The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1908-01-09
HE|NzE LOST HOLD
ON MERCANTILE
NATIONAL
Copper King Fails to Make
Good $1,000, 900 Note
GOULD PARTY IN CONTROL
Stock, Lately Held by Mine Operator,
Taken Over For Default In
Payment.

payments que OH MS STOCK Ill the liisu-
tuition, f. Augustus Heinze has lost con-
troll Of the Mercantile National bank,
the conduct of which as its president
had brought about his arraignment In
the United States circuit court on
charges of OvercertiticatiOn of checks
valued at 100000.
Just one year ago Heinze bought a
controlling interest from the Goulds,
with whom he pledged his holdings as
security for his promise to pay for the
same In full within one year. This loan
Of $1,200000 was due to Edwin Gould
and William Nelson Cromwell, who
was member of the Gould party In
the bank before the Mercantile was
added to the Henze- Morse Thomas
chain of financial houses. Up to the
last moment allowed him Heinze
fought to meet his obligations and so
retain his banking interests. His fall
ure was chronicled in the following
statement issued by Mr.. Cromwell aft
er conference Of the parties con-
cerned:
'The Heinze stock in the Mercantile
National bank has been acquired by
Mr.. Gould in satisfactory arrange
ment Mr. HeinZe was given every pos
sible chance to pay for the stock, but
because of his inability to do so in the
time agreed upon we have been forced
to take ii over"
Later Mr.. Cromwell added that the
Gould interests would assume their
proper place i'm the bank board at the
meeting on Jan. IA. This implies Of
course that the so called Hcinze direct
ors will then retire.
Heinze, under bail, following an In
dctment by the federal grand jury on
charge of overcertifying checks Of
his brothers brokerage firm involving
100000. was arraigned before Judge
Chatfield, and plea of not guilty was
entered, with permission to alter or
withdraw 1t or to make any desired
motions later. Then an adjournment
was ordered until Jan. 20, when the
final plea will be made. The bail Of
| $4,000 was continued.
1t Is reported that other men equally
as prominent as Heinze In Wall street
operations were to be called before the
federal authorities to plead to similar
indictments. Who they we're or when
their arrests were to be expected could
not be learned at the district attOr-
ney's office. 1t is known that the grand
jury is not yet through with its In
quiry into certain banking conditions
exposed by the recent financial trouble.
United States District Attorney Slim
son who was seen after Heinzs's ar
raignment. said:
1T would be improper for me to re-
veal the evidence have lest give my
case away, but can say that the in
vestigation is not yet over"
Heinze upon leaving the federal
building had nothing to say further
than that he would not leave the city
until disposition Of his case had
been made.
Soon afterward, accompanied by his
counsel. Edward Lauterbach, Heinse
joined Edwin Gould and William Mel.
son Cromwell in the conference that
ended In his returning to them the
bank shares for which he was unable
to pay. 1t is said that the transaction
was not concluded until every means
through which Heinze might have held
his interests had been exhausted
When following the collapse Of the
United Copper pool and the subsequent
clearing house investigation Heinze, al
president, and the board of directors
resigned. the copper magnate declared
that he would still hold his stock. Tit
bank, however, had been adversel!
affected by the trouble, and 1t wa,
generally believed that way wOul(
be found to again bring il under thu
Gould influences. This opportunit!
came today. A new directorate, prac
tically installing the former manage
ment, is now expected to bring bacl
to the institution its old. time standing