New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-11
TELL OF HE|NzE LOAN
Witnesses for Copper Man Begin
to Support His Side.
COUNSEL PLEADS FOR HIM
Court Unable to Find Out from
Lawyers How Much Longer
Case Will Last.

value of the United Copper Company Ply
o+,as Ir5,e uough who is presiding AZ
the rial was engaged from time 10 'ii.ie
in looking over the great blue prints leii-
inc of tho manipulation of loans IN tne
| period preceding the crash of Octopei' -
! Particular attention was paid to the S'V'
| oa0 borrowed from the Mercahtlle -N"'i
Bank by F. Augustus Heinze on octop.i
of that year and turned over TO QUO iiei'1N'
& Co to save that firm from trle swamp
ing imminent from the hurting ol o
Copper into the market. tr1ehuS VI 'A1
Heinzes who had promised to hold had
broken their pledges. If the prosecution
can show that this 100000 loan was misap-
piled and that it was not entered uii'h
after the checks drawn upon 1t had oeeh
certified. little time will be spent on other
| counts
The court after adiourning until this morn
ing called counsel to the bench to learn now
much longer the case would continue. John
r StanchfieId, of counsel for Mr.. HENCE
could not TELL he said because he did not
know how much time Mr.. Wise would take
to cross-examine the witnesses for the de-
| fence Mr. Wise could not answer any
better saying that he could not tell now
many witnesses the defence might stlii Call
| The day opened with a motion to DISMISS
the case by ex-Judge Wallace for MI
Heinze. This was denied. Then the sum
ming up for the defence by John G- TOM
Inson was begun 1t was an oratorical plea,
/ which wound up with the declaration:
"cIotbed in Robes of Innocence"
! This defendant has a right to be con-
sidered innocent until he is proved guilty
of an intent to defraud the bank He
stands before the bar of this court clothed
in the white robes of his innocence
Mr.. Heinze fdgeted when he heard this,
but tried to look unconcerned-
| Women spectators were numerous in the
courtroom yesterday There have Deel
| friends of the Heinzes sitting back OF the
| defendant throughout the trial They ire
| ouently chatted with Mr.. Heinze and his
numerous counsel Mr.. Stanchfeld had an
opportunity for this relaxation yesterday
as Mr. Tomlinson conducted the case.
Women relatives of the United States Az
torney and his staff sat within the bar
far removed from the counsel for the gov
eminent. Judge Hough made none of his
usual speeches. He left the talking to Mr.
Tomlinson. but got little impatient tow
ard the end interrupting 20 say that coun-
sells time was nearly up and that he mad
barely touched upon the defence.
1.-THE theory of the law said Mr. Tom
Iinson in opening lis that the United
States Attorney is prosecutor of men. IL
invariably comes to pass that he Is
prosecutor of men. The charge against
this defendant is very shadoWy. and its
connection with him very slight. Mr..
! Heinze is not here for his part in the man
agement of the United Copper Company
You may not like the way it has been man
aged. but has q single stockholder come
here to make complaint"
Mr. Tomlinson proceeded to praise Mr.
Heinze for his achievements in the West
for his LOYALTY to his friends for his fidel-
itv TO his brothers when In need. Then ne
came to the $4,000 loan. which Is regard
ed as the crux of the prosecutions case.
He said:
''Mr Heinze did say to loan 100000 to
Otto Heinze &, co. Mr.. q Brien has testi-
fed that he called Mr.. Heinze'S attention
TO the fact that this was an overloan In
other words, Mr.. Henze did not know IL
Now, to my mind. the prosecution in this
case fails right here. The defendant did
not say. Never mind; hush IL up He said
I'm a very rich man: I'll take the loan my
self I have never borrowed q dollar of
the bank He says. I'll stand behind it
he put UP securities for S2,0oe.00
There was enough stock outside of the
United Copper securities to pay the debt"
Heinze's Interest in the Bank.
Before this Mr.. Tomlinson pointed out the
testimony given by witnesses for the gov
eminent that Heinze was the owner of 5000
shares of the Mercantile National Bank,
which at $500 a share represented $4,000.
and counsel for the defence asked, with
dramatic emphasis:
Would such man have sought to rob
the bank?'
After the white robed" figure had been
disposed of the defence called as the first
witness William J Woll1an, a partner I'm
the firm of J. s. Bache Co. brokers for
James A Patten. In the prosecution OK
hibits before the court is a letter by Henze
guaranteeing the accounts Of Otto Heinza
and Max II. Schultze, carried by Bache &c
Co Mr. Wise had sought to show that this
letter referred to United Copper holdings.
If this could have been established it would
have connected the defendant directly with
the United Copper pool of 1907.
Mr. Wolman said that the guarantee COW
cred only the holdings OF Amalgamate1
Copper and not the United Copper carried
in the Bache account of Schultze and Otto
Heinze Mr.. Wise could not shake this tes-
timony in his cross-examination.
Harvey Brand. clerk in the Mercantile
National Bank who kept the pass books.
was the next witness He identified the
credit of 100000 which he had written in
Otto Heinze & Co.'S book. He remembered
also the statement which he prepared for
the Heinze company the next day. October
IS 1907. which showed a 100000 loan
credit as of October II, 1907.
on oss-examination the witness could
not remember where he got the entry from
The ledger and the banks credit book We're
produced but Mr. Brand could find the
credit in neither as of October IA.
Value of United Copper Stock.
Stanley Clifford, who was graduated from
the School of Mines of Columbia University
with Mr. Heinze in 1889 and was interest
ed with the defendant in his mining vent
ures was called. He was secretary of the
United Copper Company in 1907. Mr.. Wise
had said that United Copper in 1907 was
worth no more than last weeks newspaper.
Mr. Clifford reeled off a list of subsidiary
properties, from silver mines and coppe-
mines to great land holdings.
Mr.. Wise in beginning his cross-examiua-
ton asked the witness whether he knew
when he sailed for Europe last year that
there was a subpoena for him at the United
Copper Company's office. Mr.. Clifford said hb