The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-01
FRAUD CHARGED BY
BISCHOFF PATRONS
Savings Dcpositors Tell Whit
man They Were Deceived
by Double System.
LIQUIDATION Is HELD UP
Receiver for Private Bank De-
mands Stock and Bond Of
Solvent State Bank.
LIQUIDATION Is HELD UP

Evidence. written and oral. has been
received by District Attorney whitmans
ONCE that the depositors In the savings
bank of Henry Bischoff 4 Co. were in
duced to hand over their money in the
belief that they were depositing In the
Blschofr Banking House. a duly author
.sed and inspected state bank.
Witnesses have testified that the two
institutions. maintained IN the same room.
had the same set OF bookkeepers. the
same set Of books practically and that
not only literature and advertisements
sent out In three languages proclaimed
the private savings bank to be the
Eischoff Banking House. but that a stint.
lar statement was printed on the pass
books themselves. Assistant District At
torney CONAN has these passbooks In
his Office as well as circulars and other
documents.
The same inquiry will come up in an
other form In the United states District
Court on Monday. when argument will
be heard on the preliminary Injunction
obtained on behalf of Morris Deiches
receiver for the savings bank. to prevent
the nquidators Of the State bank from
returning to the stockholders Of the State
bank their S2So.OoO OF capital. which Is
intact, and the 100000 bond filed with
the State Comptroller.
Mr. Deiches contends that inssmuch as
the two institutions were so mixed the
state bank Ia liable for the debts OF the
savings bank. which Is a partnership. He
will fight to get this money. and II he
succeeds the 1920 to 1900 savings bank
depositors will get the 3s5o.ooo they hau
on deposit In full.
The Bischoff banking cases now absorb
the attention OF the United States court.
the State courts. the District Attorney
and tn. Consula tes-General of Russia,
Germany and Austria Hungary. A host
OF attorneys. official and private. are
working to disentangle the AFFAIRS of the
Two Institutions.
The original bank was founded In 1s&s
By the firm OF Henry Bischon & Co. The
senior par timer was the father OF the late
Justice Bischon. who succeeded him In the
control.
The firm continued In a general bank
Ing forwarding. express and exchange
business until January IS. 1913. when
James q. Meng and William J. Becker
having purchased the interest Of Justice
BischofY. organized a State bank under
the title OF the Bischoff Banking House.
AZ a State bank cannot conduct II saw
ings bank. that adjunct officially was
continued by Henry Bischoff Il Co. All
remained in the same room.
Both institutions went into the hands
Of receivers, Mr.. Deiches being appointed
receiver for the savings bank In January
of this year. The State bank was all
right. Its depositors were paid in full
very speedily and the stockholders were
In q fair way to receive 100 cents on
the dollar when Mr.. Deiches made his
application for his injunction.
The affairs Of the savings bank. how
Ever. were in most unfavorable condi.
tion. and upon application in the unitei
states District Court .iacGrane Coke
&as appointed referee in bankruptcy for
Meng and Becker. II was asserted for
these men they had lost everything
Through fault of their own, having
bought an insolvent institution under A
anisapprehension Meetings of the credi-
tors were held. and AS they were all de-
positors subsequently Louis Hoffman and
Edwin c. Dusenbury were appointed
trustees for them
/ William II. Bonynec of the law Hrm
Of Black. Grubcr. Bouynge Il McManus
nled petition in bankruptcy yesterday
against William H. Becker OF the former
irm Of Henry Bischon Il Co. on behalf
of several creditors. This In the partner
thip Of which the late Justice Hschoff
was member. Mr.. Bonynge explained
that tho old Arm filed 100000 bond
with the State Comptroller, upon which
Heng * Becker, successors, conducted their
private banking business. To prevent any
technical point being raised the lawyers
Thought best to have the old Arm included
IN a bankruptcy petition. IL does not
Affect the BischofY estate.