Bischoffs Banking House

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: private
Start Date: January 1, 1914*
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 070fb22a

Response Measures

Full suspension

Other: Voluntary dissolution/liquidation and receivership proceedings; confusion between a State bank and a private savings partnership led to legal actions.

Description

The Bischoff Banking House (organized as a State bank) experienced a quiet run after receivership proceedings were begun against the related partnership (Henry Bischoff & Co.). The stockholders voted to wind up the bank and it stopped taking deposits; receivers were appointed for the savings (partnership) side and liquidation/winding up proceedings followed. There are allegations of mixing of a private savings partnership with the State bank and possible fraud. Dates and facts taken from the January–April 1914 newspaper coverage. No reopening is reported; the bank was being wound up and assets/liabilities handled by receivers/liquidators.

Events (4)

1. January 1, 1914* Receivership

Newspaper Excerpt: Both institutions went into the hands of receivers, Mr. Deiches being appointed receiver for the savings bank in January of this year.
Source: newspapers

2. January 10, 1914 Run

Cause: Bank Specific Adverse Info
Cause Details: Quiet run triggered by appointment of a receiver for the related partnership (Henry Bischoff & Co.) and revelations about the partnership's insolvency/misconduct.
Measures: Quit taking deposits; notified depositors to call for their money (stopped accepting further deposits).
Newspaper Excerpt: The bank was subjected to . quiet run after a receiver was appointed on January 10 for the copartnership of Henry Bischoff & Co.
Source: newspapers

3. January 28, 1914 Suspension

Cause: Voluntary Liquidation
Cause Details: Stockholders agreed (Jan 20 meeting) to wind up the banking house and applied for voluntary dissolution; bank ceased accepting deposits and entered dissolution.
Newspaper Excerpt: Since the stockholders' meeting no further deposits have been accepted, the present deposits amounting to $24,471... Justice Seabury granted the application yesterday for the voluntary dissolution of the Bischoff Banking House
Source: newspapers

4. April 1, 1914 Other

Newspaper Excerpt: Receiver for Private Bank Demands Stock and Bond of Solvent State Bank... Deiches contends that inasmuch as the two institutions were so mixed the State bank is liable for the debts of the savings bank, which is a partnership.
Source: newspapers

Newspaper Articles (6)

1. January 29, 1914 The Sun New York, NY

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HOW TO SUCCEED WITH FLOWERS Read the Gardening Notes IN THE SUNDAY SUN BISCHOFF'S BANK WILL CLOSE. Refuses to Accept Deposits Wants Depositors to Take Out Cash. Bischoff's Banking House at 287 Broad. way, founded in 1848 by Henry Bischoff. father of the late Supreme Court Justice Henry Bischoff, is to be dissolved. The bank was subjected to . quiet run after a receiver was appointed on January 10 for the copartnership of Henry Bischoff & Co., doing a steamship ticket. forwarding and general brokerage business in the same building. The fact became known yesterday that Carl Wittman. a stockholder of the bank. who instituted the receivership proceed. ings against Henry Bischoff & Co., got an order from Justice Seabury directing all persons interested to show cause on March 15 why the business should not be wound up. The petition stated that the bank had quit taking deposits and that $24,471 was held for depositors, who have been not: fied to call for the money. The capital stock of the bank Is $250,000. and the last balance sheet showed assets of $283,* 799 and liabilities of the same amount

2. January 29, 1914 New-York Tribune New York, NY

Article from New-York Tribune, January 29, 1914

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BANKING FIRM TO RETIRE Bischoff House's Voluntary Dissolution Permitted. Justice Seabury granted the application yesterday for the voluntary dissolution of the Bischoff Banking House, at No. 287 Broadway, which has a capital of $250,000 and has done a general banking business. Some of the officers of the organization are the same as those of Henry Bischoff & Co., at the same address, which went into the hands of a receiver a few weeks ago. Although the two institutions have occupied the same building, they were separate. The application to the court was made by Carl Wittman, president of the banking house, who said that at a meeting of the stockholders on January 20 it was agreed to wind up the affairs of the old firm. Notice to that effect was given to the State Banking Department. Since the stockholders' meeting no further deposits have been accepted, the present deposits amounting to $24,471. The balance sheets showed assets and liabilities of $283,799. All creditors and depositors will be notified of the move, and the period of dissolution will extend to March 15. If there are any moneys then unclaimed they will be turned over to the State Superintendent of Banks.

