The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-17
TRICKERY CHARGED
BISCHOFF FAILURE
Creditors Lawyer Alleges Fraud
in Receivership
Proceedings.
CALLS JUDGE PARTNER
Claims. He Says. Will Be Made
Against Estate Of
Dead Jurist.
CALLS JUDGE PARTNER

irving L. Ernst. one Of the attorneys
for the creditors Of Henry Bischoff
Co. and tho Bischoff Banking House, Inc.
told Judge Hand in the United States
District Court yesterday that he was con-
WINGED his clients had a substantial claim
against the estate OF the late Supreme
Court Justice Henry Bischon and that
they would attempt to levy the estate
In order to satisfy their claims.
Justice Bschoff fell down an elevator
shaft last March and was killed In
stantiy. II was supposed at the time
that he had disposed Of his interest In
she Bischoff banking enterprise. Accord
eng TO Mr.. Ernst the depositors had every
reason to believe that tho Justice was
member OF the partnership up to the time
Of his death.
Mr.. Ernst told the court that the
RIschoff bank never invested q dollar OF
securities. All the money, he said. went
into the pockets Of the importing and
Axport,ng business Of Henry Bischoff 4
Go
lawyer Accuses Becker.
Aftsr Maurice Deiches was appointed
Sscelvsr IN the state Supreme Court. Will
MDx0 j. 66Ck0Is ONO VI tII0 xSicSiiOAA peh "
nega drew his entire account Of $500 from
Vhs National Park Bank according 70
NJ. Ernst Becker. he said, also COL
loptsd rents from his properly on Ninety
ofxth street. which he failed to turn over
10 the receiver. although he afterwards
turned over the property itself.
Mr.. Ernst accused Albert p. Massey.
attorney for the B.schoff bank and also
for peiches. OF arranging the suit brought
by Carl whitman. which resulted In the
appointment Of Deiches as receiver.
Whitman was an employee OF Henry
Bischoff & Co. He sued for $500 Ac-
uording 10 Mr.. Ernst Whitman had no
real claim against the concern Mas
sey. Mr.. Ernst said. told him that the suit
was brought after y conference between
the partners OF the banking house and
Whitman.
Mr.. Ernst asked that Deiches be made
receiver i'm the bankruptcy proceedings
- that he would be liable to the Federal
courts rs well AZ to the state courts
Judge Hand denied this request but or
dered that all the books OF the Bischofl
enterprises be opened for inspection. lie
added that he didn't think that q re
ceiver could. with propriety, issue powers
q Attorney calling for his appointment
as trustee in bankruptcy.
Able 10 Pay All. says Massey.
Albert p Massey told Judge Hand that
Henry Bischoff 4 Co. had cash assets
amounting TO 100000 in excess OF Their
debts. Becker. he said, had turned ove'
st5s.eo0 OF his stock IN the Bischof
Banking House. Inc. Deiches. he said
had asked Becker for his other assets
including the rents On the Ninety-sixtl
street property.
But" concluded Massey. Becker is
hardhcaded DutchInan."
Attorney James wheatIand Smith. ais,
representing the creditors. said that h
had been quoted TO the effect that tn,
whole AFFAIR was rotten inside job
He said that he had looked the wore
Job" up In the dictionary and found tina
~ meant an undertaking ostensibly 70
tho public good. but in reality for one
own good. That characterized the pro
ceedings against the Bischoff enterprise
IN the State courts, he said. Neither tn
public nor the depositors knew the trutI
about the business Of Henry Bischoff 4
Co. he said.