The San Francisco call., 1909-09-06
PIKE BROKERS
PLOT TO STEAL
HE|NzPS STOCK
Jerome Declares Transaction
Conspiracy Which Has
Been Successful
San Francisco Mans Name
Forged in Similar Scheme to
Obtain Securities
-SseeiaL Di.eeleh lo Tie Call

fraudulent acquisition and sale OF F,
Augustus Heinze's copper stock, Theo-
dore Shonts and other directors Of the
trust company are not al all satisfied
with President Young's hazy eNplana-
tions Of Tire transaction. which placed
all the blame on Birmingham. note
broker OF the Winsor. who was dis
charged by Young.
Tie Heinze stock transaction and
:hat OF the Eclipse oil company AFFAIR
Gin which the name Of Henry F. Ris-
srough Of san Francisco innocently fig
u.es) are the most intricately involved
records Of shady transactions that Wall
street has ever heard OF. So many are
involved in the TWO transactions that il
: not known just how far the rami-
fcstions VIII extend Up 70 date five
have been criminauy accused, viz.
Donald Persch and Walter l. Clark, two
youthful note brokers; Charles Katz,
- Brooklyn brewer; Sterling Birmingham.
manager Of the loan department of the
Windsor trust company. and A. D. S.
ADAMS. Boston broker.
PLOT To DEFRAUD HEINZE
The case Of the Windsor trust COM
pany is most curiously. involved and
developments thus far show il 20 have
oeen merely the plot OF a few crooks
10 do F. Augustus Heinze out Of
copper stock worth $4,000.
So far as developed these are the
facts in the Winsor trust case
Early in August Heinze wished to
negotiate a loan Of $4,000 and III NJ
joyce. his friend and confidential al gent,
in turn enlisted the services OF Rich
ard \ kaufman. q note broker, who ar
ranged IL through l. J. Field & Co..
brokers, of "A Broadway John Sher-
wood. z clerk OF the latter firm, appears
10 have been the man who actually ad-
ysnced the money. The Windsor trust
company, for a fee of $1,000, permitted
itself 70 be the clearing house for the
loan The brokers' clerk, Sherwood.
was taken 10 the Windsor trust COM
pany by kaufman, and Sherwood de-
posted the S50.o00 with the company.
II. N Joyce. broker for Heinze, depos-
tied the stocks valued on the market
for $4,000 This was August and
. on the same day the stocks were sur
rendered by Sterling Birmin CHAM, who
has charge Of the loan department in
che Windsor trust company. TO Sher-
wood. who demanded them as the
stood as collateral.
STOCK OFFERED FOR SALE
The next day Heinze's stock certif-
Gates were being offered for sale in
Wall street and Heinze demanded an
explanation OF President John Alvin
Young Of the Windsor trust company.
who declared that kaufman asked his
company 10 act as a clearing house
agent for loan OF $4,000 on the cop
Per stock, which, he said, he had ar
ranged 10 make with another broker,
X. L. Clark Of % William street
kaufman said his client was Charles
kstz. president Of the Eastern brew
ing company.
Young said he saw no reason why
the company should not act as clear
fng house. provided the conpany's
connection with the transaction was
thoroughly understood by both par
Ties, He said he insisted upon that
point and that q representative of the
company be present al the closing of
The iOan. receive the collateral and pay
The money 10 the borrower.
Joyce contended that he understood
that the Windsor trust company was
acting for itself in making the loar
and charged that Sherwood. acting for
men higher up. Ostensibly furnished
the money in order 10 get hold Of the
$4,000 worth OF DaVis-DaIy Copper
and Ohio Copper, both Heinze's stocks.
PLOT To STEAL, SAYS JEROME
Donald Perseh. a youthful note bro
ker, has been indicted for disposing
Of the stock. He was kept Imprisoned
in the Tombs until he Threatened 70
-scueal' and involve men higher up"
Then some unknown influential per-
sons incemnified the United States
fidelity and guaranty company to go
on his bail. but before accepting the
bond District Attorney Jerome insisted
. that the names Of the indemnitors be
submitted 10 him. That was demurred
10 by counsel for Persch, but the
names We're given TO Jerome on his
promise that they would not be given
out for publication. The cornpanv's
bond OF $4,000 for Persch was ac-
cepted and the young broker was re-
leased.
Jerome then officially whitewashed
the Windsor trust company, which. he
said, had been unjustly dragged into
the steal He denominated the tran
. sactiOn as -sordid, vulgar and vile. an
ordinary crook conspiracy on the part
OF number OF persons 70 steal. which
had been successful"
Director Theodore Shonts of the
Windsor trust company was not salts
fed
BROKER DIVIDES HIS FEE
Kaufman. who acted as intermediary
between the several brokers in the
transaction and the Windsor trust. told
how he had met Walter L Clark
Pesrch. Charles Katz. president of the
Eastern Brewing company of BROOKLYN.
Joyce and Sherwood He said he went
10 Birmingham, the loan clerk, and told
him he was in q position 10 place a
loan OF $4,000 on stocks any time the
company was ready TO be the clearing
house. Birmingham took him to Presf-
dent Young. who asked that Kaufman
put the proposition in writing Kauf-
man said that If he made the offer in
writing he would insist that the accept
ance be given the same way. He saws
Young stipulated he would do So but
that the acceptance must be surren-
dered when the loan was made Both
the proposition and the acceptance
specified that the loan was TO be made
10 an undisclosed principal and that the
company was not responsible Kauf-
man also told about getting his $500
commission from the cashier of the
Windsor trust and giving $3.50 to Bir-
mineham as a tip"
PROCEEDS OF SALE DIVIDED
Although Heinze is yet unconvinced
that he was not done out of his
stock by men higher up. and that Sher-
wood and others were mere stool