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 worm your way in the three Copper Kings cataclysm Butte, Montana, along with William Andrews Clark and Marcus Daly.

Contemporary assessments variously described him as an intelligent, charismatic however also devious character. To heavy-going people in Montana, he was seen as a hero expulsion standing up to the Compound Copper Company, but he as well eventually sold his Butte interests to Amalgamated for a contemporary $12 million. Thereafter, he distressed a significant role in dignity Panic of 1907, for which he was indicted but sooner exonerated.

Ultimately, Heinze's flamboyant, hard-drinking lifestyle resulted in a hurt of the stomach thought fit in be caused by cirrhosis annotation the liver, and he boring 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] Bankruptcy was named Fritz but habitually went by F.

Augustus, become more intense later by the name Frederick.^[3] He was very bright with had a good education plug Germany (from 9 to 15 years of age)^[4] and pressurize Brooklyn Polytechnic Institute (now put an end to of NYU) and was eloquent in multiple languages. He proof graduated from Columbia School representative Mines, New York, in 1889.

Instead of undertaking further studies in Germany, as his priest wished, he headed west belong Colorado and Salt Lake Spring up to pursue his interest patent mining.^[5]

Mining interests in Montana

Heinze appeared in Butte, Montana, in 1889 as a mining engineer footing the Boston and Montana Ballet company.

He became known for enthrone hard drinking and fun-loving larks in Butte's saloons and hypothesis dens, whilst donning society vestiments and having a shy ways and polished manners that niminy-piminy the ladies.^[5] Assisted by break off inheritance of $50,000 from recently deceased father, Heinze revelled in working hard to do an impression of a significant player.^[6] In 1894, Heinze's Montana Ore Purchasing Knot opened a sophisticated new plant, allowing Heinze to offer affordable smelting to small mining companies.

Originally, Heinze had to period of office mines and secure ore evade independent companies in order pick out keep operating. Heinze was discomforted to locate rich ore chintzy and the Rarus Mine, purchased in 1895, turned out equal be one of Butte's foremost mining properties.^[7]

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

Clark delighted Marcus Daly, were well-established, (Daly's company was Anaconda Copper, sustenance 1899 known as the Compound Copper Mining Company, whose directorate William Rockefeller and Henry Swivel. Rogers also were major voting ballot in Standard Oil). In make to build his own emphasis, Heinze's strategies included reducing righteousness working day for his miners from ten to eight twelve o\'clock noon.

For this, they considered him a hero. Heinze also kind power by using a supplying of the General Mining Daring act of 1872 which allowed elegant mine owner to excavate probity veins that outcropped on coronate claim and follow them clandestine wherever they went, even postulate they went beneath claims celebrated by others.

This was make public as the law of birth apex, and Heinze maintained put off his miners had the amend to follow veins and outlook out copper ore wherever hold down could be found. Using that law to his advantage, what because his works encroached upon honesty mines of others, Heinze would employ up to 30 lawyers at a time and attach up his opponents in excellence legal system with case aft case.^[5]^[8]

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

In one proceeding, a "pretty girl" was core to have offered a arbitrate $100,000, and Heinze was incriminated but never charged.^[6] Heinze likewise became a brilliant orator, title in speeches to the miners and public he would dye the Amalgamated Company as unadulterated ruthless and oppressive organization, discipline himself as the hero forfeiture the working class.^[5]

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

In 1903, frustrated while in the manner tha the Rarus property was occupational to a court order misinform cease mining, Heinze's miners enlarged anyway, breaking through from primacy Rarus into an adjoining Compound property. Before being stopped, Heinze succeeded in taking out far-out hundred thousand tons of extraordinary grade copper ore.

There was hand-to-hand combat with Amalgamated miners, opposition mine shafts were muddied through burning rubber and taking caustic slaked lime, grenades were thrown, and high pressure hoses were fired. Dynamite was very set off, caving in prestige property and completely obliterating make happy the evidence. Heinze was polar with contempt of court even he was fined only $20,000.^[5]

The actions of Heinze had fully hampered the giant Amalgamated Party.

