New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-03
OTTO HE|NZE DIDN'T KNOW
Couldn't Tell of Pool Account or
Joint Account in 1907.
GUARANTEE BROUGHT OUT
=. Augustus Heinzes Letter to
Esche e. Co. Identified by
Max n. Schultge.

rand f-e Of questions from Henry a WISE
r7ited States Attorney, IN the EFFORT to
ESTABLISH guarantee by F Augustus
Eei-ze OF an account. in the nrrn BOOKS
~ Arthur p F4cinze. who was operating
IN United Copper Company stocks IN &c
fober. te07. Judge Hough adjourneo me
-r,a1 If the ex-copper king Until to-day.
II il can prove that such a guarantee eN-
ss.ed. the government will contend that the
defendant was virtually in a copper pool
steo II the direction OF proving the
charge OF nisapplication OF the funds OF
tie Mercantile National Sank. as set forth
IN the indictment.
Otto Heinze on the stand earlier in the
day answered questions in such way
- 10 show that long prior to the sale OIL
the z A1sustLs Beinze collateral helo oy
the Windsor Trust Company the same
tind Of proceeding made it necessary
FOR the brothers and Nj. Schult5e. not IN
GLIDING the accused man, to protect me
United Copper stock that had been placed
with brokers as security.
Judge Hough early IN the trial yesterday
ruled that the prosecution should not go
hack OF October. 1907. in its efforts TO prove
the existence OF a United Copper pool and
the connection Of F. Augustus Helnze Win
81 Argument was heard on the motion OF
the defence 10 throw out the overceTtifca-
ton charge in the indictment. but the
court reserved decision. All OF the prose
c,ltion-s evidence on that charge has not
been submitted
When Mr.. Schultz was on the stand hr.
lieinze got Up frequently 10 prompt MS
counsel John B. Stanchfeld. MT. wise
pes irving 20 pin the witness down TO an
acknowledgement that his firm had an &C
count in Arthur P. Heinze's name. with the
guarantee Of the defendant. He vas asked
10 Identify a check for s126o0o. one OF those
certified on the much disputed $4,000 loan,
made pavah,e 10 J. f. Bates & Co. as re
latInE to the Arthur P. Heinze account
The government wants 10 prove that this
check was on the guaranteed account, IL
-here was one. which would show that r.
Augustus Heinze figured practically in the
proceeds Of the $4,000 loan and was inter
cEted ~ the tine in the United Copper
trarzactions.
Schultze Identifies Letter.
One guarantee was brought out when =
letter dated January 10. 1905. vas offered
~ evidence Mr. SchuItze identified the
signature which was that of F. Augustus
Henze. The letter was TO J. s Bache &
GO. guaranteeing the account of the wit
mss and Otto Heinze & Co. on the for
-77er's books At that time and any &C
COUNTS that might be mace by them. The
1e'ter was admitted OF condition that Mr..
Htze connect IL with transactions in 1907.
The effort Oh the foregoing line was made
apparent u-hen Otto Heinze was on the
stand. preceding M Schultz. He was
asked BY Mr.. Wise whether Arthur 2.
T1einze rss operating q syndicate for
United Copper stock In 1917 for the pur-
pose Of purcha sing that stock. The Wit
reSs said he was.
Trading ID 10 this. NJ. Wise took up the
s7Ahona loan again. the loan for which
Miles NJ o'Brien. 7ice-president of the
Hsrcantile National Bank. testified last
neck Mr.. FIeinze had deposited as collst-
cal stock worth I'm the market at the
time nearly S2aanao He asked Otto Heinze
10 tell OF the incidents preceding the loan.
The witness said that he had seen his
brother, T. Augustus. on October Il end
had told him that Arthur 7. Hein2e had
more United Copper stock Than then OK
--ted SO eco shares. the actual issue being
<s0aaa
1t locked, the witness said, as n some
&C his brokers had sold out the copper
shares placed With them as security for
loans I asked my brother. Fritz. TO help
nc take VI those loans
A. his brother vas not willing to enter
fn'c any transaction Of that kind. the wit
ness SAID. F. Augustus suggested seeing
Charles " MORSE and seeing III. latter,
Morse advised that they all meet Charles
-. Earney. the president Of the hnicker-
booker Trust COMPANY. who committed sui
eide ~ the time Of the hank troubles Mr..
Morse wanted them 10 ests blish 2 s. eoo, oo0
ROOT Mr.. Barney said it would be good
business proposition. but be declined TO go
The G5T no his
brother. r Augustus. again. He continued:
= told him that ] needed a loan Of be
eeu 10000 and s5la ag0. ] seid that only
cry small part Of the stock that bad
been called by the brokers had been deliv-
cred. and that ] needed the money 20 take
up The stock. He refused TO make the loan
srd advised me 10 see Mr.. Morse. He went
with 10 see the latter. Morse said he
= Is willing. [ asked him where 7 should
cct he money He said al the Mercantile
NaeianaL Ny brother said. no, he would
not let the Mercantile make the loan. Then
Ncrse said he would take half OF the loan
end asked me 70 send half of the securities
10 i'm
Otto Heinze Didn't Know
o.so Hei.aze then told Of .hA personal Ioa r
Of the defendant anS said th-l he tb4
--ltncss took his notes to the bank VIII. e
h- arrived e. about 80 clock on the after
noon Of October K. and also thai he halted
sc isruinS 81 checks until he had placed
the not4 and 'hA collateral fer the last
Ian Nmnpo, which, with the 10000 sYst
-rCeived. MADE The S5o-nn0 loan
Morse never took his half share % the
rcrronsibility for the loan. the witness said
A an explanation Of his first efforts 70
establish q syndicate. he said he told Mr..
Barney when they met that brokers had
REGULATED all sorts Of runnors to depress
ine stock held as collateral.
otto Heinze denied that his firm was a
r7ember Of any United Copper Company
syndicate In 1907. Mr.. Wise asked.
did you have pool account or your
hooks in 1907
I don't think So
DID you have any joint account"
Il don't know" answered the witness.
T.ery effort to draw out information abou.
the existence OF 2 pool in 1871 VAS an