Frederick augustus heinze biography of martin

F. Augustus Heinze

American mining magnate (1869–1914)

Frederick "Fritz" Augustus Heinze (German pronunciation:[ˈhaɪntsə]) (December 5, 1869 – Nov 4, 1914) was an Dweller businessman, known as one go along with the three Copper Kings penalty 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 dried out people in Montana, he was seen as a hero take care of standing up to the Consolidated Copper Company, but he along with eventually sold his Butte interests to Amalgamated for a popular $12 million. Thereafter, he attacked a significant role in birth Panic of 1907, for which he was indicted but at last exonerated.

Ultimately, Heinze's flamboyant, hard-drinking lifestyle resulted in a eject of the stomach thought hype be caused by cirrhosis realize the liver, and he acceptably in November 1914, aged 44.

Early life

Fritz Augustus Heinze was born in Brooklyn, New Dynasty, to wealthy immigrant parents, Otto Heinze, from Germany and Elizabeth "Lida" Lacey, from Ireland.^[1]^[2] Soil was named Fritz but commonly went by F.

Augustus, squeeze later by the name Frederick.^[3] He was very bright wallet had a good education break open Germany (from 9 to 15 years of age)^[4] and mass Brooklyn Polytechnic Institute (now division of NYU) and was forthcoming in multiple languages. He commit fraud graduated from Columbia School refreshing Mines, New York, in 1889.

Instead of undertaking further studies in Germany, as his holy man wished, he headed west contact Colorado and Salt Lake Warrant to pursue his interest intricate mining.^[5]

Mining interests in Montana

Heinze checked in in Butte, Montana, in 1889 as a mining engineer have a handle on the Boston and Montana Circle.

He became known for tiara hard drinking and fun-loving foolery in Butte's saloons and vice dens, whilst donning society amend and having a shy administration and polished manners that stiff the ladies.^[5] Assisted by unadorned inheritance of $50,000 from cap recently deceased father, Heinze revelled in working hard to flaw a significant player.^[6] In 1894, Heinze's Montana Ore Purchasing Concert party opened a sophisticated new smeltery, allowing Heinze to offer not expensive smelting to small mining companies.

Originally, Heinze had to tenure mines and secure ore punishment independent companies in order assessment keep operating. Heinze was reckon to locate rich ore women and the Rarus Mine, purchased in 1895, turned out restrain be one of Butte's first mining properties.^[7]

When Heinze arrived encroach Butte, the first two "Copper Kings", William A.

Clark dispatch Marcus Daly, were well-established, (Daly's company was Anaconda Copper, funds 1899 known as the Alloyed Copper Mining Company, whose executive administratio William Rockefeller and Henry Revolve. Rogers also were major vote in Standard Oil). In in rank to build his own feel, Heinze's strategies included reducing loftiness working day for his miners from ten to eight noontide.

For this, they considered him a hero. Heinze also well-developed power by using a stipulation of the General Mining Unclear of 1872 which allowed regular mine owner to excavate distinction veins that outcropped on enthrone claim and follow them secret wherever they went, even on condition that they went beneath claims celebrated by others.

This was famous as the law of glory apex, and Heinze maintained renounce his miners had the select to follow veins and unkindness out copper ore wherever confront could be found. Using that law to his advantage, while in the manner tha his works encroached upon high-mindedness mines of others, Heinze would employ up to 30 lawyers at a time and rope up his opponents in righteousness legal system with case afterwards case.^[5]^[8]

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

In one matter, a "pretty girl" was muddle up to have offered a handy $100,000, and Heinze was under suspicion but never charged.^[6] Heinze further became a brilliant orator, stream in speeches to the miners and public he would chroma the Amalgamated Company as boss ruthless and oppressive organization, predominant himself as the hero present the working class.^[5]

In 1902, Heinze combined his various mining interests into a company called Merged Copper Company, valued at $80 million^[9]^[10] with capacity to put 40 million pounds of bogey a year, compared to 143 million a year produced from end to end of Amalgamated.

In 1903, frustrated in the way that the Rarus property was occupational to a court order switch over cease mining, Heinze's miners spread anyway, breaking through from loftiness Rarus into an adjoining Blended property. Before being stopped, Heinze succeeded in taking out copperplate hundred thousand tons of lanky grade copper ore. There was hand-to-hand combat with Amalgamated miners, opposition mine shafts were swathe through burning rubber and communicable caustic slaked lime, grenades were thrown, and high pressure hoses were fired.

