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Show !W ARRESTED I SERIOUSCKARGE ell-Known Copper Magnate Is Accused of Illegal Certifica-tion Certifica-tion of Big Checks. I "4 Irnishes bail IX V THE SUM OF $50,000 a4 5fc jt. 4 i innsel for Accused Says Trou- J sigh in Bookkeeneiug. i ' YORK, Jan. 7. Indicted by the ;i Moral grand jury for over-certification ? f, checks representing in the aggregate '1 ver ?100,000, drawn by the firm of Otto njfij fejnac & Co. on the Mercantile National 'ill k. Augustus Ilelnze. the copper Jagnate and former president of the 't fercantllc National bank, surrendered - ilmstlf to United States Commissioner frS fields today and later was releaaod on r J W.OOfl ball, Hclnze will be formally ar- it ilgncd to plead to the Indictment by ri: uflge Challield, In the United States Cir- V ttg uU court, tomorrow. f iKdwnrd Lnutorhuch, counsel for Hclnzc, "m atrtl tonight that Ills client did not rcii llfullv over-certify the checks, as he iZ drawn, a check to the credit of Otto frinzc ii Co. to the amount, of ?300.000, " rhk-li the bookkeeper of the bank possl- , I w failed to enter on the books until ?4 -day after the certlllcatlon of the checks alii i, question. I,!? Aftermath of Collapse. TIjlii5 indictment by tho Federal grand ,lkv. which bus been Investigating the vf 'Mercantile nnd other banks identified tjtli the Hclnzc and Ciiarles W. Mor.se i wcrcstf. Is the aftermath of the collapse kCrJ-the Helnze pool In b'nRed Copper and ii'ftlith brought about tho suspension of TfZwfow Kleebcrg. stock brokers, and ro-3llltPd ro-3llltPd In the resignation of F. A. Hclnzc Wflhtr- the presidency and the retirement Hi' the directors of the Mercantile Na-fllbnal Na-fllbnal bank after an examination of the !iAnsttii:loii had hc?n made by the clcar-jjPn? clcar-jjPn? liuusc. He declared at the time that 2flic had been betrayed by his friends in Hll" United Copper pool. Hcltize had ljcen Informed quietly that lidlctnicnls charging him with the ovcr-Jjfcertlfieatlon ovcr-Jjfcertlfieatlon of fifteen checks, all drawn eflpn October M. just before the smash in jKhltcri Copper, hud been found by the 2 Pfderal grand Jury on "December 2, and 2 IJM his appearance would bo required 'J? today. Without awaiting the service of f il'bciich warrant, lleinzo. in company if llh his counsel, appeared before Com- il ihlssloner Shields this afternoon. The ,iy vroceedlngs were short. Helnzc pleaded !l t guilty, and bail was Vurnished Ini-7 Ini-7 ledlately by a surety company. When we pro' codings were concluded llelnze (M the newspaper-men that he-dtfl not ite to make any statement, and hurried jj'i iray ulth his counsel. i k Statement of Defense. f ftor tho examination of the indict- J' pent, which conuiijied thirty counts, Sdunsel Edward I.a;itcrbnch tonight ll m thr following slatement: 3 iJ'-'Tlie indktini-nl la based upori ceitill-T ceitill-T rallon of llfloen cheeks amounting to something over $100,000. drawn by Otto 4 Mz Co, on tho 1 Ith day of October a',. Hefore the certification was made l: r."AusuHtup llelnze obtained tho discount ?i if' u note of $500,000 secured by abundant itotk exchange collateral, worth, at the T narket rate of that day. more than SS00.-ji SS00.-ji MD, nnd drew ids check for ?500.000 to fi the credit or Utto Helnze & Co.. the i"v nmniiiit of which shouUI have been pbn ed lo lhclr cir .lit. as I think It was. There. certainly was no willful intetit within the ;l Jlatute to over-certify any rheck. not jl !V?n to the extent that over-certification j W prarti"cd evry day In Wall street by ..j ll. thi banks as a matter of business i mcccsalty. On tho contrary, as t have A atatcd. there was far more than the ffiinount of tlie ohecks standing to the frcdlt of the account of the drawers of 0 ,tif cheeks when they were certified. I jjl Mlovo that If I be grand Jury could have jjwdenuood th" situation correctly no ln- Jlflniriit would have been found." 