Show PRICE FIVE CENTS I HEINZE ARRESTED ADMITTED TO BAIL TO-BAIL BAIL Form Former r Millionaire and Mine Owner Caught in Grand Jury Net r v LARGE LOAN UNSECURED Placed I I. I 0 U UI for Half MiIli Million Ill Wl Dollars in ill Cash Drawer of I Bank Batik i 4 W York p. F. Augustus former Copper king and c ji j. j in hi tire the recent Onan I 1 p panic nl arrested d today and hell In ball b by United States officers of or on fR III lug having violated tho tire national bank bank ng laws while acting us 08 president of or the bank f. f 7 HeInze is accuser itt In on one Indictment hn having Containing fifteen counts Count or of Certified checks about for totalling or bi brothers brother's i MM of oC Otto C. C firm arm it company eu Ott October I 14 at al r a unto when that such uch no amount on In a In- In first ln ht he Is accused on a repetitIon of the or i bank In in misapplied n. n time tho fud tunus funds Of tire the f. f certifying checks them to go through h his Institution f J Tho alleged over certification o er b by not irot more than fine nor 7 IR more than tiran five Il I years each Offense tOt A I I I 1 I Tire Tho misapplication carries n or nor n a Penalty or of than five 0 more than ten Imprisonment J for each offen c with a inns fine no alternative or or All u. n HeInze jaunty and aIry as as- treated URU his hll arrest and lI ht manner bonding In a All AllOtt a mistake ho soon be said It will wUl out All Inane drawn and the lots mor- mor more as s In tire the bank ip 11 tire the 0 O. O It C C. lI account n. n was sas merely ln n error In bookkeeping My I- I lawyer will f Ills attOrney Edward Laut Lauterach ch did explain lit In tills this formal Cormal statement j Tire The is hi of h amounting to 0 Something JI ov over r t rawn by Ott Otto HM company compan last Before tho the on October 14 1 P. P AU U obtained was wa L the thedie made mad die coUnt I of on a note Ot of Oters secured by l k stock collater t l' l worth At al the tho market rates of cit that da day m more ro than th and drew V rc hi chck f for Q 0 0 to e of Otto t I t-hC t Jl a. a company o nn o I t or cr which should should- hav p JI to lh their lr i iI I cr dt I I think 1 I 1 j c n. n There C certainly y wI o atio tIt tt t. t t. t C II Y 1 I or of UHla lI 4 I On th us ft r IrLy t 1 VII S-ILM f i ham thun of oC tI tho credit to th count ot tho 4 I ers cis of or tho the chocks thoy they c r- r Lifer 1 I believe c that hilt If JC the tire grand Jury j could rt have lInd understood r tood the thO I I I correctly no indictment would ci have hav I 1 ri-i ri An ii absolutely teJ of Or th the loan Joan incident came camo a. a IR lat laer r from Crom Seth Roth M. M n. n r C nt president cn of t the tho Mercantile MerCantile- National reW t bank IV J h t n shown o tile the statement Mr Milliken said sald l r rl I 1 l Augustus Augu Holme former I abe and mine copper owner wa ar r rested tolla today in hr New York on an Ion indictment indict Indict- ment punt found by b the grand Jury In cou con connection with o over certification of or tOll fourteen four four- t teen ell checks amounting amounting- to H was WILS later released on on I bull bail Tire Tho loan Joan which F. F Augustus s In is Said to have blue lobi obtained on a t note from th tire the Mercantile Na National onal bank was waa as without an any security whatever er ac according ae- ae I cording tn to Seth it M. M r. r Milliken Milliken who succeeded sue sue- 0 cI dell a. a as as- president h of or tho the bank When tire the statement of or Edward W W. j h counsel for tor or Mr blaze Heinze was shown to Mr Mi I n. n In which he be re restated stated that hl his client clients S 9 noto note was waa CO cov- I. I cred by collateral io tie paid h I i I I On Personal Note Nott I ITo I of remembrance the To thc tire best o m my note noh was tas uns unsecured unsecured- cur It was tas Mr own personal note nol for Cor a 0 loan 1031 made to himself It Is perfectly probable probable able that tins thIs rals raised 11 this sum lIm to holp olp out oat tire till of ot Otto lna company which was owing the thc bank a a. large amount If Ie he ire did however hoc I hl have no no knowledge of it H. I do not r remember that the books shrew that ho drew hla hit ch check ck fo for to 10 tire tho credit ol Otto or-Otto Otto 4 company T TAsked r Asked If ho Ju did not nol regard sueh L uch a large without security io lo bea a. a transaction Mr Ir r i 1 Yea Y aw although I do not think think Mr r did dl an any wrong thereby lie He doubtless felt that hl Iris his name was waa good I for forthe the sum J A-J- From what I know kno of oC the ca- ca c v I Mr Ir Milliken concluded I J do not th think thai Mr Heinze can b be h hOld ld i r Mr Milliken declined to attemPt tO to reconcile his statement or the loan loan-in I with the formal statement given I out by Mr Lauterbach The latter and I himself likewise would not explain ex ex- plain tire the discrepancies in the stories 4 My counsel has made all the legislation legisla legisla- lion tion necessary he said tonight The securities for my loan were ioan-were were all in th the bank before the fIrst of the fifteen Otto company checks were There was no illegal tion or misapplication of funds United States District Attorney usury Henry IA i Stimson gave the tho impression that there would bo be other arrests that is but tire the first of several Ho Ito would trot not den deny that there was this probability I do 10 not know when Mr Heinze will willbe be bet tried he ho said Cut But his trial will willbe itI be as soon Boon as the thc exigencies of of thi ice permit will appear tomorrow morning morningto to enter formal plea which will Joe not guilty i i-i i i |