New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-29

Securities of About $1,000. 900
Marketable Value for Loan
of $500, 900.
NO SALARY AS PRESIDENT
Defendant Scores in Cross-Ex-
animation of Cashier of
the Mercantile Ma
tional Bank.

TIE fourth day OF the trial OF r. Angus
tus Heinze IN the Criminal Branch Of the
United States Circuit Court on charges CT
nnisspplicatfon and overcertificstion Of the
funds OF the Mercantile National Bank
wound up yesterday with proof of collat-
ersl. valued al the time al nearly S2.eoO 600.
having been deposited by the defendant FOR
a loan OF $4,000 which has figured in the
numerous indictments found against the
accused man. The witness was stili Emil
Klein cashier OF the bank.
United States Attorney Wise had turned
the cashier over 70 John B. Sianchaeld. OF
counsel for tire defence Mr.. Klein had said
that he knew OF no collateral for the loan
which was mace 10 Mt Heinze. and by
him turned over 10 Otto Heinze & Co. The
witness said that he had made no arrange
nlents regarding the collateral For Nj
Wise ne produced the demand note issued
for the loan.
You have another note which Mr.. Wise
cid not ask you 10 produce ] want you
Il produce IT now" Mr.. Stsnchfeld said.
sharply
That's unfair" Mr.. Wise cried jump
Ing up. Mr.. Stsnchheld prevented me"
I 5id not" snapped the counsel Tor Mr..
Heinze
Then. as Mr.. Stanchheld asked to have
the collateral enumerated according to
che loan card which WAS produced Mr.
Wise objected. saving that the witness had
said there was no collateral on that loan.
Wise's Objection Overruled.
That does not prevent me from showing
that the witness was mistaken" draVled
Mr.. Stanchheld. lsmningly.
Judge HoUgh who is hearing the case.
examined the card. and after saving that
there was nothing 20 show that the oollat-
eral was not on hand overruled the OBJ
lection
Mr. Klein reading from the loan card.
showed that there were 10000 shares OF
Ohio Copper. valued al the time at 81 each:
1000 shares OF Davis-Daly. valued at the
time at s.; 52S shares Of United Copper.
valued AZ $50 share. and seo shares OF
stock OF the State Savings Bank 81 Butte
Mont. valued at $50 The total selling or
market value Was 81 sse aeD when the col
lateral was deposited. according 20 the tes-
timonv % the witness
On the same loan. the witness testified.
Otto Hsinze a. Co sent collateral consist
ing 81 $50 shares OF United Copper. 40
shares ~ the same. preferred. lo0 OF Ohio
copper and 100 Of Butte Coalition. valued
At So share. This stock. and the col
lateral deposited on the loan by r. Au-
rUstus Heinze. the witness said were stiu
I'm the possession OF the bank He also
testified that the loan had been reduced by
the payment Of $4,000 the DAY after the
loan was made. or October Is leaving the
balance OF SSSs. ceo 10 which the collateral
applied.
Points for the Government.
Before this disclosure Mr. Wise brought
out the history Of the Heinze transactions
in the period preceding the financial furry
in 1907. circumstances by the Controller Of
the Treasury because OF the low condition
~ the banks reserve and a purchase ~
foreign exchange by Otto Heinze & Co. 10
bring their Indebtedness to the hank down
70 the figures permitted by the banking
laws as a bank examiner had warned the
oficers Of the bank TO have this done with
IN a stated period.
Miles II. O Brien was in court. arriving
Just after Mr.. Stanchfield ATTEMPTED to
show BY the witness. Mr.. Klein. that Mr.
O'Brien was really the president. although
he vas listed as Vice-president OF the Mer-
camille Nj Heinze. after purchasing a
heavy interest in the bank. was chosen
president. but. AT his request. without
salary. and Immediately afterwsrd Mr.
O'Brien's salary was increased from $4,000
q year 10 $500
When Mr.. Stanchheld saw that Mr.