The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1907-10-18
OTTO HEiNzE AND COMPANY
GOES 70 THE WALL
SENSATION IN MARKET
Firm Suspended From Stock Exchange
United Copper Drop to Blame u 4
q. Helnze Resigns Presidency Mer-
camille National Bank.
(By Associated Press.)

New York, Oct. II. The suspension
Of Otto Heinze and company was an
nounced on the stock exchange this
afternoon. r. A. Heinze resigned the
presidency Of the Merchantile Nat
ional bank. F. A. Heinze said:
I'm view of the difficulties OF my
brothers firm have determined that
I shall give literally of my time to
aid him in Strengthening out his af-
fairs In view of this / have resigned
as president, retaining, however my
directorate. A. P. Heinze is no long
er a member Of the firm.
"The firm feels itself perfectly sol
vent and will meet and pay all its
just and legal obligations in full. The
firm, however, refuses to pay demands
which it does not consider either
legal or just, until further adjudication
Of the matter has been made. Rather
than submit to such unjust demands,
it prefers to permit itself to be tenn
porarily suspended from the stock
exchange"
Feeling Of Relief.
Sentiment in wall street today be-
fore the opening of the exchange was
divided between a feeling Of relief
that the situation created by the
United Copper manipuations had been
cleared and a certain nervousness
that the failure Of Gross and Reberg
might have an unfavorable effect gen.
orally. That firms claims that their
inability to meet their obligations was
due to prchases Of United Copper
made for Otto Heinze and company
but not accepted by them, brought the
name of r. A. Heinze into the Wall
street comment, although twas deni-
ed that he Is interested In the Firm OF
Otto HeinZe and company.
/ The firm is composed Of Otto q.
Heinze, A. P. Heinze and Frank H.
Schultz Late last night there was
conference on the situation, at the
home G. w. Morse, who is heavily in
terested in the Mercantile bank.
Afterwards 1t was rumored that r. "A.
Heinze would resign the presidency
! today and would be succeeded by w.
ID. Ridgely, controller Of the currency.
Mr.. Ridgely denied that he had &C.
cepted the presidency, but Mr.. Heinze
said today that MIR. Ridgely was con-
sidering the question.
Copper Market unfavorable.
| For some time past the condition Of
the copper shares has been unfavor-
able. For number OF weeks the
Amalgamated Copper company cut
l down production to about half its nor
NAL output on account Of heavy over
production and the refusal OF custo-
mers to buy at prevailing prices.
Since them prices have fallen steadily
Runners were in circulations just be-
fore the close of the market that four
other firms besides Gross and Kle-
1 berg had suffered heavily through
the operations Of O. Heinze and COM
pany. The four were involved, It is
said, for about $1,500,500.
"A statement issued this afternoon
by Gross and Keberg alleges that
Otto Heinze and company owe them
/ 100000 Frank Schultz, stock ex-
change member of o. Heinze and com
pany was offlcially suspended this af-
ternoon. The official reason was as#
/ follows.
/ imperative under the rules mas
much as he had time and opportunity
to notify the exchange OF his insol-
vency and had failed to do So
United Copper was weak and ae-
tive on the curb today. The first sale
of common was at $1s. quickly drop
ped to $40, and then recovered to
$3.50. n 5s
Complaint 70 Exchange.
The suspension was based ON Q
complaint to the exchange by Gross &
Kleberg, the firm which failed yester-
day. In a communication to the pres
ident Of the exchange the firm
charged Otto Heinze & Co. with re-
fusing to accept 3,211 shares Of Unit
ed Copper steck said to have been
bought on an order Of the HeinEe
arm. This, Gross g Kleberg state,
/ was responsible for their failure:
| The Heinze firm announces that It
/ is perfectly solvent and that all its
obligations will be met. Attorneys
/ say that the suspension by the stock
exchange was in order to give the
Arm an opportunity TO sift its legal
obligations from enormous claims
which had been made upon ". which
1t is alleged it is not legally obliged
to pay.
! william P. Ridgeley. at present.
United States controller Of the cur
-