AN AMERICAN BANKER.

Evening Star, Issue 14119, 23 July 1909, Page 4

AN AMERICAN BANKER.

Mr F. Augustus Heinze appeared in the Federal Court, New York, on May 14- charged with misapplication of the funds of the Mercantile National Bank, of whtcii he was president, to the extent of upwards of £400,000. Mr Heinze belongs to the group whose alleged "' high finance" precipitated the great money panic in the autumn of 1907. He pleaded not guilty, and was given a week in which to withdraw the plea, or demur to the new indictments, of which there is one for each alleged offence The indictments are based on loans made on notes by Mr Heinze with the funds of the bank. Of the total amount mentioned, it is charged that seven loans, aggregating £258,000, and a loan of £IOO,OOO, to the accused man, were made without proper security, iveing pledged at the time, and have been paid. Many of the larger loans were made, it is alleged, for the purpose 01-' settling- smaJler loans, a process with which the public became familiar during the tr':«l of Mr Charles Morse, the former Ice King, but now a derelict financier, deserted by his friends, and undergoing a long term of imprisonment.

Some of the notes that figure in the indictments played an important part in the Morse trial, notably one for £40,000 given bv Mr Heinze to Mr Primrose and Mr Braun." who acted for Mr Morse. It is charged that Mr Heinze took advantage of his position in the bank, and ihat the notes were really made for his own benefit. Farmer Judge Wallace appeared for Mr Htinze, and the District Attorney (Mr Wise) represented the Government. No bail was fixrd, as Mr Heinze is already under £IO,OOO bail on a previous indictment for over-~ertificatio!i. Judge Hough thought the amount sufficient to ensure the appearance of Mr Heinze in court on all the charges.