Jasper County Democrat, Volume 10, Number 41, Rensselaer, Jasper County, 11 January 1908 — GRAND JURY WAS MISTAKEN [ARTICLE]

GRAND JURY WAS MISTAKEN

Bo Lauterbach Saj's—What the Indictment Charger. Lauterbach then* said tliere was no willful intent to over-certify, and "I believe that if the grand jury could have understood the situation correctly no indictment would have been found." Tlie indictment specifically charges that Heinze, while president of the 'Mercantile ''National bank, over-certi-fied fifteen checks. That is, that In* guaranteed by the bank signature that tlie slims indicated in the checks word held by the institution to tlie credit of the drawer. To over-,ertil’y bank pa per Is under the federal statute an offense punishable by imi>riso;:inent of not less than five years and not more than ten years. The troubles of F. Augustus lleluze began with the bull campaign started by Otto Heinze A: Co. and associates in the stock of the United Copper company, which Heinze had organized and developed after his long fight with tk: Amalgamated Copper interests in Montana. The stock was selling about fk) when a mysterious selling was detected. Believing It to be an effort to raid the stock by short selling Ottcs Heinze & Co. gavp unlimited buying order* to various brokers, believing that when the time came the bear operators would be unable to cover their contracts except at such price* as the Heinzcs dictated.

Heavy selling of United Copper continued, and to purchase the stock offered Otto Heinze & Co. was forced to draw check* for large amounts to various brokers. When the source of the selling was the He.nzes declared that they had ffieen betrayed by frlendawho sold their holdings of United Copper on the high market. The United Copper stock slumped, and Gross & Kleeberg, stock brokers, su* pended, alleging }hat Otto Heinze & Co. had failed to take up the stock of the United Copper company which had been l>ought for them. A crisis was provoked In the affairs of the Mercantile National bank and the clearing house committee made au examination, following which Heinze withdrew from the institution as an official, bnt with bis friends, still maintained a stock control, which he had purchased several months before from Kdwin Gould. HatnM Pleads Not Guilty. Heinze, who was arrested charged with the over-certification of checks while president of the Mercantile National bank, entered a plea of not guiltjr when arraigned before Judge Chat

field In tbe United States court Through his counsel Heinze reserved tbe right to withdraw the plea of not guilty and demur to the Indictment any time before Jan. 20. Tbe bail bond of $50,000, wWeh Mr. Heinze fur nlshed after his arrest, waa allowed to stand.