The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-05-10
STAR WITNESS IS
UNDER CROSS FIRE
Attorneys for Heinze Force
Some Significant Admissions
From an Expert.

NEW YORK, May 9,-F, Augustus
Hoiuze, former president of the Mer
camille National bank. charged will
mIsappllcation of the bank s funds anC
over-certifcation Of the checks of Ottc
HeinZe & Co., his brothers. bank, scored
again today, when two of the three in
dictments against him were dismissed
and withdrawn.
Judge Hough dismissed one on mo
tion by the defense, while the other
in which only one count remained, was
nolle pressed at the request of District
Attorney Wise. Both were returned
In 1910.
This leaves only one Indictment pend
ing, 1t contains 80 counts, Is of which
are for the missppropriation of $500,
600 and over.certlication, each count
referring to separate checks that went
TO make mp a 100000 loan to the
Heinze firm.
The prosecution rested its case late
today. The defense will open tomorrow,
During today's session Heinze at
torneys put John p. Fensler and Rob
ert E. Radert, expert accountants who
were the star witnesses for the gov
ernment, through severe cross exam.
ination.
From Fensler statements were drawn
showing that the finances of the Heinzes
United Copper company were in better
shape than appeared from his descrip-
tlon of its merry go round method of
making dividend payments.
The governments star witness,
John P. Ferusler. who described
in the trial of F. Augustus
Heinze last week the alleged meth
DDS pursued by the United Copper com.
Il le ,,,tt
Of small amount of cash and the pro
ceeds OF a big loan, was early Tut under
fire by John B. Stanchfiell of Heinzc s
counsel in the proceedings toGay.
The lawyer objected 20 "A reference
made by Fernsler to the htorse case
&C an attempt to influence the jury
ana taxed Fcrnsler with giving out
Heinze ease TO the newspapers,
Fernsler acknowledged having told the
newspaper men that the Heinzes had
but s2,000,000 with which to pay S.
pOo, 900 In dividends from 1902 to 1908,
Fernslcr said it so appeared from the
books. He admitted he had not seen
the original books of the Montana Ore
Purchasing company in Butte.
Concealment Admitted.
Mr.. Stancheld also got the witness
to say that he had not tCld the juTy
that the United Copper company had
81 $4,000 IN deposits in various banks
III January, 1907. when one of the dlvl-
dends, regarding which he had given
testimony, was paid.
ESQ thcy did not have TO borrow
mcney for this dividendI''
NO, - replied the witness.
Mr.. Stanchfield further got the wit
ness TO say that the Montana Ore Pur-
chasing company pnid the United Cop.
per company S1,2ll,279 in dividends
bcfore the United Copper raid its Jan,
nary dividends. He also drew out the
alleged omission from the tabulation
CT d 100000 balance of the Cora Rock
Island company and wound up with
this;
''Now, as q matter or fact, fhcse
companies had at that time balances
i'll rCal money to be drawn against Dy
cneck the sum s2,2S5.000, did they
pCto''
The aid. replied the witness.
In response to one question Mr.
Stanch6el got an answer he apparent
~ dld not expect.
lcu drew this chart to show the
United Copper company was IN empty
shell that couidn t pay div.dends'" he
asked
-! couldn't pay its dividends" re-
.orted Fernslvr.
BIT they had ample funds for The
August and succeeding diyidends7n
continued Mr. Stanchfel1
" lcs, by rGucing their assets re.
Pile ernsler
Afier another half hour of hammer.
ing tie defense desisted m ite arJss
exam ination aud sought 10 establish
the fairness of the witness.