New-York tribune., 1908-01-09
UEINZE LOSES CONTROL.
CANNOT REPAY LOAN.
Indicted Copper Nan No Longer
Factor tn Mercantile Bank.

F Augustus Heinze the indicted ex-president of
the Mercantile National Bank, lost oontrol yes'er
day OF that institution because % his inabih'y 10
REPAY loan more than s2,0o,e0. his STOCK IN
the bank reverr.nx to Edwin Gould and William
Nelson Cromwell from whom he bought II year
ago. The copper had pledged the STOCK as
security Cor payment the obligation faiihs uue
yesterday. Another incident of the day for Mr.
Heinze was his arraignment before Judge Chaul'iu
in the United States Court for pleading to The
indictment against him charging overceTncauoh Oh
checks amounting to more than sse"" "hlie ne
was president of the Mercantile National Bank.
whose control he forfeited yesterday He pleaded
moi guilty his counsel, Edward Lauterbach. re-
serving the right Withdraw the plea ana enter
ternurrers before January 20 when MI telhze WIZ
plead formally He was released on the sS'V" oa1
bond that he gave on Tuesday
Mr. Heinze it said. did not relinquish ms
nine thousand shares Of sock of the Mercantile
National Bank without a struggle to meet ms opii-
cations and even up to yesterday uleo 10 oo,"i,
sufficient funds enable him 10 retain coh'lo oh
the hank The announcement of his failure TO q"
so Was contained in a statement made by Nilam
Nelson Cromwell following g conference between
Mir Heinze John c. Tomlinson, his personai couh-
sci. Edwin Gould and Mr.. Cromwell The state
ment read
secured the holdings OF F. Augustus Heinz TINS
stock turned over 10 10 I'll Us aTfies nerested
Nj Beinze is no longer factor in the bank:
fact he N no 5 onss ca has castE ansthRs e So 1o that this
matter mas been disposed of. we intend TO beNgIn N
now 10 reconstruct the bank All know tnat Ih|
restitution mas suffered since its control was as
0anged t 4egaip Esaf Fe ground that it lost had
always good old conservatike .,a4 Il
will recover within short time under m the ne more
ts %9 Sbof i' the POSSIBLE liquidation of the bank
Nr Cromwell added that an election of directors
would be held in about a week At this boaro
meeting the Gould interests will assume control
About wear ago Mr Heinze showed an lncllna-
tion 10 branch out as banker and endeaVored 10
obtain control Of several local banks. He obtained
sornp holdings in the Mercantile National BANK
and succeeded in buying 5000 shares held by ko"ln
Gould and William Nelson Cromwell. and he was
placed in control. Mr. Gould held 80" OF 'he
shares and Mr. Cromwell 1.0ao The report at the
,i-,e was that Nr Henze had paid sS25 share.
h,t paid in cash only $50 each share. giving q
six months for the remainder He failed 10
meet the at the expiration OF that perlou' anu
obtained an extension of six months Failing again
yesterday 10 make good the note Mr. Helhze was
eliminated a factor in the Mercantile National
Bank
The shares Of stock which he forfeited are no"
in M Cromwell's office II was said yes'eroa!
that Seth NJ. Miken would probably retire as
president Of the Mercantile
Nr FIeinze ACCOMPANIED by Ny I-auterbach. ar
rived early yesterday morning at the Federal Build
ing where his arraignment took place Nhen MS
name was called by the clerk he advanced 10 ue
rail with his counsel The latter entered the plea
feet demurrers. Mr.. I-auterbach explained to Judge
Chatfield that he had intended 10 move for perms-
sion 10 examine the minutes Of the federal grand
Jury but that he had learned minutes were kept
He then argued that. there had been preill1l-
nary examination, he thought il proper to permit
an examination Of such fTagmentary minutes as
there might be. The charge he said, was entirely
technical. and the defendant would be better able
TO meet il Judge Chatfeld denied the motion MI
Heinze then held under the $4,000 bail bond
given before Commissioner Shields. On leaving the
court he said he would remain in New York until
the case against him had been disposed Of
Judge C'hatfield in the January grand jury
Yesterday and q the investigation begun last Oc-
tober b. United States Attorney Stimson into bank
ing affairs not yet finished il was said that ii
was unlikely there would be more in
dic.ments a d result.
Charles W. Morse said yesterday regarding a
report that +. Augustus Heinze contemplated su-
ing him several million dollars S a result Of
certain United Copper deals that he knew moth
ing about such a suit. Mr.. Morse said also that
he still owned 1900 shares Of Mercantile National
Bank stock
MI LauteTbach denied that Mr.. Heinze intended
TO Mr.. Morse.