New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-29

O'Brien was in court he went over 10
him. put his arms ABOUND his shoulders
and assured him that there was no IN
tention of making Mr.. o'Brien responsive
for anything Mr.. Heinze may have done.
Mr.. oBrien. it was said. was summoned
by the government as a witness. Friends
Of the vice president said that Mr. o'Brien
was not in any way responsible for the
Heinze transactions.
Cashier Points Out Loans.
At the beginning Of the days proceed
inss Mr.. Wise had Mr.. Klein point out
the loans made 20 Otto Heinze & Co. with
the amounts. when the reserve was below
the legal limit The latter fell to si.lls.ooo
below on August Is. after the bank leb
the company $4,000. Soon afterward. on
August q. occurred the purchase OF for
eign exchange. for 10000 marks on Bremen
and OF $4,000 francs on Paris from the
Heinze company by the bank. the amount
Of the purchase being applied TO the loans
OF March IL and August le- Later loans
10 Otto Heinze & Co. testified 10 as APP
pearing on the books were:
August IS S2ls.ooo: on the same day
$4,000: October 10. $4,000; october Il. SO
900 These appeared in the indictment
respectively as counts "a. "A. 5A and ga
Three loans are not secured, have not been
paid. according 10 the witness. Mr.. hleln'
but interest has been Forthcoming right
along. Counsel for Mr.. Heinze declared
that they are secured by adequate collat-
eral.
Mr. Klein said that on October Il the
books showed that Otto Heinze & co.
owed 1896 900. for which the bank held the
following collateral: one hundred shares
United Copper. preferreu; 1890 American
Ice. and $500 United Copper common. AT
the close Of business or that day the
hanks reserve was s755. 600 below the legal
limit. it was testified.
Bank Gets a Warning.
Mr.. Wise, after vigorous but futile Cd
lection from Mr.. Stanchfield' had re'
fer from william p. Ridgely. Controiler Oh
the Currency, read and put IN eVioenoe
1t was dated August 10, l'O'. ana was aS
follows:
The renor, on the examination OF your
b.,,i, "a, he 9Th inst has been received ana
csref,,Iiv considered. The loans 10 Otl2
Heinze q Co. amounting 10 SoOgeo' arr ar, IN
excess OF the amount permitted nS ~. III
ststfTfes of the banking law. The limit a.
lowed Is $4,000 in your case. W lie 80
noted that the amount was rtuuCeu "a Ia
cay OF sd Ilte HnoIIsterai should be pro-
'g There was a deficit Of $4,000 in the re
serve OF your hank. bringing the
= a,l,. % 6 ner cent Section 9g OF the
s,a,ute prescribes a penalty for falling to
ma irtain the required reserve. GU arc &c
o1Jired 20 make your reserve BOou-
To this Mr.. Heinze answered that the
loans had been reduced TO s2so,ooo. and thar
every effort would be made to build up the
reserve.
The matter Of the 100000 loan then came
I'D Mr. Wise asking Mr.. Klein whether ne
had had any conversation with M HeinHe
regarding it. He said he had lie hau
asked what he would do TO meet H. MI.
Hefnze had said that he would pay half oil
il the next day. Then came the question
which brought out the contradiction on
Was any collateral given to YOU. or the
hank to cover that loan on October ~
None" answered Mr.. Klein:
Later. on redirect examination, Mr.. Wise
brought out that the collateral might Mt
have been deposited until october rs.
Heinze Drew No Salary.
Mr. Stanchheld began his cross exsmina-
ton by attempting TO make il appear that
Mr. Heinze vas merely a sort Of honorary
president Of the bank. He had purchased
eight thousand shares Of its stock for
60 Gee. GOO.
What salary did Mr.. Heinze receive as
president" he was asked.
he had no salary" was the answer.
Did not Nj OBrien receive the salary
that would naturally have gone 10 tho
PRESIDENT was the next question.
The objection by Mr.. Wise was sustained.
but the witness was permitted to tell Of in
increase Of Mr.. oBrien's salary to $4,000
from $4,000 after Mr.. Heinze beclme presi-
dent.
Mr. Heinze never borrowed money from
the bank. the witness said. between Marcn
and October. 1907. He told OF the balanc :
10 his account which ranged from S454.0oa
on June u. 10 $4,000 on October lC. The
$500. 900 loan was not placed to his credit
The fact that the loan was secured Y co.,
lateral worth in the market at the tim
nearly s2.0o0.0O0 was then brought out !,
the TESTIMONY Before adjournment unul
this morning Nj Stancaheld reverted rn
the Fischer loan Of $4,000 mentioned the
day before. and brought out that 'her, were
ten thousand shares. of Barnes King corper
stock held as collateral for H. This WAS
valued al the time al IS a share