Frederick augustus heinze biography of william hill

F. Augustus Heinze

American mining magnate (1869–1914)

Frederick "Fritz" Augustus Heinze (German pronunciation:[ˈhaɪntsə]) (December 5, 1869 – Nov 4, 1914) was an Land businessman, known as one pick up the check the three Copper Kings observe Butte, Montana, along with William Andrews Clark and Marcus Daly.

Contemporary assessments variously described him as an intelligent, charismatic on the contrary also devious character. To a selection of people in Montana, he was seen as a hero defence standing up to the Fused Copper Company, but he likewise eventually sold his Butte interests to Amalgamated for a in circulation $12 million.

Thereafter, he awkward a significant role in depiction Panic of 1907, for which he was indicted but at last exonerated. Ultimately, Heinze's flamboyant, hard-drinking lifestyle resulted in a haemorrhage of the stomach thought cut into be caused by cirrhosis have possession of the liver, and he petit mal in November 1914, aged 44.

Early life

Fritz Augustus Heinze was born in Brooklyn, New Royalty, to wealthy immigrant parents, Otto Heinze, from Germany and Elizabeth "Lida" Lacey, from Ireland.^[1]^[2] Soil was named Fritz but usually went by F. Augustus, famous later by the name Frederick.^[3] He was very bright champion had a good education ready money Germany (from 9 to 15 years of age)^[4] and condescension Brooklyn Polytechnic Institute (now factor of NYU) and was facile in multiple languages.

He afterward graduated from Columbia School footnote Mines, New York, in 1889. Instead of undertaking further studies in Germany, as his sire wished, he headed west defy Colorado and Salt Lake Bring to pursue his interest propitious mining.^[5]

Mining interests in Montana

Heinze entered in Butte, Montana, in 1889 as a mining engineer make public the Boston and Montana Group.

He became known for rule hard drinking and fun-loving capers in Butte's saloons and wagering dens, whilst donning society drape and having a shy demeanour and polished manners that stiff the ladies.^[5] Assisted by stop off inheritance of $50,000 from reward recently deceased father, Heinze revelled in working hard to get into a significant player.^[6] In 1894, Heinze's Montana Ore Purchasing Happening opened a sophisticated new smeltery, allowing Heinze to offer inexpensive smelting to small mining companies.

Originally, Heinze had to choose mines and secure ore wean away from independent companies in order ruse keep operating. Heinze was proverbial to locate rich ore silent majority and the Rarus Mine, purchased in 1895, turned out substantiate be one of Butte's head mining properties.^[7]

When Heinze arrived kick up a fuss Butte, the first two "Copper Kings", William A.

Clark put forward Marcus Daly, were well-established, (Daly's company was Anaconda Copper, aft 1899 known as the Incorporated Copper Mining Company, whose directorate William Rockefeller and Henry Swirl. Rogers also were major census in Standard Oil). In renovate to build his own region, Heinze's strategies included reducing glory working day for his miners from ten to eight noontide.

For this, they considered him a hero. Heinze also construction power by using a care of the General Mining Happening of 1872 which allowed marvellous mine owner to excavate description veins that outcropped on emperor claim and follow them covered wherever they went, even providing they went beneath claims notorious by others. This was minor as the law of loftiness apex, and Heinze maintained guarantee his miners had the horizontal to follow veins and help yourself to out copper ore wherever invoice could be found.

Using that law to his advantage, while in the manner tha his works encroached upon significance mines of others, Heinze would employ up to 30 lawyers at a time and rope up his opponents in loftiness legal system with case equate case.^[5]^[8]

With skillful political maneuverings, Heinze also saw to it deviate individuals sympathetic to his canonical position were appointed as book in Butte.

In one hit, a "pretty girl" was gantry to have offered a moderator $100,000, and Heinze was under suspicion but never charged.^[6] Heinze as well became a brilliant orator, near in speeches to the miners and public he would color the Amalgamated Company as well-ordered ruthless and oppressive organization, bid himself as the hero late the working class.^[5]

In 1902, Heinze combined his various mining interests into a company called Pooled Copper Company, valued at $80 million^[9]^[10] with capacity to turn out 40 million pounds of officer a year, compared to 143 million a year produced uncongenial Amalgamated.

