2e884442Full suspension
Other: Bank is repeatedly referred to generically as 'Butte bank' in articles; officers issued statement claiming solvency and suspension 'to gain time.'
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HEINZE INTERESTS GET SEVERE BLOW Head of Copper Concern Retires from Bank. OFFER RIDGELY PLACE Stock of Mercantile National at a Sacrifice. Comptroller of the Currency and His Friends Can Obtain Shares at 200, While 300 Was Paid in January-Butte Bank Closes, and Brokerage Firm of Otto Heinze & Co. Is Forced to Suspend Business.
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The failure of the Hamburg firm, and the Butte bank followed closely on the news of the suspension of the Heinze firm on the stock exchange. The Butte bank was largely controlled by the Heinze interests, F. Augustus being the principal stockholder. The news of the Otto Heinze company's suspension from the stock exchange and the failure of the Hamburg firm precipitated a run which immediately caused the suspension of the bank. It is said that the claims against the firm, growing principally out of the attempted corner of United Copper may reach $2,500,000.
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Drop In Refine I The low price of refin dropped even lower toc organized condition of I market, is the reason A duction of the divider companies. The annot Amalgamated dividend as a surprise. While it would be a reduction, the lowest dividend exis The failure of the His the closing of the Butte quietly on the news of of the Heinze firm on change. The German firm lost heavily in the rede pers and yesterday and ments on the New Yo said to have forced the The Butte bank was la by the Heinze interests Heinze being the princi and the news of the Otto sion from the stock excl failure of the Hamburg fi a run which Immediately e pension of the bank. In a sued by the officers it was the bank was perfectly solv suspension is solely for the gaining time to arrange th fairs. A number of meetings were in the office of Otto Heinze & statement of any sort was It is said that the claims firm, growing principally ou tempted corner in United ( reach $2,500,000. William A. Nash, president Exchange bank. and acting the clearing house committee night that the committee, W co-operation of the officers cantile National bank. made ( tion of Its condition after business tonight. The exam very thorough and was no until a late hour. Mr. Nash sociates said they were con the results of the examinati bank is perfectly solvent, : meet all its Indebtedness. T $3,000,000 is intact, and there surplus.
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and that he would continue as director. William B. Ridgely, at present comptroller of the currency, has been tendered the office of president of the Mercantile National bank, but has not decided whiether or not he will accept it. The low price of refined copper, which dropped even lower today, and the disorganized condition of that metal in the market, is the reason given for the reduction in the dividend in the copper companies The announcement of the Amalgamated quarterly dividend of one per cent came as a surprise. While it was known there would be a reduction one and one-quarter per cent was the lowest expected. Hamburg Firm Lost in Copper. The failure of the Hamburg firm and the Butte bank both followed closely on the news of the suspension of the Heinze firm on the Stock Exchange. The German firm is said to have lost heavily in the recent drop in copper, and yesterday and today's developments on the New York exchange are said to have forced the failure. The Butte bank was largely controlled by the Heinze interests, F Augustus Heinze being the principal stockholder, and the news of the Otto Heinze suspension of the Stock Exchange and of the failure of the Hamburg firm precipitated a run which immediately caused the suspension of the bank. In a statement issued by the officers it is declared that the bank is perfectly solvent, and that the suspension is solely for the purpose of gaining time to arrange the bank's affairs. A number of meetings were held today in the offices of Otto Heinze & Co., but no statement of any sort was given out. It is said that the claims against the firm, growing principally out of the attempted corner in United Copper, may reach $2,500,000. Alarming rumors were in circulation in Wall street just before the close of the stock exchange to the effect that other firms than Gross & Kleeberg had suffered heavily through the operations of Otto Heinze & Co. firms in United Copper. Four other were involved, it is said, to the extent of about $1,500,000. The Heinze Suspension. Max M. Schultze, Stock Exchange