The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-01-08
F. A. HE|NzE HELD
ON CHARGE OF
FRAUD
Held in $4,000 Bail in United
States Court
HIS FAILURE STARTED PANIC
Montana Copper King Accused Of
overcertific cation Of Checks Which
Amounted to $4oo, 900.

NEW YORK, Jan. ST. Augustus
Heinze was arrested here by United
States Marshal Henkel on bench
warrant issued by Judge Chatfield In
the United States circuit court on an
indictment found by the federal grand
jury.
The Indictment Of Heinze by the
federal grand jury which has been in
vestigating the Mercantile and other
banks identified with the Heinze and
Charles w. Morse interests is the aft,
ermath of the coSdpse Of the Heinze
pool in United Copper and which
brought about the suspension of Cross
& Kleeberg, stock brokers, and sub
sequently resulted in the resignation
of F. Augustus Heinze from the presi.
dency and the retirement Of the direct
ors of the Mercantile National bank
after an examination of the institution
had been made by the clearing house
committee. Heinze declared at the
time that he had been betrayed by his
friends in the United Copper pool.
The charge is the generalization OF
fifteen checks on Oct. IA last drawn Oh
the Mercantile National bank amount
ing altogether to about 100000.
Edward Lauterbach, Mr.. Heinze's
counsel, said that prior to the certifiea
ton Mr.. Heinze had directed that the
notes be discounted, upon which there
had been ample security, and he sup
posed that this had been done
AS matter of bookkeeping, Mr.
Lauterbach said, it may not have beer
done until the next morning. Mr.
Heinze, said Mr.. Lauterbach, had nC
idea of violating the banking law.
Heinze was arraigned before Com
missioner Shields, who held him in
$4,000 bail to plead before Judge
Chatfield in the United States circuit
court.
Heinze appeared by arrangement OF
counsel. The surety for bail was Civ
en- by the Fidelity Deposit company
of Baltimore before Commissioner
Shields. Heinze was then released
Heinze was president of the Mercan
tile National bank at the time Of the
attempted corner by Otto c. Heinze
Co. of United Copper stock in the curl
market that Immediately precipitatef
the panic. Investigation of the bank.
affairs resulted day or two later II
the resignation of Heinze and all the
directors of the bank, includin:
Charles w. Morse The clearing house
committee that conducted an exanina
ton into the banks affairs reported
that there had been considerable ir
regularity in the banks loan accounts
principally due to loans made on col
lateral Of various Copper stocks IL
which Hsinze was interested. Associ
ated with the copper king In many o.
his enterprises were Charles w. Mors'
and the Thomasss, who retired from
the banking wsrid simultaneously witt
Heinze.
Heinzs was born in Brooklyn abou
forty years ago and was graduated
with heners from the Columbia Schoo
Of Mines in 1889. Immediately aftel
his graduation he went directly +
Butte, Mont, where he made consider
able money taking up abandoned ant
apparently worked out mines ant
bringing them up to q paying basis.
He developed the famous Minni'
Hsaly mine that Marcus Daily ha,
abandoned as worthless and made
one Of the richest properties in Men
'tana.
In the course Of his many fights II
he courts Hsinzs ran up against tn
opposition Of the Analgamated Ceppel
company, but 1t is said that they hav'
now buried their diferences.
while he was in Montana an attsmp
was being made to Dust him from hi
>wnership Of the Rarus mine, and
he became involved in the series Of ltd
cations that marked his history eve
since. In general he was successful II
his sights, and by the time he agail
appeared in New York, at the age o
thirU-thres, he had gained the title o
the Copper King"
Included In his holdings, some o
which have since been disposed Of 4
great proAts, were the Snohemisl
mine, for half interest in which b.
paid $4,000 and then fearlessly sanl
$1.b0o.0oo In 1t to improve its produc
-dvs capacity.
Heinze's pet project, United Copper
was the one which his brothers, partic
qlarly Arthur 7. Heinze, who was |!