The Washington herald., 1908-01-09
TROUBLE FOR HEINZE
Woes of ex-COpper Magnate
Multiply Fast.
GOULD TAKES BANK STOCK
Was Unable to Meet Final Payment
on Mercantile Securities, So Has 10
Relinquish His HOId-PIeads Not
Guilty to Thirty Counts Charging
Him with Bank Fraud.

New York, Jan. ST. Augustus
Heinze's troubles multiplied thick and
/ fast to-day
Fresh from the United States Circuit
Court. where he was arraigned to plead
TO indictments for overcertifying s4O0-
600 checks on the Mercantile Bank. he
found himself facing the loss of the
stock of that institution because of his
failure. after an all-night effort. to raise
Sl,2O0OOO due to-day on the stock which
he bought from Edwin Gould and Will
lam Nelson Cromwell.
All last night and all to-day up to 2
o'clock this afternoon Heinze endeavored
to devise some way TO meet this pay
ment
At that hour. accompanied by Edward
Lauterbach and John c. Tomlinson. his
lawyers. Heinze went into conference
with representatives of the Goulds at the
office of Mr.. Cromwell.
Gould Gets the stock.
The conference broke up at 2:3O O'Clock.
and Mr.. Cromwell made this statement:
THE Heinze stock in the Mercantile
National Bank has been acquired by Mr.
Gould. satisfactory arrangement has
been made. Mr.. Heinze was given the
fullest opportunity TO pay for the stock.
but we were forced finally to take il
over"
''Will there be a change in the diree-
torate and officers Of the bank at the
annual meeting on January I4?"
Yes. Proper representation will be ar
ranged for the Gould interests at that
meeting"
COntempIates Suing Morse.
But this is not all Heinze. it was re-
ported this afternoon, has fallen out with
Charles w. Morse. his erstwhlle asso-
clate, and has instructed his attorney IN
draw up papers in a suit against Morse
for several million dollars on the ground
Of treachery In the copper corner. caus-
ing the smash which precipitated the
October panic.
John c. Tomlinson, Heinze's personal
counsel, asked about the Morse matter
to-day, said:
No papers have been drawn. It is true
that there has been a general discussion
of Mr.. Heinze's affairs, but no definite
action in any direction has been decided
on. The relations of Mr.. Heinze and Mr..
Morse have been most pleasant
Whether they were pleasant at the pres
ent time, Mr.. Tomlinson would not sav.
You had better see Mr. Heinze," he
said.
GouIds Again Rule.
Mercantile Bank. and on Heinze's failure
10 make this payment they again become
the dominating influence.
The bank stock which Heinze bought
included 5000 shares from Edwin Gould
and 1000 shares from Mr. Cromwell. It
was the purchase of this stock. backed
up by stock already held by Charles w
Morse. that made possible Heinze's cleo
tiOn as president of the Mercantile Ma
tional.
1t is understood that Morse, since the
financial crisis of last October, has sold
his stock at a price of 1S5 to S. NJ. Milli-
ken, who succeeded Mr.. Heinze as presi-
dent, at the time that the clearing house
authorities forced the former to quit.
Pleads Not Guilty.
a pea OF not guilty was tlNtFeu TO-DAY
by +. Augustus Heinze, indicted on thirty
counts for alleged overcertiRcation of
checks on the Mercantile National Bank.
Edward Lauterbach, Heinze's counsel,
entered the plea for his client before
Judge Chatfield In the United States Cir
cult Court. stating that he reserved the
right to withdraw it. or to demur or make
such motions as might become necessary.
The case. at the request of Mr.. Lauter-
bach, and with the consent OF District
Attorney Stimson. was put over until
January % at 1880 a. m.
Mr. Lauterbach stated to the court that
while he was aware that the practice in
the United States courts was against il.
he would like very much to inspect the
grand Jury minutes on which the ind.ct-
ments against Heinze were found. The
court stated that he did not think such |
request would be granted, but would rule
on such a motion If made
The proceedings lasted only five min |
utes. but Heinze and his counsel were |
In court fully half hour before the case
was called and with Heinze was his |
brother Otto.
Heinze appeared indifferent to the pro-
He carefully brushed his silk /
hat when he was arraigned. and, while |
his counsel and the district attorney were |
arranging for an adjournment The bond /
given yesterday was continued.
Neither Heinze nor Mr. Lauterbach /
would make any statement after the pro- |
Heinze said that It was not /
his intention to go West until after jan
lary 20. /