The semi-weekly messenger., 1907-10-22

New York, Oct 7.-sensations
followed each other in rapid success
sioa in the financial district today,
as the result of the collapse of the
projected corner of United copper,
and the suspension Of prominent
brokerage firm yesterday
The firm of Otto Heinze and Com
pany was suspended on the stock ex-
change.
F. Augustus HeinZe the Butte
copper magnate, resigned the presi-
dency of the Mercantile National
Bank of New York city.
The Amalgamated Copper COM
pany at it's directors meeting cut its
to l per cent.
Montana Copper Company declared
a dividend of Sc in place Of a former
dividend of $12.
The failure of HaIler, SoehIe and
Company, prominent bankers of
Hamburg, Germany, with liabilities
that may reach $4,000 was an
nOunced.
The State Savings Bank of Butte,
Montana, of which the Heinzes are
the principal stockholders was sUs-
pended.
AS a result of these sensations the
stock market was halting and irreg-
ular but there was an apparent feel
ing that the break Of the attempted
corner in United Copper had clear
ed the atmosphere somewhat, and
the market rallied before the close
The suspension OF Otto HeinZe and
Company, of which firm Max NJ.
Schultze is the stock exchange men,
ber, was based on a complaint to
the exchange made by Gross and
KleeSberg, the stock exchange which
failed yesterday.
In a communication to the preSi
dent of the exchange, this firm charg-
ed Otto Heinze and Company with
refusing to accept 1922 shares Of
United copper, said to have been
bought on the order of the Heinze
firm.
This action Gross and Kleeberg
state was responsible for their fail
ure.
Attorneys for this firm stated to-
day that the amount owing to the
firm by the HeinZe firm aggregates
100000.
The Heinze firm announced that
it is PERFECTLY solvent and that all
it's legal obligations will be met. The
attorneys say that the suspension
by the stock exchange was accepted
by the firm in order to give the lat
ter an opportunity to sift the legal
obligations from numerous claims
which ahve been made against it and
which it is alleged are not legal OBJ
legations.
The resignation of F. Augustus
Heinze from the presidency of the
Mercantile National Bank, it is said,
was decided on at a midnight meet
ing at the home of c. w. Morse, who
is largely interested in the bank. 1t
was annuOnced this morning that Mr..
HeinZe at the same time gave out
a statement in which he stated that
his resignation was due to the fact
that he wished to devote all his time
to the Strengthening out t hlsob
to the Strengthening out the bus1-
ness of his brothers firm. He stat
ed positively that he had not dis
posed of his holdings in the bank,
and that the control would continue
where it had been and that he would
continue as director.
William B. Ridgley, at present
United States comptroller of cur
rency, has been rendered the office
of president Of the Mercantile Ma
tional Bank, but has not yet decid-
ed whether or not he will &C
cept.
The low price Of refined copper.
which dropped even lower today,
and the disorganiZed condition OF
that metal in the market, is the rea-
son given for the reduction Of the
dividend in the copper companies.
The announcement of the Amalga-
mated dividend Of 1 per cent, came
as a surprise. While it was known
| that there was to be a reduction, n
per cent was the lowest dividend ex-
pected.
The failure of the Hamburg firm,
and the Butte bank, both follo"eo
closely on the news Of the suspen-
exchange.
The German firm is said to nave
| lost heavily in the recent drop III
coppers, and yesterdays and today
| developments on the New York eX-
| change are said to have forced the
| failue.
| trolled by the Heinze interests, F.
| Augustus Heinze being the princi-
| pal stockholder, and the news Of
| the Otto Heinze suspension on the
stock exchange and Of the failure
| of the Hamburg firm percipitated a
| run which Immediately caused the
| suspension of the bank.
| In a statement issued by the of
| 6corc it was declared that the bank
| is perfectly solvent and that the
| suspension is solely for the pur-
| pose of gaining time to arrange the
| banks affairs.
A number of meetings were held
| yesterday in the offices of the Otto
| Heinze Company but no Statement
| of any kind was given out. 1t il
said that the claims against the firm
| growing principally out Of the at
| tempted corner in United copper may
| 80