Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-12-06
Supreme Court Revelsss
Lower Courts Decree,
Sustains Indictments Of Mis-.
appropriation IN Ae|nze Case,
Further Proceedings Must Now Do
Had by the Lower Court.

Washington, Dec. 5.-Holding that
the circuit court of the nited States for
the southern district of New York had
erred, the supreme court Of the nited
States today reversed the lower court
ard neld sufficient various counts Of
! indictments. charging F. Augustus
HeinZe, with the misapplication ot
funds of the Mercantile National Bank
of New York City, of which 'hes was
president. Further proceedings on these
counts must now be taken in the low
err court si Tbkj
One of the points on which the low
er court held the indictments insult
Gent was that they did not show
conversion by the recipient Of the pro-
ceeds of certain notes discounted. Az
ter reviewing the previous cases touch.
ing on this noint. Justice Mckenna in
announcing the decision of the court.
said: ,aaf0Dt0W
~ follows that the circuit court
erred in considering as necessary not
only that there should be alleged a
conversion by the officer of the bank.
but also of the recipient Of the pro.
ceeds OF the discount. The conversion
may be to the use Of either and the In
dictment fulfills the requirements.
The constitutionality OF the act OF
March 2, 1907. allowing the govern
ment an appeal in adverse decisions
ON preliminary pleas in criminal ceses,
was upheld by the court. which reiter-
ated the statement that the right Of
appeal was not essential to due pro-
cess of law" "Sl
Hcinze was indicted first in 1909 as
president of the Mercantile National
Bank of New York City on charge Of
intent to defraud the bank by causing
the bank to discount improperly sin
gle name commercial paper amount
ing to about 81 100000.
Many of the counts were stricken out
OF the indictment on technical grounds
The circuit court Of the United States
FOR the southern district of New York.
in which the indictment was brought,
held that the indictment was defective.
because it did not charge Conversion
and that the word supplied the legal
measure, which the court has not been
able to find in 'wilful misapplication.t
The next year, 1910, Heinze again was
indicted on practically the same charges
but this year 1t was alleged that the put-
pose of the alleged ''misapplicatioil' was
to influence the stock of the Amal6amat.
ed Copper Co. Again the indictment was
found to be faulty in several counts
From both holdings the government ap-
pealed to the supreme court of the Unit
ed States in accordance with the act Of
Congress allowing the government an
appeal in certain criminal cases where
the decision on points Of law had been
adverse to it.
The supreme court today held that the
lower court had erred In both cases.
New York. Dec. 5.-District Attorney
Wise. this afternoon. when apprtsed Of
the United States supreme court decis-
ion in the Heinze case. expressed him
self as gratified that the form In which
the indictments were drawn In his oflce
had been upheld by the nations highest
judicial authority. Mr.. Wise would not
state positively that Heinze would he
tried again and as the indictments lust
sustained covered practically the sarse
transactions as those covered In tho In
dictment upon which Hein3e Yves tried
and acquitted last spring. attorneys who
have followed the Heinze cases. regard
ed another trial of the defendant as Inn
probable. u .h-