Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-18
COPPER DROPS
ONE MORE
NOTCH
SENSATIONS THICK IN
FINANCIAL CIRCLES
Failures Announced From
Hamburg, Germany Butte,
Mont; and Houston, Texas
Heinze Quits New York Bank
GBy Morning journal special Leased Wire. j

IBy Morning journal Special Leased Wire. I
New York, oct. Sensations fol-
lowed each other In rapid succession
in the financial district today as the
result Of the collapse Of the projected
corner in United Copper and the sus-
pension of a prominent brokerage
firm yesterday. 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 Cop
per company at its directors meet
ing. cut its quarterly dividend from ?
per cent to / per cent.
The directors Of the Boston and
Montana Copper company declared a
quarterly dividend Of 50 in place Of
former dividend OF $12. The failure
of Haller. Soehl Il Co. prominent
bankers of Hamburg. Germany. with
| liabilities that may reach 100000,
was announced. The State Savings
bank OF Butte. Mont. OF which the
Heinzes are the principal stoekhold-
ers. suspended.
As result of these sensations the
stock market was haltlng 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 sus-
pension OF Otto Heinze a Co, of
which firm Max NJ Schultz is the
stock exchange member. was based on
a complaint to the exchange made by
Gross & Kleeberg. the stock exchange
| firm which failed yesterday. In a
communication to the president OF the
J sock exchange this IN charged
Otto Heinze & Co with refusing TO
accept 3.211 shares of United Copper
said to have been bought on order of
the Heinze firm. This action. Gross
& Kleeberg state. was responsible for
their failure. Attorneys for this firm
stated today that the amount owed to
the firm by the Heinze firm aggregat-
ed 100000.
The Heinze firm announced that II
Is perfectly solvent and that all its
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 OPP
portunity to slft its legal obligations
from numerous claims which have
been made against 1t which. Il Is al
legged. they are not legally Obliged to
pay
The resignation OF f. Augustus
Heinze from the presidency Of the
Mercantile National bank, II Is said
was decided on at a midnight meet
ing at the home Of c. w. Morse, who
is largely interested in the bank.
II was announced this morning that
Mr.. Heinze at the same time gave out
a statement in which he said that 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. lie stated positively
that he had not disposed Of his hold
ings in the bank, and that the control
would remain where II had been, and
that he would continue as a director.
William B. Ridgely. at present
United states comptroller Of the cur
rency. has been rendered the office of
president OF the Mercantile National
bank. but has not decided whether he
will accept.
The low price of refined copper.
which dropped even lower today and
the disorganized condition Of that
metal In the market. Is the reason
given for the reduction OF the divi-
dends Of the copper companies. The
announcement OF the AmalEamated
quarterly dividend Of I per cent came
as a surprise. The failure Of the Ham
burg firm and the Butte bank both
followed closely on the news of the
suspension of the Heinze firm on the
stock exchange.
The Butte bank was largely con-
trolled by the Heinze interests. F. Au-
gustus Heinze's suspension from the
stock exchange and the failure of the
Hamburg firm precipitsted run
which Immediately caused the suspeH-
sion Of the bank In a statement IS.
sued by the officials Il was declared
that the bank S. perfectly solvent and
that suspension g. solely for the pro-
lection Of depositors and Of obtaining
time to arrange the banks affairs.
A number % meetings were held
today IN the offices of otto Heinze
Co. but no statement OF any sort was
given out II Is said that the claims
against the firm growing principally
out Of the attempted corner In United