3. February 16, 1914 The Evening World New York, NY

Article from The Evening World, February 16, 1914

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Attorney for Creditors Insists Justice Was a Partner Until His Death. HOLDS LINE ON BECKER. This Member of Failed House Is Said to Have Held Onto His Bank Deposits. It was intimated in court to-day that the estate of the late Supreme Court Justice Henry Bischoff might be levied upon to satisfy creditors of Henry Bischoff & Co., bankrupt brokers, exporters and importers at No. 287 Broadway. Irving L. Ernst, attorney for the creditors, made known the likelihood of this course when he appeared in the United States District Court before Judge Hand this afternoon. He further declare 1 that though it had been alleged that Judge Bischoff retired from the firm several years ago the depositors were led to believe that he was a member of it up to the time of his death last year. "Although William J. Becker and Henry S. Merg, the partners named in the bankruptcy proceedings, assort that Bischoff sold his interest to them," persisted the lawyer. "I have every reason to believe that Henry Bischoff at the time of his death was still a member of the firm with William J. Becker. I expect to prove this and to connect the Bischoff estate with the partnership. We believe we have a substantial claim against the estate." Mr. Ernst was petitioning Judge Hand to appoint Maurice Deiches, the present receiver in equity, as receiver in bankruptcy. The petition was denied. "While Henry Bischoff & Co. and their bank, the Bischoff Banking House. Inc.," seld Ernst in his contention, "accepted deposits and paid 3 per cent. on them, not & dollar was invested in any good security whatever, but instead all the funds either went into the business or into the pockets of the co-partners, Becker and Meng." The lawyer also asserted that the action in equity brought by Carl Wittman, a clerk in the banking house, was a friendly action and that Wittman had no real claim. Ernst pointed out that Albert P. Massey, attorney for the partners, admitted that attorneys for the receiver. for the partners and for the banking house were all from Massey's office and that Massey arranged the suit. William J. Becker had withdrawn $400, the total amount of his deposits in the National Park Bank, since the equity proceedings were instituted, Ernst asserted, and had checked on an account in the German Exchange Bank, while he retained rents paid on Ninety-sixth street property in the hands of the receiver. "The investigation of the company's affairs before United States Commissioner Glichrist has only scratched the surface," he commented.

