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of the short seller. Heinze's plan was to move aggressively to purchase the stock of United Copper. The price would soar high. Then, with prices high, and Heinze controlling most of the stock, he would force the short-sellers to repay the borrowed stock, a move called a "short squeeze." The
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with an authorized capital of US$ 80,000,000. United Copper combined Heinze interests in The
Montana Ore Purchasing Company, The Nipper Consolidated Copper Company, The Minnie Healy Mining Company, The Corra Rock-Island Mining Company, and The Belmont Mining Company.
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Short sellers borrow, or make arrangements to borrow, the stock of a company, which they then sell at current prices. If prices later drop, they repurchase shares of the company, now at a cheaper price, to replace the borrowed stock. The difference is the
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In 1907, after its legal battles with
Amalgamated had finally been settled, United Copper again found itself the center of a scandal: in October, F. Augustus Heinze's brother, Otto Heinze, devised a scheme to
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Upon consolidation, United Copper was capable of producing about 42 million pounds (19 thousand metric tons) of copper a year, as compared to 143 million pounds (65 thousand metric tons) per year for
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of the banks of F. Augustus Heinze. From there panic spread, as people pulled money out of banks associated with Heinze, and then from trust companies associated with those banks (
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In 1908, F. Augustus Heinze was indicted for his role in the corner. The share price of United Copper, meanwhile, never recovered. In 1913 the company was placed into
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in United Copper stock. The
Heinzes owned a large share of the company and Otto believed that many of these shares had been loaned out to investors hoping to
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317:"Heinze Asks $ 30 Million; Arthur P. Is Suing Amalgamated and Others for This Amount"
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But Otto Heinze overestimated how much of the company the family controlled (cf:
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short-sellers would have no option but to settle with Heinze for high prices.
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business in the early 20th century that played a pivotal role in the
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Non-renewable resource companies disestablished in 1913
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Non-renewable resource companies established in 1902
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245:"Copper Merger May Get the Rich Clark Mines"
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109:United Copper was incorporated in 1902 by
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269:"F.A. Heinze Indicted for Overcertifying"
221:"The United Copper Company Incorporated"
293:"United Copper Co. Passes to Receivers"
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357:Defunct companies based in New Jersey
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367:1913 disestablishments in New Jersey
140:United Copper was literally traded "
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372:1902 establishments in New Jersey
330:Retrieved on September 16, 2008.
306:Retrieved on September 16, 2008.
282:Retrieved on September 16, 2008.
258:Retrieved on September 16, 2008.
234:Retrieved on September 16, 2008.
125:. The firm was incorporated in
98:was a short-lived United States
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16:20th-century mining company
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28:Public (trade on the curb)
150:American Stock Exchange
146:New York Stock Exchange
117:for lucrative copper
96:United Copper Company
304:. February 11, 1913.
256:. February 18, 1906.
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325:The New York Times
301:The New York Times
280:. January 8, 1908.
277:The New York Times
253:The New York Times
229:The New York Times
182:pull the money out
135:Amalgamated Copper
115:Amalgamated Copper
111:F. Augustus Heinze
87:F. Augustus Heinze
232:. April 29, 1902.
158:corner the market
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352:Financial crises
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70:Headquarters
64:receivership
25:Company type
164:the stock.
142:on the curb
341:Categories
202:References
162:short sell
127:New Jersey
82:Key people
75:New Jersey
62:Placed in
152:(AMEX).
33:Industry
51:Defunct
43:Founded
170:profit
320:(PDF)
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272:(PDF)
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119:mines
94:The
59:Fate
54:1913
46:1902
191:).
186:see
121:in
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210:^
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