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New York, Oct. 7.--The suspension of Otto Heinze & Co. was announced on the Stock Exchange this afternoon. . . Augustus Heinze resigned the presidency of the Mercantile National National Bank today, and Wm. B. Ridgely, comptroller of the currency, has been invited to accept the presidency of the bank.
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Tenders Resignation. New York, Oct. 17.-F. Augustus Heinze resigned the presidency of the Mercantile National bank today. W. B. Ridgely, comptroller of the currency, has been invited to accept the presidency. Suspension Announced. The suspension of Otto Heinze & Co. was announced on the stock exchange this afternoon.
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EXP suspent New York, Oct. 17.-The Heinze situation broaderied and flattened to-day. Toward the Western side of the continent, in Butte, Mont., the scene of Heinze triumphs, the State Savings Bank, a Heinze institution, in which F. Augustus Heinze is one of the directors and principal owner, failed. In this city the stock exchange suspended the banking and brokerage house of Otto Heinze & Co. In Europe the other brother, Arthur P. Heinze, probably learned of his summary dismissal from the firm of Otto Heinze & Co. because he had incurred individual liabilities estimated at close to $1,000,000. F. Augustus Heinze early in the morning renewed an offer to save the firm of Otto Heinze & Co. from going to the wall. He made an offer to pay $180,000 to Gross & Kleeberg, the stock exchange firm which assigned on Wednesday because Otto Heinze & Co. did not pay for the stock It had commissioned the firm to buy. Refuse to Accept Offer. But this amount was but little more than a third of Otto Heinze & Co.'s indebtedness to Gross & Kleeberg, and that firm, having been forced by Otto Heinze & Co. to make an assignment, refused to entertain it. F. Augustus Heinze then abandoned the effort to prevent the suspension of Otto Heinze & Co. and devoted himself to his connection with the Mercantile National Bank. The meeting of the bank directors was held shortly before noon. At its conclusion it was announced that Mr. Heinze had resigned as president, and that William B. Ridgely, Comptroller of the Currency, had been invited to accept the position. The question as to whether or no Mr. Ridgely would accept the proffered position remained in abeaynee all day. In connection with the negotiations with him, there was made to him and his friends an offer of Mercantile Bank stock at 200, the offer coming it was understood, from the Heinze interests in the institution. Offered 6.000 Shares. In quarters closely connected with the Mercantile National Bank, it was said that the amount of the stock offered to Mr. Ridgely and his associates was 6,000 shares, or just half the amount which the Heinze interests purchased, at an estimated price of 300, when they took possession of the institution last January In quarters close to Mr. Ridgely it was said that the negotiations could be completed by the purchase of a much smaller block of stock. F. Augustus Heinze, coming out of the meeting of the directors, looked more than ever like Joe Emmet as Fritz. He looked as did Joe Emmet preparing to sing the "Lullaby," as he gave out this statement "If view of the difficulties in which my brother's firm finds itself, I have determined that it is proper that I should give liberally of my time in assisting it to straighten out its affairs. In aid of this I have, after consulting with my fellow directors of the bank and my personal friends, and consulting as well, my own personal interests, as a large stockholder of the bank. this day resigned as its president, remaining, however, as a director, and have joined with my fellow directors in a request that Mr. Ridgeley accept the place made vacant by my ressignation." These directors were present at the meeting: William F. Carlton, Stanley Gif. ford. Charles W. Morse, O. F. Thomas D. S. Ramsey, William Skinner, S. M. E. T. Milliken, E. R. Thomas, Jeffrey, Chester Glass and Miles M. O'Brien. Attorneys Are Present, Among the other directors are Max H. Schultze and Arthur P. Heinze. It was announced that the tenure of office of neither of these had been disturbed. There were also present in F. Augustus Heinze's interest, Sanford Robinson, of the law firm of Carey and Robinson. counsel for the United Copper Company, and Julian T. Davies and Joseph F. Auerbach, of the law firm of Davies, Stone & Auerbach. Mr. Heinze had been considering retiring from the presidency for several days His retirement was precipitated by the developments in United Copper and the unpleasant notorlety attaching to the Heinze party on account of the movements of the stock. One or two of the directors, it was said, favored his retention in office, but the great majority, including C. W Morse, insisted that the bank would suffer from the fact that its president was also president of the Copper Company whose stock had made such sensational movements. The aggregate liabilities of the firm of Otto Heinze & Co., as the individual partners, will certainly, it was said. exceed $2,000,000, and, it was considered well within the bounds of probability that they would run up to much greater amount. The indebtedness claimed by Gross & Kleeberg is between $450,000 and $500,000. To six well-known firms in Boston there is owing an indebtedness estimated at $200,000. In,a score of other stock exchange houses in this city there are claims of various amounts. None of the New York or Boston houses are crippled by the failure of the Heinze firm to meet its contracts. The actions of the suspended firm were criticized very harshly by influential Continued on Page 4, Column 4. A la Carte Lunch Served Daily At Eckstein's from 12 to 3. 1412 N. Y. ave. $1.25 to Baltimore and Return, Every Saturday and Sunday via Pennsylvania Railroad. Tickets good returning
