The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-10-17
OF HEINzE'S CORNER
Cor'ip uet rom Frs, Page

Mr. Gross In explaining the failure. That
Ia all there il 10 II. Everybody knows who
those PRINCIPALS are
One ~ the men vho attended tho ron.
ference IN the offices Of otto Heinz \ Go.
said that n he latter firm had advanced hut
siSO Nh to Gross 4 Klerberg the amount
would have saved the firm from assign
nent. The indebtedness. however. was
decla red to I've twice that amount. II
accrued. II was said. from purchases ~ q 00O
shares by Gross A kleeberg for their prin-
cipals. Gross 4 kleeberg had sufficient
ready funds to take up 3.Om shares. but
were unable. or az least unwilling. 10 pay
out in addition the approximately si50,OOo
required to take up the other 5000 shares.
'rhe liabilities ~ the firm are put roughly nj
$3.50 NM. hut IL was declared that the firm
would certainly resume to-day in case n
settlement was effected with its pTlnCi pals.
Al the opening Of the curb market there
was a wild rush 10 secure the execution
Of orders IN United Copper and all the
other Heinze properties. Brokers who
had rendered stock to the Heln@e brokers
and mad it refused threw II on the curb.
There was u multitude OF out ol town orders
and, very likely. heavy liquidation from
inside. The corner WAS broken aud on all
sides. apparently, there was a determine
ton TO convert stock into cash AT the earli-
eat possible opportunity. HE opening
sale was at ~. u points below Tuesday \
closing. From that point the price s'eadily
receded until II touched 10 A bit OF a
rally NJ the rlose brought II upto -. stimuli
taneously the preferred stock, which on
the last previous sale Went az -, opened
at 81, JUS half. From ihis point 1t declined
10 - at the close.
Other curb securities AZ the same time
sold of 80 sharply as to give ris" to a new
crop of rumOrs The : per cent. bonds
of the Consolidated steamship Company
were the most important of these. This
company il Charles ". Morse's combina-
| ton of coaSi wise steamship companies.
When the bonds were brought out they
sold above 81. Yesterday they opened a.
22ss and in the course Of tremendous liqui-
dation sold down 10 1874. They closed
al 49,. after there had been transactions
in &TI8,UOO. There WAS heavy liquidation.
also. in the Davis-Daly Estate Copper
Company, the Nevada-t tah Mining and
/ Smelling Company, Butte Coalition and
other stocks in which the Heinze party
10 int erested.
The decline of the Mors' bonds concur
rentlv with the cola pss OF the HeinZe stocks
was accompanied by a report that Mr..
Morse had had "A disagreement with r.
Augustus Ileinze and that each was calling
loans made on Inc securities OF IN" other and
dumping the others securities ON he Street.
The report WAS declared to be without
foundation in both Heinz" and Morse GUAR
ters. Mr.. Heinze and MIR. Morse were in
consultation often in the courss of the day
and seemed on the beet of terms
The break in Consolidated steamship
bonds, it was explained, was due to selling
OF the bonds by Otto Heinz Y Go. An as
sociate Of Mr.. Morse said that that firm had
disposed of S25D.0m of them and that II was
also selling heavily the other securities
mentioned, Mr.. Morse would not say
whether or not lac Was supporting the mar
ket for the bonds. but one of his brokers
expressed the case this way:
NO. we were not supporting the market
but | bought some for my fatherand mother
a few minutes ago
While +. Augustus Heinza was on all
sides declared to he in no way involved by
the collapse of the corner built mp 10y his
brother he was much Interested III straight
ening out the tan9le in which the affairs
of Otto G.. Heinze + Co. were admittedly
involved. lie had repeated conferences
with bankers and brokers and il was well
understood that he was declaring himself
ready 10 assist the firm in case IL needed as
sistance. One banker said that he stood
ready TO put No securities TO tie market
yalIe of S. for every dollar he might desire
TO raise for the firm
Ii is understood that one reason a settle
ment was not reached last night was be-
cause of the absence of Arthur u. Heinze.
One OF the men who. attended the confer
ence said the stock Exchange liabilities OF
the firm were between s70O 900 and $500 600
aud could easily he adjusted from the
firms resources. but there was a question
concerning the personal liabilities OF Arthur
p. Heinze, who left many market commit
ments on his departure for Europe. Though
il was not believed that these were suffi-
c1ently large to be embarrassing, the rom
ferees nevertheless wanted an exact state
ment OF the entire condition OF the firm and
tho individual partners.
A fnancier who il familiar with many OF
the business relations of the Heinze brothers
said that Otto &. HeinZe and Arthur T..
Heinze had gone into United Copper more
heavily than was generally understood
Thew had put. he said, probably $1,000. 900
into the property, having every confidence
in its resources and relying on IL. apart from
it's speculative possibilities. az a pure in
vestment.
II was not until after the settlement Of
the warfare between +. Augustus Heinze
and the Amalgamated Copper Company
that the Heinze brothers appeared in Wal
Street. Otto G. Heinze had been a lace
merchant and Arthur =. Heinze had never
! been engaged invtbe brokerage business
Neither of them. prior 10 the organization
of the firm a year and a half ago. had had
experience in the inside conduct Of stock
market operations.
Despite the break in both curb and stock
market prices bankers were unanimous
in declaring that the banking position was
perfectly sound. There was no meeting
:, a ths Clearing House nor Of any CLEARING
House committee. nor was any other step
considered necessary even by way OF dis
Susoing the situation. IL was nowhere
believed tina tho difficulties reported would
/, Involve any banks or other brokerage
hous6A The fact that r. Augustus Heinze
was everywhere reported as not interested
In the effort 10 hold up the corner naturally
. - l-ls - ~ - ---.s. L.