The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-08
F. AUG. HEINzE
ARRESTED BY
u. S. MARSHAL
Indictment Returned by FEEDER
al Garnd Jury Charges False
Certification of Check.
PLEADED NOT GUILTY
AND GAVE $4,000 BOND
PENALTY is NOT LESS THAN
FIVE NOR MORE THAN TEN
YEARS IMPRISONMENT

New York. Jan. Indicted by the
federal grand jury for over-certifica-
ton of checks representing in the ag-
gregate over $500, 900, and drawn by
the firm of Otto Heinze & Co. on the
Mercantile Nationl bank. F. Angus
tus Heinze, the copper magnats and
former president of the Mercantile Ma
tional bank. surrendered himself to
United States Commissioner Shields
today and later was released on $4,000
bair HeinZe will be formally ar
raigned to plead TO the indictment by
Judge Chalfield in the United States
circuit court tomorrow.
Edward Lauterbach, counsel for
Heiaze, stated tonight that his client
did not Wilfully Over-certify The
checks, as he had drawn a check to
amount of $780,, 900. which the book
keeper of the bank possibly failed to
enter on the books until the day after
the certificatiOn of the checks in
question.
Result of Copper "Coup.
The Indictment by the federal grand
jury which has been investigating the
Mercantile and other banks identifil d
viii NAiE I1tlilIG anu Nildii6S w
Morse interests is the aftermath OF
the collapse of the Heinze pool in
United Copper and which brought
about the suspension of Gross & Klee-
berg. stock brokers, and resulted in
the resignation of F. A. HeinZe from
the presidency and the retirement of
the directors of the Mercantile Ma
tional bank after an examination of
the institution had been made by the
clearing house. He declared at the
time that he had been betrayed by his
friends in the United Copper pool.
Heinze Had Tip.
Heinze had been informed quietly
that indictments charging him with
The OVeF-certifcatiOn of fifteen checks,
all drawn on Oct IA, Just before the
smash in United Copper. had been
found by the federal grand jury on
Dec. >. and that his appearance would
be required today. Without awaiting
the service of bench warrant
HeinZe, in company with his counsel,
appeared before Commissioner Shields
this afternoon. The proceedings were
short. Heinze pleaded not guilty and
bail was furnished Immediately by q
surety company When these pro-
ceedings were concluded Heinze told
the newspa per men that he did not
care to make any statement, and hur-
ried away with his counsel
Statement of Counsel.
After the examination of the indict-
ment. which contained thirty counts
Counsel Edward Lauterbach tonight
made the following statement:
The indictment is based upon certi-
ficatiOn of fifteen checks amounting to
something over 100000. drawn by Otto
HeinZe & Co. on the 14th day of Octo-
Der last. Before the certifcation was
made +. Augustus Heinze obtained the
discount of a note Of $500, 900, secured
by abundant stock exchange collateral,
worth, at the market rates of that
day, more than $500 GOO. and drew his
check for $500 900 to the credit of otto
Heinze & Co. the amount of which
should have been passed to their
credit, as I think il was. There Ger
tainly was no wilful intent within the
statute TO over-certify any check. not
even to the extent that over-certifica-
ton is practiced every day in Wall
street by all the banks as matter of
business necessity. On the contrary
as Ifhave stated, there was far more
than the amount of the checks stand
ing to the credit of the account of the
drawers of the checks when they were
certified | believe that if the grand
jury could have understood the sirua-
ton correctly no indictment woul1
have been found"
Charges in Indictment.
The indictment specifically ..hargcs
that HeinZe. while president of the
Mercantile National bank. over-certi-
fed fifteen checks; that is, that he
guaranteed by the bank signature that
the sums indicated in the checks were
held by the institution to the credit Of
the drawers. To over-certify bank pa
per is, under the federal Statute ar
offense punishable by Imprisonment Il
not less than five years and not more
than ten years.
Ore count is devoted TO each of the
checks involved. 1t Is alleged that he.
tteinze. knew that Otto Heinze & Co.
did not have to its credit the sums
named. The sixteenth count IN the in
cictments charges that Heinze inten-
tonally applied he funds OF the Bank,
Continued on Page 2.