The Bridgeport evening farmer., 1909-08-11
HEiNzE STOCKS
 FIGURE IN CASE
Persch Arraigned Today on The Charge of Grand
 Larceny
SOME INSIDE FACTS
Especial from United Press.> )

New York, Aug. 11.-When Donald L. Persch, holding s50,0o0 bonds, charg- ed with grand larceny for the sale of $110,00O worth of the Heinze Cop per stocks which had been posted to secure a loan of $50,0oo, is arraigned today on habeas corpus proceedings he has instituted, the district attor- ney's office hopes to reveal some more of the inside facts in the stocks his- tory. Pfforts are to be made to get Persch to reveal the names of the men who backed him in the transac- ton for the district attorney is sure the whole deal was inspired by some of the enemies of F. Augustus Heinze and Persch has practically admitted as much by saying it means a $1o,000 a year job to him to keep his mouth shut. /
 Here is the prize puzzle of the year that has Wall street guessing:
 M. M. Joyce of the brokerage firm of that name, wanted to borrow $50, ,00S quietly for a client who is creditably believed to be F. Augustus Heinze, the copper king. As collateral for this loan Joyce was willing to put up 15600 shares of Ohio copper and 4,100 shares of Davis-Daly. both Heinze's com panies. A. Clarke. a loan broker, money and he visited Joyce with the statement that his client, the Windsor Trust Company, would lend him, the money on the Heinze collateral.
 Joyce is buying the stock and he didn't want to have it known on the market and thus beat down the price. Sc he. agreed to borrow, provided the Windsor Trust Company would agree to put the stock in the vaults and keep 1t there. The next day, in filling an order for another client, Joyce went into the market to buy similar stocks and was disnlayed to find he was buy ing his own stock, which he thought was held as collateral. He started an investigation through the district att
 The Windsor Trust Company now declared. 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
 It develops, however, that Donald s. Persch, curb broker, was the lender. Persch heard that Joyce want ed to borrow the money. He hadn't the $50,000 to lend so he went to John T. Sherwood. another curb broker, to borrow it. Sherwood hadn't $50. 900 but he says he borrowed it without secur- ity from L. J. Field, a broker for whom he formerly worked. Sherwood says at Persch's orders. he took this $50 900 to the Windsor Trust Company gave it to the officials of the trust company and received for it stock Wnlcn. Joyce put up as cOllareraI He did not see Joyce at all, but did all his business with the Windsor Com pany. Joyce says he thought he, too. was acting only with the Windsor Company.
 As soon as the stock was turned over to Sherwood he notified Persch who he says told him he owned the stock and ordered him to sell it. Sherwood sold the stock in the market for $95,- 000 He took $60.000 of this and paid it back to Field to whom he also paid $500 for the use Of the money. Then he deducted about $10,000 of the bal ance for his work and gave Persch s35, ,ooo
 Sherwood showed letters written to him by Persch which led him to be- 1ieve that the stock in question was really owned by Persch and that the latter had pledged it to the Windsor Trust Company for $5o,000. It is said that there were powerful influences be- hind Persch, men who are fighting Heinze. To throw 10000 shares of cop per stock on the market would sure drive down the price and hit Heinze The conduct of the trust company, too is puzzling.
 The company claims it was acting only as agent for Katz who says he doesn't know anything about the af- fair at all. What the district attof- ney wants to know is why, if the com pany thought it was acting for Katz it turned the stock over to Sherwood at Persch's orders, and took $1 900 for acting as agent