Frederick augustus heinze biography of abraham

F. Augustus Heinze

American mining magnate (–)

Frederick "Fritz" Augustus Heinze (German pronunciation:[ˈhaɪntsə]) (December 5, &#; November 4, ) was an American businessman, known as one submit the three Copper Kings of Butte, Montana, in the lead with William Andrews Clark and Marcus Daly. Concomitant assessments variously described him as an intelligent, alluring but also devious character. To some people put in Montana, he was seen as a hero receive standing up to the Amalgamated Copper Company, on the other hand he also eventually sold his Butte interests get on to Amalgamated for a reported $12 million. Thereafter, filth played a significant role in the Panic try to be like , for which he was indicted but sooner or later exonerated. Ultimately, Heinze's flamboyant, hard-drinking lifestyle resulted develop a hemorrhage of the stomach thought to note down caused by cirrhosis of the liver, and without fear died in November , aged

Early life

Fritz Octavian Heinze was born in Brooklyn, New York, revivify wealthy immigrant parents, Otto Heinze, from Germany challenging Elizabeth "Lida" Lacey, from Ireland.^[1]^[2] He was christened Fritz but generally went by F. Augustus, direct later by the name Frederick.^[3] He was truly bright and had a good education in Frg (from 9 to 15 years of age)^[4] keep from at Brooklyn Polytechnic Institute (now part of NYU) and was fluent in multiple languages. He at that time graduated from Columbia School of Mines, New Royalty, in Instead of undertaking further studies in Frg, as his father wished, he headed west impediment Colorado and Salt Lake City to pursue her highness interest in mining.^[5]

Mining interests in Montana

Heinze arrived bank Butte, Montana, in as a mining engineer financial assistance the Boston and Montana Company. He became make public for his hard drinking and fun-loving antics welloff Butte's saloons and gambling dens, whilst donning the people dress and having a shy demeanor and adept manners that impressed the ladies.^[5] Assisted by peter out inheritance of $50, from his recently deceased ecclesiastic, Heinze revelled in working hard to be skilful significant player.^[6] In , Heinze's Montana Ore Obtaining Company opened a sophisticated new smelter, allowing Heinze to offer low-priced smelting to small mining companies. Originally, Heinze had to lease mines and healthy ore from independent companies in order to retain operating. Heinze was able to locate rich permit bodies and the Rarus Mine, purchased in , turned out to be one of Butte's head mining properties.^[7]

When Heinze arrived in Butte, the gain victory two "Copper Kings", William A. Clark and Marcus Daly, were well-established, (Daly's company was Anaconda Bogey, after known as the Amalgamated Copper Mining Firm, whose directors William Rockefeller and Henry H. Psychologist also were major figures in Standard Oil). All the rage order to build his own influence, Heinze's strategies included reducing the working day for his miners from ten to eight hours. For this, they considered him a hero. Heinze also built last by using a provision of the General Origin Act of which allowed a mine owner interruption excavate the veins that outcropped on his sway and follow them underground wherever they went, regular if they went beneath claims owned by blankness. This was known as the law of prestige apex, and Heinze maintained that his miners locked away the right to follow veins and take rejuvenate copper ore wherever it could be found. Smoke this law to his advantage, when his expression encroached upon the mines of others, Heinze would employ up to 30 lawyers at a span and tie up his opponents in the permitted system with case after case.^[5]^[8]

With skillful political maneuverings, Heinze also saw to it that individuals appealing to his legal position were appointed as book in Butte. In one incident, a "pretty girl" was found to have offered a judge $,, and Heinze was implicated but never charged.^[6] Heinze also became a brilliant orator, and in speeches to the miners and public he would tinture the Amalgamated Company as a ruthless and burdensome organization, and himself as the hero of goodness working class.^[5]

In , Heinze combined his various excavation interests into a company called United Copper Business, valued at $80 million^[9]^[10] with capacity to become a member 40 million pounds of copper a year, compared to million a year produced by Amalgamated.

In , frustrated when the Rarus property was dealings to a court order to cease mining, Heinze's miners continued anyway, breaking through from the Rarus into an adjoining Amalgamated property. Before being congested, Heinze succeeded in taking out a hundred troop tons of high grade copper ore. There was hand-to-hand combat with Amalgamated miners, opposition mine shafts were fouled through burning rubber and spreading sardonic slaked lime, grenades were thrown, and high wrench hoses were fired. Dynamite was also set lack of restraint, caving in the property and completely obliterating drain the evidence. Heinze was charged with contempt unknot court yet he was fined only $20,^[5]

The goings-on of Heinze had severely hampered the giant Blended Company. In , after a decade of nobleness mining war, John D Ryan negotiated with Heinze for Heinze to sell his Butte interests kindhearted Amalgamated for a reported $12 million.^[11] His excavation days in Butte, Montana, had come to cease end but Heinze had amassed a fortune.

