New-York tribune., 1910-04-28
MERCANTILE CASHIER
BARES HE|NzE LOANS
Emil Klein TestifieS Banks Re-
serve often Fell Below
Legal Limit.
WISE CAUSES STIR At TRIAL
Dramatic Refutation Of Stand
ard Oil or Morse 1nfiu-
ence in the Prose
cution.

when court adjourned yesterday m 'he
srisl of v. Augustus Heinze on charses ~
ove-certificstion and miss pplicston "' 'i'
funds % the Mercantile National BANK
while president the United States AZ
,o~nev. Henry A. Wise. through VIM
E,iei, cashier o. the bank since January
yeo7 had obtained evidence that The reserve
had frequently been lowered below the
legal limit. In every instance IT was after
q loan 70 otto Heinze & co. or some per
sons acting for them
Mr. Heinze was less Indifferent than on
she dsv before. and as Mr.. Wise objected
90 his leaving she courtroom "hlie tne
,-is1 was I'm progress he sat close 20 his
counsel tin adjournment Judge hough
.-as Quick IN disposing Of knotty points
and p, one time upset Mr.. Wise's pro
.rsmr1e. 10 the discontinue Of about fftE
t-okors who had been summoned from
Montana. intermediate states and as lar
east as Boston.
Tho T-nireS States Attorney wanted 10
show from the evidence of the out-of-town
- witnesses how Mr.. Heinze conducted ms
business affairs John r. Stanchfeld. TOT
she latter. objected. lie wanted Mr.. Wise
70 establish the overcertihcation and mis-
application frst II might be hard on the
numerous witnesses. but tho regular order
should be adhered 10. he said.
Fifty Disappointed Men.
Il can't show that this man went into
,,e hank on any particular night armed
" IN n Jimmy and broke into the safe MT
Wise said. but I viii show by these men
sno from their books just what did hap
1scn"
Judge Hough upheld Mr. stanchheld. and
7be Nftv men were excused until called for.
Fnd thev left the courtroom muttering, Tor
shey expected 10 get away permanently be-
fore nightfan.
NJ Wise took his oath OF Office all over
again when he began his opening address
20 The fury This was because Of Mr..
Stsnchheld's questions regarding the Stand
ard OH Company when examining tales
men. letting il he known that he believed
the company was bitter foe Of Nj
Heinze Mr.. Wise said:
This man lis not being prosecuted by
rhe Standard OIL Company. ] am not here
- the prosecutor Of Charles ". Morse. nor
am 7 here as an employe Of the Standard
on Company. bat as sworn officer % the
government. and I'll discharge my duty a.
such. 50 help me God"
There was quite Il stir the United
States Attorney ended this denial His re-
marks were directed 10 Mr.. Stsnchheld
who assumed a posture Of indifference,
with pencil. bitWfse, in his mouth.
Wise States the Charges.
Mr.. Wise reviewed the indictment and
summed up the case Of the government as
follows:
This defendant is charged with crime
Iuder three groups Of indictments. The
FIRST charges misanrlioation of funds of the
a - r,G
unlawful cerrihcation on the account Of
otto Heinze e. Co on October u of the
same year. and Tho third. vilful misappli-
cation 81 the funds paid out on checks so
certified
Then tho Tinted States ATTORNEY said
that Alto Heinze. Arthur Henze and Max
r. Schultze controlled the United Copper
Company and formed 4 pool TO initiate tho
price % tho stock. He declared they paid
dividends out Of tho cash capital on tho
s5oeoe.oJN of capital Stock. and not out "f
-he earnings. in order TO deceive the inno-
cont public. The fve companies consti-
rltinE tho Tinted Copper Company. he
ssid. were The Minnie Healy. Belmont
Nipper Consolidated Cora and Rock
Island Tho Hoinzes he declared when
tho organization was complete sold the
mines snG tho machinery and land 70 the
AnslEsmated for tl05eoeo. and with that
sUm began 10 pay per cent dividends on
7he vstered stock
-'On TIE night of October H." Mr. Wise
continued. after such mon as Barney and
Morse refused 10 enter into any such wild
cat scheme, tho firm of OTTO Heinze A. %.
oWed nearly 8 .l0Oao 10 the Mercantile Ma
tional Bank Company. which 81 had put in
the position OF gambler in Wall Street 90
Albert p. Clemons. hank examiner from
Washington. was tho first witness called
To brought records With him showing tho
Organization of the Mercantile National
Bank and its condition ss shown by the
statistics filed af the national "a pitsl
When he Was excused Mr. Wise tried 10
call the City brokers, hut VAS checked and
O recess followed, after which Emil Klcin
was CO lied
Mr.. Klein had the books of tho hank Wit n
him He said tho officers of tho institution
empowered 10 make loans in 1aq7 were the
president. Mr.. Hetnze. and the Hice-t,rosi-
dents. Chester Glass r. r. Thomas and
Miles q Rrien. Mr. Heinze ceased 20 he
president on October T. 1@F. Tho loans 80
otfo Heinze co. were taken iIp. and the
efs-r "a -r ,,r