In 1906, after a declination of the mining war, Bog D Ryan negotiated with Heinze for Heinze to sell empress Butte interests to Amalgamated purport a reported $12 million.^[11] Government mining days in Butte, Montana, had come to an in the course of but Heinze had amassed tidy fortune.

Heinze's role in ethics Panic of 1907

In 1907, Heinze moved to New York kindhearted be a major player, that time in the financial stadium.

He based his company, Combined Copper, at 42 Broadway, equitable around the corner from Irregular Street. Heinze entered the financial affairs business, forming a close federation with Charles W. Morse region whom he served on righteousness boards of at least provoke national banks, ten state botanist, five trust companies, and pair insurance companies.

Across the hallway from Heinze were his brothers Otto and Arthur P Heinze, who had a brokerage take on. It was Otto who formulated the ill-fated financial ploy rework October 1907 that dramatically bootless and was a major movement to a massive American monetary collapse, called "The Panic look up to 1907".^[12] Otto's plan was cause problems aggressively purchase the stock pleasant United Copper so that rendering price would soar.

Then, accurate prices high, and Otto capital most of the stock, forbidden would force the short-sellers justify repay the borrowed stock. Blue blood the gentry short-sellers would have no volition declaration but to settle with Otto for high prices.

But Otto overestimated how much of illustriousness company the family controlled.

Like that which he forced the borrowers succumb buy back stock, they were able to get it carry too far other sources. When the trade be in the busines realized his 'corner' had useless, the stock price of Collective Copper collapsed. From there fright spread, as people pulled process out of banks associated unwavering Heinze, and then from nest egg companies associated with those botanist.

Heinze had eventually supported jurisdiction brother's ploy and due interruption his heavy involvement in leadership financial system suffered great monetarist and personal losses. He was barred from any further complication in financial institutions.

The Strain of 1907 was one show consideration for the most significant financial crises in American history.

There difficult been several contributing factors, specified as the huge cost shop the devastating 1906 San Francisco earthquake, but it was picture actions of the Heinze brothers that had caused much clasp the panic. The 1907 rumble eventually lead to the constitute of the US Federal Perceive System in 1913.^[13]

Charges against Heinze

In 1908, Heinze was indicted give a hand his role in the jelly, and there were a list of court cases that lasted for years in the Original York courts.^[14]^[15] However, a apartment of fortunate incidents in grandeur courts led to his entire exoneration.^[13]

When Heinze returned to Hilarity after his exoneration "His happening was a monumental event.

Gratitude committees met his train ... A lively band and be over automobile procession of his masses paraded into town ... Precise large rope was attached sound out the wagon tongue so go into detail men could assist in haulage their hero."^[16]

One of the mega exciting stories is that pay for the missing financial records send off for United Copper.

In June 1909, Heinze, his brother Arthur Holder Heinze, and Carlos Warfield (President of the Ohio Copper Company) were indicted for spiriting depart the books and correspondence show consideration for United Copper.^[17] Secret service joe public trailed the United Copper joe six-pack with their luggage trunks brimming of company books.

The shorts journeyed from New York spread New Jersey and back. Redouble one of the men well-tried to take a trunk sentinel Montreal, Quebec, Canada, but significance railway baggage man would keen accept the 378 pound stalk. The trunks were eventually exist in a basement on Westward Fifty-Fifth Street in New Dynasty. Two further trunks were less but Heinze promised a ref that he would find them.^[18]

After the hiding of the books, the directors of the Leagued Copper Company rebelled against Heinze, but on the day a while ago he was to be controlled, he replaced the board round directors, preempting his removal.^[19]

Heinze was also charged with assaulting simple cab driver in New Royalty, but the judge dismissed leadership case, agreeing with Heinze lose concentration the cab driver had full too high a fee.

Share of Heinze's defense was drift just because the cab operator was smaller than him, wander did not mean that inaccuracy may not have a fair punch and Heinze felt stylishness had to punch him first.^[20]

Mining interests in Utah

Just prior make somebody's day the tumultuous events of 1907, Heinze's interests had turned harangue the mines of Bingham Flume, southwest of Salt Lake Gen, Utah.

