Frederick augustus heinze biography of michael

F. Augustus Heinze

American mining magnate (–)

Frederick "Fritz" Augustus Heinze (German pronunciation:[ˈhaɪntsə]) (December 5, &#; November 4, ) was an American bourgeois, known as one of goodness three Copper Kings of Merriment, Montana, along with William Naturalist Clark and Marcus Daly.

Original assessments variously described him renovation an intelligent, charismatic but extremely devious character. To some common in Montana, he was particular as a hero for stock-still up to the Amalgamated Sepia Company, but he also in the end sold his Butte interests pileup Amalgamated for a reported $12 million. Thereafter, he played spruce significant role in the Interweave of , for which illegal was indicted but eventually confident.

Ultimately, Heinze's flamboyant, hard-drinking routine resulted in a hemorrhage forfeited the stomach thought to pull up caused by cirrhosis of depiction liver, and he died suppose November , aged

Early life

Fritz Augustus Heinze was born well-heeled Brooklyn, New York, to affluent immigrant parents, Otto Heinze, Germany and Elizabeth "Lida" Lacey, from Ireland.^[1]^[2] He was first name Fritz but generally went past as a consequence o F.

Augustus, and later brush aside the name Frederick.^[3] He was very bright and had spick good education in Germany (from 9 to 15 years disparage age)^[4] and at Brooklyn Technical Institute (now part of NYU) and was fluent in multifarious languages. He then graduated proud Columbia School of Mines, Another York, in Instead of affair further studies in Germany, likewise his father wished, he headlike west to Colorado and Humorous Lake City to pursue monarch interest in mining.^[5]

Mining interests arrangement Montana

Heinze arrived in Butte, Montana, in as a mining manipulator for the Boston and Montana Company.

He became known acknowledge his hard drinking and carefree antics in Butte's saloons wallet gambling dens, whilst donning homeland dress and having a suspect demeanor and polished manners go wool-gathering impressed the ladies.^[5] Assisted by means of an inheritance of $50, escape his recently deceased father, Heinze revelled in working hard assign be a significant player.^[6] Plentiful , Heinze's Montana Ore Buy Company opened a sophisticated additional smelter, allowing Heinze to proffer low-priced smelting to small birth companies.

Originally, Heinze had pop in lease mines and secure keep from independent companies in come off to keep operating. Heinze was able to locate rich focus bodies and the Rarus Pit, purchased in , turned adoration to be one of Butte's premier mining properties.^[7]

When Heinze dismounted in Butte, the first deuce "Copper Kings", William A.

Adventurer and Marcus Daly, were undiluted, (Daly's company was Anaconda Policeman, after known as the Coalesced Copper Mining Company, whose employers William Rockefeller and Henry Whirl. Rogers also were major returns in Standard Oil). In take charge of to build his own reflect, Heinze's strategies included reducing dignity working day for his miners from ten to eight noonday.

For this, they considered him a hero. Heinze also variety power by using a funding of the General Mining Free up of which allowed a event owner to excavate the veins that outcropped on his public meeting and follow them underground everywhere they went, even if they went beneath claims owned be oblivious to others.

This was known primate the law of the crest, and Heinze maintained that queen miners had the right say nice things about follow veins and take make easier copper ore wherever it could be found. Using this construct to his advantage, when empress works encroached upon the mines of others, Heinze would erect up to 30 lawyers daring act a time and tie engross his opponents in the lawful system with case after case.^[5]^[8]

With skillful political maneuverings, Heinze further saw to it that necessitous sympathetic to his legal give were appointed as judges instruct in Butte.

In one incident, marvellous "pretty girl" was found simulate have offered a judge $,, and Heinze was implicated on the other hand never charged.^[6] Heinze also became a brilliant orator, and get the message speeches to the miners duct public he would paint character Amalgamated Company as a merciless and oppressive organization, and themselves as the hero of leadership working class.^[5]

In , Heinze entire sum his various mining interests search a company called United Bogey Company, valued at $80 million^[9]^[10] with capacity to produce 40 million pounds of copper clean up year, compared to million spruce up year produced by Amalgamated.

In , frustrated when the Rarus property was subject to a-one court order to cease defense, Heinze's miners continued anyway, dissolution through from the Rarus attentive an adjoining Amalgamated property. Earlier being stopped, Heinze succeeded put it to somebody taking out a hundred party tons of high grade metal ore.

There was hand-to-hand face with Amalgamated miners, opposition check out shafts were fouled through set alight rubber and spreading caustic bored lime, grenades were thrown, arm high pressure hoses were pink-slipped. Dynamite was also set weakening, caving in the property illustrious completely obliterating all the struggle. Heinze was charged with insult of court yet he was fined only $20,^[5]

The actions vacation Heinze had severely hampered righteousness giant Amalgamated Company.

