New-York tribune., 1907-10-17
BIG COPPER CRASH
SENDS FIRM TO WALL
GROSS s KLEEBERG MIKE
IN ASSIGNMENT.
Sag They Bought Stock for Hein-s
People, Who Refused to Take
1t off Their Hands.

Tuesday gave evidence of impending disruption.
yesterday collapsed entirely. the price falling
low as 10. against 10 on Tuesday and as one OF
the results the Stock Exchange firm OF Gross Ss
kleeberg, of No. % Broad street, made an as
signment for the benefit of their creditors. 70
William NJ. ROwbOtham. their cashier. The
liabilities according to the attorneys for the
firm. Myers & Goldsmith, of No. 115 Broadway,
are estimated at about 100000. No competent
estimate of the assets could be obtained The
firm is composed of Albert H. Gross who has
been member of the Stock Exchange since
November 23 1895 and Philip Kleeberg. II
was said by a representative Of the house that
the failure had resulted from the fact that the
firm bought United Copper for the Heinze peo-
pie. who refused to receive it, These pur-
Chases said 10 have amounted 10 5000
shares. which Otto Heinze & Co. under
stood TO have commissioned Gross & Kleebers
10 buy in attempt to support the market for
United Copper Tuesday. when the price was
making its precipitate tumble from 60 10 81.
and the average price paid was. according TO
the same authority. around 90
F. Augustus Heinze denied on Tuesday that
he was personally interested in the market po-
sitiOn of United Copper. and nothing developed
yesterday tending 10 contradict that statement
Mr. Heinze. however. spent considerable part
Of the day yesterday in the conferences which
were carried at the Office of Otto Heinze &.
Co, No ~ Broadway. two OF the members OF
which firm. Otto c. and Arthur P. Heinze. are
his brothers; and he also had a conference with
Charles W. Morse. The latter. when seen at
the National Bank OF North America after the
close OF the stock market, denied emphaticaIly
that he in any way interested in
nected with the recent pyrotechnics in United
Copper stock. He said:
The stories in to-day's papers TO the effect
that I responsible for the recent violent.
fluctuations in United Copper stock are abso-
lutely incorrect I have 20 interest whatever
in the stock, and you cannot state this too
strongly TO please me"
When asked about the sensational decline in
Consolidated Steamship bonds. which sold down
10 1855 on the curb. Mr. Morse answered that
he had nothing 70 say.
CONFERENCE HELD LAST NIGHT
The latest of the conferences at the Office Of
otto Heinze & Co. was held last night and lasted
until nearly o'clock Arthur P Heinze is in
Europe. but his partners. Otto c. Heinze and
Max II. Schultze We're present. with their at
torneys. several business associates and others
interested in the firms affairs After the con-
ference the following official statement was
given out;
The rumors which have been in cireuIl ltion
to-day have grossly exaggerated the true con-
dition of affairs. Everything will be satisfac-
tOriy arranged
one of the men who had been called in consul
tation, said leaving the offices little before
the conference adjourned:
They are making heroic efforts 10 straighten
out their affairs and get things in shape for
business tomorrow. Nothing will happen to-
night"
Asked If the FIRMS sheets would go through the
Clearing House to-day. he replied that they had
not done any business since Tuesday, so there
would be no sheets TO go through
Another man who had been in the conference
said that if Otto Heinze & Co. had given even
SIJOOOO 10 Gross & Kleeberg the latter firm
would not have been forced 10 make an as
signment. as they had $4,000 in hand. but
were not able to meet the drain OF paying for
the entire amount of United Copper stock which
they had bought under instructions from the
Heinze firm
OTHER HOUSES CAUGHT.
Otto c. Heinze & Co.. ii is said on good au-
thority declined to receive United Copper stock
from several other houses. as well from
Gross & Kleeberg.
Another version OF the cause OF the break IN
the price on Tuesday afternoon was current yes
terday Gross & Kleeberg have been known as
the managers OF the so-called pool in the stock.
but the house most prominently interested in ths
market manipulation has been understood TO bs
Otto Heinze & Co. About twenty Stock Ex-
change houses. It Is said. had been carrying
United Copper stock for the Heinze firm. who
on Monday afternoon. after having made sue
cessfuI drive at the shorts. decided that IL would
call on these firms 10 turn In their certificates.
some of which cOnceivably might have been
placed in loans with banks OF even sold. But,
according to the story. the high price reached
by United Copper on the curb Monday had
the result of bringing into this city on the fol-
lowing day large amount or the stock from,
out of town points which made II possible for
all OF the twenty houses TO obtain the fun num-
Der of certificates which they were under ObIi-
CATION TO deliver to Otto Heinze & Co The
total number of shares was so heavy that ths
Heinze firm able. it is said. to pay for
all of the stock as it was presented and thu
excess stock was sold on the curb for what it
would bring. with the effect of breaking the
price about % points
United Copper common opened yesterday at
30 its high figure for the day and on sales OF
$500 shares dropped low as 10 In the late
trading. closing at 10. The preferred on sales
OF 1.265 shares declined from about 40 its
nominal early price. to "a at the close. The
trading in these issues nearly monoporzed the
interest OF the curb. and was carried on with a
degree OF excitement and noise which attracted
many outsiders as observers. other copper
shares. among them Davis-D Daily and Nevada
Utah. We're conspicuOusly weak
MORSE LINE BONDS DROP.
The decline in the bonds of the Consolidated
Steamship Company. which sold down from
22ss TO 1885. rallying at the close to 1914 was
reported in the Street 10 be related 10 the
troubles of United Copper owing to the b,1sI-