The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-05-06
DIVIDENDS OUT OF THR AIR
HEIN/E urn HEARS OF COP
PER WiGIC CIRCLE.
From me Hama rhroagh Ihs ChIeS sIscE .
holders and Back Nsain Fritz Put
Ir asOO.OOO real fash ONes nut
the Neat rlms u Was Al BorraW ed.


the Neat Time u was Al BorrsW ed.
Two h'ue print charts Eve feet square
vsre gwen to each iuryman in the Hs,nze
tra by he Government yesterday after
noon The charts were drawn ~ show
boz He,nzes United Topper Company
rad tho two quarterly dividends IN April
and NIgus'. 1871. when its stock went
Euug m to 70 and HsinBe made good
hs ,mous ~ tha, United Copper would
ras. Ana samated and it paid 20 pay
dvtrnis
! Thrse charts prepared after months
Of Ahor by John P Fernsler. an eurert
ban. accountant working for IN. Gov
eminent verr admitted to be the prose-
ggtons strongest card They were pro-
duced 10 connect the defendant with the
United Coppsr POOL that went on in 1901
and 20 help which. Il IL the contention.
Peryr allowed the active managers 20
h.r themselves 10 the funds Of the Mer-
oanue National Bank and overcerthed
TER checks
A. FHTert Fsrnsspr explained IL. while
ks lass n iurymen kept thor faces
hgr-d m rs hhir prints. n required q
cash outlay NJ lees than sea-. an in each
csse N ray those two dividends On one
4 ftss" occasions the company had a hal
s1rr NJ about - IN In the hank Real
cash mad 10 60 IN the -outsiders- when a
dividend vas pad The rcsi went 10 the
ms ters the Resnze family and assn
o.at's holding about Sts.OO of tho lSO.OOO |
srar's TlR insiders channels turned /
Their 4 bends hack to Max n Schultze. I
trustee ior tho pool. who rad them hack =
o. he N"rC antiie bank 20 make good the /
money borrowed To ray the dividend |
Il took only onc banking day for the !
cheeks 70 make the circle
In orc case Fritz Augustus HeinEa fur |
nshsd the rrai cash needed for the out
si-rs In tho other case the Riverside I
PanN then Morse inst tuition. provided 4
, 4 On a an which hasn't becn raid. ac- !
o"rdnS - F-rnSler Arthur Henze was /
Do 'aa ma-set trying 10 get thu b~ars a. I
ne time letwc~n dividends
The Government did not put Expert !,
ternser on The stand INT Il Lad tried .
o. -s-"rll days 70 set test mony regard
ng rhsse transactions from He.nzes
brother tito and from Max n. Schultze
y vas contendsd BY tho prosecution
FreD strenuous objection 70 the blue
dividend charts was made by He nzes
aWvers that the answers n these wit
nesses and certain 81 Their employees.
sCani as they had been had lad the foun-
Ga'7n for F-rnsiers test mony. Judge
Tough admitted the charts and Joined
The Bookkeeping class thai Fsrns;sr con-
aG~'ed FOR two hour through the mazs
Of asHes collected from here 10 Butte
Hens .noN-d more interest than o.
aTv line before llos, Il the time no
'wss on his 'e@' watching the iurym-r
NJ Judge ana occasionally looking az D.
chart himself he family behind hun
seAmed 20 he eluallv Interested The
record had been taken from books Of
the United Copper COMPANY from miss
ins RACES torn out and recovered and
from the hooks Of more than dozen
hanks
efore the dividend charts were taken
az Mr. FTanl flrter Tor The Government
cot Fernsler 10 traoe bv other charts
ne defendant Heinyez own United TOP
"r tiyidends into the sccOunt of Nav
% schultz sonnet mes they went /
f'-IyEh several banks but the stubs ,
s'as there 20 show apparently tht, they
cached Schultl- eventually (
No irst dividend chart showed the !
hammer Ir which the August dividend I,
% per cent was raid The iranSnc. IA
ton a. explained by the Witn---. u-aau .
"n tn" day % tho dividend with y 4 .
} .1l" borrowing s1O0OOO from the I'm a
pro trust Company and adding it 10 =
aIance that morning 40 the Nrrcln- /, 4,
'.. Lana. which amounted th-reupon a
Co. '"oOOa he then drew a check on n
to- 'or NOoOO and turned Il over a. RI
'.' tccOunt Of the Nontinl TIRE pir- n
,lsstHz Company. one Of the constituent
ntul-- ~ the United topper rom- =
.H.. which that morning had only 3, ~
u '.n lank VI
While Heinzs WAS doing this schultz
ps. borrowing sJO0O 90 from the Mer-
.sr' /" on an unsecured demand note p
7-i' ~ , Ectstein. a clerk The SIM q,
loon >raIIige turned over alsO 10 the Mon Z,
gs IRE Purchasing Company. and the G
'or'ana Ore Purchasing Company then n
.anar@d a dividend and proceeded 20 81
i-sa checks against ia balance. increa ssd h
p. '1@@- two credits IN the Mercantile a,
30 dividend amounted 70 $50 10. and o,
~ % Of Il went to the United Copper H
-~rany and 50 70 70 , A Heinzs 10 fr
-tss
following thess transactions the United n
.r4i Company proceeded % deposit RI
- t.vidend check from tho Montana AZ
- Purchasing Company 10 its account a
~ Mercantile Then against thus IN
'r''-nt u drew q check for 5000. which on
49, ~ Ia France Copper Company.
M meek Tor sit0.oOo. which IL had tr
'r''-1 and deposited in the Hudson do
~ )npany in Hoboken. This siS0.Oo0 n
'n 'gr The outsiders, who had 10 have III
- money The rsst u 10 credit a. RI
20 Nsrrantils the United Copper paid de
" l.'idend checks 70 the nsidsrs ri
N''I.'z". who got some direct. depoa- al
''7 |" ~ Of them in the National Bank
North America. Immediately drew q m,
''.' W. se0.OoO against the deposit and "a
-i's'-f that check in his trustee ac- a.
f' I'd. Tho Mercantile he deposited tal
''' \" 81 sSl IN dividsnd chscks in the taI
10 Trust Company. where he had