The Montgomery advertiser., 1907-10-18
Corner in United Copper
 Conapses. SENSATIONS FOLLOW EACH OTHER IN RAPID SUCCESSION Heinze Resigns Presidency of Mef- camille National Bank.
 -----e--- Fhs state Savings Bank of Butte, Men- sana, and Big Private Banking
 FIrm in Germany
 Suspend.


 lowed each other in rapid succession in the financial district today, as the re- suit. of the collapse of the projected corner in United Copper and the sus- pension of prominent brokerage firm yesterday.
 The firm of Otto Heinze and Com change, F.. Augustus Heinzs. the Butte copper magnate. resigned the presi- dsncy or the Mercantile National Bank, of Now York.
 The AmaIgamated Copper Company at it's directors meeting out it's quar- terly dividend from 2 per cent to l per cent. F
 The directors of the Boston and Montana Copper Company declared Q quarterly dividend of ss in place of a former dividend of $12s
 The failure of Halier soehle and Company, prominent bankers of Ham burg. Germany, with liabilities that may reach sT.500. 900, was announced.
 The State Savings Bank of Butte. Mont, of which the Heinzes are the principal stockholders. suspended.
 As result of these sensattous the stock market was halting and irreg- ulars but there was an apparent feel ing that the break of the attempted corner in United Copper had cleared the atmosphere sosnswhat and the mar ket rallied before the close. M The suspension of Otto Heinze and Company, of which firm Max M Echu1tze is the stock exchange mem Der. was based on complaint to the ,. exchange made by Gross and Kisebsrg. the stock exchange firm which failed yesterday. In communication to the President Of the stock exchanRe, khfH firm charged Otto Heinxe and Company with refusing to accept 2s202 shares of United Copper said t0 have been bought on the order of the Heinxs firm, Thln action, Groes and Kieeberg ure. Attorneys for this firm stated to- day that the amount owing to the firm by the Heinze firm. aggregates $60e,- coo. The Heinxe firm announced that it Is perfectly solvent and that all its legal obligations will be met The at- torneys say that the suspension by the stock exchange was accepted by the firm In order to give the latter an ep- portunity to 5ift its legal obligations from numerous claims which have been made against 1t and which, 1t is alleged, are not legal obligations.
 Resigns the Presidency.
 The resignation of F. Augustus Heinze from the presidency of the Mercantile National Bank. 1t is said. WaS ucC1QG0 Oh @t n AAlAUAAASAb AAAcct~ ing at the home of c. w. Morse. who is largely interested in the bank. It was announced this morning. Mir. Heinze at the same time giving out a statement in which he said that his resignation was due to the fact that he wished to devote all of his time in straightening out the business Of his brothers firm. He stated positively that he had not disposed of his hold inRs in the bank and that control would remain where 1t had been. and that he would continues as a direct or William B. Ridgely. at present United States Comptroller of the Treasury. has been rendered the of- flee of president of the Mercantile Na- tional Bank. but has not decided whe- ther or not he will accept,
 The low price of refined copper, which dropped even lower today, and the disorganized condition of that metal in the market. is the reason giv~ en for the reduction of the dividend in the copper companies. The announce ment of the AmaIgamated quarterly dividend of one per cent came as a surprise, While it was known there would be a reduction. 1-4 per cent was the lowest dividend expected.
 The failure of the Hambur~ firm and the closing of the Butte Bank follow ed quickly on the news of the suspen- sion of the Heinze firm. on the stock axchange The German firm ia said tn have lost heavily in the coppera.
 Run On the Bank.
 The Butte Bank was largely con- trol1ed bv the Heinze interests. F. Au- sugton Helnze being the principal stockholder, and the news of the Otto Heinze suspension from the stock ex- change and the failure of he Hamburg firm .precipitated run which trnnne- diately caused the suspension Of the hank. Tn a statement issued bv the of9cers. 1t was declared that the bank fs nerfectIy solvent. and that the sus nenaion is solely for the purpose of gaining time to arrange the banks of. fairs.
 A number of meetings were held to- day in the ofice Of Otto Heinze and Company, but no statement of any sort was given out. It is said that the claims against the firm. growing prin- cipaIIy out Of the attempted corner in United Copper, may reach $2,5oo.0oo.
 Bank is Solvent.
 William A. Nash President of the Corn Exchange Bank, and acting chairman of the Clearing House Com mittee, stated tonight that the com mittee, witt me full cooperation or the oficers of the Mercantile National Rank. made an examination of its con- dition after the close of business to- night. The examination was very thorough and was not completed un- iii & late hour. Mir. Nash and his as- sociates said they were convinced, from the results of the examination, that the bank Is perfectly solvent and able to meet all It's indebtedness. The capital of S3,000,000 is intact, and there is A large surplus.