Omaha daily bee., 1902-03-16

tack came on all SIDES. a trusted engineer
Joined his enemies and carried plans OF
Heinze's mines. All success breeds some
jealousy. Heinze's meteoric rise had left
"a trail Of sparks which burned and SCARED.
Yet in spite Of Il all that could be done
against him he sold his railway and smelter
to the Canadian Pacific company at a
profit OF $500, 900. Then be came to Butte
and the copper war was on.
Trouble Begins.
President Bigelow Of the big Boston q
Montana accused Heinze Of mining in that
company's ground and stealing their ore.
This was the treachery OF the engineer.
Heinze denied the charge. Then, with
impressive mien. Blgelow threatened i'm
mediate suit for $500. 900. In Boston that
would have been very effective. but in the
rarihed air Of Butte its force became dis
sipated. Heinze replied:
"If you do. Mr.. Bigelow. I'll involve every
mine in Butte in litigation"
Bigelow sued and Heinze kept his word.
There are seventy-two cases now pending
in Montana courts. Until 1899 the
fight was purely local; New York
had but passing interest. Heinz
admitted dividends of $500, 900 per
annum, and used as much more in legal
expenses that he omitted in annual state
ments. In 1899 the Amalgamated Copper
company Incorporated for sac, 000, 900 and
took over Daly's Anaconda properties and
some smaller mines. Rockefellers name
and the backing of the City Bank Of New
York assured confidence and the stock was
Eve times over-subscribed. BY purchase
the Amalagamated became a party to the
litigation. Later the Michael Davitt,
claimed by both Heinze and the Amalga-
rnofod Yaaahod tho ort1~auna n0urk and fha
court compelled Heinze to furnish bonds to
the amount Of 1895, 900. The A~malgamated
placed a double hurdle with a ditch be-
tween. But Heinze found the bonds and
the Amalgamated absorbed Boston & Mon
tana and issued $780, 900, 900 more stock to
pay for 1t. At the rate OF production then
the Boston & Montana could pay dividends
Of Z per cent on the whole $155. 600, 900 Of
the A~malgamated and their stock reached
100. But Heinze had been shuf1ing a brand
new deck in Montana and a political cam
paign was on with the election Of two
county judges as the prizes. After q fight
in which every vote was bitterly fought
for, Heinze's judges were elected by hand
some pluralities. Then the A~malgamated
carried the fight to the legislature, where
they sought by special legislation to move
the cases to other counties, but Heinze
outgeneraled them and the governors veto
ended that phase.
Battle I'm the Courts. &
Then followed an Injunction secured by
John MacGinnis, Heinze's manager, and a
stakeholder in Boston & Montana, prohib-
iting them from paying any dividends to the
Amalgamated. Legal appeals failed TO dis
solve the courts order and the money In
stead Of paying z per cent dividends on
~Amalgamated stock, is accommodating in the
bank. 1t was an unexpected solar plexus
blow and Amalgamated shares dropped to
so, a loss in value Of s10S, 500, 600. All this
was the effect OF an order OF q county
Judge receiving $500 a year.
Then A-malgamated demanded more bonds
in the Michae Davitt case and the court
called on Heinze for $S50.OOo. w. A. CLARK
and his son, Charles w. Clark, who had
both been Heinze's friends, had gone over
to Amalgamated. They had always been
ready to go on his bonds, but now de-
clined, and here was the hurdle Amalga-
mated expected Heinze to stumble over
Rondsmen resident In Montana and holding
enough property In the state to Justify IN
SO large a sum were scarce. So Heinze or
ganized and Incorporated the Delawars
Surety company, which company furnished
a bond. The Amalgamated objected and
the Surety company put up $780, 600 In cast
and the hurdle was passed.
In litigation Heinze has developed botl
acuteness and sstuteness. His resource.
have always been equal to any demand and
he thinks no more of half q dozen new law,
suits than he does of eating a meal. Hi
stan Of thirty attorneys are kept busy ap
plying all the chicane OF the law n the,
have become as expert In evading a hos
tile court order as a prairie dog is in dodg.
ing the amateurs bullet. Then, too, Heinz
has the sympathy of a very large politica
following In Butte and this following sup
ports him at the polls, in the jurybox an
in the mines.
Today his properties unencumbered b,
litigation and worked to their full capac
ity, would produce $500. 900 net per year
And hampered by injunction and restrain
ing orders, they yield him 81, 200, 900 an
nually. hat he will continue the fight 1
certain and he has his W judges for thre
years to come.
With copper above 9 cents he can max
enough money to pay all expenses, legs
and mining. At II cents he grows rict
Combined with Amalgamated and judic
iously managed II per cent could be pal
indefinitely upon $500, 900, 900.
Heinze cannot checkmate AmalgamateC
though so long as Boston & Montana divi
dends are tied up, A~malgamated dividend
must be small. possibly less than 4 pc
/, cent, while Heinze can still make his $500,
: 900 a lear.
> Thirty-two years old, he holds the wis
men Of Standard Oil and Amalgamated .
i bay and while they are halting he is bus
~devising new methods OF attack. Eventual
! he will win by forcing them to compromis
on his terms, and when he does he wi
q justly have earned his title as the Napoleo
: Of the copper world. HENRY r. KNAPP.
VI nzuwnwnura