The Washington times., 1909-08-11
District Attorney Promises
Startling Revelation at the
PerSch Hearing.
WALL STREET AMAZED
BY CASES MYSTERY
Charge Persch With Selling
$4,000 Worth of Copper Stock
Posted for a Loan.

NEW YORK. Aug. IL-When Donald
L. Persch, held in S5eoo0 bonds en- the
charge Of grand larceny in connection
with the sale of $4,000 worth Of the
Heinze copper stock, which had been
posted TO secure a loan Of $4,000. is ar
raigned today on habeas corpus pro-
ceedings he has instituted, the district
attorneys Office hopes to reveal some
more Of the inside facts in the stock
mystery.
Efforts are to be made, 1t is believed,
TO get Persch to reveal the names of
the men who backed him in the trans
action, for thssDistrict Attorney is sure
the whole deal was inspired by some Of
the enemies OF F. Augustus Heinze and
Persch has practically admitted as much
oy saving 1t means q $1,000 a year job
10 him to keep his mouth shut.
Is Prize Puzzle.
Here is the prize puzzle Of the year
that has Wall Street guessing;
NJ. NJ. Joyce. head Of the brokerage
firm of that name. wanted TO borrow
$4,000. evidently FOR client, who is
creditably believed to be T. Augustus
Heinze. the copper king. As collateral
for this loan, Joyce was willing TO put
up 15600 shares Of Ohio Copper and
400 shares OF Davis-Daly, both
Heinze's companies.
W L. Clark. a loan broker, heard
that joyce wanted to borrow the
money and ne visited Joyce with the
statement that his client, the Windsor
Trust Company. would lend him the
money on collateral.
Joyce is bulling the stock and he did
not want to have it thrown on the mar
ket and thus beat down the price. So
he agreed 10 borrow, provided the
windsor Trust Company would agree
10 put the stock in the vaults and keep
It there.
The next day, in filing an order for
another client, Joyce went into the
market TO buy similar stocks and was
dismayed to find he was buying his
own stock. which he thought was held
as collateral. He started an iuvestiga-
ton through the district attorneys Of
fee.
Merely An Agent.
The windsor Trust Company now de-
clares, according TO the district at
torney, that it only acted as agent for
Charles Katz. president of the Eastern
Brewing Company, who was the real
lender.
II develops. however, that Donald J.
Persch, curb broker, was the lender
Persch heard that joyce wanted to bor-
row the money. He had not the $4,000
TO lend, so he went 10 John T. Sher-
wood, another curb broker TO borrow
It. Sherwood hadn't $4,000, but he says
ne borrowed it. without security, from
J.. J. Field, 2 broker IUr whom he for
rnerly worked Sherwood says, at
Persch's order. he took this $4,000 to
the windsor Trust Company, gave it
10 the officials OF the company and re-
ceived for 1t the stock which Joyce put
I'D as collateral He did not see Joyce
1T all, but did all his business with the
windsor Company. Joyce says he
thought he. too, was acting only with
the Windsor company.
As soon as the stock was turned over
10 sherwood, he notified Persch. who.
he says, told him ne owned the stock.
and ordered him TO sell 1t. sherwood
sold the stock in the market Tor $4,000.
He took S5a,O00 OF this and paid il back
10 Field to whom he also paid $500
for the use Of the money Inen ne
deducted about $4,000 Of the balance
for his work, and gave Persch 5000
Letters Shown.
sherwood showed letters written 10
him bv Persch which led him to believe
that the stock in question was really
owned by Persch. and that the latter
had pledged it 10 the Windsor Trust
Company for $4,000.
II Is said there are powerful influences
behind Persch, men who are fighting
Heinze To throw 1900 shares Of cop
per stock on the market was sure TO
drive down the price and hit Heinze.
The connection OF the trust company,
TOO is DuzZling. The company claims
IL was only acting as agent for katz,
who SAYS he doesn't know anything
about the affair At all What the dis
4rfct attorney wants to know is, why. II
The company thought II was acting Tor
Kat il turned the stock over to Sher-
wood. Fl Perseh,s order and took Ns00.
for acting as agent