Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-02-13
PONz| RIVAL IS
Dissolve RED IN
THE WINDY CITY
Owes About $4,500,000;
Has Less Than a Million
Dollars Worth of Stocks
of Doubtful Value.
(By The Associated PressJ

chicago, Feb. 12.-Raymond j.
Bischoff, taken into custody yes
to-day after involuntary proceed
ings in bankruptcy had been insti-
tuted against him by creditors. to-
dav admitted that he owes about
s4,5O0,000, representing the saw
ines Of 5000 Chicagoans, mostly
foreigners. Less than one million
dollars worth Of oil and gas stock
of doubtful value is available to
meet the obligations, it was an
nounced,
Bischoff, whose financial opera
lions apparently rival those OF
Charles Ponzi, the Boston wiz
ard" breathed a huge sigh of re-
lief when taken into custody
The Central Trust company yes
terday was appointed receiv d for
Bischoff. Felix Streyckmans, at
torney for the creditors, said he
believed Bischoff's liabilities would
run near $7,000,000 Bischoff,
only rs years old, objected strenu-
ously when it was suggested he ac-
company deputy marshals to the
section of the city where his cred
itors reside.
Bischoff told federal officials he
had been in trouble since last No
vember and lost much of his mon
ey in several oil deals in which he
said he was double crossed.
Gained n Reputation.
Bischoff, by paying large re-
turns on money borrowed in a few
particular instances, gained a rep
utation as financial wizard
among the people with whom he
dealt. according to federal agents.
Profits of 40 per cent on short
term loans were said to be COM
mon and Bischoff is said to have
paid as high as 100 per cent In
terest
According to Mr. Streyckmans,
only the creditors that objected to
long waits were paid in actual
cash. The rest, he said, were con-
tent to accept their alleged earn
ings in more notes. Some of the
people sold almost all they owned
to give Bischoff money, Mr..
Streyckmans said. One man, he
said, sold his home for $1,000 and
turned over $500 to Bischoff.
Bischoff came from Davenport,
Ia. He first attracted attention
when he spoke in Chicago, Den
yer, st. Louis, omaha and other
cities in 1919, calling himself Ser
geant y. C. breckenridge, member
of the Princess Pats Canadian reg
iment. He was exposed then as a
deserter from the American army.
He was arrested at Salt Lake City
for desertion and after court mar
tial, was sentenced to Alcatraz
prison for eighteen months.
He then came to Chicago ana
entered the employ Of packing
house concern, later opening a
brokerage office.
Mails Were Not Used.
James ]. Kelly, attorney for Bis
choff, today asserted that his client
had violated no law but had simply
lost money by speculation.
THE mails were not used" Mr.
Kelly said. 1.-THE notes he gave TO
investors were simply promissory
notes. And a man can't be i'm
prisoned for failure to pay such a
note If he hasn't the money"
Creditors may receive ten cents
on the dollar, Mr.. Kelly said, when
Bischoff's holdings are liquidated
Attorneys for the receiver said
they We're investigating Bischoffs
affairs and would call In state au-
thoritfes to see II Bischoff can be
prosecuted under confidence
game charge. Federal authorities
animated there was no basis for
prosecution.
John Augustiniak, bodyguard for
Pischoff for year, said today that
Bischoff had even fooled his own
statesmen.
"On last Monday he called his
40 agents together and told them
he would have a remittance of
100000 from New York in a day
or two" he said