Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-10-17
RISE OF A. F. HEINZE
PICTURESQUE FIGURE IN NEW
YORK FINANCE.

Special Dispatch to The Star.
NEW YORK, October IF Angus
tus Heinze, who founded the fortunes
of his family in copper, and who sue
cessfully fought the Standard OH Com
pany, has been forced, through the out
come of his brothers operations in
United Copper, to resign the presi-
dency of the NJ >rcantile National Bank
His formal retirement from the lead
ership of the banks affairs was an
nounced after meeting of the direct
ors, which began today at IL o'clock.
This step was decided on at a meeting,
lasting until after midnight last night,
in the house of Charles w. Morse, 7S5
sides Mr.. Heinze and Mr. Morse, E. R.
Thomas, who was the direct means of
getting Heinze on the board of di-
rectors of the bank; David A. Sullivan,
representing Heinze's Brooklyn banks.
and o. B. Bergen.
The directors meeting lasted until 12:30
o. clock, when Mr. Morse announced that
Mr. Heinze had resigned. He also an
nounced that William B. Ridgely, con-
troller of the currency, had been asked
to take the presidency of the bank.
Rather Embarrassing.
The break in nited Copper on the curb
and it's sudden advance under the buying
operations of Otto Heinze &c Company
and Gross & kleeberg have put F. Au-
gustus Heinze in as embarrassing a po-
sition as he has been any time in the
course of a spectacular career. For years
he had been laying the foundations on
which he intended 10 build TINS stock into
another Anaconda. He had carefully
guarded it's course in the market and al
ways checked any drives at it before
they had time to get headway. But a
year OF two ago his banking interests be-
gan to grow so fast that they pushed the
copper interests into second place. HeinZe
sold a great deal of his copper stock and
waged a successful fight against Edwin
Gould for the Mercantile National Bank.
Under the noses of the Gould guns, at
1875 Broadway, he captured the presidency
of the bank, and with his ally, f. X.
Thomas created new board of directors.
Meanwhile HeinZe brother Otto, to-
gether with Max Schultz and A. p.
Heinze formed the stock exchange firm
of Otto Heinze & Co. They took up
CnlteG copper ana puSHeQ IL III the mar
ket. On Monday and Tuesday they were
persuaded because of rapid decline in
the price of United Copper, that members
of the supporting pool were disposing of
stock in violation of their agreement. and
that considerable short selling was ac-
companying their action. So they refused
to permit the transfer of any pool GER
tificates. They fo..owed up this measure
by instructing their brokers, Gross &
Klceberg. to buy United Copper all the
way up the scale and to demand prompt
deliveries. The Heinze firm and Gross &
kleeberg started to buy al the stock
offered.
Aid Is Promised.
The result is already history. Stock
poured in on them from every conceivable
source, and they, unprepared for such q
contingency. were forced to adopt meas
ures of delay. Gross & kleaberg appealed
to them for money to meet a similar stu-
alton. There was none and Gross & kIee-
berg had to assign yesterday afternoon,
while stocks, particularly Heinze's spe-
cialties. were slaughtered about them.
While he was considering his resigna-
ton from the presidency of the bank
Heinze was busy in other directions, ral-
brothers firm. besieged by the demands
United Copper to the harassed brokers'
1t was said last night that he had Sc
cured the promise of aid from several
sources and that Otto Heinze & Co will
be able to take the stock offered to them
In turn this will probably mean that
Gross & Kleeberg will be able to resume
business at an cary date.