Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-08
HH|NZE ENTERS PLEA
Says Not Guilty, But Reserves
Right to Demur.
WILL MAKE NO STATEMENT
Ex-Banker Knew His Arrest Was
Impending.
HISTORY OF COPPER TROUBLE
Investigation by the Grand Jury 10
Not Completed-Others May
Be Involved. u
OF COPPER TROUBLE

NEW YORK, January ST. Augustus
Heinze. who was arrested yesterday
charged with the overcertfication OF
National Bank. today entered a plea of
not guilty when arraigned before Judge
Chatfield in the United States court.
Through his counsel Heinze reserved the
right to withdraw the plea of not guilty
and demur to the indictment any time
before January 20 The bail bond OF
s5O,OOO which Mr.. Heinze furnished after
his arrest yesterday was allowed to stand.
After the plea of not guilty had been
entered Edward Lauterbach. counsel for
Mr.. Heinze, made a motion that he be
permitted to inspect the minutes of the
grand jury which returned the indict-
ments against his client. The motion was
Withdrawn. however, when 1t was learned
that no minutes had been kept by the in
vestigatins body. Neither Mr.. Heinze
nor his counsel would make any state
ment with reference to the case after
the arraignment
Charge Against Heinze.
Indicted by the federal grand jury for
the generalization of fifteen checks,
representing. in the aggregate. over $780,
600, and drawn by the firm of Otto Heinze
& Co. on the Mercantile National Bank.
F. Augustus Henze, the copper magnate
and former president of the Mercantile
National Bank, surrendered himself to
United States Commissioner Shields yes
terday. and later was released on $4,000
bail.
Edward Lauterbach. counsel for Heinze,
\ fAJ loo srvlf tt,.,& I. .seH~ Mt
willfully overcertify the checks. as he
had drawn a check to the credit of Otto
Heinze & Co. to the amount OF 100000.
which the bookkeeper of the bank pos
a day after the certifcation Of the checks
in question.
Copper Pool Collapse.
The indictment Of Heinxe by the federal
grand jury which has been investigating
the Mercantile and other banks Identified
with the Heinze and Charles W. Morse
interests. is the aftermath Of the coll
lapse Of the Heinze pool in United Copper
and which brought about the suspension
of Gross & Kleeberg, stock brokerA and
subsequently resulted In the resignation
of f. Augustus Heinze from the presi.
dency and the retirement Of the directors
Of the Mercantile National Bank after an
examination of the Institution had been
made by the clearinghouse COMMITTEES.
Heinze declared at the time that he had
been betrayed by his friends in the United
Copper pool. Hei1ze had been informed
quietly that indictments charging him
with the overcertihcation of ffteen
checks. all drawn on October IA. Just be-
fore the smash in United Copper, had
been found by the federal grand jury on
December 2. and that his appearance
would be required Without awaiting the
service of a bench warrant Heinze. in
company with his counsel. appeared be-
fore Commissioner Shields yesterday aft
ernoon. The proceedings were short.
HeinZe pleaded not guilty and bail was
furnished Immediately by a surety COM
pany. When these proceedings were con-
cluded Heinze told the newspaper men
ment. and hurried away with his counsel.
Others Involved.
Through the arrest yesterday of r. Au-
gustus Heinze, the promoter and former
president of the Mercantile National
Bank, on a charge Of overcertification OF
checks to the amount of 100000, it has
developed that a federal grand jury is
still engaged in searching investigation
into other transactions of a similar nature
in this city. While none of the federal
officials will make any statement as TO
the possible result, or even the extent TO
which the inquiry will go, United States
District Attorney Stimson said today that
the work of the jury has not been COM
plcted. 1T would be improper for me to
reveal the evidence l have lest l give
away my case" said Mr.. Stimson; "but
1 can say that the investigation is not
yet over"
To the straight question as to whether
there will be other arrests the district
attorney refused to answer.