The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-17


Heinze resigned the presidency of the
Mercantile National bank today. w.
B. Ridgely, comptroller of the cur
rency, has been invited to accept the
presidency.
The suspension of Otto Heinze &
Co., was announced on the stock ex-
change this afternoon.
New York, Oct 17.-Otto Heinze &
Co. made the following statement at
the opening of the stock exchange to-
day:
Arthur P. Heinze is no longer mem
Der of the firm of Otto Heinze & Co,
the firm of Otto Heinze & Co. feels itself
perfectly solvent and will meet and
pay all its just and legal obligations in
full The firm, however, refuses to pay
obliga tiOnS which it does not consider
legal or just until a proper adjudication
of the matter has been made. Rather
than submit to such unjust demands it
prefers to permit itself to temporarily
be suspended from the privileges of the
stock exchange"
F. Augustus Heinze said this morning:
Il am considering resigning from the
presidency of the Mercantile National
bank, but whether my resignation will
DE rendered at the meeting of the board
of directors today I can not say. The
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 settlement of affairs and there
Is nothing more that can say at this
time"
Mr.. HeinZe arrived at his office at
the Mercantile National bank early AMI
held several conferences with officials
of the bank and several callers
Sentiment in Wall street today before
the opening of the stock exchange was
divided between a feeling of relief that
the situation created by the United Cop
per manipulation had been cleared UP
and a certain amount of nervousness
lest the failure of Gross & Kleeberg
might have an unfavorable effect gen.
orally. That firms claim that their in
ability to meet their obligations was
due to purchases of United Copper made
for Otto Heinze & Co., but not accepted
by them. brought the rame of F. Angus
tus Heinze into the Wall street COM
ment, although it was denied that he is
Interested in the firm of Otto Heinze &
Co The firm is composed of Otto c.
Heinze, Arthur P. Heinze and Max H.
Schultze.
settlement With Analgamated
F. augustus Heinze, president of the
United Copper company, has been a
prominent feature in New York fnan-
cial circles since the settlement of his
long drawn out litigation with the ANAL
gamated Copper interests, over Heinze's
montana property. 1t was understood
that he received a large sum in cash
as part of the settlement Soon after
wards he became president of the Mer-
camille National bank, one of the large
financial institutions of the city.
Late last night there was a confer
ence on the situation at the home of
Charles w. Morse, who also is heavily
interested in the bank AfterWard it
was rumored that F. Augustus Heinze
had agreed to resign the banks presi-
dency today and that he would be suc-
ceeded by William B. Ridgely. comm
troller of the currency. Mr. Ridgely
denied that he had accepted the presi-
dency, but Mr.. Heinze said today that
signing.
F. Augustus Heinze is one of the most
picturesque and remarkable figures in
American finance. A graduate of the
Columbia School of Mines he went west
without capital. and began the develop
ment of copper properties which brought
him into conflict with the great Ana
conda company. now a part of the
Amalgamated Copper COMPANY This
conflict lasted for years and was fought
out from court to court, until a wear
or more ago a compromise was effect
ed. The terms of the peace agreement
We're not made public. but it was
known that Heipze received enough as
his share to make him several times q
millionaire.
For some time past the situation in
the copper shares has been rather nm
favorable. For a number of weeks the
Amalgamated Copper company has been
holding down the production of it's
mines to about half its normal output
because of a heavy overproduction of
the ore and the refusal of consumers to
buy at the prices which had prevailed
Since then the price of the metal has
slowly, but steadily continued to de-
cline.
Following the policy of the Amalga-
mated, Clark and Phelps-Dodge inter
ests, the Cerro De Pasco Copper mines
in Bolivia. South America. it was an
nounced today have reduced their out
put to rs per cent of the normal The
mines have been turning out at the
rate of 24.000,O00 pounds a year. Their
mines are controlled by J. B. Haggin.
and the Hearst estate.
The Corner in United Copper.
An interesting story regarding the
failure of the corner in United Copper
is told in the financial district II is
to the effect that its managers became
impressed last Saturday with the idea
that many market operators had sold
United Copper short, for it declined
more than eight points on Saturday,