The Washington herald., 1907-10-18

~ 1hHRNnA h1HAhtHHs
New York, Oct 1.-THE Heinze situa-
tion broadened and fattened to-day To-
ward the Western side Of the continent,
in Butte. Mont. the scene Of Heinze
triumphs, the State Savings Bank. a
Heinze institution, in which F. Augustus
Heinze is one Of the directors and princi-
pal owner, failed
In this city the stock exchange sus-
pended the banking and brokerage house
of otto Heinze & Co.
In Europe the other brother, Arthur p.
Heinze, probably learned Of his summary
dismissal from the firm Of Otto Helnze &
Co. because he had incurred individual
liabilities estimated at close to 100000.
F. Augustus Heinze early in the morn
ing renewed sH offer 10 save the firm Of
Otto Heinze & Co. from going to the wall.
He made an offer to pay $4,000 10 Gross
& Kleeberg. the stock exchange firm
which assigned on Wednesday because
Otto Heinze & Co. did not pay for the
stock 1t had commissioned the firm 10
buy
Refuse TO Accept Offer.
But thisN amount was but little more
than third OF Otto Heinze & Co.'S in
debtedness 20 Gross & Kleeberg. and that
firm, having been forced by Otto Heinze
d Co TO make an assignment, refused to
entertain It. F. Augustus Heinze then
abandoned the effort to prevent the sus-
pension Of Otto Heinze &, Co. and devoted
himself to his connection with the Mer-
camille National Bank.
The meeting Of the bank directors was
held shortly before noon. At its con
clusion it was announced that Mr.. Heinze
had resigned as president, and that VIII
lam B. Ridgely, Comptroller Of the Cur
rency, had been invited to accept the Do
sition
The question as 10 whether or no Mr..
Ridgely would accept the proTered po-
sition remained in abeaynce all day.
In connection with the negotiations with
him, there was made 10 him and his
friends an offer Of Mercantile Bank stock
at 20. the offer coming. it was under
stood, from the Hcinzc interests in the
institution
offered 5000 shares.
In quarters closely connected with the
Mercantile National Bank. it was said
that the amount Of the stock offered 10
Mr.. Ridgely and his associates was $500
shares. or just half the amount which The
Heinze interests purchased. at an esti-
mated price OF 800, when they took pos
session Of the institution last January.
In quarters close 70 Mr.. Ridgeiy it was
said that the negotiations could be com
pleted by the purchase OF a much smaller
block OF stock.
F. Augustus Heinze, coming out Of the
meeting Of the directors, looked more than
ever Ike Joe Emmet as Fritz. He looked
as did Joe Emmet preparing to sing the
Lullaby as he gave out this statement:
In view Of the difficulties in which NV
brothers firm finds itself. have deter
mined that 1t Is proper that I should give
literally Of my time in assisting It 10
straighten out it's affairs In aid of this
have, after consulting with my fellow
directors Of the bank and my personal
friends. and consulting as well. my own
personal interests, as a large stockholder
of the bank. this day resigned as its
president, remaining. however. as a di-
rector, and have Joined with my fellow
directors in a request that Mr.. RidgeIey
accept the place made vacant by my res
ignauon."
These directors were present at the
William F. Carlton, Stanley Gif-
ford, Charles w Morse, O. +. Thomas.
u. s Ramsey, William Skinner, $. NJ.
Milliken, L. r. Thomas, Z. T. Jeffrey,
Chester Glass and Niles NJ. O'Brien.
Attorneys Are Present.
Among the other directors are Max II.
Schultze and Arthur 2. Heinze. II was
announced that the tenure of office OF
neither Of these had been disturbed.
There were also present in F. Augustus
Heinze's interest, Sanford Robinson. of
the law firm of Carey and Robinson.
counsel for the United Copper Company.
and Julian T. Davies and Joseph f. Auer-
bach, of the law firm of Davies, Stone
< Auerbach
Mr.. Heinze had been considering retir-
ing from the presidency for several days.
His retirement was precipitated by the
developments in United Copper and the
unpleasant notorlety attaching to the
Heinze party on account of the move
ments of the stock.
One or two Of the directors. it was
said, favored his retention in Office, but
the great majority, including c. W
Morse, insisted that the bank would suf-
fer from the fact that its president was
also president Of the Copper Company
whose stock had made such sensational
movements.
The aggregate liabilities Of the firm
Of Otto Heinze & Co, as the individual
partners, will certainly, It was said. ex-
ceed S2,0C0,00O. and, it was considered
well within the bounds Of probability that
they would run up 10 much greater
amount The Indebtedness claimed by
Gross & KIeeberg is between $45O,0O0 and
$500, ,o00 To six weIl-knOwn firms in Bos-
ton there is owing an indebtedness esti-
mated at $200. .000 IN, a score of other
stock exchange housea in this city there
are claims of various amounts None
Of the New York or Boston houses are
crippled by the failure Of the Heinze
firm to meet it's contracts.
The actions of the suspended firm were
criticized very harshly by influential
Continued on Page 4, Column {.
A la Carte Lunch Served Daily
At EcksteIn's from Il to 3. 1872 N. Y. ave.
$1.25 to Baltimore and Return,
Every Saturday and Sunday via PennsyI-
vania Railroad. Tickets good returning