New-York tribune., 1908-01-08

Sle checks standing to the credit of the account
ef the drawers of the checks when they were
certified. / believe that if the grand jury could
eave understood the situation correctly that no
indictment would have been found
WHEN TROUBLES BEGAN
The troubles OF F. Augustus Heinze began
with the bull campaign started by Otto Henze
& Co and their associates in the stock of the
United Copper Company, which Mr.. Henze had
organized and developed subsequent to his long
and bitter fight with the Amalgamated Copper
interests in Montana The stock selling
at about so when mysterious selling de-
tected- Otto Heinze & 60. believed this to be
an effort to raid the stock by short selling and
gave unlimited buying orders 20 several brokers.
They expected that the bear operators would
rot be able TO cover their contracts when the
time came, except at the prices dictated by the
Heinzes
Heavy selling OF United Copper continued, and
70 purchase the stock offered Otto Heinze &
Co was forced 10 draw checks for large
amounts various brokers. When the source
of the selling ascertained the Heinzes said
they had been betrayed by friends who sold
their holdings of United Copper on the high
market The United Copper stock sumped and
Gross & Kleeberg suspended. alleging that Otto
Heinze & Co. failed take up the stock of the
United company which had been bought for
them. crisis provoked in the affairs Of
the Mercantile National Bank and the Clearing
House committee made an examination, follow
ing which Mr.. Heinze withdrew from the insti-
tuition. but with his friends still maintained
stock control, which he had purchased several
months before There have been reports re-
Gently in the financial district that the Edwin
Gould interests would again assume control of
the Mercantile
&
been before the United States district court
for many weeks, upon the application of the
refitioning creditors for q receiver. At the time
the involuntary petition in bankruptcy was hled
against the firm. through counsel it protested
vigorously and opposed the appointment of
receiver.
REFEREE FOR BROKERAGE FIRM
After a long series of adjournments Judge
Holt took the matter up on Monday, end after
listening 70 arguments Informed the interestea
counsel that they must get together and agree
upon the name Of referee in bankruptcy to
be appointed by the court, who would hear all
the testimony in relation the bankruptcy of
Otto Heinze & Co and report TO the court. Two
weeks were given 10 the lawyers To agree upon
the referee Should the referee, after appoint
rsent and the taking of evidence. decide that
the firm was really bankrupt, its affairs VIII
then should the court affirm the referees re
port be finally liouidated by the federal bank
ruptcy courts and receivers. Until the matter
Is thus decided the creditors of Henze & Co.
said to number many hundreds. are compelled
wait.
The names of tise Heinzes have been mentioned
also in connection with the Hamilton Bank, the
report oe the receiver charging that they had
cverdrawn.
In banking and financial circles it was recalled
yesterday that in 1903 William S. Kimball.
fined 5000 for cvercertifcation. After the
panic Of 1854 James d Fish, president OF the
Marine Bank. which failed in the Grant & Ward
failure, sentenced 10 prison for ten years
for the SO me offence.
CAREER OF Mr.. HEINZE
The name of f. Augustus Heinze is not at all
unfamiliar 10 newspaper readers. Although
only thirty-eight years of age, he has been
prominent in the public prints ever since he
graduated from the Columbia School of
Mines in 1889 He then only twenty years
old, having been born in Brooklyn in 1869, but
his scholastic career at the local university
sufficient 10 win for him an honorary degree.
After leaving Columbia he went at to
Montana. and making Butte his headquarters
soon earned for himself a reputation for dar-
ing and shrewdness by succeeding in interesting
capitalists in the reopening Of mines which
operators Of the reputation Of Marcus Daily had
given up worked out Everything he under
took seemed TO pan out, and he was well on
his way TO fortune when he decided TO venture
into the Western Canadian mining field. The
same sort of success which had distinguished
his deals in Montana and made him reputa-
ton as knowing investor followed his opening
of smelter in the Rossland mining district in
British Columbia. The valuable land and tim
Der rights which he had been shrewd enough to
obtain from the Dominion government were
made still lucrative by his success with
the smelter. and his skill promoter of sue
cessfuI copper mines was well established in
The Northwest when he sold out his Canadian
interests TO the Canadian Pacific Railway and
went back TO Montana
His return was prompted by the effort which
was then being made TO oust him from the
ownership Of the Rsrus mine in that state.
Among his other holdings were the Snohomish
mine. for half interest in which he paid Sio0.-
sRe and in which with his usual audacity he
sank 81 100000 improve its productive capac-
ily but with his usual success. The Minnie Healy
anime, which had coined millions for Marcus
DAILY but had been abandoned by that copper
man as worthless also attracted Heinze's atten-
tion. and he went Daily several better by getting
possession of the mine and developing it into one
Of the richest copper producing properties in the
state
Starting with the effort TO oust him from the
ownership OF the Rarus mine, Heinze has had
numerous fights on his hands and has figured
prominently a foe OF Senator William a
Company. the Standard OIL interests and the
Lewisohns. He a daring fighter and
though he has been involved in litigation prac-
fically since he entered the copper field
anost ot the fights have ended in his favor
Like Marcus DAILY and Senator Clark Heinze