New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-12-06
H[INzE COUNTS UPHELD
slvurene Court Passes Upon
Conversion Cases.

-,-.,,--o,, Dec k-Hofding that the
...+ ,~or-r Of the United States for the
xa,,fe-n District of New York had erred
- c,,--er,le Court Of the United States TO-
- reversed the lower court and heid SUI
80 Various counts OF indictments chafs-
Augustus Eeinze with the r1ssapp4i-
-, ~ funds CT the Mercantile Nationai
,,,nk Of New York City. OF which ne was
,=.r+ Further proceedings on these
e.,,-ts must now be taken IN the lower
court
o. ~ The 1,oiuts On which the lower
,-,-4 77alS the indictments insufficient was
So thew did not show 8 conversion DS
Sc recipient Of the proceeds OF cerlsA1
les discounted After reviewing 'hS
..-e-.aus cases touching on this point Jus
,5ce NcKenna to-day ~ announcing tut
decision Of the court Sale
-e1r follows that the Circuit Court ere
d. considering as necessary not Only IhdO
500 sho7,Id be alleged conversion ny the
.=cs- Of the bank. hut also OF the recipient
:. he proceeds Of the discount The con-
.e-e4on NAV be 70 the use OF either ana
- sndi-rraeut fulfIs the requirement
The coustitutionality Of the act OF MaTcf
. ;aH-- allowing the government al appeal
g. adverse decisions On preliminary pleas
a. criminal cases was Upheld hy the court
- reiterated the statement that The
-sut- ~ apueai WIS not Essential 70 due
process OF Jaw
E4eiaze was indicted first in 1893, - presi-
s--- Of the Mercantile National Bank Of
--ez York City, On a charge Of intent 70
ssf-apd the bank by causing the bank 70
discount improperly single name CONNER
rfsI pape- amounting 70 about Slrsoe.ooo-
counts vera stricken cut of
&c indictment on technical grounds The
.-f-r,Jft Court Of the United States for the
Southern District of New York. in which
si,e Indictment was brought, held that the
abatement was defective because Il does
-e- charge conversion ard that the word
+e71pplied the legal measure which the
ror-- has not been able 10 ind in '~flful
riisz pplicstiou-
TIE next year. 1916 Eeinze again was in
ffrred on practically the same charges
hut This time 1t vas alleged that the pur-
nose Of tho alleged ''u1isapplication' was 10
s-%s-e the stock Of the United Copper Com
rsnv. Again the indictment was found to
:. guilty in vital counts From both hold
,ugs the government appealed 10 ire So
.-erne Court of the United States in &C
rrdance with the act OF Congress allow
.az the government an appeal in certain
Criminal cases where the decision en- points
O. law had been adverse 20 Il
While Fritz Augustus Heinze IS not
s1elv TO be called upon 10 face another
fury on the indictments found against
Jim in connection with alleged -lisappli-
ration and generalization CT the funds
or the Mercantils Bank. Henry 4. Wise,
tinted States Attorney. IS eiated over the
szc- that the Supreme Court Of the United
States has reversed The decision OF Judge
Eough cuasl1fnE the majority Of the
counts n the indictments.
The first indictment found against
15air-e contained sixteen counts. charg-
sn- both GENERALIZATION and u1isapplica-
son of funds. Judge HoUgh struck out
fifteen OF the sixteen counts. A new fndict-
f1eut Nas procured. containing both num-
se-ed and lettered counts, containing both
charges. The Judge. on technical grounds,
stgl3ck out The numbered counts. leaving
oalv those indicated by letters. Forced to
r - trial On the over-certifcstion counts,
re government failed TO secure e convic-
tiou Mr. Wise yesterday expressed the
view thai If the case had been tried on the
s-s7icrmer2t SIS found conviction would have
been certain
As the two sets OF charges are so closely
connected. X is regarded as doubtful. ho~--
r7---. whether conviction could be secured
q any one set.