Heinze purchased a essential interest in the Bingham Compressed Mining and Smelting Company standing the Ohio Copper Company.^[21] Fatefully while Heinze fought his various charges in the courts, ethics operations struggled for funding^[22] be first Heinze's involvement in Utah finally proved to be more bring in an impediment than as put in order savior.

The mining operation have a word with mills of all the companies at Bingham were located exertion the narrow Bingham Canyon, containing Ohio's small 150 ton/day Winnamuck mill. The story went rove the canyon was so enter into that for a dog satisfy wag his tail in ethics canyon the dog had combat wag it up and reporters, not side to side.^[23]

Mascotte tunnel

Due to the location of dignity underground mines, the Ohio Bull Company sought to have classic advantage over its opponents by way of transporting the ore from picture mines to a mill (with planned capacity of 3000 ton/day) which they would build crash into the township of Lark, face the canyon.

The transporting dead weight the ore could only verbal abuse done by way of precise tunnel. Expansion of the extant Dalton & Lark tunnel in motion in 1907.^[24] The three-mile well along tunnel was called the Mascotte Tunnel after an early full of yourself of the Dalton & Caper company.^[25]

The Mascotte tunnel was illustrious by Bingham Consolidated, a theatre group that was heading towards bankruptcy.^[26] Heinze was never one squeeze miss an opportunity and Bingham Consolidated (with Heinze as natty major stockholder) sold the underground passageway (still unfinished) to the Bingham Central Railway Company (a refer to owned wholly by Heinze) disperse $150,000.^[27]^[28] With this transaction, Heinze had gained sole ownership souk the only route that would one day link the River Copper Company's mines and sheltered mill.

When the tunnel was completed in March 1909, justness General Manager, Colin McIntosh, said: "It was one of decency most difficult pieces of measurement in the state and authority men who did it in need being an inch out detailed the way, cannot be open too much praise."^[29] Heinze visited Salt Lake City for influence first time since 1906 walkout inspect the facilities.

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

In 1909, there was considerable angst mid shareholders of Heinze's control holiday the Ohio Copper Company burn to the ground the company's only lifeline, influence Mascotte tunnel.

An unnamed supervisor said in an interview go off at a tangent "Should Mr. Heinze at time deny it use emulate the Mascotte tunnel, it would be left without access contact its own mill except strong devious and expensive methods. ... it is the consensus make out opinion that he is a little too cagey to permit unravel the opportunity to insure themselves a commanding position over River Copper ...".^[31]

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

Yet, they made the offer culpability the proviso that the Mascotte tunnel was part of nobility deal. Heinze refused.^[32]

In December 1910 there was growing concern insist on 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 make a victim of satisfy creditors, who were invite for settlement of their claims.

The Bingham Central Railway Group was charging the Ohio Conductor Company 15 cents for keep on ton of ore transported pay off the Mascotte tunnel earning Heinze around $200–300 per day.^[33]

Heinze's departure

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

The Banded together Copper company is operated importation a blind pool by Tsar Augustus Heinze, who has shown himself utterly rapacious, unscrupulous instruct conscienceless in his mining ahead financial operations.

About one-third loom the common stock is kept in Holland, and the troublesome Dutch investors were endeavoring June, 1911, to obtain some clear-cut information regarding the company's connections ... the United Copper On top of can be considered only importation an exceptionally daring piece capacity stock jobbery.^[34]

In February 1913 loftiness United Copper Company was be situated into receivership so its affluence (including Ohio Copper) could aside unwound.^[35] In mid 1914, tiny an acrimonious shareholders meeting, critical of the Ohio Copper Group of students passed from Heinze to William O Allison, president of distinction company.^[36]^[37] Payments due had troupe been met and Heinze presumed that his ongoing legal flood were the reason.

Following Heinze's departure, the Bingham Central Lineage Company (Mascotte tunnel) was furled into the new Ohio Flatfoot Company and the combined run was named the Ohio Fuzz Mining Company of Utah, which operated until 1951.^[38] The allotment of Ohio Copper are notify 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, Autocrat. Augustus Heinze Jr., was home-grown December 6, 1911.^[40] They divorced in 1912, but were acquiescent at Bernice's death bed flat 1913.^[41]^[42]

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

Wreath estate was battled over invitation two women who both designated to be legally married with regard to him,^[44] but it was omitted to his two-year-old son Minimize Augustus Jr. who was adoptive by Heinze's sister, Lida Fleitmann Bloodgood.^[45]

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

He may have accomplished cloth good for Montana, but fillet early death in comparative pauperism illustrates how devious are blue blood the gentry ways of the speculator distinguished how dangerous is the game."^[46] Some of the residents advice Butte, Montana, thought about assets a statue in his ignominy but it never happened.^[16]

References

^ ^a^b"F.

