Paragould soliphone., 1922-02-15
JUDGE LANDS
 INFORMED OF
 BIC BUBBLE
Chicago Youth Owes $4,- 500, 900, Hasn't Got ST. COO; Federal Inquiry Un- der Way.


 are alleged to have ruined thou sands of poor investors who trusted him with their life savings, yester- day told Federal Judge Landis at an inquiry that 'I owe $4,500,O00 and have less than $1,oOo in cash
 Bischoff said he was 9, and that he had accumulated liabilities, esti- mated by receiver appointed Sat urday, totaling approximately $5,- GOO, 900 in less than two years. He described his business as general financial business, brokerage and oil" and said that he started it in the spring. of 1919 with $1o,o0o.
 Asked where he obtained this money, Bischoff said he had made part of ii in the stock yards, and that the rest was the result of stock speculations. He said he had no pervious business experience; that he lived at home at the time, and that the only other work he had done was in connection with ob- taining members for the Boy Scouts
 Was unfortunate
 Under questions from Judge l.an- dis he maintained that his opera tions were legal, that the money entrusted to his care was given him for speculation. and that it was un- fortunate he should have. lost it.e He felt he could have recovered all his losses if the receiyership proceedings had not interfered, he said
 Despite bischoff's protestations that all Of the millions lie had handled have been lost a search was begun for All possible assets, and Judge Landis issued restraiung orderss preventing Bisehoffs rela- tives from disposing of two flat buildings, two houses, a farm, four automobiles and the contents Of sev- cral safety deposit boxes.
 Walter Truskoyski. an agent for Bischoff, charged that Bischoff au thorized him and many others to make promises of payment of 100 per cent interest, and at other times told them to borrow money, giving his personal note guaranteeing 50I to 75 per cent returns.
 T have been the butt of enemies, y Bischoff said "Sometime ago 1 be- came interested in the " Oil Com pany. l purchased a total ofa ? 2,010, GOO shares, and shortly after, to my surprise, I learned that l owned more stock than had eyer been issued.
 Office Is Stormed.
 While Bisohoff was explaining tol Judge Landis what had become of the money entrusted to him, several hundred persons yesterday stormed his office, searching for the man who they declared had brought them financial ruin.
 Extra police were called to controli the crowd, whcih shouted threats against the 25-year-old banker, and it was only when assured that Bischoff was behind jail bars that it dispersed
 Smiling and without visible em- barrassment Bischoff told JudgeI Landis the story of his financial ventures, maintaining throughout | his innocence. T have always loved adventure, and loved to take a chance" he said. While employed | by local packing concern I dabbled i in the stock market. Then, just at a time when was about $10,000 l to the good, friend asked me to raise money to pay interest on d mortgage CD his home He put in $26o and adding an equal sum, l gambled in stocks, We wou-won i big
 Dozens of friends then brought /, me money to invest for them. II decided l was wasting my time in 8 l packing plant, and opened an office ! that r would deal in finances generally
 Describes "CareeI."
 My friends and their friends brought he their money and in re- turn gave my personal promissorv note I gamblad in stocks mainly iland won big returns Tor mg in- yestors. I played absolutely fair' with them
 Then tried to sain control af an oA well iii Louisiana. mt Of thousands 4to it, and just when thought l had won. . had been double-crossea RY bwketshop stock brokers and -hat was not even close to con ,rpilins the well My money
 ny investors money was gone decided to reorganize my com )any, use different methods in in- festing and fight my best to get back the money my friends had rusted to me. They continued to { 'ome in with their savings. but for { many days l had refused to take a ( :ent for investment. Then a few |