The Kemper herald. (Scooba, Miss.) 1875-1908, 1907-10-24
|FRENZIED FINANCE
IN COPPER SHARES
REMARKABLE DECLINE IN
PRICE OF COPPER.
ATTEMP TO CORNER STOCK
Was Unsuccessful and Resulted in
Immediate Suspension Of Otto
Heinze & Co., AS Well As Several
Other Share Holders.

New York,-The financial trou-
troubles growing out OF the rapid de-
cline in the price of United Copper
shares following an unsuccessful at
tempt to corner the stock eliminated
in the resignation of the president of
the Mercantile National Bank by F..
Augustus Heinze and the announce
ment Of the suspension of Otto Heinz
& Company on the stock exchange.
While the firm s suspension from the
privileges of the exchange became ef-
fective at once, representatives OF the
Heinze interest said an assignment
had not been made and that 1t was
hoped to straighten out affairs IN a
short time.
F. Augustus Heinze in his state
ment of resignation said he retired
from the presidency of the bank N
order to be free to devote ample time
to the task of rehabilitating his broth
er's firm. w. B. Ridgely, comptroller
Of the currency, has been invited t"
become president of the Mercantile
| National Bank, but so far has not
said whether he shall accept.
The troubles resulted directly from
the general unfacorable condition OF
the copper market. For months it
has been understood in Wall street
that certain men of copper believed
that less production and the reduction
of pn.ces were necessary, United Cop
per is Heinze property and declined
sharply.
Anothr feature Of the copper news
was the temporary suspension OF the
State Savings Bank Of Butte, Mon
tana, city which is dependent on the
copper industry.
Amalgamated Copper, which has
been affected along with all the other
copper companies of the world by the
over production Of the metal and
the consequent reduction in prices an.
nounces that its quarterly dividend
has been cut to l per cent. A short
time age the stock was on an eight
per cent. per annum basis. Following
the announcement Of the cut in Its
dividends's rate, the Amalgamated
Copper Company issued the follow
ing statement:
"The directors of the Amalgamated
Copper Company in arriving at a de-
cision to reduce the dividend from s.
per share to ST. per share for this
, quarter have been governed by the
fact that the copper market has been
for the past few months in a mos,
unsettled condition. The business Of
the manufacturing consumer has beer
so depressed that only small por-
ton of the copper produced has been
sold and that at such decreased
price that necessarily the earnings
realized by the producing companies
have been affected
The statement also says that at this
time the output of the Amalgamated
mines is about 40 per cent. OF the reg
ular output; that the physical condl-
ton Of the mines is the best in their
history and that they have on hand
large stores Of refined copper.
Alarming rumors are in circulation
| in Wall street to the effect that other
firms than Gross & Keelburg had
suffered heavily through the opera.
tions Of Otto Heinze & Co., in United
| Copper. Four other firms were involv
ed, it was said to the extent OF about
81, 100000.
A statement issued by Gross 4
Keelburg alleges that Otto Heinze &
Co.. owes them $6O0,O0O Max M
Schultze, stock exchange member OF
| Otto Heinze & Co., was Indefinitely
suspended his suspension being an
nounced by secretary of the exchange
in the following notice:
"The president of the exchange de-
cided to suspend Max NJ Schultze, il
being imperative under the rules, in.
asmuch as he had time and opportu-
nifty to notify the exchange of his in
solvency and he failed to do so. Ths
suspension will stand until he has mel
all his obligations and has been re-
instated by the committee on admis-