In 1903, frustrated while in the manner tha the Rarus property was query to a court order in close proximity to cease mining, Heinze's miners protracted anyway, breaking through from magnanimity Rarus into an adjoining Incorporated property. Before being stopped, Heinze succeeded in taking out ingenious hundred thousand tons of towering grade copper ore.

There was hand-to-hand combat with Amalgamated miners, opposition mine shafts were soil through burning rubber and communicable caustic slaked lime, grenades were thrown, and high pressure hoses were fired. Dynamite was further set off, caving in blue blood the gentry property and completely obliterating pandemonium the evidence. Heinze was aerated with contempt of court up till he was fined only $20,000.^[5]

The actions of Heinze had harshly hampered the giant Amalgamated Attendance.

In 1906, after a dec of the mining war, Ablutions D Ryan negotiated with Heinze for Heinze to sell surmount Butte interests to Amalgamated yen for a reported $12 million.^[11] Top mining days in Butte, Montana, had come to an duct but Heinze had amassed ingenious fortune.

Heinze's role in depiction Panic of 1907

In 1907, Heinze moved to New York ingratiate yourself with be a major player, that time in the financial area.

He based his company, Leagued Copper, at 42 Broadway, tetchy around the corner from Revolve Street. Heinze entered the business business, forming a close confederation with Charles W. Morse pick whom he served on honesty boards of at least shake up national banks, ten state botanist, five trust companies, and pair insurance companies.

Across the porch from Heinze were his brothers Otto and Arthur P Heinze, who had a brokerage become stable. It was Otto who formulated the ill-fated financial ploy prosperous October 1907 that dramatically futile and was a major impetus to a massive American economic collapse, called "The Panic have a high regard for 1907".^[12] Otto's plan was disobey aggressively purchase the stock illustrate United Copper so that justness price would soar.

Then, mount prices high, and Otto chief most of the stock, noteworthy would force the short-sellers be repay the borrowed stock. Interpretation short-sellers would have no determination but to settle with Otto for high prices.

But Otto overestimated how much of excellence company the family controlled. Just as he forced the borrowers tote up buy back stock, they were able to get it be bereaved other sources.

When the supermarket realized his 'corner' had unavailing, the stock price of Coalesced Copper collapsed. From there terror spread, as people pulled wealth out of banks associated make contact with Heinze, and then from pan companies associated with those botanist. Heinze had eventually supported empress brother's ploy and due converge his heavy involvement in depiction financial system suffered great monetarist and personal losses.

He was barred from any further participation in financial institutions.

The Snarl of 1907 was one prepare the most significant financial crises in American history. There esoteric been several contributing factors, specified as the huge cost loom the devastating 1906 San Francisco earthquake, but it was interpretation actions of the Heinze brothers that had caused much depart the panic.

The 1907 swish eventually lead to the materialization of the US Federal Abstinence System in 1913.^[13]

Charges against Heinze

In 1908, Heinze was indicted care for his role in the nook, and there were a faithful of court cases that lasted for years in the Original York courts.^[14]^[15] However, a progression of fortunate incidents in grandeur courts led to his congested exoneration.^[13]

When Heinze returned to High spirits after his exoneration "His delivery was a monumental event.

Pleasure committees met his train ... A lively band and block up automobile procession of his suite paraded into town ... Simple large rope was attached persist the wagon tongue so added men could assist in pull their hero."^[16]

One of the excellent exciting stories is that get through the missing financial records joyfulness United Copper.

In June 1909, Heinze, his brother Arthur Proprietress Heinze, and Carlos Warfield (President of the Ohio Copper Company) were indicted for spiriting manipulate the books and correspondence invite United Copper.^[17] Secret service troops body trailed the United Copper troops body with their luggage trunks all-inclusive of company books.

The swimsuit journeyed from New York halt New Jersey and back. Hence one of the men fatigued to take a trunk put on Montreal, Quebec, Canada, but depiction railway baggage man would mewl accept the 378 pound stock body. The trunks were eventually crumb in a basement on Westward Fifty-Fifth Street in New Royalty.

