Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-17
CORNER IN COPPER
CATCHES COMPANY
Gross & KIeeberg Forced to
Make an Assignment.
F. A. HEINZE INVOLVED
Firm of Otto Heinze Temporarily
Suspended.
STORY OF COUP THAT FAILED
Attempt by Operators to Squeeze
Some of the Big Brokerage
F. A. HEINZE INVOLVED
STORY OF COUP THAT FAILED


Wall street today before the opening OF
the stock exchange was divided between
feeling OF relief that the situation
created by the United Copper manipula-
tion had been cleared up and certain
amount of nervousness lest the failure of
Gross & Kleeberg might have an un-
favorable effect generally. That firms
claim that their inability to meet their
obligations was due to purchases of
United Copper made for Otto Heinze &
Co, but not accepted by them brought
the name of F. Augustus Heinze into the
wall street comment, although 1t was
denied that he is interested in the firm of
Otto Heinze & Co. This firm is composed
of Otto c. Heinze, Arthur P. Heinze and
Max H. Schultze.
F. Augustus Heinze has been a promi-
nent figure in New York financial circles
since the settlement of his long drawn
out litigation with the Amalgamated Cop
per interests over IIeinze's Montana
properties. 1t was understood that he re-
ceived large sum in cash as part of the
settlement agreed upon. 1t was soon at
terward that he became president of the
Mercantile National Bank, one of the
large financial institutions of the city.
F. Augustus Heinze resigned the presi-
dency of the Mercantile National Bank
today w. D. Ridgely, controller of the
currency. has been invited to accept the
presidency.
Late last night there was a conference
on the situation at the home of Charles
W Morse. who also is heavily interested
In the bank. At the close of this con-
ference 1t was rumored that F. Augustus
Heinze had agreed to resign the banks
presidency today and that he would be
succeeded by William B. Ridgely, con-
troller of the currency. Mr.. Ridgely,
however, denied that he had accepted the
presidency Of the bank. W nile the rumor
of Heinze's resignation was entirely un-
official, 1t was circumstantial in that it
was stated that meeting of the banks
directors would be held today.
Heinze Makes a Statement.
F. Augustus Heinze Is one of the most
picturesque and remarkable figures In
American finance. graduate of the CO.
lumbia School of Mines, he went west al
most without capital and began the de-
velopment of copper properties which
brought him into conflict with the great
Anaconda Company. now a part of the
Amalgamated Copper Company. This con-
fict lasted for years and was fought out
ago compromise was effected. The
terms of the peace agreement We're not
made public, but 1t was known that
Heinze received enough as his share to
make him several times millionaire
F. Augustus Heinze said this morning:
Il am considering resignng from the
presidency of the Mercantile National
Bank. but whether my resignation will be
rendered at the meeting of the board of
directors today l cannot say. The trou-
bles of the United Cooper Company are
internal and were brought about by diff
ferences between certain interests. | have
much to do at this time in bringing about
settlement OF affairs, and there is moth
ing more that can say at this time
Mr.. HeinZe arrived al his Office at the
Mercantile National Bank early and held
Several conferences with officials of the
bank and several callers.
Mr.. II HsinZe said he has not disposed of
Bank. and he added that the control of
the Institution will rest Just where il mas
In the past.
The curb market. to which al the trad
ing in United Copper shares is confined
op-ned today active and excited. United
Copper was weak and active The first
sale Of the common stock was at Sl3 as
compared with the closing price of Sl5
last night. II quickly dropped to $40 and
then recovered TO $3.50.
The strength of Consolidated Steamship
Companys bonds was a feature of the
opening of the market. These bonds
which were weak during the excitement
OF yesterday. sold today at 2lA. as com
pared with a closing price OF 1914 last
night. The Consolidated Steamship Com
pany is operated by Charles W. Morse
who is associated with F. Augustus
II inze in the Mercantile National Bank.
One Firm Suspended.
Otto Heinze & Co. made the following
statement at the opening of the stock
exchange:
Arthur P. Heinze is no longer a mem
Der of the firm OF Otto Heinze & Co. The
hrm OF Otto Heinze & Co feels itself per-
fectiy solvent and will meet and paw al
Its just and legal obligations in full The
Arm. however, refuses to pay obligations
which II does not consider legal or lust
until proper adjudication of the matter
has been made. Rather than submit to
such unjust demands 1t prefers to permit,
Itself to temporarily be suspended from
the privileges OF the stock exchange"
For some time past the situation in the
copper shares has been rather unfavor-
able. For number Of weeks the Anal
gamated Copper Company has been hold
ing down the production of its mines to
about one-half Its normal output because
of heavy overproduction of the ore and
the refusal of consumers to buy at the
prices which had prevailed. Since this
reduction of output was put into opera tion
the price of the metal has slowly but
steadily been declining.
Following the policy of the Amalgamat-
ed Copper, Clark and Phelps-Dodge inter-