Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-08
Millionaire Mine Owner and
Banker Accused of Crooked
Financiering
NET MAY ENMEsH MANY OTHERS
Heinze as President of Defunct Mer-
camille National Bank Charged With
Having overcitifed Check for Many
Thousands-Heavy Punishment is
PossbIe-Inquiry Only Begun.

/ New York, Jan. S.-F. Augustus
! iIeinze, formerly president of the Mer
camille National bank, was arrested
late yesterday afternoon upon the in
dictment found by the federal grant
jury in the December term.
The indictment, which contains thir-
ty counts, charges Decentralization oil
fifteen checks drawn on the Mercantile
National last October, the specific Of
Tense on which the bench warrant fol-
Mr. Heinze's arrest was issued being
alleged to have been committed or
October IA This Decentralization was
alleged to have been made on a check
drawn by the firm of Otto Heinze &
Co., the members of which were Mr.
Hleinze's two brothers. Otto G. and
Arthur p. and Max Fl. Schultze. 1t
was drawn to the order of Groos &:
kleeberg and for the sum of s64,761.40
The Indictment of Heinze was the
first tangible result of the criminal
proceedings which were promised
against some of the chief actors in the
citys financial affairs in banking cir
cles last October From what could be
learned today, it appears to be only a
beginning.
United States District Attorney
Henry l.. Simpson said yesterday at
ternoon:
II am able to say that the investi-
cation instituted by this office into the
financial conditions was not ended by
this indictment 1t is still going on.
tho of course it would be improper for
me to give any hint as to the individ-
uals or banking institutions whose acts
are under investigation. With the
small force at my command the work
has been slower than could W ish but
it Is going on with all the speed and
industry possible"
The indictment against F.. Augustus
Henze was voted two weeks ago. and
the district attorneys office has been
at work ever since preparing the for
NAL Indictment This work was COM
pleted Yesterday morning, and the ar
]
it was agreed Mr.. Heinze should sur
render himself
In the meantime bench warrant
was issued by United States Circuit
Judge Chattield. 1t charges Mr.. Heinze
with having. on the 14th day of Oc-
tober, 1907, in the southern district of
New York, unlawfuly. knowingly, and
wilfully certified certain check which
had on that day been drawn upon
the Mercantile National bank of New
York for the sam of $64, 761.40, against
the peace and dignity of the United
States and against the statutes for
such cases made and provided
Heinze Surtenders to Marshal.
At half-past o'clock Edward Lau-
terbach. counsel for Mr.. Heinze. walk
ed into the office of United States
Marshal William Henkel. He was
by Mr. Heinze
"Mr. Marshall said Mr.. Lauterbach,
"this is Fritz Augustus Heinze.'
PLEASED to meet you, Mr.. Heinze,'
said the marshal.
! The ex-bank president shook hands
with the marshal. who then formally
placed him under arrest and escorted
him to the office of United States
States Commissioner Shields. Here
Shields. Here Mr..
Heinze was held in $4,000 bail to ap-
pear and plead to the indictment to-
morning at 1880 before United
nished by the Fidelity Deposit COM
pany of Baltimore.
Mr.. Heinze would make no statement
personally but Mr.. Lauterbach said:
prior to the certification COM
planned of, Mr.. Heinze had directed
that notes be discounted, upon which
there would have been ample security.
lie supposed that had been done. AS
, mere matter of bookkeeping it is
possible that it may not have been
lone until the next morning. Mr..
Heinze had no idea of violating the
aw."
Mr. Lauterbach intimated if the law
nad indeed been broken, as he insisted
t had not, the infraction was mere
.echnicality.
Heavy Punishment is Possible.
The grand jury which returned the
Indictment began its labors on the
bird Wednesday In December.
While no hint could be had as to the
course the future Investigations may
AXE, it has been known that for some
me national bank examiners have
,een inquiring into the records of the
Mercantile National and the National
Bank of North America.
The offense of Decentralization was
harged against William S. Kimball,
resident of the old Seventh National
ank in 1908, and President Kimball |
vas fined $1,000. James D. Fish, |
resident of the Marine bank, which |
allied in 1884, did not get off so cas-
y. He was sentenced to serve a term |
f Imprisonment of ten years What
yer may be the outcome of the pres
mt Investigations 1t is stated that any
osses the banks may have suffered by
by any one have been
epaired, but this, of course, does not
ender the offenders exempt from the
peration Of the law.
It is to be noted as another echo
f the disastrous United Copper corner
nat the firm named in the Indictment
s the one to whom the s62.761.40
heck was drawn. which check Heinze
alleged to have certified unlawfully.
the firm of Gross e. KIeeberg, on
hose complaint the firm of Otto G.
80 Ne ~s00 The best