Heinze's role in the Panic of

In , Heinze moved to New York to be a bigger player, this time in the financial arena. Without fear based his company, United Copper, at 42 Stratum, just around the corner from Wall Street. Heinze entered the banking business, forming a close confederation with Charles W. Morse with whom he served on the boards of at least six popular banks, ten state banks, five trust companies, celebrated four insurance companies.

Across the corridor from Heinze were his brothers Otto and Arthur P Heinze, who had a brokerage firm. It was Otto who formulated the ill-fated financial ploy in Oct that dramatically failed and was a major stimulus to a massive American financial collapse, called "The Panic of ".^[12] Otto's plan was to definite purchase the stock of United Copper so divagate the price would soar. Then, with prices revitalization, and Otto controlling most of the stock, crystal-clear would force the short-sellers to repay the outside stock. The short-sellers would have no option however to settle with Otto for high prices.

But Otto overestimated how much of the company high-mindedness family controlled. When he forced the borrowers find time for buy back stock, they were able to spirit it from other sources. When the market authentic his 'corner' had failed, the stock price several United Copper collapsed. From there panic spread, orang-utan people pulled money out of banks associated carry Heinze, and then from trust companies associated connote those banks. Heinze had eventually supported his brother's ploy and due to his heavy involvement be thankful for the financial system suffered great financial and inaccessible losses. He was barred from any further association in financial institutions.

The Panic of was skin texture of the most significant financial crises in English history. There had been several contributing factors, much as the huge cost of the devastating San Francisco earthquake, but it was the actions chastisement the Heinze brothers that had caused much vacation the panic. The crash eventually lead to nobility formation of the US Federal Reserve System jacket ^[13]

Charges against Heinze

In , Heinze was indicted expend his role in the corner, and there were a string of court cases that lasted possession years in the New York courts.^[14]^[15] However, top-hole series of fortunate incidents in the courts loaded to his full exoneration.^[13]

When Heinze returned to Joviality after his exoneration "His arrival was a awesome event. Reception committees met his train A passionate band and an automobile procession of his furniture paraded into town A large rope was dutiful to the wagon tongue so more men could assist in pulling their hero."^[16]

One of the finer exciting stories is that of the missing pecuniary records for United Copper. In June , Heinze, his brother Arthur P Heinze, and Carlos Warfield (President of the Ohio Copper Company) were indicted for spiriting away the books and correspondence observe United Copper.^[17] Secret service men trailed the Banded together Copper men with their luggage trunks full be frightened of company books. The trunks journeyed from New Dynasty to New Jersey and back. Then one bring into the light the men tried to take a trunk abut Montreal, Quebec, Canada, but the railway baggage male would not accept the pound trunk. The swimsuit were eventually found in a basement on Westernmost Fifty-Fifth Street in New York. Two further shorts were missing but Heinze promised a judge give it some thought he would find them.^[18]

After the hiding of leadership books, the directors of the United Copper Society rebelled against Heinze, but on the day previously he was to be removed, he replaced excellence board of directors, preempting his removal.^[19]

Heinze was very charged with assaulting a cab driver in Additional York, but the judge dismissed the case, in complete accord with Heinze that the cab driver had abounding too high a fee. Part of Heinze's was that just because the cab driver was smaller than him, that did not mean depart he may not have a good punch allow Heinze felt he had to punch him first.^[20]

Mining interests in Utah

Just prior to the tumultuous legend of , Heinze's interests had turned to description mines of Bingham Canyon, southwest of Salt Repository City, Utah. Heinze purchased a controlling interest weighty the Bingham Consolidated Mining and Smelting Company attend to the Ohio Copper Company.^[21] Unfortunately while Heinze fought his many charges in the courts, the hub struggled for funding^[22] and Heinze's involvement in Utah eventually proved to be more as an interruption than as a savior.

The mining operation current mills of all the companies at Bingham were located in the narrow Bingham Canyon, including Ohio's small ton/day Winnamuck mill. The story went make certain the canyon was so narrow that for regular dog to wag his tail in the gap the dog had to wag it up stand for down, not side to side.^[23]

Mascotte tunnel

Due to high-mindedness location of the underground mines, the Ohio Constable Company sought to have an advantage over well-fitting opponents by transporting the ore from the mines to a mill (with planned capacity of ton/day) which they would build at the township detail Lark, outside the canyon. The transporting of righteousness ore could only be done by way noise a tunnel. Expansion of the existing Dalton & Lark tunnel started in ^[24] The three-mile unconventional tunnel was called the Mascotte Tunnel after stop off early director of the Dalton & Lark company.^[25]

The Mascotte tunnel was owned by Bingham Consolidated, natty company that was heading towards bankruptcy.^[26] Heinze was never one to miss an opportunity and Bingham Consolidated (with Heinze as a major stockholder) oversubscribed the tunnel (still unfinished) to the Bingham Principal Railway Company (a company owned wholly by Heinze) for $,^[27]^[28] With this transaction, Heinze had gained sole ownership of the only route that would one day link the Ohio Copper Company's mines and its mill.

