Jasper County Democrat, Volume 10, Number 41, Rensselaer, Jasper County, 11 January 1908 — HIT BY ANINDICTMENT [ARTICLE]

HIT BY ANINDICTMENT

Latest Victim of a Grand Jury Inquisition Is F. Augustus Heinze. ACCUSED OF A PENAL OFFENSE Over-Certification of Checks That Aggregated $400,000. Echo of the Beginning of the PanicUnder Bond in 180.000-Coun-Sel Sajri the Grand Jury la “Off.’'

New York. Jan. 8. —Indicted by the federal grand Jury for the over-certifi-cation of fifteen checks representing in the aggregate over $400,000 and drawn by the firm of Otto Heinze & Co. on the Mercantile National bank, F. Augustus Heinze, the copper magnate and ex-presidcnt of the Mercantile National bank, surrendered himself to United States Commissioner Shields and later was released on $50,000 ball. Ed,ward Lauterbach, counsel for Heinze, stated that his client did not wilfully over-certify the checks, as he had drawn a check to the credit of Otto Heinze A Co. to the amount of $500:000 which the bookkeeiier of the bank possibly failed to enter on tbe book 4 until a day after tbe certification of the checks in question. Heinze Was Given the Tip. Heinze had been Informed quietly that indictments charging him with the over-certification of fifteen checks, all drawn on Oct. 14, Just before the smash in United Copper, bnfl been found by the federal grand jury on Pec. 2, and that his appearance would be required. Without awaiting the service of a bench warrant he, in company with his counsel, appeared before Commissioner Shields. The proceedings were short. Heinze pleaded not guilty and ball was supplied immediately by a surety company. When these pro ceedings were concluded Heinze told the newspapermen that he did not care to make any statement and hurried away with his counsel. After an examination of the Indictment, which contains thirty counts. Counsel Edward Lauterbach made the following statement: “The indictment is based upon certification of fifteen checks amounting to something over $400,000 drawn by Otto lleluze & Co. on the 14th day of October last. Refold the certification' was made F. Augustus Heinze obtained the d>B count of a note of $500,000, secured by abundant stock exchange collateral, worth at the market rates of that day more than SBOO,OOO, and drew his check for sf<oo,ooo to the credit of Otto neinze & Co., the amount of which should have been passed to their credit, as I think it was.”