Connecticut western news., 1908-01-09
IA HE|NzE ARRESTED Copper Magnate Is Indicted For
 0vercertifying Checks.
HE IS HELD IN $5O,OOO BAIL.

ExPresident of Mercantile Bank Must
 Answer In Federal Court to Thirty
 Counts Involving $4oo, ,ooo-No Intent
 to Defraud, Counsel Declares.
 New York, Jan. 8. - Charged with overcertifying fifteen checks, amount ing in the aggregate to $40Q000, many of them payable to the order of Otto Heinze Sc Co.,, his brothers firm, F.. Augustus Heinze, the copper magnate and former president of the Mercan- tile National bank, was arrested here on a bench warrant issued by the crim- inal branch of the United States circuit court
 This action followed the handing up of indictments by the federal grand jury. MT. Heinze, upon being inform ed of the issuance of the bench war rant, went to the federal building in company with his counsel, Edward Lauterbach, and surrendered.
 .. Held In $5o,ooo Bail.
 When arraigned before Commission CT Shields, Mr. Heinze pleaded not guilty. The United States district at torney demanded that the prisoner be held in $50.O00 bail, and he was re- leased in this sum. ..
 Heinze furnished a bail bond for $5O,OOO, given by the Fidelity and De- posit company of Maryland, for his appearance today before Judge Chat field for hearing and was released.
 MT. Lauterbach, after looking over the indictment, said that his client was charged with the ovefcertification on Oct. 14 of fifteen checks, amounting in the aggregate to $400,000. He said that against these checks abundant collateral had been deposited and that MT. Heinze therefore had certified the checks. Many of the checks were pay able to the order of Otto Heinze & Go, the concern of his clients brother, and drawn on the Mercantile National bank .. @ a-H
 Bookkeeping, Says Lawyer.
 MT. Lauterbach also-wished to have noted the fact that upon learning of the indictments his client had surren, dered to Commissioner Shields.
 MT. Lauterbach, continuing explana- tion of Mir Heinze's arrest, said that his client supposed that these certifica- tions were properly entered in the books of the bank. MT. Lauterbach declared that it was merely a matter of bookkeeping, which his client SUD- posed had been properly attended to on that day. 1t seemed, he said, as though some of the entries may have run over to the following morning, and upon this point the indictments had been based. .. s%, ..
 The indictment against Heinze, which is lengthy document, alleges that Heinze made the evercertiications in his capacity as president of the Mer- cantile National bank. The various counts of the indictment give the va rious checks alleged to have been over certified. -n
 The indictment was found under sec tion 520S of the revised statutes, which says that an official of a bank found guilty of such action is TTiable to not Jess than five years nor more, than ten years Imprisonment ....
 Thirty Counts la indictments.
 There were thirty counts against HeinZe in the indictments. Fifteen Of them are charges of overcertification on fifteen separate checks. One charges him with attempting to injure and de- fraud the banking association and mis- applying funds to the use of Otto Heinze & Go. without the consent of the Mercantile National bank. The re- mainder of the counts have to do with the execution of the certification by two clerks, George A. Cooper and Will lfam K. Pangborn, under Heinze's or ders ..'t
 It is alleged that HeinZe knew that Otto Heinze & Go. did not have to its credit the sums named in the various checks. The sixteenth count in the indictment charges that .Heinze inten- tionally applied the funds of the bank and without the knowledge of the di- rectorate to the payments of the fif- teen checks drawn. by Otto Heinze & Go. and knowing that the company did not have on deposit with the bank a sum equal to the amount named in the certified checks.