4. February 17, 1914 The Sun New York, NY

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TRICKERY CHARGED IN BISCHOFF FAILURE Creditors' Lawyer Alleges Fraud in Receivership Proceedings. CALLS JUDGE PARTNER Claims. He Says. Will Be Made Against Estate of Dead Jurist. Irving L. Ernst. one of the attorneys for the creditors of Henry Bischoff & Co. and the Bischoff Banking House, Inc., told Judge Hand in the United States District Court yesterday that he was convinced his clients had a substantial claim against the estate of the late Supreme Court Justice Henry Bischoff and that they would attempt to levy the estate in order to satisfy their claims. Justice Bischoff fell down an elevator shaft last March and was killed instantly. It was supposed at the time that he had disposed of his interest in the Bischoff banking enterprise. AccordIng to Mr. Ernst the depositors had every reason to believe that the Justice was a member of the partnership up to the time of his death. Mr. Ernst told the court that the Bischoff bank never invested a. dollar of the money deposited with it in any good securities. All the money, he said, went Into the "pockets" of the importing and exporting business of Henry Bischoff & Co. Lawyer Accuses Becker. After Maurice Deiches was appointed geceiver in the State Supreme Court, WillSam J. Becker, one of the Bischoff partnera, drew his entire account of $400 from the National Park Bank, according to Mr. Ernst. Becker, he said, also oolSected rents from his property on Ninetysixth street, which he failed to turn over to the "receiver, although he afterwards turned over the property itself. Mr. Ernst accused Albert P. Massey, attorney for the Bischoff bank and also for Deiches. of arranging the suit brought by Carl Wittman, which resulted in the appointment of Deiches as receiver. Wittman was an employee of Henry Bischoff & Co. He sued for $500. According to Mr. Ernst, Wittman had no treat claim against the concern. Massey, Mr. Ernst said, told him that the suit was brought after a conference between the partners of the banking house and Wittman. Mr. Ernst asked that Deiches be made receiver in the bankruptcy proceedings. no that he would be liable to the Federal courts as well as to the State courts. Judge Hand denied this request. but orHered that all the books of the Bischoft enterprises be opened for inspection. He added that he didn't think that a receiver could, with propriety, issue powers of attorney calling for his appointment as trustee in bankruptcy. Able to Pay All, Says Massey, Albert P. Massey told Judge Hand that Henry Bischoff & Co. had cash assets amounting to $100,000 in excess of their debts. Becker, he said, had turned over $158,000 of his stock in the Bischoff Banking House. Inc. Deiches, he said, had asked Becker for his other assets. including the rents on the Ninety-sixth street property. "But," concluded Massey, "Becker is a hardheaded Dutchman." Attorney James Wheatland Smith, also representing the creditors, said that he had been quoted to the effect that the whole affair was a. rotten inside job. He said that he had looked the word "job" up in the dictionary and found that it meant an undertaking ostensibly for the public good. but in reality for one's own good. That characterized the proceedings against the Bischoff enterprises in the State courts, he said. Neither the public nor the depositors knew the truth about the business of Henry Bischoff & Co., he said.

5. April 1, 1914 The Sun New York, NY

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FRAUD CHARGED BY BISCHOFF PATRONS Savings Depositors Tell Whitman They Were Deceived by Double System. LIQUIDATION IS HELD UP Receiver for Private Bank Demands Stock and Bond of Solvent State Bank. Evidence, written and oral, has been received by District Attorney Whitman's office that the depositors in the savings bank of Henry Bischoff & Co. were induced to hand over their money in the belief that they were depositing In the Bischoff Banking House, a duly authorised 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 Bischoff Banking House, but that a similar statement was printed on the passbooks themselves. Assistant District Attorney Colnan has these passbooks in his office as well as circulars and other documents. The same inquiry will come up in another form in the United States District Court on Monday, when argument will be heard on the prel.minary injunction obtained on behalf of Morris Deiches. receiver for the savings bank. to prevent the liquidators of the State bank from returning to the stockholders of the State bank their $250,000 of capital, which is intact, and the $100,000 bond filed with the State Comptroller. Mr. Deiches contends that inssmuch as the two institutions were 80 mixed the State bank is liable for the debts of the savings bank, which is a partnership. He will fight to get this money, and If he succeeds the 1,200 to 1,500 savings bank depositors will get the $350,000 they has on deposit in full. The Bischoff banking cases now absorb the attention of the United States court, the State courts, the District Attorney and the Consulates-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 1848 by the firm of Henry Bischoff & Co. The senior partner was the father of the late Justice Bischoff, who succeeded him in the control. The firm continued in a general banking, forwarding, express and exchange business until January 28, 1913, when James G. Meng and William J. Becker, having purchased the interest of Justice Bischoff. organized a State bank under the title of the Bischoff Banking House. As a State bank cannot conduct a savings bank, that adjunct officially was continued by Henry Bischoff & 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 a fair way to receive 100 cents on the dollar when Mr. Deiches made his application for his injunction. The affairs of the savings bank, however, were in a most unfavorable condition, and upon application in the United States District Court MacGrane Coxe was appointed referee in bankruptcy for Meng and Becker. It was asserted for these men they had lost everything through no fault of their own, having bought an insolvent institution under a misapprehension. Meetings of the ereditors were held, and as they were all depositors subsequently Louis Hoffman and Edwin C. Dusenbury were appointed trustees for them. William H. Bonynge of the law firm of Black. Gruber, Bonynge & McManus filed a petition in bankruptey yesterday against William H. Becker of the former firm of Henry Bischoff & Co. on behalf of several creditors. This is the partnership of which the late Justice Bischoff was a member. Mr. Bonynge explained that the old firm filed a $100,000 bond with the State Comptroller, upon which Meng & Becker, successors, conducted their private banking business. To prevent any technical point being raised the lawyers thought best to have the old firm included in a bankruptcy petition It does not affect the Bischoff estate.

