The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-04-29
DOWN TO RECORDS
IN HE||VZE TRIAL
Facts and Figures Regarding
Loans Approved by Defend
ant Presented.

NEW YORK, April 2S.-The trial OF
F. Augustus Hejnze settled down today
to putting on the record facts and fig
ures regarding various loans approved
hy the defendant while he was president
of the Mercantile National bank.
The government charges Helnze with
misapplyIng the banks funds and over
certincation In an effort to promote
speculation in United Copper stock
through his brothers firm, Otto Helnze
& Co.
Emil Klein. cashier Of the. Mercantile
National bank who testified yesterday
as To loans to Otto Heinze & co. and
others on United Copper and American
Ice collateral, which the government
claims was insufficient, resumed the
stand today.
Ono OF The loans OF this group was was
Eckstcm. a clerk In the employ OF
Hoinzc's United Copper company. 1t was
for $600.00 and was transferred by Eek
partners, who in turn. IT is alleged trans
ferred II to the account OF the Montana
ore Purchasing company HeinSe con-
Germ.
deeper into the history OF the 5000. 600
loan. Judge Hough ovcrruled the de-
fense's objection. saying that the loaning
history OF the bank was essential. uooa
Otto HeInze & Co. obtained $4,000,
which was paid the next day; but on
that day the firm obtained sla5 900, CIV
dav. on September l, 1907. S2i5 interest
was paid but the testimony showed the
space marked when paid" is still
blank.
Long Series of Loans.
Mr., Wise raked over the account OF
Otto HcInze & Co. from August 8 the
date Of the Eckstein loan onward, ask
ing questions OF Cashier Klein that
brought out the statement that loans
were made almost daily.
According to the testimony, the legal
reserve OF the bank dwindled until on
August 10 il was more than $1,000, 900
below the legal reserve.
from Otto Heinze Co. eXchanSe on
Paris for 100000 francs. and on Bremen
for $50 900 marks.
The purchase money was allowed to the
account Of Otto Heinze
On August IS. soi6. 900 was loaned Otto
Heinze & Co. without collateral except
demand notes. They are still paying in
terest on this loan The money was
withdrawn from the bank On October
To- Otto Heinzc Co. got 100000 from
the bank on a demand note signed by
Max H. SchultSe. The next day 100000
was loaned the firm unsecured IL was
testified. except for demand notes, which
are still unpaid.
1T was developed lnal the purchase OF
the exchange on Bremen and Paris was
necessltatcd by an ORDER Of the federal
bank examiner. who gave the Mercantile
sixty days in which TO bring its reserve
up 10 the legal standard,
Heavy Borrowing.
Cashier Klein. in answer to Mr.. Wise's
question. testified that at various times
from August 10 October II Otto Hcinze
& Co. owed the bank from 100000 to
$3.50. 900. When the demand loan of
$500. 900 was made TO F. Augustus Helnze
by the bank. Heinze had but s9917 to his
credit. the witness said, A total OF Sl66,
900 was repaid on the Heinze loan on
checks drawn on the National Bank OF
North America, Charles w. Morses
bank.
Mr. Klein said the $500 900 check was
deposited 10 the account OF Otto Heinze
& Co. and was drawn against.
Mr.. Stanchtcld. HctnZc's counsel,
wanted to know, why Mr.: Wise did not
show the other loans Of October II, The
prosecutor started TO do so. but the
court stopped him. Mr.. Klein said he
Ilenze's personal authorization. after
Klein had talked with Max Schultze. who
asked for the loan.
A letter from Comptroller OF the Cur
rency Rdgely 10 Hclnze, as president OF
the Mercantile National bank. dated Au
gust 10. 1907. was read into the record.
The letter called attention TO the loan
OF 100000 TO Otto lieinze & Co. as In
excess by $3.50 600 OF the amount permit
ted by the national banking laws. II
also contained a demand to make good
a deficit of S750,OoO in the banks re-
serve.
on Angus, 27 Heinzc wrote the comp.
troller. stating the account with Heinze
Co. was reduced to s26o,Ooo Mr.: Klein
testified that the Heinze companys debt
TO the bank on that date was S330 600