The Montgomery advertiser., 1908-01-08
HEINZE IS INDICTED
OvEfs-CERTIFIED FIFTEEN CHECKS
 AGGREGATING s400.OO0.
Aftermath of the CoIlanse of Heinxe Pool in United CoDBcr-In Fed-
 eraI Courts

New York. Jan. 7.--Indicted by the Federal grand fury for the over-certifi- cation of fifteen checks representing in the aggregate over s40O.000. and drawn by the firm of Otto Heinze & Co.,, on the Mercantile National Bank, Augustus Heinze, the copper magnate and former President of the Mercantile NHional Bank. surrendered himself to United States mm.ssioner Shields today and later was released on $50.000 bond Heinze win be formally arraigned to plead to the indictment before Judge Chatfeld in the United States Circuit Court tomorrow.
 Edward Lauterbach. counsel for Heinze. stated tonight that his client did not wilfullv ever-certify the checks as he had drawn check to the credit of Otto Heinze & Co. to the amount of s500.O00. which the bookkeeper of the bank possibly failed to enter on the books untI U day after the certi- fication of the checks in question.
 The indictment of Heinze by the Fed eral grand iurv which has been inves- tigating the Mercantile and other banks identified with the Heinze and Charles w. Morse interests. is the aftermath of the collapse of the Heinze pool In United Copper. and which brought about the susDens.on of Gross & Kee- berg. stock brokers. and sub bsequently resulted in the resignation of F. Au- gustus Heinze from the presidency and the retirement of the directors of the Mercantile National Bank, after an -ex- animation of the institution had been made by the clearing house commit tee.
 He declared all the time he had been informed quietly that indictments charging him with the over certification of fifteen checks, all drawn on Octo- | E |. ...-I. L. Y.~fA ed Copper had been found by the Fed eral grand jury on, December 2. and that his appearance would be required today. /Without awaiting the service of a bench warrant, Heinze, in con- pany with his counsel, appeared before Commissioner Shields this afternoon, The proceedings were short. Heinze pleaded not guilty and bail was fur nished immediately by bonding com pany. When the proceedings were fin- ished Heinze told the newspaper men that he did not care to make any state- ment and hurried away with his coun- sel.
 After an examination of the indict- ment, which contains thirty counts. Counsel Edward Lauterbach tonight made the following statementa "The indictment Is based upon cer- tification of fifteen checks amounting to something over $400,000. drawn by Otto Heinze & Co., on the 14th day of October last. Before the certihcation was made, F. Augustus Heinze ootaln- ed the discount of a note Of SS0O'VuO secured by abundant stock exchange collateral worth at the market rates for that day more than $S00,0OO, and drew his check for $500,000 to the credit of Otto Heinze SsNC the amount 1 of which should have passed to theil credit, as think 1t was. There cer' 1 tainly was no willful intent within the statute to over-certify any check not even to the extent that oyer-cer'
 tification is practiced every day In Wal Street by all the banks as mattel | of business necessity.
 "on the contrary as have stated
 there was far more than the amoun
 of the checks standing to the credi | of the account of the drawers of tn, | checks when they were certified. believe that if the grand jury coui' have understood the situation correct lily that no indictment would have beel found