Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1908-01-11
ARREST F. A. HEINZE
Copper King Pleads Not Guilty
to Fraud Charge.
FIRMS FAILURE STARTED PANIC.
New York and Montana Mine Oper-
ator Accused OF OverCcrtiHcation
of Checks Valued ut $780,
OOO-fsrror. lie says.

ator Accused OF Decentralization
of Checks Valued st $780,
OOO-Error, He Says
NEW YORK. Jan. ST. Augustus
Heinze was arrested here by United
States Marshal Henkel ON a bench
warrant issued by Judge Chatfield i'm
the United States circuit court on an
Indictment found 10y the federal grand
jury.
The Indictment OF Heinze by the
federal grand jury which has been in
vestigating the Mercantile and other
banks identified with the Heinze and
Charles W Morse interests is the aft
ermath OF the collapse of the Heinze
pool In United Copper and which
brought about the suspension OF Cross
& Kleeberg. stock brokers. and sub
seQuenty resulted m the resignation
Of +. Augustus IIeinze from the presl-
dency aud the Retirement OF the direct
Ors Of the Mercantile National bank
after an examination of tle institution
had been made by the clearing house
committee. Ueiure declared at the
time that he had been betrayed 10y his
friends in the United Copper pool
The charge ~ the GENERALIZATION OF
fifteen checks ou oct. "a last drawn on
the Mercantile National bank amount
ing altogether to about 100000.
Edward Lauicrhoch Mr. Heinzo's
counsel. said that prior to the ccrtidca-
ton Mr.. Hcinzc had directed that the
notes bee discounted. upon which there
had been ample security. and he sup
posed that this had been done
AS a matter OF bookkeeping. Mr.
Lauterbach said it may no; have been
done until the next morning. MIR.
Hcinze. said Air.. Lautcrhach. had no
Idea OF violating the banking law.
Heinze was arraiCncd before Com
missioner shields. who held him n
$4,000 bail to plead before Judge
Chatneid Ia the United States circuit
court.
Heinze appeared by arrangement OF
counsel The surety FOR bail was Civ
en- by the Fidelity Deposit company
OF Baltimore before Commissioner
Shields. Heinze was then released
Heinzc was president OF the Mercan-
tile National bank at the time or the
attempted corner by Otto e.. lIcinze *
Co. OF United Copper stock in the curb
market that immediately precipitafcI
tho panic. Investigation OF the banks
Affairs resulted 30 day or two later On
the resignation CT llciuzc and au the
directors of the hauk intending
Charles w. Morse. The clearing house
committee that conducted an examina-
ton into the banks affairs reported
that there had hccn considerable ir-
regularity i'm tlc banks loan accounts.
principally due to loans made on col
lateral of various Copper stocks in
which Heiuze WAS Interested -Nss0ci-
ated with Che copper king I'm nanny OF
his enterprises were Charles W. Morse
and the Thoma~cs who retired from
the banking world simultaneously with
Helnze.
Heinze was born Boa BROOKLYN about
forty years ago aud was graduated
with honors from the Columbia school
or Mines in ls,ll Immediately after
his graduation hc went directly 10
Butte. Mont. where De made consider
able money taking mp abandoned and
apparently worked out mines and
bringing them up to a paying basis
While DE was iu Montana an attempt
was being made to oU-t him from his
ownership of The Harus mime. and
he became Involved il Sac series OF liti-
cations tllt marked his history ever
since. In Gru.ral he was Successful In
his fights, an1 iy ,tr time he again
appeared ln Sew York. at the age OF
thirty hc had - med the title Of
the Copper lus
crisis tt.ne l.r.,s-..f ..I ftr tH.. ,-..-.,..sr