New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-06
WISE PLEASED At LAST
Gets a Witness Against HeInze
Whose Memory Is Good.
TALE or MANIPULATION
Government Accountant Tells OF
Constant Cash Transfers
in Banks.

United States Attorney Wise at the end
of Yesterdays session of court in the trial
of F. Augustus Heinze on charges OF mis-
application and overcertifying while pTesi-
dent OF the Mercantile National Bank felt
gratiied foT two reasons He had had d
witness all his own one who could remem-
her and had figures to back him UP, and
his testimony seemed TO connect Mr..
Heinze with the heretofore elusive united
Copper Company pool of 1901.
In the beginning OF the trial yesterday.
and well toward the days close. before
.Tudce Hough, in the Criminal Branch of
the United States Circuit Court. Mr. Wise
had his usual experience, the witness,
Frederick Eckstein. who had been on the
stand on Wednesday, continuing to forget
not to know and so on. Felix Frankfurter,
Mr. Wise's assistant, was called on to take
the next witness. William F. Weiss, expert
accountant for the United Copper COM
many. so that the United States Attorney
might recuperate. Mr. Frankfurter ran up
against another poor memory. Then John
Fernsler. the governments expert account
ant. who has lived with the copper com
pany's accounts for a year, went smlllhS
to the stand.
Nj Wise started the witnesses memory
going at full speed, and soon there was
revelation of United Copper Company hlgh
finance. all in the spring and summer or
1907. that made the audience in the court
room gasp. +. Augustus Heinze's name
figured in the manipulations for whose pur-
pose banks in this city and Hoboken were
used, and in which hundreds of thousands
of dollars We're moved from one TO the
other in rotation that was an almost I'M
penetrable maze, but which had all for its
purpose the manipulation Of the copper
holdings of the Heinze family and their
friends.
The occasion Of the payment Of the last
dividends by United Copper, which was on
August ). 1907. was of especial interest to
Mr. Wise. Mr. Fernsler started in to eX-
plain this transaction with the remark that
the balance to the credit of f. Augustus
Heinze in the Mercantile National was
SEQ, 600 as the ball was started rolling.
Heinze borrowed 100000 from the Empire
Trust Company and deposited it in the
Mercantile. He then turned over to the
Montana Ore Purchasing Company,
United Copper subsidiary, 100000.
Max Schultze borrowed 100000 from the
Mercantile in Ecksteins name and turned
il over to the ore purchasing company. the
witness continued. The company had on
hand before these deposits over $4,000, and
the dividends were paid from the accumu-
lated deposits. $767,9lO. or so a share and
an extra $4,000 to F. Augustus Heinze rs
trustee a total of sS0S,330
The remanipulation of this sum. after the
dividend checks were returned to SChultZe,
was a greater maze, as brought out by Mr..
Fernsler than the first transaction, but
the wind-up was the payment of the loans.
higher price for United Copper stock and
a seemingly barren result to the manipula
tors However. the connection of the name
Of F. Augustus Heinze with this last divi-
dend payment was what Mr.. Wise wanted
to establish All the figures had one ten
dency for him. and that was the impliCa-
ton of the defendant.
Mr.. Fernsler showed that the dividend
by the same process, in which SChultze
seemed to be the chief ffnancer. Obtec-
tions from the counsel for the defendant
had lost their effect on the court. MT
Wise was connecting something Judge
Hough had been urging upon him in sew
eral drastic ways ever since the trial was
begun As the effect of the manipulatiOns
was to enhance the market value OF United
Copper. and as the Heinzes and Schultze
were the chief buyers. there was specula-
ton as TO the purpose of the dividend pay
ments. Mr.. Wise may put Mr.. Fernsler on
the stand again to-day