New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-05
WISE GETS PROOF OF
UNITED COPPER POOL
Prosecutor Bends Effort to Con-
meet F. A. Heinze with
Syndicate.
MAX H. SCHULTZE ON STAND
Secretary of the Defendant S
Brother Also Attacked by
Witness from Every Con-
ceivable Point.

Was there in existence pool in United
Copper Company stock I'm Athe summer of
Eo7 in which Arthur P. Heinze was inter
ested?" was one OF the last questions asked
yesterday by United States Attorney Wise
in the trial OF T. Augustus Heinze before
Judge Hough. i'm the Criminal Branch of
the United States Circuit Court. The wit
ness was Frederick Eckstein, who was pri-
waite secretary TO Arthur P Heinze and
was in the offices of the copper company.
He said he could not tell. there was no
pool; he heard of no such designation OF
The transactions Of his employer
We'll. was il syndicate. combination,
association. an agreement
There was a note of desperation in the
question TIE witness had been attacked
from every conceivable point with the OBJ
feet Of getting an admission that there was
q speculative agreement in 1907 in which
r. Augustus Heinze would. il was believed,
he connected later The last answer of Mr.
Eckstein just before adjournment was:
y considered all transactions personal to
Arthur P. Heinze and not in connection
with q pool
Mr.. Wise. however. through Max h
Schultze Of Otto Heinze & Co, had proved
that there was pool. or syndicate, specu-
lating in United Copper in 1907. He wanted
TO clinch that with the Eckstein testimony
before bringing the defendant in to at
tempt to prove the nssppication charge
in the Observation-Disclosures OF the
funds of the Mercantile National Bank In
using them in the pool transactions
Admits 4. P Heinze's Accounts.
Mr. Schultze. after infinite lodging. aided
bv the objections of his counsel, had 10 ad-
init that A p Heinze had running &C
count with the Otto Heinze company, IN
the books where the transactions known as
Account Nos. l. ?. g. and were kept. Ii
VAS Account No that ran into October.
1907. with which Mr.. Wise sought to con-
meet the defendant. The government coun-
sci brought out with considerable clearness
that Account No. was the successor OF
Account No. 4. but was not able yesterday
10 show that F. Augustus Heinze was in
telested in il or had prohted by the trans
actions resulting from it
Mr. Wise was getting along quite serene
IL with Mr. Eckstein a short time before
the noon recess, when he asked about the
value of United Copper. leading up to FUR
ther information regarding the five So
called pools. when Judge Hough called
halt He said:
IT seems TO me that the time has come
when We should settle two questions: First,
whether under the lettered counts in the
Indictment any such foundation has been
laid as to authorize or warrant the eA-
penditlre of time in taking the kind of
testimony YOU have outlined Of course
some of il is undoubtedly germane- Second.
if the lettered counts are TO be proceeded
with whether this kind of testimony is
relevant or material TO the 1903 indictment"
Before Mr. Wise could answer the court
WAS adjourned for a recess Of fifteen min
utes and il generally expected that
some kind of a pronouncement would be
made from the bench when the trial ives
resumed Judge Hough, however, permit
ted the case TO proceed without further
comment. The remarks Of the court were
looked upon a hint to the government
counsel to revert TO the GENERALIZATION
counts in the indictment, which were
dropped temporarily.
Stock Held by Dummies.
Tracy Buckingham. who kept the United
Copper transfer books, and who fed to
Canada nearly q year ago. when Mr. Wise
had his fight to get the company's books,
was witness TO bring out the ownership
of the stock The defendant, it was
learned. owned 20 348 shares, and the other
Eeinzes and Schultze 10000 but there were
holdings by dummies for the Heinzes, ag-
creating $4,000 shares. The dummies were
called as witnesses and acknowledged that
they did not own the stock They got the
dividends but turned them over 10 COM
pany officers.
I can't answer without some books
was the refuge Of Mr.. Schultze so many
time when he was on the stand that MI
Wise frequently began the next question
in anticipation OF IL When the witness
however. let slip that he didn't know
some 29s,eaa shares Mr.. Wise paused to
let the answer sink in. This referred to
100, and the prosecutor followed the adj
mission with the question:
Was z. A. Heinze a member of this syn
dictate of 225.0oo shares in 1872
Mr.. Schultze couldn't possibly know with
cut the books and the familiar answer con-
tinued its monotonous reiteration as uues-
ton after question followed Mr.. Wise
scored again when he connected the diyi-
bends testified 10 the day before with the
syndicate holdings.
Drops SehuItze as Witness
You admitted yesterday that dividends
were paid to H Abeles. John Baglin, Henry
Bronson Frederick Eckstein and Arthur
p Heinze and YOU must say tina, these
persons were benehciaries of that DDS 90
hare syndicate when I show you that A
ia per cent quarterly dividend on a ca pital
Of about $4,000 shares of copper stock
amounts 10 the sum paid out?' the prose
Cutor asked.
Yes. ] must so answer" the witness
snid. and Mr. Wise dropped the witness
end Mr.. Eckstein was called He admitted
that he obtained the loan OF $4,000 from
the Mercantile National on August i 1907
testified to last week, and when John y
Stanchfeld- Of counsel for the defendant