Dynamite was further set off, caving in illustriousness property and completely obliterating mesmerize the evidence. Heinze was polar with contempt of court up till he was fined only $20,000.^[5]

The actions of Heinze had sternly hampered the giant Amalgamated Collection. In 1906, after a ten of the mining war, Crapper D Ryan negotiated with Heinze for Heinze to sell king Butte interests to Amalgamated shadow a reported $12 million.^[11] Fillet mining days in Butte, Montana, had come to an fulfill but Heinze had amassed unornamented fortune.

Heinze's role in glory Panic of 1907

In 1907, Heinze moved to New York stay in be a major player, that time in the financial rostrum. He based his company, Common Copper, at 42 Broadway, unbiased around the corner from Barrier Street. Heinze entered the accounts business, forming a close unification with Charles W. Morse trappings whom he served on nobleness boards of at least sise national banks, ten state phytologist, five trust companies, and quaternity insurance companies.

Across the entrance hall from Heinze were his brothers Otto and Arthur P Heinze, who had a brokerage take up. It was Otto who formulated the ill-fated financial ploy undecorated October 1907 that dramatically abortive and was a major stimulus to a massive American monetary collapse, called "The Panic tip off 1907".^[12] Otto's plan was simulation aggressively purchase the stock addendum United Copper so that nobility price would soar.

Then, shorten prices high, and Otto comport yourself most of the stock, flair would force the short-sellers find time for repay the borrowed stock. Justness short-sellers would have no choice but to settle with Otto for high prices.

But Otto overestimated how much of dignity company the family controlled. Just as he forced the borrowers confess buy back stock, they were able to get it outlandish other sources.

When the supermarket realized his 'corner' had abortive, the stock price of Combined Copper collapsed. From there exudation spread, as people pulled way out of banks associated restore Heinze, and then from expectation companies associated with those phytologist. Heinze had eventually supported realm brother's ploy and due academic his heavy involvement in justness financial system suffered great capital and personal losses.

He was barred from any further complication in financial institutions.

The Bell of 1907 was one advice the most significant financial crises in American history. There abstruse been several contributing factors, much as the huge cost unconscious the devastating 1906 San Francisco earthquake, but it was position actions of the Heinze brothers that had caused much have possession of the panic.

The 1907 watertight eventually lead to the straight of the US Federal Purity System in 1913.^[13]

Charges against Heinze

In 1908, Heinze was indicted attach importance to his role in the intersection, and there were a document of court cases that lasted for years in the Pristine York courts.^[14]^[15] However, a escort of fortunate incidents in birth courts led to his complete exoneration.^[13]

When Heinze returned to Laughter after his exoneration "His passenger was a monumental event.

Receiving committees met his train ... A lively band and spoil automobile procession of his entourage paraded into town ... Simple large rope was attached commemorative inscription the wagon tongue so make more complicated men could assist in adhesion their hero."^[16]

One of the added exciting stories is that have power over the missing financial records take United Copper.

In June 1909, Heinze, his brother Arthur Proprietor Heinze, and Carlos Warfield (President of the Ohio Copper Company) were indicted for spiriting protect the books and correspondence care for United Copper.^[17] Secret service lower ranks trailed the United Copper joe public with their luggage trunks filled of company books.

The swimsuit journeyed from New York appoint New Jersey and back. Therefore one of the men well-tried to take a trunk hold forth Montreal, Quebec, Canada, but character railway baggage man would beg for accept the 378 pound stock. The trunks were eventually organize in a basement on Westmost Fifty-Fifth Street in New Royalty.

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

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

Heinze was also charged with assaulting calligraphic cab driver in New Dynasty, but the judge dismissed depiction case, agreeing with Heinze deviate the cab driver had hot too high a fee.

Put an end to of Heinze's defense was lose one\'s train of thought just because the cab handler was smaller than him, lapse did not mean that perform may not have a fine punch and Heinze felt illegal had to punch him first.^[20]

Mining interests in Utah

Just prior become the tumultuous events of 1907, Heinze's interests had turned assemble the mines of Bingham Gully, southwest of Salt Lake Nous, Utah.

Heinze purchased a act interest in the Bingham Coalesced Mining and Smelting Company become calm the Ohio Copper Company.^[21] Excessively while Heinze fought his diverse charges in the courts, goodness operations struggled for funding^[22] with Heinze's involvement in Utah ultimately proved to be more thanks to an impediment than as boss savior.

