New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1907-10-23
SEVERAL SENSATIONS
Follow Each Other in Rapid Sue
cession in Financial World.
HEINZE FIRM is SUSPENDED
Attempt to. Corner United Copper Re-
suits in Disaster to Butte Mag
nate and His Brother.

New York, Oct. Sensations fol-
lowed each other in rapid succession
in the financial district Thursday as
the result of the collapse of the pro-
jected corner in United Copper and
the suspension of Appointment broker
age firm Wednesday.
The firm of Otto Heinze & Co. was
suspended on the Stock Exchange.
F. Augustus Heinze, the Butte cop
per magnate, resigned the presidency
of the Mercantile National bank of
New York.
The Amalgamated Copper company
at it's directors meeting cut its quar-
terly dividend from 2 per cent to 1
per cent
The directors of the Boston and
Montana Copper company declared a
quarterly dividend of Sc in place of
former dividend of $12.
The failure of Halter, Saehle & Co.,
81
many, with liabilities that. may reach
$7,5O0,OOO, was announced
The State Savings bank OF Butte,
Mont, of which the Heinzes are the
principal stockholders, suspended.
AS result of these sensations the
stock market was halting and irregu-
lar, but there was apparent feeling
that the break of the attempted cor
ner in United Copper had cleared the
atmosphere somewhat and the mar
ket rallied before the close.
The suspension of Otto Heinze &.
Co., of which firm Max M. Schultze Is
the Stock Exchange member, was
based on complaint to the exchange
made by Gross & Kleeberg, the stock
exchange firm which failed Wednes-
day. In communication to the presi-
dent of the Stock Exchange this firm
charged Otto Heinze & Co. with re-
fusing to accept 1902 shares of
United Copper, said to have been
bought on the order of the Heinze
firm. This action, Gross & Kleeberg
state, was responsible for their fail.
ure. Attorneys for this firm stated
that the amount owing to the firm b.
the Heinze firm aggregates 100000.
Says 1t Is Perfectly Solvent.
The Heinze firm announced that ii
is perfectly solvent and that all it's
legal obligations will be met The at
torneys say that the suspension by
the Stock Exchange was accepted by
the firm in order to give the latter
an opportunity to sift it's legal obliga
lions from. numerous claims which
have been made against it and which
it is alleged are not legal obligations
The resignation of F. Augustus
Heinze from the presidency Of the
Mercantile National bank, it is said
was decided on at a midnight meet
ing at the home of c. w. Moore, who
is largely interested in the bank. II
was announced Thursday morning,
Mr.. Heinze at the same time giving
out a statement in which he said thai
his resignation was due to the fact
that he wished to devote all of his
time to Strengthening out the business
of his brothers firm. He stated
positively that he had not disposed OF
his holdings in the bank and that the
control would remain where it haG
been and that he would continue as q
! director. William B. Ridgely, al
present United States comptroller OF
the currency, has been rendered the
Office of president of the Mercantile
National, but has not yet decided
whether or not he will accept.
The low price of refined copper
which dropped even lower Thursday
and the disorganized condition of that
metal in the market, is the reason
given for the reduction of the divi
dend in the copper companies. The
announcement of the Amalgamated
quarterly dividend Of 1 per cent came
as surprise. While it was known
there would be reduction, IL per
cent was the lowest dividend expected
The failure of the Hamburg firm
and the Butte bank both followed
closely on the news of the suspension
of the Heinze firm en- the Stock Elk
change. The German firm is said tc
have lost heavily in the recent DROP
in coppers and the developments or
the New York exchange are said tc
have forced the failure.
y