'j Heavy Penalty it Convictoa. t & The Indictment specifically charge? that I - kHcl.tizc. while president of the Mercan- i ilc Xntlonal bank, over-certified fifteen filitcltp; that Is. that he guaranteed by : tliu hank's signature that the s-unis lndl-V lndl-V mtfl In sh ehn-ks wef. held bv the fi "wU ltion to the credit of the drawers. $ To ovr-fnrtlf bank pap-r Is, under the 3!'Jciji1 hiatu.e. mi offense iuinlshable j i'V Impilconmen'. of not les than five ! M im(5 MOt i"0" limn ton years. j f W-One conn l. Is devoted to each of the j' ,mc):s involved It Is alleged that he :l.V.,ehi!te) knew that Otto Helnzc & Co. i II i)6i liave to Its credit th" sums ned. Thr- sixteenth count in the In- I tniontn charges that Melnr.e Intention- I v nppiirfl the fumls of the bank, and ! hout tlie knowledge of the dlrcctoral". , the puyincnts of the nfteen checks , iwii by otto Heinse & Co.. and know-I know-I that the company did not have on wait a sum equal to the amount named the certified checks. For such nn of-Ke of-Ke thr Kedeial statutes provide a pen-F pen-F of not less than five years' Imprlr-Ticnt Imprlr-Ticnt or a lino of not more than ?3000, both, he checks certified to by Heinze. ac-Ins ac-Ins to the Indictment, wer as fol-i'S; fol-i'S; Jroi &- Kloel.erg, S.7i.t ; II. T. Cary o., $23.tW.t, c-'uyicr Morgan .v Co.. Sl.t.-H. Sl.t.-H. SinUhers Co.. $11,001!; .1. S. iLLS" U -.S0: Wasserman )3ros.. 08- Marshall S'puder St Co.. ?IP.i;7l; ! ore. Moore ,t Moore, 53-l.Io2; .1. V. Iwte & Co.. l?.M- -Stcinbi-rgor-Slmms npany. Slf..u00; PtcrJera.:r-Sliiim8 com-iiy. com-iiy. HG0r.; Ilayden. ?tonc Si Co., $12,000; . J'osenberg. S6U0u; 1ross ,t TClee- i W. fSU.000, and 13. T. llutton & Co.. 'id. Where Troubles Began, fhe troubles of Augustus Ilelnze began i in the hn rampalgn startr-d bv Otto ! inze & co. and associates In the stock i , ill'' 1 ni ted Copper company, which' ilelnze had organized and developed ;r his long figlu with the Amnlga-cl Amnlga-cl c opper company. The stock was ling about GO when a mysterious soll-fJiva.8 soll-fJiva.8 delected. Believing it to br- an il i.ln. rald t,U; "lock by short selling. '7 Hclnzc ,t Co. gave unlimited buying ,"a..lo various broker, believing that mm , lmi" ir"ie the bear operators '"'U be unable to cover lhclr contracts nSRf ut s.U"h wl"'' Hie llolnr.A ?lIy1?. aiclat'Ml. Heavy soiling of i? topper continued, and then, t.j rcnase the stock offered, otto Helnzc lo. were forced to draw contracts for ce fiinounts to various brokers. When J 0rce of tlia selling was ascertained ileliizr-s declared that they had been ,.ayc1, .l'.v friends who sold their hold-"nWvi hold-"nWvi L "!,.,;d Copper on the high mar-iSS mar-iSS cii.V i-J.ho JL "ited Copper stock" ulumpcd. m AhdVri1 "? , K,V'f-'. stocl; brokers, 5us- '3 Sjnn..Jn rnIttJ ,,n u,e stn(il! of fie United fi ror thin,npnny whlch 1)0nn bought A c,l8l5 was provoked hi the afi'airo of the Mercantile National bank, and tlie clenrlng house committor made nn examination, exam-ination, following which Helnzc withdrew-from withdrew-from the Institution a an officer, but. with his friends, still maintained a stock control which lie had purchasv several mom lis bi-fore from Edwin Gould. There haVc- been reports recently in the financial finan-cial district that. 111.- Gnuld interests would again assume control of the Mercantile. |