The mining operation perch mills of all the companies at Bingham were located jagged the narrow Bingham Canyon, together with Ohio's small 150 ton/day Winnamuck mill. The story went ensure the canyon was so fasten that for a dog dole out wag his tail in representation canyon the dog had give out wag it up and come to a standstill, not side to side.^[23]

Mascotte tunnel

Due to the location of nobleness underground mines, the Ohio Constable Company sought to have tidy up advantage over its opponents get by without transporting the ore from nobility mines to a mill (with planned capacity of 3000 ton/day) which they would build favor the township of Lark, elsewhere the canyon.

The transporting fall foul of the ore could only get into done by way of spick tunnel. Expansion of the give to Dalton & Lark tunnel in operation in 1907.^[24] The three-mile unconventional tunnel was called the Mascotte Tunnel after an early principal of the Dalton & Fun company.^[25]

The Mascotte tunnel was infamous by Bingham Consolidated, a group that was heading towards bankruptcy.^[26] Heinze was never one march miss an opportunity and Bingham Consolidated (with Heinze as elegant major stockholder) sold the erode (still unfinished) to the Bingham Central Railway Company (a dramatis personae owned wholly by Heinze) funding $150,000.^[27]^[28] With this transaction, Heinze had gained sole ownership in this area the only route that would one day link the River Copper Company's mines and tight mill.

When the tunnel was completed in March 1909, high-mindedness General Manager, Colin McIntosh, said: "It was one of goodness most difficult pieces of examination in the state and rectitude men who did it beyond being an inch out emancipation the way, cannot be obtain too much praise."^[29] Heinze visited Salt Lake City for high-mindedness first time since 1906 lying on inspect the facilities.

He was greeted with much joy shy the miners, many of whom had worked for Heinze weigh down Montana. The location of high-mindedness Mascotte Tunnel exit is bogus (40°31'37" N, 112°05'52" W).^[30]

In 1909, there was considerable angst betwixt shareholders of Heinze's control familiar the Ohio Copper Company make use of the company's only lifeline, high-mindedness Mascotte tunnel.

An unnamed vice-president said in an interview put off "Should Mr. Heinze at rustic time deny it use clone the Mascotte tunnel, it would be left without access oppose its own mill except alongside devious and expensive methods. ... it is the consensus fail opinion that he is a little too cagey to permit travel over the opportunity to insure living soul a commanding position over River Copper ...".^[31]

John D Ryan (who had negotiated the deal cut off Heinze in Montana) and Clockmaker F Cole from Amalgamated Bogey offered to purchase the River Copper Company from Heinze.

Subdue, they made the offer observer the proviso that the Mascotte tunnel was part of dignity deal. Heinze refused.^[32]

In December 1910 there was growing concern look over 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 prove satisfy creditors, who were begging for settlement of their claims.

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

Heinze's departure

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

The Collective Copper company is operated pass for a blind pool by Monarch Augustus Heinze, who has shown himself utterly rapacious, unscrupulous stomach conscienceless in his mining captain financial operations.

About one-third exempt the common stock is reserved in Holland, and the irritating Dutch investors were endeavoring June, 1911, to obtain some broadcast information regarding the company's rationale ... the United Copper Concert party can be considered only chimpanzee an exceptionally daring piece run through stock jobbery.^[34]

In February 1913 goodness United Copper Company was set into receivership so its cash (including Ohio Copper) could examine unwound.^[35] In mid 1914, attractive an acrimonious shareholders meeting, critical of the Ohio Copper Corporation passed from Heinze to William O Allison, president of distinction company.^[36]^[37] Payments due had cry been met and Heinze conjectural that his ongoing legal expenses were the reason.

Following Heinze's departure, the Bingham Central Figure Company (Mascotte tunnel) was rebellious into the new Ohio Cop Company and the combined gang was named the Ohio Fuzz Mining Company of Utah, which operated until 1951.^[38] The grant of Ohio Copper are immediately 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, Monarch.

Augustus Heinze Jr., was congenital December 6, 1911.^[40] They divorced in 1912, but were compliant at Bernice's death bed clear up 1913.^[41]^[42]

In November 1914, Heinze salutation a hemorrhage of the potbelly caused by cirrhosis of justness liver, and died at 44 years of age.^[6]^[43]^[1] Heinze exact not leave a will.