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Banks Under Heinze Control Closes Doors NEW YORK, Oct. 17.-The sus. The following bulletin was posted: pension of Otto Heinze & Company "Because of unsolid conditions was announced on the Stock Exand rumors that cannot be verified change this afternoon. that may cause unusual demands by August Heinze resigned the presidency of the Mercantile National depositors, and owing to the shortage Bank today. W. B. Ridely, Comp- of currency an inability to secure adtroller of the Currency, has been in- ditional currency immediately to pay vited to accept the presidency. demands which may be made, the Otto Heinze & Co., made the fol- management has deemed it advisable lowing statement at the opening of in the interest of all depositors to the Stock Exchange today: suspend for the time being. The "Arthur P. Heinze is no longer bank is solvent." member of the firm of Otto Heinze A large crowd gathered in front cir& Co., feels itself perfectly solvent of the bank, but considering the and will meet and pay all its just cumstances and conditions are quite are and legal obligations in full. The undemonstrative, although there firm, however, refuses to pay obli- occasionel cries demanding revenge gations which it does not consider on Heinze and his institutions. legal or just until a proper adjudi- The State of Montana is a deposiis but cation of the matter has been made. tor to the extent of $75,000, Rather than submit to such unjust amply secured. demands it prefers to permit itself Further than the notice, the bank to temporarily be suspended from officials will make no statement. the privileges of the Stock Ex None of the other banks is affected. change." The deposits of the bank are in
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Comptroller Ridgley's Acceptance of the Presidency Of the Mercantile National Had a String to It. WANTED A FREE HAND Directors Who Resigned Don't Consider Action Permanent. The Institution May Yet Be Forced Into Liquidation. Washington, Oct. 19.-Comptroller of Currency W. B. Ridgley today declined the presidency of the Mercantile National bank of New York. A perplexing situation is being' faced by the bankers and financiers, who are trying to straighten out the affairs of the Mercantile National and to divorce it completely from any association with F. Augustus Heinze, its former president. With the resignations of its entire board of directors in the hands of the clearing house, that institution appeared to control the situation and was committed to the task of putting the bank on a firm footing. For this purpose nine clearing house banks had promised to contribute $200,000 each to tide the Mercantile bank over any distress which it might encounter as a result of the suspension of Otto Heinze & Co., and it is F. Augustus Heinze's desire to reestablish that firm. Public interest in the situation lay in the action taken by Comptroller of the Currency William B. Ridgley, whose acceptance of the presidency of the Mercantile was conditional. Mr. Ridgley's decision depended upon whether he would be allowed a free or hand in reorganizing the bank whether he would secure the support of men whom he desired to back him in the task. The clearing house committee held a meeting today to consider the affairs of the Mercantile National bank. It was reported that there was a hitch in the arrangements as to the bank's future, due, it was said, to a refusal of Charles W. Morse and his friends to consider their resignations from the directorate as permanent. Debt Balance $1,100,000. The clearing house committee was in session only a short time. At the conclusion of the session Manager Shearer the clearing house said that the debit of balance of the Mercantile National bank this morning was $1,100,000. Mr. Shearer said there was no doubt that it would be paid, the greater part by the clearing house banks. One of the reporters asked Mr. Shearthe amount of the debit balance of er National Bank of North America, of the which C. W. Morse is president. Mr. Shearer replied that it was about $250,000. The continuance of the Mercantile bank's existence depends largely upon own resources. The clearing house its association, it was stated, early today e is not disposed to render further assistance unless it shows increased cato help itself. The feeling in influential pacity quarters is that the bank 1 yet be compelled to go into would liquidation, may but that the depositors i be paid in full. i Opening quotations of United Copa common stock, the Heinze copper per in the curb market today property, were at 10 as compared with a closing price of 10% last night. the stock exchange copper cont tinued On under pressure. Amalgamated t Copper broke 2½ to 441/8, thus breaking t through low price touched yesterday. n American Smelting fell 1½ under yes- half t terday's closing price in the first o hour, but did not reach the low price V yesterday. Amalgamated Copper g sold of as low as 43%. Violent rebounds fein followed, but the market continued b verish and nervous. This tone persist- in a even after the bank statement sa ed of its superficial favorable char- cash spite The heavy increase in the e t item acter. was attributed to precautionary measures by the banks. a b Stocks again declined in the final deal- the ju ings, closing weak at the lowest of St day in most of the active stocks. in The closing quotations on United Copcommon on the curb stock market tl per was 87/8 bid and 91/4 asked. Heinze Talks. to F. Augustus Henze said today: ex "T still hold a controlling interest in lv
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RECEIVER ASKED FOR HEINZE & CO. BY FAILED FIRMS NEW YORK, Oct. 21,-A petition in involuntary bankruptcy was filed today against Otto C. Heinze, Arthur P. Heinze and Max A. Schultz, partners in the firm of Otto Heinze & Co., by Myers & Goldsmith, as attorneys for W. H. Robotham, Leo Wise, and Frank A. Barnabee, assignees, respectively, for the firms of Gross & Kleeberg, E. V. Brokaw, and Hernsfield & Stern. The claims aggregate about $325,000. It is charged that Heinze & Co. preferred payments amounting to about $2,100,000 to the Mercantile National Bank, the National Bank of North America, the National Park Bank, the Empire Trust Company, and others. It is asserted that payments were also made to F. Augustus Heinze and F. P. Heinze so as to prefer them as well as creditors. The argument for the appointment of a receiver will come before Judge Holt date in the afternoon. Judge Holt heard arguments on the application for a receiver for Heinze & Co., and deferred decision until Wednesday. Otto Heinze & Co. issued the following signed letter today: "We regret to say that we find our affairs so much more complicated than we had at first anticipated that We have been unable with the greatest effort to get them into shape to present them at the meeting called for today, and we are therefore obliged to ask you to meet us at a day later in the week, of which you will is duly notified."
