New-York tribune., 1910-01-17
HEINZE CASE ANEW
FIGHT BEGINS TODAY
Big Array of Counsel to MoUe
QuasInng of Indictments.

The testimony on which the federal grand
fury reindicted Fritz Augustus Heinze for
alleged misapplcation of funds of the
Mercantile National Bank and alleged con-
spiracy in thwarting that body's attempts
70 get at the facts of his management OF
the institution probably will be made the
basis OF fierce attack in the United States
Circuit Court to-day. when the legal cohorts
Of The former Copper King turn up to tell
Judge Hough why the indictments should
not be allowed to stand.
Heinze's lawyers and those for his asso-
cistes who were indicted with him on the
conspiracy charge are confident that they
~ill be able TO show that the indictments
should never have been returned. Surpris-
ing revelations are promised. although they
will~not be of the kind that were made in
the case of Heinze's old associate, Charles
II. Morse. who is now serving fifteen
year sentence in the federal penitentiary
81 Atlanta for mismanagement OF the Ma
tional Bank of North America
There will be no attacks on the jury, its
personnel or its competency to decide the
issues presented 10 it. as there was when
Martin w Littleton made his appeal for a
new trial for Morse. The legal grounds on
which they take their stand will be sufh-
cient. the EeinZe lawyers think, TO con-
vince the court that the indictments should
Re dismissed. as were the former ones re
turned against him on similar charges.
On the other hand the government is
confident that Heinze and his friends Will
not be able to escape the mesh in which the
grand jury found that they entangled them
selvee. Although Heinze was let out on
the first conspiracy charge returned against
him, and although fifteen of the sixteen
sgement of the Mercantile Banks affairs
were dismissed, they are confident that the
defects in the indictments have been so
remedied that there will be nothing for
IIeinze TO do after Judge Hough gives his
decision but 70 prepare to defend himself
the charges lodged against him.
While the Heinze lawyers have the
wristbands of their sleeves securely sewed
I'D so that nothing of the surprises they
intend to spring upon the government to-
day will fall out beforehand. yet it is eX-
pected they will make the most Of the Nct
that eight of the ten transactions in which,
according 10 the indictment, Heinze is
said to have misapplied funds of the bank
are based primarily On the alleged insol-
vency of Otto Heinze & Co. prior to the
panic of October, 1907.
When the indictments were read, a week
ago last Wednesday. Stephen Brooks Ro-
scnthal. Of Levy, Rosenthal & Heermance,
Heinze's counsel, took pains TO announce
that by a recent court ruling the firm Of
Otto Heinze & Co. was in a solvent con-
dition on and before October IA, 1907,
when the questioned transactions were
made. This argument will be vigorously
disputed by the governments counsel
There is a distinction with difference,
they contend, in the Interpretation of a
court ruling as to whether alleged
bankrupt had actually committed an act
Of bankruptcy or was in insolvent con-
dition.
That Otto Heinze & Co. were in in
solvent condition. and that, therefore, f.
A Heinze had no right to aid them with
funds of the Mercantile National Bank,
even if the firm had committed clear
act of bankruptcy. will be the govern
ment's contention.
United States Attorney Henry A. Wise
and Felix Frankfurter will argue the case
against Heinze and his alleged co-conspir-
ators. John B. Stanchfeld will make the
opening attack for Heinze and move for
the quashing Of the indictments, and If
u Judge Hough should make an adverse rul-
ing John c. Tomlinson, of Tomlinson,
Tompkins & Tomlinson, will argue the de-
murrer to both indictments. Besides these
lawyers there will be many more, includ-
ing Levy, Rosenthal & Heermance attor-
neys of record for +. A. Heinze; William
Rand jr-, Tor Arthur P. Heinze. and Joseph
p. Cotton. Jr., for Sanford Robinson.
The two HeinZes. Robinson, Carlos War
field. vice-pres.dent Of the Ohio Copper
Company. and Calvin O. Geer. a clerk in
the offices of the United Copper Company.
another Heinze concern, are Joined in the
conspiracy indictment. John b. Stanch-
field viii appear for Warfeld and Geer, as
well as for F. a. Heinze.