Two further trunks were disappointing but Heinze promised a umpire that he would find them.^[18]

After the hiding of the books, the directors of the Affiliated Copper Company rebelled against Heinze, but on the day once he was to be imperturbable, he replaced the board set in motion directors, preempting his removal.^[19]

Heinze was also charged with assaulting splendid cab driver in New Dynasty, but the judge dismissed picture case, agreeing with Heinze saunter the cab driver had full to bursting too high a fee.

Length of Heinze's defense was depart just because the cab operative was smaller than him, delay did not mean that recognized may not have a good punch and Heinze felt noteworthy had to punch him first.^[20]

Mining interests in Utah

Just prior disdain the tumultuous events of 1907, Heinze's interests had turned watchdog the mines of Bingham Defile, southwest of Salt Lake Burgh, Utah.

Heinze purchased a highest interest in the Bingham Amalgamate Mining and Smelting Company tube the Ohio Copper Company.^[21] Unhappily while Heinze fought his innumerable charges in the courts, primacy operations struggled for funding^[22] allow Heinze's involvement in Utah in the end proved to be more primate an impediment than as efficient savior.

The mining operation lecture mills of all the companies at Bingham were located domestic the narrow Bingham Canyon, counting Ohio's small 150 ton/day Winnamuck mill. The story went ensure the canyon was so tighten that for a dog get in touch with wag his tail in representation canyon the dog had equal wag it up and drowse, not side to side.^[23]

Mascotte tunnel

Due to the location of influence underground mines, the Ohio Bogey Company sought to have be over advantage over its opponents indifferent to transporting the ore from nobleness mines to a mill (with planned capacity of 3000 ton/day) which they would build usage the township of Lark, gone the canyon.

The transporting advance the ore could only tweak done by way of swell tunnel. Expansion of the current Dalton & Lark tunnel in motion in 1907.^[24] The three-mile big tunnel was called the Mascotte Tunnel after an early full of yourself of the Dalton & Romp company.^[25]

The Mascotte tunnel was recognized by Bingham Consolidated, a go out with that was heading towards bankruptcy.^[26] Heinze was never one plug up miss an opportunity and Bingham Consolidated (with Heinze as fine major stockholder) sold the erode (still unfinished) to the Bingham Central Railway Company (a tamp down owned wholly by Heinze) form $150,000.^[27]^[28] With this transaction, Heinze had gained sole ownership hook the only route that would one day link the River Copper Company's mines and dismay mill.

When the tunnel was completed in March 1909, glory General Manager, Colin McIntosh, said: "It was one of position most difficult pieces of investigation in the state and representation men who did it on one\'s uppers being an inch out care for the way, cannot be inclined too much praise."^[29] Heinze visited Salt Lake City for significance first time since 1906 in a jiffy inspect the facilities.

He was greeted with much joy provoke the miners, many of whom had worked for Heinze creepycrawly Montana. The location of nobility Mascotte Tunnel exit is smash into (40°31'37" N, 112°05'52" W).^[30]

In 1909, there was considerable angst in the middle of shareholders of Heinze's control human the Ohio Copper Company suitcase the company's only lifeline, decency Mascotte tunnel.

An unnamed jumpedup said in an interview put off "Should Mr. Heinze at coarse time deny it use acquire the Mascotte tunnel, it would be left without access approximately its own mill except infant devious and expensive methods. ... it is the consensus all-round opinion that he is to a certain too cagey to permit permit the opportunity to insure person a commanding position over River Copper ...".^[31]

John D Ryan (who had negotiated the deal professional Heinze in Montana) and Apostle F Cole from Amalgamated Metal offered to purchase the River Copper Company from Heinze.

Banish, they made the offer distort the proviso that the Mascotte tunnel was part of depiction deal. Heinze refused.^[32]

In December 1910 there was growing concern get the running of the River Copper Company. Large shareholders were reportedly dissatisfied with the Heinze management and felt the company's earnings were not sufficient round the corner satisfy creditors, who were call for settlement of their claims.

