The Washington herald., 1908-05-08
HEINZE FAILS TO PAY
Financier Causes Arrest of
Alleged Blackmailer.
OLD AETNA BANK IS INVOLVED
Butte Lawyer Tries 10 Make Copper
King Pay $4,000 to Avoid Prose-
cutiOn for signing Misleading
StHtement-WOuId-De ExtOFtIOnIst
Says He Can sIake Trouble.

New York, May Edward z. Bren-
nan. a lawyer Of Butte, Mont. was ar
rested to-day in the Office of F. Augustus
He.nze on the charge Of extorting $4,000
In demand notes from Mr.. Helnze.
At the same time Brennan handed over
70 Heinze two afidaylts which he said
would preclude the possibility of Heinze
being prosecuted for an old bank case
in Butte.
The story as outlined TO Assistant Dis
triet Attorney Mott is that in 1900 Mr..
Heinze organized the Aetna Banking and
Trust Company at Butte with capital
Of 100000 partly in notes and other
securities. The cashier Of the bank was
A. B. Clements, and he was accused OF
nor making a proper statement Of the
paid In capital Of the bank as required
by the banking laws OF the state. Under
the Montana laws. it is a felony not
only to make OF sign such statement.
but also 10 publish il.
Clements was indicted. the prosecution
contending. that there was not cash
capital as set forth in the statement.
but that the capital consisted OF seeuri-
ties and notes, some Of them from
Heinze. IN the bank was young
woman clerk named Esther and before
his trial Clements married her. A hus-
band and wife cannot testify against
each other under the Montana laws and
If her testimony was Of any Importance.
it,could not be received at Clements trial.
Clements Is Acquitted.
According 10 Heinze's lawyers. Glenn
ents and his wife were the only ones who
knew anything about the bank state
ment. Clements did not go on the stand,
and he was acquitted. Brennan was
Clements lawyer. Mr. Heinze. through
his lawyer, Charles l. Craig. charges
that soon after Clements was acquitted
Brennan came 10 this city and saw
Heinze. He said that Clements was in
financial distress and needed money
badly. Brennan told Mr. Heinze, it is
charged. that Clements felt that Heinze
owed him something and that he was in
position 10 hurt him If Heinze did not
care for his good will
Heinze denied that he owed anything 10
Clements, but Brennan said that Glenn
ents and his wife were the only persons
who knew about the bank statement.
and their side had never been made pub
lie. Brennan said that Clements and his
wife were ready to make statements that
the bank was In every respect correct,
but. on the other hand they were pre-
pared TO testify. II it became necessary.
that the bank statement was false. and
that it was made under Heinze's direc-
ton.
ground for any such statement. but Bren-
nan said he had the couple in the palm
OF his hand. and that they would testify
against Mr.. HeinZe, and it was worth at
least 10000 to prevent such a thing hap
pening.
Brennan Gives Threat.
Brennan is said TO have intimated that
unless Heinze gave up he might expect
criminal prosecution in the Montana
courts.
Heinze put Brennan off, he says, telling
him that he wanted a more definite state
fent of what the Clements couple could do.
Heinze then went to District Attorney
Jerome with his story. Heinze made an
appointment with Brennan to come 10 his
Office on March %. Detectives Flood and
Fitzsimmons were there, behind glass
door. Brennan said he would give Heinzs
complete immunity and would produce
sworn statements from Clements and his
wife generating him Of any wrong
doing. but unless the money was paid
Heinze would have to face prosecution.
Brennan came back on Wednesday,
Heinze says, with two affidavits saying
thai he got them from Clements and his
wife, who were in California. Brennan
said he was willing to give up the affida-
Wits for $4,000 in promissory notes, but
that was the lowest ne would take.
Heinze wanted a day to think ii over,
and asked Brennan 20 return to-day.
When he appeared, he was arrested. He
LA - nhh Ill