6. January 3, 1915 The Sun New York, NY

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# BIG CONSPIRACY # TO GET GERMANS # TO FRONT SEEN Four Men Taken Off Ship Charged With Having False Passports. # TWO MORE ON LAND # IN FEDERAL NET Four Germans, one of them an officer of the reserve and the others German citizens returning to the fatherland as volunteers, were arrested by Government agents yesterday aboard the Scandinavian-American liner Bergensfjord as the steamer stopped at Quarantine on her way outward bound for Bergen, Norway. Meantime special agents of the Government were looking last night for Maurice Deiches in Philadelphia. They carried a warrant issued by United States Commissioner Houghton charging him also with conspiracy to defraud the United States. Mr. Deiches is a well known New York attorney of German parentage. He was receiver for the Bischoff banking house, which failed some time ago, and has been active to a certain extent in New York politics. All four were in possession of passports issued by the State Department to citizens of the United States. They were charged with conspiracy to defraud the Government. One of them, the officer, was later paroled on his own recognizance, while the others were locked up in default of $5,000 bail. While these arrests were in progress other Government agents stopped Carl Ruroede of 1621 Forty-sixth street, Brooklyn, and John Aucher as they were walking in Whitehall street and arrested them on the same charge. Ruroede and Aucher are said to be the men who secured the passports for the four men who hoped with their aid to slip out of the country to Norway. Kuroede was held in $20,000 bail. # Authorities Long on Watch. Later in the day United States Attorney H. Snowden Marshall, acting upon advice from Washington, issued the following statement: "For some time back an investigation has been in progress involving the issuance of American passports obtained by different sorts of fraud. The special agents of the Department of Justice in charge of the matter have recently obtained satisfactory evidence upon which they have been granted warrants for the arrest of the persons whom they apprehended to-day. "It should be stated that a very thorough investigation has disclosed the fact that very few United States passports have been fraudulently obtained. It was feared that the arrests made to-day might expose persons holding perfectly good passports to suspicion, and I desire to say that the thorough investigation that has been made has resulted in establishing the fact that nearly all passports issued by this country are properly issued and held by persons who are entitled to them. "Nevertheless, in order that American citizens with American passports travelling abroad may be taken care of, and for the convenience of other Governments, the State Department has established a system by which if any American passport is exposed to question the nearest diplomatic or consular officer of this Government will on request send a cable reporting the essential facts in the case, which the State Department will investigate and cause verification or disavowal of the passport involved to be cabled promptly to the officer who inaugurated the inquiry. "In view of the fact that there have been some passports issued fraudulently the State Department has established new and stringent regulations which it is believed cannot be evaded. "The persons arrested to-day are charged with a conspiracy to defraud the United States, and it is believed, that the evidence against each of them is amply sufficient. "About six weeks ago one of the Federal officers in this district secured information that efforts were on foot to obtain by fraud a number of passports. This information led to the investigation, which resulted in the arrests made to-day." Just how many German reservists and volunteers have been able to make their way to Germany by this method is not known but from bits of information picked up here and there it seems pretty certain that the Department of Justice believes the number to be considerable. The incident is considered of so much importance that arrangements have been made from Washington with the representatives of the United States in Europe to do everything in their power to safeguard bona fide citizens of the United States travelling in Europe from any inconvenience as a result of a stricter policy of inspection on the part of the belligerent nations. With this purpose in view the State Department has instructed all diplomatic and consular officers to cable a full report any American passport is exposed to question. An investigation will then be made in this country and if it appears that the person holding the passport is indeed a citizen of the United States everything will be done to guard him from inconvenience. On Trail of Others. The Federal authorities are believed to