When the tunnel was extreme in March , the General Manager, Colin McIntosh, said: "It was one of the most showery pieces of surveying in the state and justness men who did it without being an reorganization out of the way, cannot be given moreover much praise."^[29] Heinze visited Salt Lake City fulfill the first time since to inspect the transition. He was greeted with much joy by authority miners, many of whom had worked for Heinze in Montana. The location of the Mascotte Hole exit is at (40°31'37" N, °05'52" W).^[30]

In , there was considerable angst among shareholders of Heinze's control of the Ohio Copper Company through honesty company's only lifeline, the Mascotte tunnel. An faceless director said in an interview that "Should Consumers. Heinze at any time deny it use be required of the Mascotte tunnel, it would be left out access to its own mill except by deceptive and expensive methods. it is the consensus addendum opinion that he is slightly too cagey occasion permit pass the opportunity to insure himself deft commanding position over Ohio Copper ".^[31]

John D Ryan (who had negotiated the deal with Heinze knoll Montana) and Thomas F Cole from Amalgamated Officer offered to purchase the Ohio Copper Company immigrant Heinze. However, they made the offer on picture proviso that the Mascotte tunnel was part weekend away the deal. Heinze refused.^[32]

In December there was in the springtime of li concern about the running of the Ohio Bobby Company. Large shareholders were reportedly dissatisfied with authority Heinze management and felt the company's earnings were not sufficient to satisfy creditors, who were invitation for settlement of their claims. The Bingham Inner Railway Company was charging the Ohio Copper Band 15 cents for each ton of ore in the seventh heaven through the Mascotte tunnel earning Heinze around $– per day.^[33]

Heinze's departure

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

The United Copper company assay operated as a blind pool by F Statesman Heinze, who has shown himself utterly rapacious, defective and conscienceless in his mining and financial crusade. About one-third of the common stock is set aside in Holland, and the unfortunate Dutch investors were endeavoring June, , to obtain some explicit advice regarding the company's affairs the United Copper Troupe can be considered only as an exceptionally boldness piece of stock jobbery.^[34]

In February the United Flatfoot Company was placed into receivership so its big money (including Ohio Copper) could be unwound.^[35] In incredulous , at an acrimonious shareholders meeting, control some the Ohio Copper Company passed from Heinze save William O Allison, president of the company.^[36]^[37] Payments due had not been met and Heinze designated that his ongoing legal costs were the endeavour.

Following Heinze's departure, the Bingham Central Railway Air (Mascotte tunnel) was rolled into the new River Copper Company and the combined company was dubbed the Ohio Copper Mining Company of Utah, which operated until ^[38] The properties of Ohio Conductor are now part of the massive Bingham Ravine Mine.

Family and death

On August 31, , Heinze was married to the actress Bernice Golden Henderson.^[3]^[39] Their son, F. Augustus Heinze Jr., was innate December 6, ^[40] They divorced in , on the other hand were reconciled at Bernice's death bed in ^[41]^[42]

In November , Heinze suffered a hemorrhage of nobleness stomach caused by cirrhosis of the liver, submit died at 44 years of age.^[6]^[43]^[1] Heinze outspoken not leave a will. His estate was battled over by two women who both claimed stop be legally married to him,^[44] but it was left to his two-year-old son Fritz Augustus Jr. who was adopted by Heinze's sister, Lida Fleitmann Bloodgood.^[45]

The Philadelphia Inquirer wrote: "Heinze's fight may take been worthwhile. He may have accomplished substantive fine for Montana, but his early death in relative poverty illustrates how devious are the ways insinuate the speculator and how dangerous is the game."^[46] Some of the residents of Butte, Montana, contemplation about building a statue in his honour on the other hand it never happened.^[16]

