The Birmingham age-herald., 1909-08-11
Transaction In Wall Street May Aid Augustus Heinz6
 to to Free
YOUNG F|NANCIER MUST
 EXPLAIN SALE OF SHARES
Copper Shares Are Sold on the Curb In Wall Street When They Are Thought To Be Held Se-
 curely in a Bank.

New York, August 1o.-Donald L. Persch, ambitious young financier, whose offices constituted merely desk room in a downtown note brokers office, is in the Tombs tonight in default of s5000O bail, and thereby hangs a tale of tangled finance through which somebody in Wall street nipped F. Augustus Heinze, the one-time copper king. for s4O,OOO Persch is specifically charged with the larceny of s4O,000, a profit obtained by the sale of 600 shares of Ohio Copper common, and 4600 shares of Davis-Daley Copper common, which an agent for Heinze placed with the Windsor Trust company of this city as security for loan of $50000. In some manner as yet unexplained the stock was not held by the bank, but was turned over to a clerk acting for Persch, and at the latter's or ders thrown on the curb market and sold for approximately s90,000. How Persch obtained the capital to carry through the deal and why the stock was relinquished by the trust company are points yet to be cleared up
 After his arrest this afternoon Persch intimated that there were men ''higher lip" in the transaction, but he refused to say more on the advice of counsel. He was arraigned late this afternoon before a magistrate and, after unsuccessful ef- forts of his lawyers to have ball re- duced to s25,000, was taken to the Tombs, although his counsel later procured writ of habeas corpus, returnable tomor- row morning. His examination was set for Friday.
 Persch was arrested on the strength of statements made by John Sherwood, an other note-broker, who was called to the district attorneys office this morning. He said that at Persch's request he procured securities of the trust company, after having obtaihed the $50,OO0 for the pur- pose from l.. J. Fields & Co.,, dealers in curb stocks. He thought the transaction entirely legitimate and was ready to act for a percentage. He exhibited orders from Persch to redeem the securities and to put them on the market. Three hun dred dollars was paid to Fields & Co.,. for the use of the money l.. J. Fields, of the firm, maintains that their part in the affair was regular business trans action.
 TEs foregoing features of the case seem to be plain enough, but behind them is the mystery of how Persch knew when and where M. M. Joyce, representing F. Augustus Heinze, placed the securities. It is considered coincidental by the district attorneys office that Persch had his desk room in the offices of w. L. Clark, a note broker, who first directed MT. Joyce to the Windsor Trust company for the purpose of obtaining the loan.e
 While there is nothing to indicate that the bank is crimnally respon- sible in any way. MT. Joyce says that it was stipulated when the loan was made that the stock was to be pinned to his note and retained. Shortly after, however, the certificates appeared on the curb and an investigation was be- gun The trust company says in it's defense that it was acting merely as an agent in placing the loan and this agent appears to have been Sherwood representing young Persch who, in turn, intimates that he was acting for some one above him. But MT. Joyce Is emphatic in saying that he has never seen Sherwood to his knowledge until today. Stirling Birmingham, chief cr the loan department of the trust com pany, acted as 1nIermeO1dry between Joyce and the lender, whiche Joyce was under the impression that he was get ting the money direct from the bank.
 District Attorney Jerome took active charge of the case today and other ar rests may be made tomorrow. Charles Katz. treasurer of the Eastern Brew ing company of Williamsburg, and Henry Uhlman, a business associate, were among the other witnesses ex- amined at the district attorneys office today. Uhlman admits that he made out a note for $5O,000 in Persch's fa- vor, but did not know to what use 1t was put. He was to receive $266 for it, but he understood the note was not to be discounted for use in any way. Persch, according to the police, has been arrested twice before, once for forgery on a charge made at the re- quest of his father, and another time in connection with subscriptions for an ice fund.
 Both charges were dropped.