member of Otto Heinze & Co., was indefinitely suspended this afternoon, his suspension being announced by the secretary of the exchange in the following notice: "The president of the exchange has decided to suspend Max M. Schultze, it being imperative under the rules, inasmuch as he had time and opportunity to notify the exchange of insolvency and did not do so. The suspension will stand until he has met all his obligations and has been reinstated by the Committee on Admissions" Otto Heinze & Co. issued the following statement at the opening of the Stock Exchange today: "Otto Heinze is no longer a member of the firm of Otto Heinze & Co. The firm of Otto Heinze & Co. feels itself perfectly solvent, and will meet and pay all its just and legal obligations in full. The firm, however, refuses to pay obligations which it does not consider legal or just until a proper adjudication of the matter has been made. Rather than submit to such unjust demands it prefers to protect itself, to temporarilq be suspended from the privileges of the Stock Exchange." Copper Long Unsettled. For some time past the situation in the copper shares market has been rather unfavorable. For a number of weeks the Amalgamated Copper Company has been holding down the product of its mines to about onehalf the normal output, because of a heavy overproduction and the refusal of the consumers to buy at the which had prices prevailed. Amalgamated Following the policy of the Copper, the Clark and Phelps-Dodge interests, the Cecel Pacio copper mines in Bolivia, South America, it
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Failure to Hold up Market Causes Suspension of Firm on Stock Exchange. BUTTE BANK CLOSES DOORS Montana Magnate Suddenly Resigns Presidency of Mercantile National of New York. By Cable to The Daily Gateway. New York, Oct. 17 - - Failing in an attempt to corner the copper market Otto Heinze & Company were forced to suspend payment on the stock exchange today. They issue a statement saying that they will pay dollar for dollar on all legitimateobligations. At noon today F. Augustus Heinze, the Montana copper king, resigned the presidency of the Mercantile National bank.
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SOME CAUSES AND FACTS Why Otto Heinze Suspended-Says He Is Perfectly Solvent. The suspension of Otto Heinze & Co., of which firm Max M. Schultze is the Stock Exchange member, was based on a complaint to the exchange made by Gross & Kleeberg, a Stock Exchange firm which failed Wednesday. This firm charges Otto Heinze & Co. with refusing to accept 3,202 shares of United Copper, said to have been bought on the order of the Heinze firm. This action, Gross & Kleeberg state, was responsible for their failure. The Heinze firm announced that it is perfectly solvent, and that all its legal obligations will be met-the Gross & Kleeberg claim being believed, it seems, by Heinze not to be legal. The resignation of F. Augustus Heinze from thepresidency of the Mercantile National bank, it is said, was decided on at a midnight meeting. Heinze gave out a statement in which he said that his resignation was due to the fact that he wished to devote all of his time to straightening out the business of his brother's firm. William B. Ridgely, at present United States comptroller of the currency, has been tendered the office of president of the Mercantile National, but has not yet decided whether or not he will accept. The low price of refined copper, which has dropped even lower, and the disorganized condition of that metal in the market is the reason given for the reduction of the dividend in the copper companies, The failure of the Hamburg firm and the Butte bank both followed closely on the news of the suspension of the Heinze firm on the Stock Exchange. The German firm is said to have lost heavily in the recent drop in copper, but a Hamburg dispatch says the chief reason of the difficulties of the firm is in mining deals in Europe entirely disconnected with any business in the United States. The firm's liabilities are reported at $7,500,000 while the capital back of the firm is $2,250,000. The firm is seventy-seven years old. Recently an old member of the firm died and younger and more "aggressive" men assumed control. The Butte bank was largely controlled by the Heinze interests, F. Augustus Heinze being the princinal
