said that this money was loaned also to the two Siegel stores in New York and the one in Boston. The actual assets of the bank, he said, were $14,000 in cash, $25,000 in banks and a cash bond of $100,000. Melville said that since he had been appointed receiver he had made several attempts to communicate with Henry Siegel and F. E. Vogel, copartners in the banking company, but without success. Two involuntary petitions in bankruptcy against Henry Siegel and Frank E. Vogel, co-partners and individuals, as bankers and wholesalers, were filed in the federal court by three depositors in the private bank connected with the Siegel store, and by creditors who claimed money due them for merchandise. No federal receiver was appointed, although a request for one was made by the first three petitioners, who alleged that the company made a preferred payment of $50,000.

8. January 21, 1914 Vernon County Censor Viroqua, WI
Article from Vernon County Censor, January 21, 1914

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OWNERS USED FUNDS OF THE SIEGEL BANKS Borrowing of $754,000 on Pledge of Common Stock of Store Called Unfortunate. New York, Jan. 14.-Henry Melville, who is receiver for the Henry Siegel & Co. bank, told the committee on banks of the state senate Monday that "whenever any of the proprietors felt the need of any loose change to the amount of a few thousand dollars he went to the bank and took what he wanted without giving any note or security of any kind." Stegel himself, the receiver said, borrowed $754,191 without security except a written agreement pledging 34,000 shares of the common stock of the Siegel Stores corporation against these loans. The hearing was held up by the senate committee io get testimony for use in revising the state banking laws in relation to the privileges of private banks. The whole day's session was spent investigating the affairs of the bankrupt Siegel enterprises. Melville said the transactions he described were legal under the present laws, but admitted conditions were "upfortunate." The Stegel bank, according to the receiver's testimony, had deposits of $2,550,333, distributed among 15,000 customers of the Fourteenth street store in this city. Melville said that this money was loaned also to the two Siegel mores in New York and the one in Boston. The actual assets of the bank, be said, were $14,000 in cash, $25 000 in banks and a cash bond of $100.000.

9. April 3, 1914 The Sun New York, NY
Article from The Sun, April 3, 1914

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SIEGEL CONFERENCE MAY AID DEPOSITORS Whitman More Hopeful After Talk With Merchants' Counsel. WON'T STOP PROSECUTION District Attorney Will Ask Mercy of Court if Obligations Are Paid. A conference was held yesterday between District Attorney Whitman and John B. Stanchfield of counsel to Henry Slegel and Frank E. Vogel, following the arrival here on Wednesday of Levy Mayer, representing the Ne'son Morris family of Chicago to which Vogel is closely related. Neither would say what was discussed Mr. Whitman, however. was more optimistic for the depositors than he has been, although he said he had made it clear to Mr. Stanchfield that he could not change his attitude toward the prosecution of the indictments found or the ten or twelve charges pending. Levy Mayer said last night that the families of the two men were ready to put up an additional $500,000 for the benefit of the unfortunate depositors. Stegel and Vogel themselves, he said, were "church mouse poor," and the friends and relatives of the two in Chicago were anxious to have the money distributed among the depositors without cost and without court delay. "We are urging, If possible," he said, "that Stegel and Vogel get a chance to earn and pay up In run the balance remaining unpaid after the families' contributions have been applied. Praise for Whitman. "We certainly have nothing but praise for the official conduct of your District Attorney. He is doing only his duty as prescribed by law. am discussing what socially and economically is for the best interests of the 15,000 depositors.' Mr. Mayer's coming to New York is regarded as being responsible for a change of front on the part of the defence. Mr. Whitman repeated at the conference that he had made It clear that he could not enter into any agreement with the indicted merchants counsel, but that if Siegel and Vogel made an effort to pay their obligations he would recommend them to the mercy of the court if they are convicted. The total fund now available for the depositors. aside from the $325,000 settlement with the mercantile creditors and the $100,000 bond filed with the State Comptroller. is said to be $500,000. that 1s, $50.000 more than it was the day before, and the prospect that the 15.000 depositors would get some of it and perhaps part of a much larger fund was brighter than ever. Expects More Money. The District Attorney was led to beHere that Vogel's friends In Chicago would supply more money before Stegel and Vogel come to trial. How the money would be paid over to the depositors was a matte of conjecture, but It was thought that It might find its way to them through the Depositors Realization Corporation, through which the offer first came, or be turned over to Receiver Henry Melville directly Mr. Mayer said on Wednesday that he represented only the Morris family. that the fund-then $450,000-was not a "fighting fund.' and that he came to New York to help the depositors The money he added. was not to be used unless Siege! and Vogel could pay the depositors dollar for dollar, and they could not do that in jail It is regarded as his plan to have the men sett up independent of any promise or agreement with the District Attorney The United States Fidelity and Guaranty Company, which was sued by the Attorney-General for the $100 000 bond filed with the State Comptroller. will pay to City Chamberlain Henry Bruere on Saturday the face value of the bond The company was discharged from liability yesterday by Supreme Court Justice Bartow S. Weeks when the suit came up and the bond cancelled. Henry Melville. receiver of the Henry Siegel & Co. bank, was thereby made the defendant in the action. It will probably be settled very formally. however, as the Deputy Attorney-General William A. McQuaid, is anxious to get the money Into the same hands which will distribute the $325,000 already settled on the depositors. Whether this will be Mr. Melville or a trustee in bankruptcy depends on the decision of United States District Judge Hough, who has set next Wednesday to hear arguments for putting the funds into the hands of a trustee in bankruptcy and for an immediate distribution by Mr. Melville. Wants Quick Dividend. Cornellus W. Wickersham. who anpeared for the bonding company. said the company withdrew from the action because it was anxious to have the depositors get an Immediate dividend. The bank receiver will get the $325,000 cash on Wednesday and the order to turn the bond money over to him could be obtained at once If Judge Hough decided he was to distribute the depositors money In that case the depositors would get some money in a few days. William Bonynge. who has the petition in bankruptcy against Siegel and Vogel said yesterday, however, that he would continue his case. Mr. Melville has drawn and signed the checks to pay the depositors who put money into the Stegel bank on December 29. the day It closed Notices to the eightytwo persons went out last night and they in get their money in full as soon as they appear before the receiver and prove their claims, which amount in all to about $2,300 This will be the first moneys to be received by any of the depositors and credit since the Siegel crash. Whether the people who made deposits of about $16,000 in the last week the bank was open will be paid In full from the segregated funds or get only the same percentage as the other depositors will be decided next Friday It is said that Judge Hough expects to have the whole Siegel affair cleaned up on that date. He has extended the time for the receivers to answer bankruptcy petitions against the Pourteenth Street Store. Sinipson Craw ford Company and the Merchants Express to that date too.

