The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-04-28
HEINzE NOW ON TRIAL
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nv duty as such. The Standard oil has
nothing TO do with this case, and, so
help me GOD, 1t Will have nothing TO
do with it,"
MIR. Wise said ne would show that
the stock Of the United Copper com
pany, on which the money was loaned
to the firm of Otto HeinZe Co.. was
worth at no time between January,
1903, and October, 1909, more than $40
a share.
Il will show you" continued Mr..
Wise, that Otto Heinze, Arthur Heinze
and Max C. Schultz held the controlling
stock in the United Copper company
and formed pool to initiate the stock.
"FIim-F,am of Wash Sales"
They proceeded with the usual
film -flam of wash sales" continued Mr..
Wise, in his illusions to the United
Copper management.
The prosecutor told the jury that F.
Augustus Heinze was at that time pres
ident OF the United Copper company
and president of the Mercantile Ma
tiOnal bank.
He declared that in Financing this
bank, through Heinze. lent Otto c.
Heinze & Co. from June to october IA,
1907, $4,000 without adequate Sc
curity.
/ Mr. Wise, after such men as Barney
land Morse refused to enter into any
such wildcat scheme, the firm of Otto
| c. Heinze & Co. owed nearly 100000
to the Mercantile National bank, which
| it had put in the position of a gambler
/ in Wall street
lotto Heinze & Co. at one time
engaged in the dry goods business in
closed up shop in a night and be-
| came a brokerage firm. They entered
/ Wall street with about as much knowl-
edge of affairs as two-year-
I will ask at the close of the trial
that this man be found guilty. I shall
| prove that this man, as trustee, had
! violated his trust, and as a result the
| Mercantile National bank has been
looted. And I shall ask that he be
| punished as a lesson to all men that
! they may not DO likewise"
Testimony introduced.
When counsel had concluded their ad-
| dresses, the government began the in
| PRODUCTION OF evidence, important
! among which letter of August l, 1907,
"OKd" by the defendant and ad-
| dressed to the Mercantile National
| bank, as follows
please deliver to bearer from col
lateral you are holding as securities
100 shares Louisville & Nashville, 100
| shares Southern Pacific common, 100
| Amalgamated Copper, and receive in
exchange 1000 United Copper COM
mon"
The securities. which the 1000 shares
| of United Copper replaced, had been
/ left by Otto HeinZe Company as part
security for a loan Of $4,000 on May
"a, 1907.
Testimony was given to show that
! on May 81, 1907, a loan for $3.50 900 by
| the Mercantile National was secured
by 100 shares United Copper preferred,
| 500 United Copper common, 500 Ameri-
| can Ice. 500 Southern Pacific and 500
| Union Pacific and various loan book
| entries were read to show how Otto
| Heinze e Company are alleged to have
obtained loans from the bank on
standard securities, later substituting
therefor less valuable copper stocks.
Money Loaned to Clerk.
An entry of August 3, 1907, was ad-
mitted after much objection on the part
OF the defense. It purported to show
that $500 600 had been loaned to a
clerk in the United Copper company
office and in turn made payable to the
Montana ore Producing company, one
| Of the Heinze concerns. Mr.. Wise
sought to show that this loan had Grip
pied the banks legal reserve.
other entries were read showing that
on August 10, 1907, Arthur p. Heinze,
a brother of the defendant, had Dor
rOwed $4,000 on LOO shares of
United Copper. Arthur HeinZe was a
director of the hank at the time and
the loan of $4,000 was placed to his
own account, swelling it from $4,000
to $4,000.