The Montgomery advertiser., 1908-01-09
HENZE LOSES BANK
UNABLE TO PAY NOTES TO EDWIN
 GOULD.
New York Financfer Accused of Over certffyinx Checks Is Arrafened
 In Court, But Case Goes

New York. Jan. s--Being unable to meet payments due on his stock in the institution today. F. Augustus Heinze lost control of the Mercantile National Bank. the conduct of which. as its president. had brought about his ar- raiEnment in the United States Circuit Court earlier in the day on charges of over-certifcation.
 One year ago Heinze bought a con- trolling interest from the Goulds. with whom he pledged his holdings as se- curity for his promise to pay for them in full within one year. This loan of $i 100000 was due today to Edwin Gould. and Williams Nelson Cromwell, who was a member of the Gould party in the bank before the Mercantile was added to the Heinze-Morse- Thomas chain of financial houses Up to the last moment allowed him. Heinze strug- gled to- meet his obligations and so to retain his banking interests. His fail ure to was chronicled in the following statement issued by MT. Cromwell af- ter an afternoon conference of the par ties concerned. 8
 The Heinze stock in the Mercantile National Bank has been acquired by MT. Gould in a satisfactory arrange ment. Mir. Heinze was given every pos sible chance to pay for the stock. but beacuse of his inability to do so in the
 
 to take it over"
 Later MT. Cromwell added that the Gould interests would assume their proper place in the bank board at the meeting on January l4 This implies, of course, that the so-called Heinze directors will then retire.
 This morning Heinze. now under bail consequent upon an indictment by the Federal grand jury on charge Of nf h fe brokerage firm involving s460 ,000, was arraigned before Judge Chatfield.
 A plea of not guilty was entered and permission was had to alter or with draw 1t or to make any other desired motions later. An adjournment of the case was ordered until January 20, when the final plea will be made. The bail of 1000 was continued.
 It was reported that other men equally as prominent as Heinze in Wall Street operations, were to be called be- fore the Federal authorities to plead to similar indictments. Who they are or when their arrests are to be expect ed could not be learned at the United States District Attorneys office. It Is known that the grand jury is not yet through with its inquiry into bank con- ditions disclosed by the recent finan- cial furry.
 United States District Attorney Stimson, who was seen after Heinze's arraignment. said:
 'It would be improper for me to re- veal the evidence I have lest give my case away. but I can say that the in- vestigation is not yet over."
 After the collapse of the United Cop per pool and the subsequent clearing house investigation of the Mercantile Bank, when Heinze resigned the presi- dency and the directors likewise re- signed, the copper magnate declared that he would still hold his stock. The bank. however. has been adversely af- fected by the trouble. and it was gen. orally believed that a way would be found again to bring it under the Gould influence. This opportunity came to- day.
 A new directorate practically install- ing the former management Is now ex- Dected to restore the institution to its old time standing. For years the bank had been under the control of the Gould interests and then Heinze who was branching out as a banker, and wHh associates. was striving to secure direction of a number of local banks, acquired considerable holdings in the institution. He succeeded when he ob- tained about 5000 shares of the stock from Edwin Gould and 1000 from W. N Cromwell It was reported at the time that the purchase price was $325. Heinze paid part cash and gave his notes for the balance. These notes. it is said, ran for six months when they were refunded.
 Charles W. Nose and F. R. and Ar Iando Thomas had previously secured considerable of the banks. stock and with Heize's holding they were easily able to make him President. and to elect the directorate. Both Morse and the Thomases are supposed to have all ready disposed of their interests.