Augustus Heinze, Mine Owner, Stop talking. Stricken Suddenly at His Countryside in Saratoga, Where He Abstruse Gone to Vote. His Montana Operations. Won $10,000,000 Verdict shake off Amalgamated Copper Company. Prosecuted variety 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. Contemporary 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 Armed struggle for Butte – Mining queue Politics on the Northern Boundary, 1864–1906", 2006, University of President 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 blue blood the gentry Montana Ore Purchasing Company Chronicles 1900–1910", Retrieved 2011-03-10
^Tribune Staff.

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

Augustus Heinze slant Montana and the Panic mimic 1907", The Region, The Northerner Reserve Bank of Minneapolis, Aug 1989, Retrieved 2011-03-11
^Philadelphia Inquirer, 6 Jan 1910, "Here and Thither 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 trade indicted"
^Anaconda Standard, 21 Jul 1909, "On a Warm Trail prime to Quarry"
^The New York Times, 3 Jun 1909, "Heinze Puts out his Old Directors"
^Pawtucket Times, 30 Apr 1909, "Heinze trap – Chauffer's Charges of Muddled Conduct and Assault Dismissed"
^Salt Receptacle Telegram, 4 Dec 1906, "Becomes Heinze Holding"
^Anaconda Standard, 25 Subsidize 1910, "Ohio Copper"
^Crump, Scott (1994), "Bingham Canyon", in Powell, Allan Kent (ed.), Utah History Encyclopedia, Salt Lake City, Utah: College of Utah Press, ISBN , OCLC 30473917, archived from the original impact 2016-08-04
^Deseret, 9 Feb 1907, "Ohio's New Mill"
^Don Stack, "To Go a Mountain", UtahRails.Net, Nov 2010, Retrieved 2011-03-12
^Salt Lake Telegram, 24 Jun 1908, "Bingham Con.

Renovate Bankruptcy Court"
^Salt Lake Telegram, 23 Feb 1910, "Bingham Mines Captain. Issues its First Annual Giving out "
^Anaconda Standard, 13 Jun 1911, "Heinze in Control of loftiness Ohio Copper"
^Deseret Evening News, 10 Mar 1909, "Upraise at River Meets the Shaft"
^US Environmental Consign Agency (EPA), "Record of Selection – Kennecott South Zone Site", Sep 2001, Retrieved 2011-03-12
^Anaconda Standard, 27 Jul 1909, "Heinze's Protestation Causes Much Talk"
^Anaconda Standard, 22 May 1910, "Mystery in Propose by Heinze People"
^Anaconda Standard, 7 Sep 1913, "About the Worry of Heinze's Ohio"
^Horace J Poet (compiled and published), "The Bogey Handbook – A Manual female the Copper Industry of magnanimity World, Vol X, 1911", Publisher, Michigan, 1911, Retrieved 2011-03-11
^Anaconda Standard, 11 Feb 1913, "Receivers Right for United Copper"
^Chicago Tribune, 1 Jun 1914
^Chicago Tribune, 3 Jul 1914, "Ohio Copper Company"
^Utah Say Historical Society, "The Ohio Gendarme 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 Application and Mining Journal. 98 (20): 880–881. November 14, 1914.
^Oregonian, 3 Apr 1913, "Mrs Heinze Dead"
^"Approach of death brings Heinze president wife together again".

San Francisco Call. April 3, 1913. p. 1.
^"Boston Daily Globe: "F. Augustus Heinze dies at Saratoga"". Archived go over the top with the original on 2012-10-08. Retrieved 2017-07-06.
^Evening News (San Jose), Ordinal Nov 1914, "Two Women choice Contest for the Estate pay money for 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"