Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1908-01-08
Answer Reserves the Right
to Withdraw Should Motion
to Demur be Thought
Advisable.
THERE ARE THIRTY
COUNTS IN INDICTMENT
United Copper Is Given as the
Cause of the Downfall OF Otto
HeinZe & CO.--BdnkerS Claim
They Were Betrayed by
Their Friends.


New York. Jan. ST. Augustus
Heinze, arrested yesterday charged
with the over certifcation of checks
while president of the Mercantile Ma
tional Bank, today entered a plea of
rot guilty when arraigned before
Judge Chatfield in the United States
court.
Through his counsel Heinze re-
served the right to withdraw the plea
of NOS guilty and demur to the in
dictment at any time before Janu-
AIRY 90.
The bond of $4,000, which Heinze
furnished yesterday, was allowed to
stand
The indictment of Heinze by the
federal grand jury which has been
investigating the Mercantile and 9TH
er banks identified with the Heinze
and Charles F. Morse Interests is the
aftermath of the collapse of the
Heinze pool in United Copper and
which brought about the suspension
of Gross and Klieberg, stock brokers,
anG subsequently resulted in the res
ignatior- of F. Augustus Heinze from
the presidency and the retirement of
the directors of the Mercantile Ma
tional bank, after an examination of
the institution had been made by the
clearing house. He declared at the
time that he had been betrayed by
Heinze had been informed quietly
that indictments charging him with
| the over certification of fifteen checks
all drawn on oct. II, just before
the smash in United Copper. had
been found by the federal grand jury
on December 2, and that his appear
ance would be required today. Heinze
in company with his counsel appear
ed before Commissioner Shields this
afternoon. The proceedings were
short. Heinze pleaded not guilty and
bail was furnished Immediately by a
ceedings were concluded Heinze told
the newspaper men that he did not
care to make any statement and hur-
ried away with his counsel.
After an examination of the in
dictment, which contained thirty
counts. Counsel Edward Lauterbach
ment:
THE Indictment is based upon
certification of fifteen checks,
amounting TO something over S400,-
0O0 drawn by Otto Heinze & Co,
on the fourteenth day of October,
last. Before the certification was
made F. Augustus Heinze obtained
the discount OF a note OF $500, 900,
collateral worth at the market rates
of that day, more than 100000, and
drew his check for 100000 to the
credit of Otto Heinze & CO., the
amount OF which should have passed
to their credit as l think 1t was.
There certainly was no wilful intent
within the statute to over certify any
check, not even to the extent that
over certifcatioH is practiced every
day in Wall street by all the banks as
a matter of business necessity on
the contrary, as / have stated, here
was far more than the amount OF the
checks standing to the credit Of the
account Of the drawers when they
were certified. | believe that II the
grand jury could have understood the
situation correctly no Indictment
could have been found"
The indictment charges specifically
that Heinze, while president Of the
Mercantile National bank, over GER
titled fifteen checks that is that he
guaranteed by the bank signature
that the sums indicated by the checks
were held by the Institution 10 the
credit Of the drawer To overcertify
bank paper is under the federal stat
ute an offense punishable by impris-
oEment OF not less than five years
and not more than ten years.
One count is devoted to each Of
the checks involved. 1t is alleged
that Heinze knew that Otto Heinze &
CO., did not have 10 its credit the
sums named in the various checks.
The sixteenth count charges that
Heinze Intentionally misapplied the
funds OF the bank and without the
knowledge Of the directorate To the
payments OF the fifteen checks drawn
by Otto Heinze & Co., and knowing
that the company did not have a de-
pOsit with the banks and a sum equal
% The amount named I'm the certified
checks. For such an Offense the fed
eral statutes provide a penalty Of not
less than five years imprisonment or
fine Of not more than $4,000 or
both.
The checks certified by Heinze,