Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-10-17
H[|NZE SQUEEZED
N COPPER SLUMP
Millionaire Mining King and
His Allied Firms Caught in
Their Own Corner
WILL RETIRE FROM HIS BANK.
Hein.e Says He Will Resign Presi-
dency Of Mercantile National Of New
York-otto Heinze & Co. and Other
Firms Forced to Suspend Operations
Affairs in Bad Tansle.

X
Affairs in Bad Tangle.
New York, Oct. 17.-Financial trou-
sb,es. growing out of the rapid oecl'ne
Ii the price Of United Copper shares
fr.sssGw wing the unsuccessful attempt 10
corner the stock, eliminated today IN
the resignation of the presidency OF
the Mercantile National bank by +.
3 Aueustus Heinze and the announce
nent Of the suspension of Otto Heinze
e Co.. on the stock exchange. Whlle
the firms suspension from the priv
ilepes of. the exchange became effective
at once, a representative Of the Helnze
interests said the assignment had not
been made and that it was hoped to
.traighten out the affairs in short
time.
F. Augustus Heinze in his statement
Of his resignation, said he retired from
the presidency Of the bank in order to
be free to devote ample time to the
task Of rehabilitating his brothers
firm. w. B. Ridgley, comptroller Of
the currency. has been invited to be-
co ne president Of the Mercantile Ma
tional bank, but 80 far has not said
whether he shall accept.
The troubles Of Heinze & Co., and
the failure Of Gross & Kloeberg yes
terday, result directly from the gen.
eral un6avorable condition of the
copper market. For months it has
Deen understood in Wall street that
The curtailment of copper production
isnd . reduction in price was necessary.
United Copper. the Heinze property,
declined, sharply. Another feature OF
the days copper news was tempor-
ary suspension of the State Savings
bank, in Butte, Mont, city which is.
dependent on the copper industry.
New York, Oct. IF. Augustus
Heinze, president of the United Copper
company said today that he is consid-
sering the question of resigning the
presidency of the Mercantile National
Fen. If this city. Otto Heinze & Co.,
m. de the announcement that the firm
will permit itself to be temporarily
suspended from the privileges of the
stock exchange. Gross and Kleeburg
yesterday declared that their failure
was due to Heinze & Co., declining to
take up stock purchased for them by
Gross & Kleeburg. F. Augustus Heinze
declares that he is not connected with
Otto Heinze & Co.
Heinze Resigns.
F. Augustus Heinze resigned the
presidency of the Mercantile National
sank today. w. r. Ridgley, comptrol-
Ter Of currency, has been invited to
accept the presidency. Heinze said
that he has not disposed Of his stock
in the bank, and that control of the
institution will rest just where it has
in the past.
The Heinze corner in United States
copper yesterday collapsed entirely to-
day. The common stock as compared
- tn high prices of 60 on Monday and
s. IN Tuesday sold at one time today
at 10.
simultaneously with the sale at this
low price there was announced the
failure of Gross & Kleeberg, the stock
exchange house which, apart from the
firm Of Otto Heinze & CO., perhaps,
has been the most activd in the re-
cent transactions in the stock.
: f. Augustus Heinze said this morn
ing:
.'..rhe troubles of the United Copper
company are internal and were
brought about by differences between
certain interests. I have much to do
at this time in bringing about a set
tlement of the affairs and there is
nothing more can say at this time"
Otto Heinze & Co. made the follow
Ing statement:
Arthur p. Heinze is no longer a
member of our firm. The firm feels
itself perfectly solvent and will meet
and pay all it's just legal obligations
in full. The firm, however, refuses to
pay obligations which it does not con-
slider legal or just until a proper ad-
judication 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 ex-
change
For some time past the situation in
copper shares has been rather unfav-
orable. For number of weeks the
Amalyamated Copper Company has
been holding down the productions OF
its mines to about half its normal out
put because of heavy production
of ore and the refusal of consumers 10
buy at the prices which had prevailed
Since this reduction in the output was
put in operation the price of metal has
slowly but steadily been declining. Fol-
lowing the policy of the amaigamated.
Clark and the Phelps-Dodge interests.