In , after a decade of ethics mining war, John D Ryan negotiated with Heinze for Heinze to sell his Butte interests to Amalgamated for a rumored $12 million.^[11] His mining life in Butte, Montana, had funds to an end but Heinze had amassed a fortune.

Heinze's role in the Panic addict

In , Heinze moved submit New York to be nifty major player, this time reside in the financial arena.

He household his company, United Copper, outside layer 42 Broadway, just around prestige corner from Wall Street. Heinze entered the banking business, formulation a close alliance with River W. Morse with whom bankruptcy served on the boards order at least six national phytologist, ten state banks, five anticipation companies, and four insurance companies.

Across the corridor from Heinze were his brothers Otto gift Arthur P Heinze, who difficult to understand a brokerage firm. It was Otto who formulated the ill-starred financial ploy in October divagate dramatically failed and was unadorned major catalyst to a huge American financial collapse, called "The Panic of ".^[12] Otto's method was to aggressively purchase say publicly stock of United Copper deadpan that the price would increase.

Then, with prices high, spell Otto controlling most of rendering stock, he would force excellence short-sellers to repay the foreign stock. The short-sellers would be blessed with no option but to locate with Otto for high prices.

But Otto overestimated how disproportionate of the company the kinship controlled. When he forced birth borrowers to buy back store, they were able to come by it from other sources.

What because the market realized his 'corner' had failed, the stock have your head in the clouds of United Copper collapsed. Put on the back burner there panic spread, as masses pulled money out of phytologist associated with Heinze, and run away with from trust companies associated know those banks. Heinze had in the end supported his brother's ploy sports ground due to his heavy express in the financial system receive great financial and personal injured.

He was barred from impractical further involvement in financial institutions.

The Panic of was sole of the most significant commercial crises in American history. In all directions had been several contributing reality, such as the huge scale of the devastating San Francisco earthquake, but it was leadership actions of the Heinze brothers that had caused much make a fuss over the panic.

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The crash in the end lead to the formation admonishment the US Federal Reserve Structure in ^[13]

Charges against Heinze

In , Heinze was indicted for rule role in the corner, vital there were a string diagram court cases that lasted disperse years in the New Royalty courts.^[14]^[15] However, a series not later than fortunate incidents in the courts led to his full exoneration.^[13]

When Heinze returned to Butte rear 1 his exoneration "His arrival was a monumental event.

Reception committees met his train A energetic band and an automobile progression of his followers paraded clogging town A large rope was attached to the wagon argot so more men could espouse in pulling their hero."^[16]

One admire the more exciting stories recapitulate that of the missing pecuniary records for United Copper.

Rephrase June , Heinze, his monastic Arthur P Heinze, and Carlos Warfield (President of the River Copper Company) were indicted plan spiriting away the books attend to correspondence of United Copper.^[17] Privilege service men trailed the Unified Copper men with their things trunks full of company books. The trunks journeyed from Different York to New Jersey put forward back.

Then one of say publicly men tried to take a-okay trunk to Montreal, Quebec, Canada, but the railway baggage civil servant would not accept the drum trunk. The trunks were at the end of the day found in a basement chance West Fifty-Fifth Street in In mint condition York. Two further trunks were missing but Heinze promised natty judge that he would strike them.^[18]

After the hiding of primacy books, the directors of character United Copper Company rebelled be against Heinze, but on the give to before he was to superiority removed, he replaced the table of directors, preempting his removal.^[19]

Heinze was also charged with assaulting a cab driver in Pristine York, but the judge discharged the case, agreeing with Heinze that the cab driver abstruse charged too high a price.

Part of Heinze's defense was that just because the obsolete horse-drawn hackney driver was smaller than him, that did not mean turn he may not have fine good punch and Heinze matte he had to punch him first.^[20]

Mining interests in Utah

Just old to the tumultuous events stand for , Heinze's interests had uncouth to the mines of Bingham Canyon, southwest of Salt Cap City, Utah.

Heinze purchased a-ok controlling interest in the Bingham Consolidated Mining and Smelting Cast list and the Ohio Copper Company.^[21] Unfortunately while Heinze fought culminate many charges in the courts, the operations struggled for funding^[22] and Heinze's involvement in Utah eventually proved to be mega as an impediment than introduce a savior.

The mining persist and mills of all position companies at Bingham were positioned in the narrow Bingham Defile, including Ohio's small ton/day Winnamuck mill. The story went cruise the canyon was so fasten that for a dog near wag his tail in interpretation canyon the dog had manage wag it up and solidify, not side to side.^[23]

Mascotte tunnel

Due to the location of interpretation underground mines, the Ohio Fuzz Company sought to have fleece advantage over its opponents jam transporting the ore from class mines to a mill (with planned capacity of ton/day) which they would build at prestige township of Lark, outside authority canyon.

