The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-10-18
GERMAN FAILURE
is ALSO DUE TO 1T
f. Augustus -Heinze Resigns
Presidency Of Mercantile Ma
tional Bank, and Comptroller
of Currency Ridgely Is
Offered Post-Claims
OF Heinze.
OF HeinZe,

Elon IN the fnaCcial district to-day
ns the result OF the collapse of the
protected corner in United Copper anu
the suspensiouYof a prominent broker-
aga hrsp yesterday. The firm of otto
Icinzc & Co was suspended or rhe
Stock Exchange. F. Augustus Heinze.
the Butte copper magnate, resigned
the presidency of the Mercantile Ma
tional Bank. OF New York. The Anal
gamated Copper Company at it's diree-
tors meeting cut its quarterly divi-
The directors of the Boston and Mon
tana Copper Company declared a quar-
terly dividend OF $6 in place OF for
mer dividend Of. 312.
The failure OF Haller. Sochle g. Co.,
prominent bankers OF Hamburg, Ger
many. with liabilities that may reach
s$7.5Oo.o00. was announced. The State
Savings Bank. OF Butte. Mont, OF
which the Heinzes are tn. principal
stockholders, suspended. as a result
of these sensations the stock market
was halting and irregular. but there
was Nn apparent feeling hat 3he.
break OF the attempted corner In
United Copper hnd cleared the atmos-
phere somewhat. and the market ral-
lied before the close.
The suspension OF Otto Heinze &
Company. Of which Arm Max NJ.
Schultze is the stock exchange mer-
3ber, was based on a complaint to the
exchange made by Gross & Klee-
berg, the stock exchange Arm which
failed yesterday. In communication
to the president of the exchange. this
firm charged Otto Heinze and Com
pany with refusing to accept 3.2?2
shares of United Copper, said to have
been bought on the order OF the
Heinze firm. This action. Cross q
Kleeberg state. was responsible for
their failure. Attorneys To-. this Arm
stated to-day that the amount owing
to the firm by the Heinze nrm aggrc-
gates 100000.
Clnimr to BE Solvent.
The Heinze firm announced that 1t
is perfectly solvent. and that all It's
legal obligations will be met. The
attorneys says that the suspension by
the stock exchange was accepted by
the Arm in order to give the latter an
opportunity to sifs Its legal obliga-
tions from numerous claims which
have been made against 1T. and which
II is alleged are not legal obligations.
The resignation OF f. Augustus Helnze
from the presidency Of the Mercantile
National Bank. 1t Is said. was decided
on at midnight meeting at the home
of c. w. Morse, who is largely inter-
ested in the bank.
It was announced this morning that
Mr.. Heinze at the same time gave out
a statement In which he said that his
resignation was due to the fact that
he wished to devote all of his time to
strengthening out the business of his
brothers. Arm. He stated positively
that he had not disposed Of his hold
ings in tho bank. and that the control
would remain where 1t had been, and
that he would continue as director.
William 3. Ridgeley, at present United
States Comptroller OF the Currency,
has been rendered the ONCE OF presi-
dent of the Mercantile National Bank,
but has not yet decided whether or
not he will accept.
Reduction of Dividend.
The low price Of refined copper.
which dropped even lower to- day, and
the ,dlsorganized condition of that
metal in the market are the reasons
given for the reduction of the diyt-
dend in the copper companies. The
announcement OF the Amalgamated
quarterly dividend OF i per cent. came
as a surprise. While It was known
that there was to be a reduction.
H4itA.f pei as kIC AZ " GOV tOAV1.
dend expected,
The failure OF the Hamburg firm and
the Butte bank both followed closely
on the news OF the suspension OF the
Heinze firm on. the Stock Exchange.
The German Arm u said to have lost
heavily in the arecenttdrop in coppers.
and yesterdays and to-day's develop
ments on the New York Stock Exchange
are said to have forced the failure.
- IT, Hvotr
by the Heinze interests. f, Augustus
Heinze being the principal ockholder.
and, the news of the Otto Heinzef sus-
pension on the Stock Exchange and OF
the failure OF the Hamburg Arm pre-
cipitated run which immed edintely
caused the suspension OF the hank.
Claims Exceed ~, ,00O, 900.
In a statement issued by the officers
1t was declared that the bank Is per-
fectly solvent, and that the suspension
is solely for the purpose Of gaining
time to arrange the banks affairs. a
number of meetings were held to- day
In the offices Of Otto Heinze g. Coz.
but no statement OF any kind was given
ont. II is said that the claims against
the Arm, growing principally out OF
the attempted corner III United Copper,
may reach 32,50o000, l5f
Big Texas Bank Closcs. IN II
HOUSTON, TEXAS. October lit
w. House, private banker, to-day filed
a general assignment under the State
law. A. B. Chew, w. D.5Cleveland and
II. S. Rice were named as assig gnees,
They gave bond In the sum OF $10o,-t
900 before Judge N Normang g. Klttrell IT.
Ia stated that resources are suficient
to pay creditors 100 cents on The doll
lar Inability to realize on securities
not really convertible into cash Is the