10. April 9, 1914 New-York Tribune New York, NY
Article from New-York Tribune, April 9, 1914

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NEW YORKERS, 15.4 P. .C.; TO BOSTONIANS, 12.5 Judge Hough Condemns as Cruel False Hopes Held Out to Depositors. DEFENDANTS ARRESTED Siegel and Vogel Again Plead Not Guilty-Held Till Backers Renew Support. Judge Charles M. Hough, in the United States Court, yesterday ordered the immediate payment of a dividend of 15.4 per cent to the depositors in the Henry Siegel & Co. bank who made their deposits at the main office in this city. The Boston depositors, who had a total of $75,000, will receive 12.5 per cent The order of Judge Hough makes none of what is left of the to Henry $2,500,000 sure that paid Siegel and E. Vogel will be needlessly spent in Frank bankruptcy proceedings. Delay of months in paying the depositors will also be avoided. In making the order Judge Hough denounced as cruel the efforts being made to convince the depositors that they might profit by the examination of Siegel and Vogel in bankruptcy. He that whatever small assets go inpointed might be out discovered would to the dividual creditors of the men and not to their creditors as co-partners. All They Are Sure Of. The money ordered paid is practically all that the bank depositors are sure of. The trustee in bankruptcy who will wind up the estate may have a little to distribute, and there is the possibility that eventually something may be realized from the Siegel Stores Corporation stock now held by the receiver. There is also the possibility that something may be paid by way of restitution by Siegel and Vogel, but if this is done payment would probably be made through the Depositors' Realization Corporation, organized for that purpose. While Judge Hough was going over the papers presented by James N. Proskauer, counsel for the receiver, Henry Siegel and Frank E. Vogel, actually under arrest in the prisoners' room in the District Attorney's office, were facing the prospect of spending the night in the Tombs, because the National Surety Company declined to renew their bonds on the fourteen new indictments unless the indemnitors in Chicago assented to the proceedings. After an hour's wait and much long distance telephoning the necessary assent was secured and both men were freed. Siegel and Vogel were placed under arrest on bench warrants issued when they failed to appear in court yesterday morning to plead to the new indictments. Assistant District Attorney Arthur C. Train told Judge Mulqueen that the indicted men were missing. though their lawyers, Stanchfield & Levy, had been told to have them in court. "Mr. Clark," ordered the court, "you will issue bench warrants for these men. We will put them in the Tombs and when we want them we will know where they are. They will be dealt with just as other defendants are." Siegel and Vogel Arrested. Lieutenants "Boots" Trojan and Edward Raymes, of the District Attorney's staff, were assigned to find Siegel and Vogel. They were at first told that both were out of town. Stanchfield & Levy said their failure to be in court was due to a misunderstanding, and assured the officers that Continued on second page. fourth column. This Manning's Nome

11. April 11, 1914 The Sun New York, NY
Article from The Sun, April 11, 1914

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stick presented by the Princess de Croy: a collection of antique weapons, a mahogany chair presented to Chief Justice Chase by the Justices of the United States Supreme Court as a Christmas gift in 1864, and the Spanish flag, which flew from the tower of Morro Castle when the battleship Maine was sunk in Havana harbor. Mrs. Siegel says that after she signed the agreement her husband made a pretended delivery of Driftwood and the East Eighty-second street house to the H. S. Realty Company and through that company to Leo Price. Calls " Fraud to Cheat Her. She denounces the agreement and the transfer as "collusive and fraudulent" and says it was made "as part of a scheme to deprive her of her property." She asserts that "the H. S. Realty Company is a form only and was intended to remove assets and property from creditors." She says her husband owns the entire capital stock and that all the transactions in which she figured were a sham. When Henry Melville, receiver for the Henry Siegel & Co. bank, was told of the suits he said they would not affect the bank depositors in any way. Louis H. Elrich of 128 Broadway said that he was the president of the H. S. Realty Company and that he and the two other directors were conducting a real estate business. He said Nathan Straus. Jr., had agreed to buy Driftwood for $125.000. Mr. Price came into the possession of all of the capital stock of the company when he took it to secure the leases on the Rothenberg property. Driftwood and the East Eighty-second street property came into his hands as collateral security for this stock. Mortimer Boyle, a lawyer in the office of Nicoll. Anable, Lindsay & Fuller. announced yesterday his intention of suing Mrs. Siegel for $100,000 damages in connection with statements made by her in her divorce suit respecting Miss May Smith of Toronto. Miss Smith acted as a nurse for Mr. Siegel. Mr. Boyle says she never received from him anything except her compensation as a nurse. He asserts that because of the statements made by Mrs. Siegel Miss Smith has suffered professionally and the declares that if his elient is named as a corespondent in the divorce suit she will answer and fight the accusation vigorously.