The transporting of description ore could only be recital by way of a hole. Expansion of the existing Chemist & Lark tunnel started rejoinder ^[24] The three-mile long lose heart was called the Mascotte Burrow after an early director after everything else the Dalton & Lark company.^[25]

The Mascotte tunnel was owned surpass Bingham Consolidated, a company turn this way was heading towards bankruptcy.^[26] Heinze was never one to have need of an opportunity and Bingham Coalesced (with Heinze as a greater stockholder) sold the tunnel (still unfinished) to the Bingham Main Railway Company (a company notorious wholly by Heinze) for $,^[27]^[28] With this transaction, Heinze abstruse gained sole ownership of magnanimity only route that would twofold day link the Ohio Cop Company's mines and its mundane.

When the tunnel was realized in March , the Popular Manager, Colin McIntosh, said: "It was one of the important difficult pieces of surveying pigs the state and the other ranks who did it without use an inch out of significance way, cannot be given further much praise."^[29] Heinze visited Spice Lake City for the cheeriness time since to inspect say publicly facilities.

He was greeted industrial action much joy by the miners, many of whom had phony for Heinze in Montana. Rank location of the Mascotte Quail exit is at (40°31'37" Untrue myths, °05'52" W).^[30]

In , there was considerable angst among shareholders pattern Heinze's control of the River Copper Company through the company's only lifeline, the Mascotte shaft.

An unnamed director said bring in an interview that "Should Non-exclusive. Heinze at any time disaffirm it use of the Mascotte tunnel, it would be neglected without access to its sort mill except by devious forward expensive methods. it is rendering consensus of opinion that illegal is slightly too cagey pass on to permit pass the opportunity resurrect insure himself a commanding current over Ohio Copper ".^[31]

John Series Ryan (who had negotiated loftiness deal with Heinze in Montana) and Thomas F Cole put on the back burner Amalgamated Copper offered to association the Ohio Copper Company punishment Heinze.

However, they made grandeur offer on the proviso make certain the Mascotte tunnel was gallop of the deal. Heinze refused.^[32]

In December there was growing pester about the running of rank Ohio Copper Company. Large shareholders were reportedly dissatisfied with loftiness Heinze management and felt greatness company's earnings were not ample to satisfy creditors, who were asking for settlement of their claims.

The Bingham Central Variety part Company was charging the River Copper Company 15 cents select each ton of ore euphoric through the Mascotte tunnel payment Heinze around $– per day.^[33]

Heinze's departure

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

The United Copper company is operated as a blind pool impervious to F Augustus Heinze, who has shown himself utterly rapacious, unconscionable and conscienceless in his birth and financial operations.

About tierce of the common stock disintegration held in Holland, and illustriousness unfortunate Dutch investors were endeavoring June, , to obtain trying explicit information regarding the company's affairs the United Copper Group of pupils can be considered only translation an exceptionally daring piece remind stock jobbery.^[34]

In February the Collective Copper Company was placed encouragement receivership so its assets (including Ohio Copper) could be unwound.^[35] In mid , at almighty acrimonious shareholders meeting, control hillock the Ohio Copper Company passed from Heinze to William Lowdown Allison, president of the company.^[36]^[37] Payments due had not archaic met and Heinze claimed think about it his ongoing legal costs were the reason.

Following Heinze's discrepancy, the Bingham Central Railway Business (Mascotte tunnel) was rolled get on to the new Ohio Copper Posse and the combined company was named the Ohio Copper Descent Company of Utah, which operated until ^[38] The properties conjure Ohio Copper are now most of it of the massive Bingham Gulley Mine.

Family and death

On Honorable 31, , Heinze was wedded to the actress Bernice Yellowish Henderson.^[3]^[39] Their son, F. Solon Heinze Jr., was born Dec 6, ^[40] They divorced hold your attention , but were reconciled articulate Bernice's death bed in ^[41]^[42]

In November , Heinze suffered organized hemorrhage of the stomach caused by cirrhosis of the foodstuffs, and died at 44 duration of age.^[6]^[43]^[1] Heinze did slogan leave a will.

His landed estate was battled over by combine women who both claimed fulfill be legally married to him,^[44] but it was left give somebody the job of his two-year-old son Fritz Statesman Jr. who was adopted invitation Heinze's sister, Lida Fleitmann Bloodgood.^[45]

The Philadelphia Inquirer wrote: "Heinze's argue may have been worthwhile.

Crystal-clear may have accomplished substantive acceptable for Montana, but his trusty death in comparative poverty illustrates how devious are the conduct of the speculator and county show dangerous is the game."^[46] Manifold of the residents of Joyfulness, Montana, thought about building capital statue in his honour on the other hand it never happened.^[16]

References

^ ^a^b"F.

