The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-08

points In less than that many minutes.
The advance was made Just before the
close OF the market.
United Copper was a stock under which
Fritz Augustus Heinze had combattcd
the Amalgamated Copper company in his
successful contests In Butte. and not
withstanding the fact that he had sold to
'he Amalgamated Copper company the
most important OF Uniteds properties.
Mr.. Heinze and his brothers. Otto c. and
Arthur p. Heinze. continued II as their
favorite speculation on their removal from,
Butte to this city. and the installation of
Otto G and Arthur p. In the banking
and brokerage house OF Otto c. Heinze &
CO. and the. inauguration OF Fritz Angus
tus ieinze last January as president OF
the Mercantile National bank.
AFTER THE COLLAPSE.
On their loudly heraIded entrance into
the banking business the Heinzes were
associated with the Thomases and Charles
w. Morse. Mr. Morse and both OF the
Thomases were associated with the
Heinzes In control OF the Mercantile
After that institution was drawn on by
depositors, as a result OF the collapse OF
the United Copper corner. and the man.
agement was constrained to ask assist
ance from the Clearing House. the re-
suits of an examination made by the
Clearing House and United States bank
Ing examiners were laid before United
states District Attorney Stimson. This
was In the last week OF last October
Although the indictment does not 80
specify, IL Is known that most OF the
checks which figure In the charges were
drawn by Otto Heinze q Co. TO pay for
purchases OF United Copper stock Most
significant among them are the checks to
Gross Kleeberg. who became the
Heinze brokers and assisted in the forma-
ton OF the United Copper corner after
the firm of J. 8 .Bache q Co, who also
received an alleged overcertned check,
had withdrawn as Heinze brokers.
representative OF Gross Kleeberg
said that the s62. 900 check received by
that lrm was for United Copper stock
purchased on tho order OF j. s. Bache n
Co. AS will he recalled. the firm OF Gross
n Kleeberg failed two days after the date
OF the alleged overcertifcation AZ that
time the Heinze Indebtedness to the firm
had become nearly 100000.
Fritz Augustus Heinze Il was said NV
Gross q Kleeberg. promised TO make the
Indebtedness good In part on the MORN
Ing before the firm failed. He did not
do so and the failure OF Gross " Klee-
berg was followed the next day by the
suspension OF Otto Helnze " Co., from
the Stock Exchange.
In addition 20 the charge OF over
certificution one count In the Indictment
says that Fritz Augustus Heinze inten-
tonally misapplied the banks funds and
did not get the banks consent TO the
payment OF the Is checks referred to.
This count is corollary. implying in
tent. TO the first Is counts
To the other OF thu 10 counts make the
formal charge that Mr.. Heinze, as preai-
dent OF the bank. ordered two bank
clerks 10 indorse each OF the is checks
as follows: Account payable by tho
New York Clearing House. Oct. IA. 1907,
Mercantile National bank"
TRIED TO COMPROMISE.
Since the failure OF the Heinzc broker
age firm, FRITZ Augustus Helnze, Otto c.
Helnzc and Max Schultz. the board MEM
bers OF the firm, have endeavored TO ef-
feet compromise with creditors and
place the suspended house on It's feet.
fiward Lauterbach counsel for Mr..
Heinze. said that. In his undcrsta nding.
tho affair was based on a technicaIity.
Mr. Lauterbach said: "My understanding
Is that Mr. Heinye on or about oct II.
made note for N1o.oo secured hy enod
Stock Exchange collateral ~ value of
80 per cent In excess Of the face OF the