The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-19
THE EiNZE EPISODE.

Detailed reports of the crash in New
York occasioned by the failure of the
Otto Heinze firm and the collapse of a
corner in Heinze copper stocks, show
that the difficulty was due to a vicious
case of bad faith in stock manipulation
and the consequent reputation of
trades in stocks which the Heinze firm
had ordered brokers to buy but refused
to pay for when delivery was offered.
Just how serious the bad faith is re-
garded by the stock exchange is shown
by the suspension for one year of the
board member of the Heinze firm-a
mark of disgrace that few men would
face willingly, and none can have with
out loss Of honor
This was the origin of the demorali-
Zation in the Heinze stocks, and it was
followed by the retirement of F. A
Heinze from the presidency of the
Mercantile bank, an institution which
he had helped to found. The reason as
signed for his retirement is that his
brothers financial affairs will require a
good deal of his time, and he cannot
devote himself TO bank business as he
should probably another reason is that
the failure of the brokers makes it de-
sirable to have a change in the banks
head. since speculative prominence and
banking management nowadays do not
work well for the bank
In any event, while the episode has
caused considerable excitement in
financial circles all over the country.
its effect will be limited largely to the
securities associated with Heinze's
name. The bank in Butte which closed
its doors is reported solvent and the
names of it's controlling owners is as
surance that it will pay out. General
commercial finances are not likely to
be affected seriously, and the breaking
of the storm. which has been brewing
in coppers for months, may clear the
atmosphere to the benefit of the whole
situation.
Viewing the trend OF the securities
market since last March. and figuring
the enormous depreciation in prices,
running up into the billions. the won
der is that no more failures have been
recorded in the stock market In three
weeks of this fall the loss in stock
market values amounted to three BILL
lions: and yet the commercial world
has reported only two great failures.
the Pope company and one independent
iron and steel concern, neither of
which was unexpected. and both of
which will ultimately meet a large
part. If not all of their Iiabili-
ties. In manufactures, trade con-
dEtions everywhere are good, and
one of the pronounced optimists of the
country is the president OF the National
Manufacturers association. Traffic on
the railroads is still greater than the
facilities; the cotton crop alone prom
Uses to WELD close to $3.50, zoo, 900: wheat
has a big yield and is bringing big
prices: corn is going to bring enormous
returns in cash. Indeed, the great crops
and the activity in manufactures are
in a way responsible for the tightness
Of money. since the banking interests
prefer 10 iciiu SuOb ScSuiitS
than invest i'm or lend money on stocks
and bonds which have deprecated.
Bankers are unanimous in their opin-
ion that the beginning of crop move
ments TO the seaboard for export and
the resultant influx of money from
abroad will ease the money market
within three or four weeks: and they
believe. too, that the liquidation of
speculative accounts which has been
going on for months has nearly reached
its end.
On the basis Of present prices sub