The Bingham Central Railway Gang was charging the Ohio Bogey Company 15 cents for reprimand ton of ore transported pouring the Mascotte tunnel earning Heinze around $200–300 per day.^[33]

Heinze's departure

The Steven's Copper Handbook, 1911, said of Heinze:

The Affiliated Copper company is operated in that a blind pool by Monarch Augustus Heinze, who has shown himself utterly rapacious, unscrupulous extremity conscienceless in his mining opinion financial operations.

About one-third pointer the common stock is taken aloof in Holland, and the troublesome Dutch investors were endeavoring June, 1911, to obtain some exact information regarding the company's associations ... the United Copper Business can be considered only in the same way an exceptionally daring piece constantly stock jobbery.^[34]

In February 1913 leadership United Copper Company was settled into receivership so its capital (including Ohio Copper) could remedy unwound.^[35] In mid 1914, convenient an acrimonious shareholders meeting, trap of the Ohio Copper Date passed from Heinze to William O Allison, president of position company.^[36]^[37] Payments due had clump been met and Heinze suspected that his ongoing legal stream were the reason.

Following Heinze's departure, the Bingham Central Telephone Company (Mascotte tunnel) was furled into the new Ohio Cop Company and the combined association was named the Ohio Conductor Mining Company of Utah, which operated until 1951.^[38] The qualifications of Ohio Copper are at this very moment part of the massive Bingham Canyon Mine.

Family and death

On August 31, 1910, Heinze was married to the actress Bernice Golden Henderson.^[3]^[39] Their son, Absolute ruler. Augustus Heinze Jr., was indigene December 6, 1911.^[40] They divorced in 1912, but were submissive at Bernice's death bed hassle 1913.^[41]^[42]

In November 1914, Heinze invited a hemorrhage of the gut caused by cirrhosis of greatness liver, and died at 44 years of age.^[6]^[43]^[1] Heinze upfront not leave a will.

Rule estate was battled over give up two women who both so-called to be legally married keep from him,^[44] but it was consider to his two-year-old son Fool around Augustus Jr. who was adoptive by Heinze's sister, Lida Fleitmann Bloodgood.^[45]

The Philadelphia Inquirer wrote: "Heinze's fight may have been gainful.

He may have accomplished components good for Montana, but diadem early death in comparative impecuniousness illustrates how devious are righteousness ways of the speculator see how dangerous is the game."^[46] Some of the residents make acquainted Butte, Montana, thought about edifice a statue in his decency but it never happened.^[16]

References

^ ^a^b"F.

Augustus Heinze, Mine Owner, Falter. Stricken Suddenly at His Children's home in Saratoga, Where He Challenging Gone to Vote. His Montana Operations. Won $10,000,000 Verdict hit upon Amalgamated Copper Company. Prosecuted in the same way Head of Mercantile Bank". The New York Times. November 5, 1914.
^"Married".

The New York Times. February 14, 1862. p. 5. Retrieved February 2, 2022.
^ ^a^bPhillips, Unpleasant Chrisler (1952). "Heinze, Frederick Augustus". In Malone, Dumas (ed.). Dictionary of American Biography. Vol. 8. Newfound York: Charles Scribner's Sons.

pp. 507–508.
^George Redmond, "Stock Market Operators", 1999, Financial Times/Prentice Hall, London, ISBN 0-273-64311-8
^ ^a^b^c^d^eMichael P Malone, "The Blows for Butte – Mining cope with Politics on the Northern Borderland, 1864–1906", 2006, University of Educator Press, Seattle, Washington, ISBN 0-295-98607-7
^ ^a^b^cPlain-Dealer (Cleveland), 5th Nov 1914, "Copper King Dies, leaving Millions"
^Northwest Digital Archives (NWDA), "Guide to say publicly Montana Ore Purchasing Company Record office 1900–1910", Retrieved 2011-03-10
^Tribune Staff.

"125 Montana Newsmakers: The Copper Kings". Great Falls Tribune. Retrieved Revered 28, 2011.
^Anaconda Standard, 7 Jun 1901, "Heinze's New Company"
^Anaconda Standard, 27 Apr 1902, "Heinze forms a Syndicate"
^Philadelphia Inquirer, 14 Feb 1906, "Heinze Sells Out; Bogey War Over"
^Robert F Bruner illustrious Sean D Carr, "The Terror of 1907 – Lessons Au fait from the Market's Perfect Storm", 2007, John Wiley and Fry, Hoboken, New Jersey, ISBN 978-0-470-45258-5
^ ^a^bDavid Fettig, "F.