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OCTOBER. 1--Receivership suit brought against the Metropolitan Street Railway company, New York. 3-Bell telephone interests reverse their former policy by deciding to sell telephones to all who wish to buy. 14-Stuyvesant Fish brings suit to enjoin voting of Harriman interests proxies at the Illinois Central election. 16-Naphtha spring and lake discovered on Saghalien island. 17-Fall in copper stocks results in the suspension of Otto Heinze & Co., New York; resignation of F. Augustus Heinze as president of the Mercantile National bank, and of the failure of the State Savings bank of Butte, Mont. Great banking house of Haller, Soehle & Co., Hamburg, fails. First direct cable from New York to Havana completed. 21-Government confiscates a ship-
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0. C. HEINZE A BANKRUPT Files Voluntary Petition so He May Start Life Anew. Otto C. Heinze, formerly a member of the banking firm of Otto Heinze & Co., No. 42 Broadway, which was thrown into bankruptcy in 1907, filed yesterday a voluntary petition in bankruptcy. The firm was in the hands of a receiver for several years, and the first petition was finally dismissed. Heinze says that the second petition is filed with the hope of relieving himself of embarrassments resulting from his first petition. "He has been harrassed," it is stated in the papers filed, "by a mass of fruitless and futile litigation arising out of the situation then existing. and, being without assets, any that he had having been sold by the receiver, he now feels compelled by the circumstances of his situation to seek in an appropriate way to unshackle and free himself in order that he may engage in useful business activity." Mr. Heinze's home is at West Hampton Beach, Long Island. Claims amounting to $495,000 are secured by 12,000 shares of United Copper Company stock and by life insurance policies. The unsecured claims amount to $1,354,000.
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HEINZE CONCERN FILES BANKRUPTCY PETITION. New York, Dec. 19.-Otto C. Heinze, formerly a member of the banking firm of Otto Heinze & Co., filed a voluntary petition in bankruptcy late Thursday, in which he states that his liabilities and assets are unknown. He gives, however, a list of creditors with secured claims totalling $500,000 and unsecured creditors with claims in the neighborhood of $2,000,000. The Heinze firm was put in bank rupicy in 1907 and after being four years in the hands of a receiver the petition was finally dismissed. Since then Heinze says he has been harrassed by a mass of claims and fruitless and futfle litigation arising out or th situation then existing and being without assets, any that he had having been sold by the receiver, he now feels compelled by the circumstances of his situation to seek in an appropriate way to unshackle and free himself in order that he may engage in useful business activity."
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Otto Heinze Bankrupt. New York-Otto C. Heinze, formerly a member of the banking firm of Otto Heinze & Co., has filed a voluntary petition in bankruptcy in which he declared that his liabilities and assets were unknown. He gave, however; a list of creditors with secured claims totalling $500,000 and of unsecured creditors with claims in the neighborhood of $2,000,000. The Heinze firm was thrown into bankruptey in 1907 and after it had been for years in the hands of a receiver the petition was finally dismissed.
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# HEINZE & CO. SUITS DISMISSED. No Grounds for Recovering $2,959,- 750 Damages, Court Holda. The Appellate Division of the Supreme Court dismissed yesterday suits brought in behalf of the members of the banking and brokerage firm of Otto Heinze & Co. for $2.959.750 damages against various persons who caused a petition in bankruptcy to be filed against the firm during the financial panic of 1907, as a result of which it was in the hands of a receiver for a time, but was eventually declared in the Federal court to be solvent. Four suits were brought against members of the law firm of Myers & Gold-smith, the members of the Stock Exchange firm of Gross & Kleeberg, William Guggenheim and others. One action in behalf of the firm was brought in the name of the Assets Collecting Company, in which $1,042,000 was asked, while Arthur P. Heinze, one of the three firm members, asked $1,014,500 and the two other members, Otto C. Heinze and Max H. Schultze, asked $510,500 and $392,750 respectively. The allegations, which were identical in each complaint, were that the defendants "fraudulently, maliciously and wilfully conspired together to ruin and injure and to cheat and defraud Otto Heinze & Co. in their business and property and business credit." The complaints alleged further that the defendants named caused the bankruptcy proceedings to be filed against the Heinze firm by three dummies, although they well knew that the firm was solvent.