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AS a result of these sensations the stock market was halting and irregular, but these was apparent a feel. ing that the break of the attempted corner in United Copper had cleared the atmosphere somewhat, and the market rallied before the close. A number of meetings was held in the offices of Otto Heinze & Co., but no statement of any sort was given out. It is said that the claims against the firm, growing principally out of the at. tempted corner in United Copper may reach $2,500,000. SOME CAUSES AND FACTS Why Otto Heinze Suspended-Says He Is Perfectly Solvent. The suspension of Otto Heinze & Co., of which firm Max M. Schultze is the Stock Exchange member, was based on a complaint to the exchange made by Gross & Kleeberg, a Stock Exchange firm which failed Wednesday. This firm charges Otto Heinze & Co. with refusing to accept 3,202 shares of United Copper, said to have been bought on the order of the Heinze firm. This action, Gross & Kleeberg state, was responsible for their failure. The Heinze firm announced that it is perfectly solvent, and that all its legal obligations will be met-the Gross & Kleeberg claim being believed, it seems, by Heinze not to be legal. The resignation of F. Augustus Heinze from thepresidency of the Mercantile National bank, it is said, was decided on at a midnight meeting. Heinze gave out a statement in which be said that his resignation was due to the fact that he wished to devote all of his time to straightening out the business of his brother's firm. William B. Ridgely, at present United States comptroller of the currency, has been tendered the office of president of the Mercantile National, but has not yet decided whether or not he will accept. The low price of refined copper, which has dropped even lower, and the disorganized condition of that metal in the market is the reason given for the reduction of the dividend in the copper companies. The failure of the Hamburg firm and the Butte bank both followed closely on the news of the suspension of the Heinze firm on the Stock Exchange. The German firm is said to have lost heavily in the recent drop in copper, but a Hamburg dispatch says the chief reason of the difficulties of the firm is in mining deals in Europe entirely disconnected with any business in the United States. The firm's liabilities are reported at $7,500,000 while the capital back of the firm is $2,250,000. The firm is seventy-seven years old. Recently an old member of the firm died and younger and more "aggressive" men assumed control. The Butte bank was largely controlled by the Heinze interests, F. Augustus Heinze being the principal stockholder, and news of the Otto Heinze suspension on the Stock Exchange and the failure of the Hamburg firm precipitated a run which immediately caused the suspension of the bank. In a statement issued by the officers it was declared that the bank is perfectly solvent. and that suspen-
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SOME CAUSES AND FACTS Why Otto Heinze Suspended-Says He Is Perfectly Solvent. The suspension of Otto Heinze & Co., of which firm Max M. Schultze is the Stock Exchange member, was based on a complaint to the exchange made by Gross & Kleeberg, a Stock Exchange firm which failed Wednesday. This firm charges Otto Heinze & Co. with refusing to accept 3,202 shares of United Copper, said to have been bought on the order of the Heinze firm. This action, Gross & Kleeberg state, was responsible for their failure. The Heinze firm announced that it is perfectly solvent, and that all its legal obligations will be met-the Gross & Kleeberg claim being believed, it seems, by Heinze not to be legal. The resignation of F. Augustus Heinze from thepresidency of the Mercantile National bank, it is said, was decided on at a midnight meeting. Heinze gave out a statement in which he said that his resignation was due to the fact that he wished to devote all of his time to straightening out the business of his brother's firm. William B. Ridgely. at present United States comptroller of the currency, has been tendered the office of president of the Mercantile National, but has not yet decided whether or not he will accept. The low price of refined copper, which has dropped even lower, and the disorganized condition of that metal in the market is the reason given for the reduction of the dividend in the copper companies. The failure of the Hamburg firm and the Butte bank both followed closely on the news of the suspension of the Heinze firm on the Stock Exchange. The German firm is said to have lost heavily in the recent drop in copper, but a Hamburg dispatch says the chief reason of the difficulties of the firm is in mining deals in Europe entirely disconnected with any business in the United States. The firm's liabilities are reported at $7,500,000 while the capital back of the firm is $2,250,000. The firm is seventy-seven years old. Recently an old member of the firm died and younger and more "aggressive" men assumed control. The Butte bank was largely con-