The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-18
TRIED TO CORNER
UNITED COPPER
Otto HeinZe & Co. in Trouble
and Suspended From New
York Stock Exchange.
OTHER FIRMS INVOLVED
r. A. HEINZE RESIGNS PRESl-
DENcY OF MERCANTILE BANK.

New YORK, Oct. 1.-THE financial trOu-
bles growing out of the rapid decline in
the price of United Copper shares, follow
ing an unsuccessful attempt to corner the
stock. eliminated today in the resignation
of the presidency of the Mercantile Ma
tional bank by F. Augustus Heinze ard
the announcement of the suspension OF
Otto Henze & Co. from the stock ex-
change.
F. Augustus Beinze said he retired from
the presidency of the bank to be free to
devote ample time to the task OF re-
facilitating his brothers firm.
Rumors were in circulation just before
the close of the stock market that four
other firms besides Gross & Kleiberg had
suffered heavily through the operations
of Otto HeinZe & Co. in United Copper
The fou. were involved, IL is said, for
about 81 $4,000
a statement issued this afternoon by
Gross & Kleiberg alleged that Otto Heinze
& Co. owed them $500 000.
Max NJ. Schultze, stock exchange mem
Der of Otto HeinZe & Co. was Indefinite
~ suspended this afternoon The official
notice said the suspension was 1mpera-
tive under the rules. Inasmuch as he had
: time an opportunity to notify the ex-
change OF his insolvency, and had failed
10 do So"
Statement of Suspended Firm.
statement at the opening of the stock
market today:
Arthur P. Heinze is no longer a mem
Der of the firm of Otto Heinze & Co. The
firm of Otto Heinze & Co. feels itself per
fectly solvent and will meet and pay all
its just and legal obligations in full The
firm, however. refuses to pay obligations
which 1t does consider either legal or lust
until further adjudication of the matter
has been made. Rather than submit to
such unjust demands, it prefers to permit
itself temporarily be suspended from the
privileges of the stock exchange"
Feeling in Wall Street.
Sentiment in Wall street today before
the opening of the stock exchange was
divided between feeling of relief that
the situation created by the United Cop
per manipulation had been cleared. and
certain amount of nervousness lest the
failure of Gross & Kleiberg might have en-
unfaVorabe effect generally That firm s
claim that their inability TO meet their
obligations was due TO purchases or
United copper, made for Otto Heinze &
Co. but not accepted by them. brought
the name OF F. Augustus Heinze into the
W all street comment, although it was de-
MED that he is interested in the firm of
Otto Heinze & Co. This firm is COM
posed OF Otto G: Heinze, Arthur P. Heinze
and Max NJ. Schultz. United Copper was
weak and active on the curb market to-
day.
The firsts sale of the common stock was
quickly dropped TO SO and then recovered
TO $12.50.
Career of F. Aug. Heinze.
F. Augustus Heinze. president of the
nited Copper companl. has been a promi-
nent feature in New York financial cir
cles since the settlement of his long
drawn-out litigation with the Amalga-
mated Copper interests over Heinze S
Mont'!na property. 1t was understood that
he received large sum in cash as a part
or the settlement. Soon afterwards he
became president of the Mercantile Ma
uOnal bank, one of the large financial
institutions of the city.
Late last night there was a conference
on the situation at the home of Charles
w Morse, who also vs. heavily interested
IN the bank. Afterwards, il was TumOred
that F. Augustus Heinze had agreed 10
resign the banks presidency today and
That he woul1 be succeeded by William B.
kidgeley, coml>~Oller of the currency Mr..
Rldgeiey de lied that he had accepted the
presidency.
A Picturesque Figure.
F. Augustus Heinze is one of the most
picturesque and remarkable figures i'm
American finance. A graduate of the Co.
lumbia School of Mines he went west
without capital and began the develop
nient or copper properties which brought
him INTO conflict with the great Anaconda
company, now a part of the Amalgamated
Copper company. This conflict lasted for
years and was fought out from court to
court. until. a year or more ago a COM
promise was effected.
The terms of the peace agreement were
not made public. but il is known that
delnze recfiVed enough. as his share To
make him several times a millionaire
For some time past the situation in
the copper shares has been rather I'M
favorable. For a number of weeks the
Amalgamated Copper company has been
holding down the production of its mines
10 about half its normal output on ac-
count OF hedyy over-prOduction of the
ore ana the refusal of consumers to b,Iy
at the prices which had prevailed.
Since the price of the metal has sIovI,,
but steadily continued to decline
Following the policy of the Amal1a-
mated Copper company and PheIps- Dodge
interests. the Cerro de Pasco mines In
Peru. South America, II was arnouncsd
today. have reduced their output To *
per cent of the normal The mines bave
been turning out at the rate of "a OnO O00
pounds a year. Their mines are control
led by ]. B. Haggin and the Hearst estate
A number Of meetings were held toda Y
in the offices of Otto Heinze q Co h1it
no statement of any sort was given ollt
1t is said that the claims against the ffrn,
growing principally out of the attempteJ
corner in United Copper, may reach
s, 500 coo
Bank Solvent
William A. Nash, president of the Corn
Exchange bank. and acting chairman of
the clearing house committee. stated to-
Continued on Page 2.
TRANSATLANTIC CO