The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-30

heinne's connection with the marke,
Operations IN Urtted Copper while he we'
sctlpg a. president Of the Mercantile
n snnh The 0overnment put on the stand
the firm Of Otto Heinzs A Co. WhO j.
alleged TO have bean the manager OF tbs
pool IN United Copper. Ne Identified
the following letter. dated June u. lpOs
which he had written 20 Mr.. Hsinss a.
president Of the hank:
A. I informed you over the telephone.
] have taken on yesterday go shares Of
United Cooper and this morning 80 share-
On cable from Paris. ! request that you
ZEE me have 10000 against 100 shares Of
United Coppsr. which ! will return before
the 2oeh. 40 ! have enaa aged credit In Parts.
Pieaas lot me knOW ~ once.
This loan was made that same day and
paid back on the 10th.
what went on in the MsrcantilS's
board after the Heinxe intsresas took
control Of the Mercantile and the big
oans 20 the HeinEs. Moras and Tkomas
interests began was touched on in the
testimony Of two Il the directors. Who
we're called In the afternoon. One OF
those. Dick 3. Ramaay. president Of the
aase River SAVINGS rank. said that upon
neanses return from wise to Hot
springs. Ark, in ApTi. Ie0I. he went TO
him and told him that the bank had
heen running behind ia reserve almost
continoousay for twenty-five DAYS and
that he thought Il ought to he made good
40 once. Continuing he said:
Mr. q. r. Thomas then made q PROPOSE
ton that each member Of either the
executive committee or the hoard Of
directors contribute esO.OoO apiece to the
reserve fund. When this proposition came
"a me ! declined r. h. Thomas then
asked me what suggestion had 20 make
snad ~ tho call loan borrowers. % which
ne was one of the largest. should nay
their debts there would be no Necessity
for such q pFopostion"
Among the largest borrowers a. he
recollectsd at tina; time were y. X.
Thomas, Maclay a Co. the Thomas
brokers and Otto Heinze A Co
William skinner. the other director.
said that in August he remembered a
talk az which 10 was suggested that to help
the hank out Of ts difficulties the smaller
depoaitors should pay up their indebted
mess. by this ass he meant. he said.
the commercial depositors. This euggee-
ton. he eaid. came from Charles W
Morse. who was then head OF tho execu-
tive committee There was also q suGges-
ton that the directors put up yl0O.OOO.
hut he told Mr. Heinze that he could not
put up any such sum.
Il thought. however. IL was dangerous
20 run the bank below the reserve. a. we
had been doing. he said
The last witness Of the day was Otto
Heinge. and one Of the first questions
Mr.. Wise pat to him was II he knew
where the private ledger showing the
private accounts Of the members Of his
firm was he said he did not hut he
thaught that Mr. Wise had IL.
II have IN my possession. said Mr.
Wise. certain books. and ! ask that the
witness be permitted 90 examine them to
see u this book In among thsm. These
books are all that We could hnd belon ging
to tho witness Arm IL took three men
A.. an. - h. ~ NJ
Heinze looked than over and then said
that the private ledger was not among
them and that he hadn't seen Il since the
firm failed. on October 10. 1897.
Taking up then the United Copper
pool. SIR. Wise asked him II there was any
agreement regarding United Copper in
loOs. The witness said that there was
such an agreement between Arthur p
Heinze. Otto Heinze a Co. Max Schultz
and p. Augustus Hein1e. That agree
ment was. he said. that ne should pro-
tect the interests % our stockholders. our
company and ourselves. We were to
buy United Copper stock. Our credit
and the credit OF our company had been
attacked by the standard OIL
Company and in interests. Our stock
holders had become dtsgrlntled because
the stock had been forced down in the
market We we're 20 buy the seock to
protect IN from such attacks. when u
was thrown on the market Ne were 10
buy at such price a. we saw ne.
The witness said that this statement
, and Mr.. held had been on his
feet objecting from the minute this line
of Questioning had been taken up. insist
ing that ~ y. A. HeinKe was in no such
pool in 1907 10 should not be admitted.
Tho Court finally decided to listen 20 an
the trial was adjourned until then. with
Otto Hejnxe still on the stand