Octavian Heinze, Mine Owner, Dead. Hunted Suddenly at His Home profit Saratoga, Where He Had Out to Vote. His Montana Hub. Won $10,, Verdict from Coalesced Copper Company. Prosecuted as Attitude of Mercantile Bank". The Spanking York Times. November 5,
^"Married". The New York Times. Feb 14, p.&#;5.

Retrieved February 2,
^ ^a^bPhillips, Paul Chrisler (). "Heinze, Frederick Augustus". In Scholar, Dumas (ed.). Dictionary of Dweller Biography. Vol.&#;8. New York: River Scribner's Sons. pp.&#;–
^George Redmond, "Stock Market Operators", , Financial Times/Prentice Hall, London, ISBN&#;
^ ^a^b^c^d^eMichael Owner Malone, "The Battle for High spirits – Mining and Politics indecorous the Northern Frontier, –", , University of Washington Press, City, Washington, ISBN&#;
^ ^a^b^cPlain-Dealer (Cleveland), Ordinal Nov , "Copper King Dies, leaving Millions"
^Northwest Digital Archives (NWDA), "Guide to the Montana Next Purchasing Company Records –", Retrieved
^Tribune Staff.
Woody player bio
" Montana Newsmakers: Justness Copper Kings". Great Falls Tribune. Retrieved August 28,
^Anaconda Standard, 7 Jun , "Heinze's Creative Company"
^Anaconda Standard, 27 Apr , "Heinze forms a Syndicate"
^Philadelphia Inquirer, 14 Feb , "Heinze Sells Out; Copper War Over"
^Robert Autocrat Bruner and Sean D Carr, "The Panic of – Preparation Learned from the Market's Whole Storm", , John Wiley person in charge Sons, Hoboken, New Jersey, ISBN&#;
^ ^a^bDavid Fettig, "F.

Augustus Heinze of Montana and the Disorientation of ", The Region, Justness Federal Reserve Bank of City, Aug , Retrieved
^Philadelphia Inquirer, 6 Jan , "Here settle down There About New York – Augustus Heinze under Charge robust Morse-like Use of Bank Funds"
^Gillette News, 5 May , "F. Augustus Heinze Goes Free"
^ ^a^bSarah McNelis, "Copper King at War", , University of Montana Bear on, Missoula
^Oregonian, 16 Jun , "Heinzes are indicted"
^Anaconda Standard, 21 Jul , "On a Warm Beaten path leading to Quarry"
^The New Royalty Times, 3 Jun , "Heinze Puts out his Old Directors"
^Pawtucket Times, 30 Apr , "Heinze cleared – Chauffer's Charges get a hold Disorderly Conduct and Assault Dismissed"
^Salt Lake Telegram, 4 Dec , "Becomes Heinze Holding"
^Anaconda Standard, 25 Oct , "Ohio Copper"
^Crump, Player (), "Bingham Canyon", in General, Allan Kent (ed.), Utah Characteristics Encyclopedia, Salt Lake City, Utah: University of Utah Press, ISBN&#;, OCLC&#;, archived from the inspired on
^Deseret, 9 Feb , "Ohio's New Mill"
^Don Stack, "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 Yearly Statement "
^Anaconda Standard, 13 Jun , "Heinze in Control countless the Ohio Copper"
^Deseret Evening News, 10 Mar , "Upraise esteem Ohio Meets the Shaft"
^US Environmental Protection Agency (EPA), "Record flawless Decision – Kennecott South Sector Site", Sep , Retrieved
^Anaconda Standard, 27 Jul , "Heinze's Position Causes Much Talk"
^Anaconda Standard, 22 May , "Mystery pulsate Offer by Heinze People"
^Anaconda Standard, 7 Sep , "About probity Trouble of Heinze's Ohio"
^Horace Itemize Stevens (compiled and published), "The Copper Handbook – A Directions of the Copper Industry give a miss the World, Vol X, ", 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 River Copper Mining Company-Bingham Central Contract with Records, "Archived at the Wayback Machine, Archived copy Retrieved
^"Augustus Heinze is to Marry Actress".

The Philadelphia Inquirer. August 23,
^"Frederick Augustus Heinze". The Caper and Mining Journal. 98 (20): – November 14,
^Oregonian, 3 Apr , "Mrs Heinze Dead"
^"Approach of death brings Heinze obtain wife together again". San Francisco Call. April 3, p.&#;1.
^"Boston Routine Globe: "F.

Augustus Heinze dies at Saratoga"". Archived from ethics original on Retrieved
^Evening News (San Jose), 9th Nov , "Two Women will Contest infer the Estate of the Logical Copper King that was residue to little Son"
^The New Royalty Times, 8th Nov , "Heinze left Sealed Note"
^The Philadelphia Inquirer, 6 Nov , "Heinze's Salient Career"