The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-19
BANK PAID SALARY
TO JUSTICE BISCHOFF
SOn-in-law Admits Jurist Got
$50 a Week After He
Sold Interest.
WAS OvERDRAWN $4,000
Half of 100000 Paid to Him
Taken From Deposits.
Is Testimony.
WAS OvERDRAWN $4,000

That Supreme Court Justice Henry
Bischofr continued to draw $50 a week
from the banking firm Of Henry Bischofs
* Co. amer he had sold out his interest
in the business for 100000 IN 1911 was
one of the facts brought out at the hear
ing before United States Commissioners
G!lchrist yesterday in the bankruptcy
proceedings against the Bischoff concern.
James :. Meng. . son-!n-law OF the late
Justice Sischoh and partner in the
Blschoff concern, not only testified to this
fact but also said that before severing
his connection with the firm Justice Bisch-
of had overdrawn his profits in the bust
ness to the extent OF $4,000.
Half of the 100000 paid 70 Justice
Bisohoff for his share in the business. ac-
cording 20 Meng. was taken out of the
deposits in the bank. The other $50, 900
he said was borrowed from Andrew Freed
man on four notes for $500 each made
out by the Judge himself.
Mers said that up TO the time the Jus
tice met his death In March, 1919. by
falling down an elevator shaft in the Emil
grant Bank Building, where he had his
chambers, he continued to draw the $50
week Meng said. however. that the
daily visits which Justice Pischoif con-
llnlti 10 pay 10 the Ol'lCes OF BlscnOH "
Co. after his withdrawal were merely So
clal calls.
This testimony was considered by At
torney Irving Il. Ernst. who is conducting
the bankruptcy examination for the
Bischoff bank depositors, to be an ip-
portant link In his effort TO prove that his
clients have a claim against the estate OF
Justice Bischoff.
Mr.. Ernst also ELECTED from Meng tes-
timony tending TO corroborate the theory
that depositors OF the Bischofr bank were
allowed TO continue under the impression
that the Justice was member OF the
firm up to his death. Meng admitted that
when the Justice withdrew from the firm
no announcement was sent to the deposit
tors.
Mr.. Ernst asked the witness II Justice
BischofY knew that the firm continued 10
use the old stationery and bank books af-
ter his withdrawal. Meng replied in the
affirmative.
Meng Is a trustee OF the Bischoff estate,
which he said. consisted mainly OF securi-
ties He declined for the present TO make
any estimate of the worth OF these Sc
curities
The witness placed part OF the blame
for the financial difficulties OF Henry
Bischon co. on Alfred H. Post the
manager Of the concerns newly acquired
exporting and importing department,
Meng said that neither he nor his part:
ner knew anything about this business
and that they left It all to Post, who
was made head of the department on the
understanding that the firm was to stand
all the expense and that he was to take
so per cent. OF the profits Post. he
said kept on insisting that his department
was making money. From time TO time
-they advanced him commissions, Meng
said Post finally concluded, he said, by
owing them from $4,000 to $4,000.
Meng said that the Bischoff Banking
House Inc, State bank, was organized
as an adjunct to the Bischon private bank
In 1918 In anticipation of stringent laws
FOR the regulation OF private banLS This
step. he said, had been considered for sew
eral years by the members of the firm
before It was finally taken.