New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-14

went TO Boston. where a fertile brain and good
lawyer combined 10 evolve the plan which Adams
has since operated with success
Adams became in Boston lender of money
mining stocks and other unlisted securities. The
form OF note he used. OF which he gave out copy
last night. contained a p-ovison. as follows;
And il is hereby agreed that the lenders or
assigns shall have the right 70 make such use OF
any coI!aerai added To or substituted for the same.
and DIVIDENDS declared, if any, as they may desire,
said borrower or order collateral Of the same
gether with any collateral added substituted
Tor the same. with the amount Of dividends. u any
collected, during the term Of This note upon pay
ment of this obligation at maturity.
This contract. it is understood. has been tested
in the courts. and has been held binding on the
makers OF the note
Adams. Mr.. Bishop says. would lend money
collateral security double the amount of the
Loan Protected by his note. the detective said he
would Immediately sell the collateral He had
figured out the detective explained, that in so per
cent of the the price of the collateral would
fall so that il the note were paid at maturity, he
could replace the collateral for much less than he
had sold H. on the other 20 per cent he might lose
a little provided payment OF the loan were made
But a study of the loan market showed Adams.
Mr. Bishop said that the average borrower on un-
listed securities defaUted payments
F Augustus Heinze. the story is told in the
financial district has been for time washing
Ohio Copper and Davis-Daly Copper. the result
baiD 10 civ
stated value when IT was desired to use them as
collateral security on loans. Heinze il Is said. had
been one of Adamss customers
I4strza recently through NJ NJ Joyce. placed
himself in the market for loan. and aceorolhs
10 ths story told. was accommodated. In accepting
the loan joyce provided note of his own that
tied the lender But the latter then put forth an
other form of note which Joyce accepted with ths
addition of a clause providing that the note could
be paid and the collateral redeemed at any time
bv the payment OF the interest for the full
The expected happened according 10 the Heinzs
story. when the collateral was at once put on the
market And the other hand. the unexpected
happened when Mr.. Joyce right the JOB
with the money to take up the note and demand
for specific performance OF contract.
s B. Rosenthal. attorney for Mr.. Joyce. after
saying yesterday that Heinze had had dealings
with Adams in which the Boston man had come
out ahead was asked about the report that Heinzs
had been washing Davis-Daly and Ohio copper
stocks
You see that there is a legitimate sale for
the stocks by the lenders finding ready market
he said.
How about Heinze getting the way OF tho
lightning in the hope of catching Adams?'
THE $4,000 was borrowed by Mr.. Joyce for his
own purposes Mr. Rosenthal replied
But Mr.. Henze has admitted that he put up a
part at least. OF the stocks"
HENCE said Mr.. Rosenthal may have put
up part of the stocks. but he did it of friend
ship for Joyce"
How about the whole thing being put up Job
10 get square for past experiences"
That IS not So" Mr.. ROscnthal declared. Mr.
joyce did not expect TO see the stock sold He
thought he dealing with the Windsor Trust
Company. He was surprised to see the stock come
on the market. and when he did. he went 10 take
up the loan. and you know the rest"
Was the note made payable 20 the Windsor
Trust Company"
NO. it was made payable TO self and Endorsed
by Joyce"
Mr. Bishop said yesterday that Adams had made
so much money in his business that yesterday
morning. at 10 o'clock. he had in his pocket SooQ0
in 81 900 bills and that at various times IN the last
three months he had exhibited cash in amounts
varying from $4,000 to 100000.