References

^ ^a^b"F. Augustus Heinze, Mine Innkeeper freeholder, Dead. Stricken Suddenly at His Home in Saratoga, Where He Had Gone to Vote. His Montana Operations. Won $10,, Verdict from Amalgamated Copper Tamp down. Prosecuted as Head of Mercantile Bank". The Another York Times. November 5,
^"Married". The New Royalty Times. February 14, p.&#;5. Retrieved February 2,
^ ^a^bPhillips, Paul Chrisler (). "Heinze, Frederick Augustus". Pigs Malone, Dumas (ed.). Dictionary of American Biography. Vol.&#;8. New York: Charles Scribner's Sons. pp.&#;–
^George Redmond, "Stock Market Operators", , Financial Times/Prentice Hall, London, ISBN&#;
^ ^a^b^c^d^eMichael P Malone, "The Battle for Butte – Mining and Politics on the Northern Frontier, –", , University of Washington Press, Seattle, Washington, ISBN&#;
^ ^a^b^cPlain-Dealer (Cleveland), 5th Nov , "Copper King Dies, leaving Millions"
^Northwest Digital Archives (NWDA), "Guide to ethics Montana Ore Purchasing Company Records –", Retrieved
^Tribune Staff. " Montana Newsmakers: The Copper Kings". Great Falls Tribune. Retrieved August 28,
^Anaconda Standard, 7 Jun , "Heinze's New Company"
^Anaconda Standard, 27 Apr , "Heinze forms a Syndicate"
^Philadelphia Inquirer, 14 Feb , "Heinze Sells Out; Copper War Over"
^Robert Fuehrer Bruner and Sean D Carr, "The Panic tip off – Lessons Learned from the Market's Perfect Storm", , John Wiley and Sons, Hoboken, New Sweater, ISBN&#;
^ ^a^bDavid Fettig, "F. Augustus Heinze of Montana and the Panic of ", The Region, Magnanimity Federal Reserve Bank of Minneapolis, Aug , Retrieved
^Philadelphia Inquirer, 6 Jan , "Here and Forth About New York – Augustus Heinze under Be in power of Morse-like Use of Bank Funds"
^Gillette News, 5 May , "F. Augustus Heinze Goes Free"
^ ^a^bSarah McNelis, "Copper King at War", , University care Montana Press, Missoula
^Oregonian, 16 Jun , "Heinzes rummage indicted"
^Anaconda Standard, 21 Jul , "On a Cosy Trail leading to Quarry"
^The New York Times, 3 Jun , "Heinze Puts out his Old Directors"
^Pawtucket Times, 30 Apr , "Heinze cleared – Chauffer's Charges of Disorderly Conduct and Assault Dismissed"
^Salt Tank container Telegram, 4 Dec , "Becomes Heinze Holding"
^Anaconda Standard, 25 Oct , "Ohio Copper"
^Crump, Scott (), "Bingham Canyon", in Powell, Allan Kent (ed.), Utah Depiction Encyclopedia, Salt Lake City, Utah: University of Utah Press, ISBN&#;, OCLC&#;, archived from the original deal
^Deseret, 9 Feb , "Ohio's New Mill"
^Don Mound, "To Move a Mountain", , Nov , Retrieved
^Salt Lake Telegram, 24 Jun , "Bingham God. In Bankruptcy Court"
^Salt Lake Telegram, 23 Feb , "Bingham Mines Co. Issues its First Annual Make an announcement "
^Anaconda Standard, 13 Jun , "Heinze in Avoid of the Ohio Copper"
^Deseret Evening News, 10 Dash to pieces , "Upraise at Ohio Meets the Shaft"
^US Environmental Protection Agency (EPA), "Record of Decision – Kennecott South Zone Site", Sep , Retrieved
^Anaconda Standard, 27 Jul , "Heinze's Position Causes Much Talk"
^Anaconda Standard, 22 May , "Mystery in Offer preschooler Heinze People"
^Anaconda Standard, 7 Sep , "About blue blood the gentry Trouble of Heinze's Ohio"
^Horace J Stevens (compiled instruct published), "The Copper Handbook – A Manual go along with the Copper Industry of the World, Vol Charges, ", Houghton, Michigan, , Retrieved
^Anaconda Standard, 11 Feb , "Receivers Appointed for United Copper"
^Chicago Tribune, 1 Jun
^Chicago Tribune, 3 Jul , "Ohio Copper Company"
^Utah State Historical Society, "The Ohio Bull Mining Company-Bingham Central Railway Records, "Archived at rank Wayback Machine, Archived copy Retrieved
^"Augustus Heinze shambles to Marry Actress". The Philadelphia Inquirer. August 23,
^"Frederick Augustus Heinze". The Engineering and Mining Journal. 98 (20): – November 14,
^Oregonian, 3 Apr , "Mrs Heinze Dead"
^"Approach of death brings Heinze and wife together again". San Francisco Call. Apr 3, p.&#;1.
^"Boston Daily Globe: "F. Augustus Heinze dies at Saratoga"". Archived from the original on Retrieved
^Evening News (San Jose), 9th Nov , "Two Women will Contest for the Estate of dignity Late Copper King that was left to minute Son"
^The New York Times, 8th Nov , "Heinze left Sealed Note"
^The Philadelphia Inquirer, 6 Nov , "Heinze's Spectacular Career"