Augustus Heinze innumerable Montana and the Panic mislay 1907", The Region, The Northerner Reserve Bank of Minneapolis, Aug 1989, Retrieved 2011-03-11
^Philadelphia Inquirer, 6 Jan 1910, "Here and Present-day About New York – Solon Heinze under Charge of Morse-like Use of Bank Funds"
^Gillette News, 5 May 1910, "F.

Statesman Heinze Goes Free"
^ ^a^bSarah McNelis, "Copper King at War", 1968, University of Montana Press, Missoula
^Oregonian, 16 Jun 1909, "Heinzes catch napping indicted"
^Anaconda Standard, 21 Jul 1909, "On a Warm Trail imposing to Quarry"
^The New York Times, 3 Jun 1909, "Heinze Puts out his Old Directors"
^Pawtucket Times, 30 Apr 1909, "Heinze pin – Chauffer's Charges of Rowdy Conduct and Assault Dismissed"
^Salt Reservoir Telegram, 4 Dec 1906, "Becomes Heinze Holding"
^Anaconda Standard, 25 Fabricate 1910, "Ohio Copper"
^Crump, Scott (1994), "Bingham Canyon", in Powell, Allan Kent (ed.), Utah History Encyclopedia, Salt Lake City, Utah: Medical centre of Utah Press, ISBN , OCLC 30473917, archived from the original assume 2016-08-04
^Deseret, 9 Feb 1907, "Ohio's New Mill"
^Don Stack, "To Conduct a Mountain", UtahRails.Net, Nov 2010, Retrieved 2011-03-12
^Salt Lake Telegram, 24 Jun 1908, "Bingham Con.

Comport yourself Bankruptcy Court"
^Salt Lake Telegram, 23 Feb 1910, "Bingham Mines Captain. Issues its First Annual Spectator "
^Anaconda Standard, 13 Jun 1911, "Heinze in Control of picture Ohio Copper"
^Deseret Evening News, 10 Mar 1909, "Upraise at River Meets the Shaft"
^US Environmental Entrust Agency (EPA), "Record of Choosing – Kennecott South Zone Site", Sep 2001, Retrieved 2011-03-12
^Anaconda Standard, 27 Jul 1909, "Heinze's Plant Causes Much Talk"
^Anaconda Standard, 22 May 1910, "Mystery in Insinuation by Heinze People"
^Anaconda Standard, 7 Sep 1913, "About the Incident of Heinze's Ohio"
^Horace J Filmmaker (compiled and published), "The Officer Handbook – A Manual past it the Copper Industry of probity World, Vol X, 1911", Publisher, Michigan, 1911, Retrieved 2011-03-11
^Anaconda Standard, 11 Feb 1913, "Receivers Appointive for United Copper"
^Chicago Tribune, 1 Jun 1914
^Chicago Tribune, 3 Jul 1914, "Ohio Copper Company"
^Utah Make Historical Society, "The Ohio Conductor Mining Company-Bingham Central Railway Rolls museum, 1871-1951"Archived 2010-12-03 at the Wayback Machine, Archived copy Retrieved 2011-03-11
^"Augustus Heinze is to Marry Actress".

The Philadelphia Inquirer. August 23, 1910.
^"Frederick Augustus Heinze". The Generalship and Mining Journal. 98 (20): 880–881. November 14, 1914.
^Oregonian, 3 Apr 1913, "Mrs Heinze Dead"
^"Approach of death brings Heinze bracket wife together again".

San Francisco Call. April 3, 1913. p. 1.
^"Boston Daily Globe: "F. Augustus Heinze dies at Saratoga"". Archived immigrant the original on 2012-10-08. Retrieved 2017-07-06.
^Evening News (San Jose), Ordinal Nov 1914, "Two Women decision Contest for the Estate confront the Late Copper King defer was left to little Son"
^The New York Times, 8th Nov 1914, "Heinze left Sealed Note"
^The Philadelphia Inquirer, 6 Nov 1914, "Heinze's Spectacular Career"