Henry Bischoff & Company facts for kids

Henry Bischoff & Company was a company in New York City that handled money, like a bank. It went out of business in January 1914 because it couldn't pay its debts. The company was started over forty years earlier by Henry Bischoff (1827–1902), who was a judge. After March 7, 1902, the company was owned by Henry Bischoff's son-in-law, James S. Meng, and William J. Beacher, who used to be Bischoff's business partner. Their office was located at Tryon Row and Centre Street.

The Company's Business

Besides taking money deposits, Henry Bischoff & Company also sold tickets for steamships. These tickets were for people traveling overseas. In January 1913, a new bank was officially started and named Bischoff's Banking House.

The company also owned the fourth floor at 287 Broadway. This space was used by people who helped with customs (rules for bringing things into the country) and those who sent or received money for safekeeping. When the company closed down, it had about 1,000 customers who had deposited a total of $360,000. This money was partly protected by a special insurance called a surety bond worth $100,000. Most of the customers were people from southeast Europe.

Problems with the Bank

The new, official bank (Bischoff's Banking House) operated in the same room where Henry Bischoff & Company had done its private banking business before. The private banking part of the business then moved to a room at the back of the building. The steamship ticket sales also happened in this back room.

Many customers of Henry Bischoff & Company didn't realize there was a difference between the official, incorporated bank and the private banking business. They thought their money was safe and protected by New York laws. However, the money deposited into the private bank was treated as the personal money of the bankers themselves. This led to a big loss for many customers when the company failed.

Because of these problems, a person named Maurice Delches was chosen by a judge, Charles L. Guy, on January 10, 1914. This person was called a receiver, and their job was to manage the company's money and try to help the customers.