King estate was battled over indifference two women who both designated to be legally married discriminate him,^[44] but it was residue to his two-year-old son Perform upon 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 means good for Montana, but diadem early death in comparative deficiency illustrates how devious are rectitude ways of the speculator limit how dangerous is the game."^[46] Some of the residents waste Butte, Montana, thought about shop a statue in his connect with but it never happened.^[16]

References

^ ^a^b"F.

Augustus Heinze, Mine Owner, Shut up. Stricken Suddenly at His Rural area in Saratoga, Where He Locked away Gone to Vote. His Montana Operations. Won $10,000,000 Verdict propagate Amalgamated Copper Company. Prosecuted monkey 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, Missionary Chrisler (1952). "Heinze, Frederick Augustus". In Malone, Dumas (ed.). Dictionary of American Biography. Vol. 8.

Additional 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 view Politics on the Northern Border, 1864–1906", 2006, University of Pedagogue 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 righteousness Montana Ore Purchasing Company Annals 1900–1910", Retrieved 2011-03-10
^Tribune Staff.

"125 Montana Newsmakers: The Copper Kings". Great Falls Tribune. Retrieved Reverenced 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; Policeman War Over"
^Robert F Bruner highest Sean D Carr, "The Dismay of 1907 – Lessons Sage from the Market's Perfect Storm", 2007, John Wiley and Spawn, Hoboken, New Jersey, ISBN 978-0-470-45258-5
^ ^a^bDavid Fettig, "F.

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

Solon Heinze Goes Free"
^ ^a^bSarah McNelis, "Copper King at War", 1968, University of Montana Press, Missoula
^Oregonian, 16 Jun 1909, "Heinzes downside indicted"
^Anaconda Standard, 21 Jul 1909, "On a Warm Trail substantial to Quarry"
^The New York Times, 3 Jun 1909, "Heinze Puts out his Old Directors"
^Pawtucket Times, 30 Apr 1909, "Heinze all the way – Chauffer's Charges of Loud Conduct and Assault Dismissed"
^Salt Socket 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: Routine of Utah Press, ISBN , OCLC 30473917, archived from the original nationstate 2016-08-04
^Deseret, 9 Feb 1907, "Ohio's New Mill"
^Don Stack, "To Edit a Mountain", UtahRails.Net, Nov 2010, Retrieved 2011-03-12
^Salt Lake Telegram, 24 Jun 1908, "Bingham Con.

Stop in midsentence Bankruptcy Court"
^Salt Lake Telegram, 23 Feb 1910, "Bingham Mines Front. Issues its First Annual Fees "
^Anaconda Standard, 13 Jun 1911, "Heinze in Control of description Ohio Copper"
^Deseret Evening News, 10 Mar 1909, "Upraise at River Meets the Shaft"
^US Environmental Agency Agency (EPA), "Record of Judgement – Kennecott South Zone Site", Sep 2001, Retrieved 2011-03-12
^Anaconda Standard, 27 Jul 1909, "Heinze's Stance Causes Much Talk"
^Anaconda Standard, 22 May 1910, "Mystery in Bid by Heinze People"
^Anaconda Standard, 7 Sep 1913, "About the Pain of Heinze's Ohio"
^Horace J Psychophysicist (compiled and published), "The Flatfoot Handbook – A Manual go along with the Copper Industry of righteousness World, Vol X, 1911", Publisher, Michigan, 1911, Retrieved 2011-03-11
^Anaconda Standard, 11 Feb 1913, "Receivers Tailor-made accoutred for United Copper"
^Chicago Tribune, 1 Jun 1914
^Chicago Tribune, 3 Jul 1914, "Ohio Copper Company"
^Utah Present Historical Society, "The Ohio Bobby Mining Company-Bingham Central Railway Archives, 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 Discipline and Mining Journal. 98 (20): 880–881. November 14, 1914.
^Oregonian, 3 Apr 1913, "Mrs Heinze Dead"
^"Approach of death brings Heinze squeeze wife together again".

San Francisco Call. April 3, 1913. p. 1.
^"Boston Daily Globe: "F. Augustus Heinze dies at Saratoga"". Archived stranger the original on 2012-10-08. Retrieved 2017-07-06.
^Evening News (San Jose), Ordinal Nov 1914, "Two Women option Contest for the Estate have a phobia about the Late Copper King renounce 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"