New-York tribune., 1910-06-22
NEW HE|NzE SUIT
AGAINST THE FIELDS
Numerous Loans, Aggregating
$187,500, Will Figure in
Court Proceeding.
SEEK HALF A MILLION NOW
Present Action Revival of One
Brought in April By Warfeld
-Althouse Note Will Be
Used by the Defence.

Carlos waraeld. for F. Augustus Heinze.
has brought a civil suit in the Supreme
Court of the county against Leonard J.
Field and Edwin B. Field, composing the
Hrln OF L. J. Field & Co, for s57S, $50. being
q revival Of the suit, with details more spe-
cihc es to alleged losses, brought on April
2s. AT that time Al. NJ Joyce, who figured
rs the borrower on United Copper stocks
of $4,000 from the Windsor Trust Company,
q loan which the latter repudiated when
the matter became public. also sued the
Field company for s12e, ,224 20. alleging loss
in the so-called Windsor Trust transaction
Papers in the Warheld suit were fled
yesterday by Levy, Rosenthai & Heer-
nance, oe counsel for the Heinze inter-
ests. The charges are the same that were
made IN the first suit, with the addition
that special stress is laid upon the so-cailed
.Alfhouse note" which figured in the
Windsor Trust matter. Nine transactions
are mentioned In the papers, and it is al
legged that A. D. T. Adams. Of Brookline,
Macs, and Walter Althouse executed the
commissions for the Fields.
The first loan referred TO was made on
November 20, 1905, TO F. Augustus Heinze.
of $50. coo, for which 5000 shares of United
Copper common stock and $4,000 of Davis
Dsiy common were surrendered as collat-
eral The last loan was on May 19, 1903.
OF $4,000 to Heinze on 1.400 shares Of
United Copper. $500 Of Dayis-Daly and
25e0 OF Ohio Copper stock
The total amount lent was sfS7.500, Of
which F. Augustus Heinze got $4,000 and
Carlos Warfield ss7, 800. For the whole
amount there was surrendered as collat-
eral, of United Copper stock, 4,40o shares;
Of Davis-Daly, 10000; Of Ohio Copper,
10000, and of ten-year first mortgage 6
per cent gold bonds of the Ohio Copper
Company, s1se, 600. The appraised value of
these securities, with interest, less the
amount Of the loans, is the amount for
which MIR. varfield is suing-s57S. $50.
While the first loan TO be tabulated in
the papers was In November, 1908, there
was none again until January 2S. 1909. and
then il was only of $4,000 There were
five loans In February-on the Sd, 10th.
18th, 2oth and 20. These and the one in
January were all TO Warfeld. Two in
May-on the 18th and 19th-were to F.
Augustus Heinze. AL of these transac-
tions were after the occurrences that led
the government into futile effort at
prosecution
The Althcuse note contained the follow
ing stipulation, with a modification which,
II was said, would figure prominently in
the defence:
--It is hereby agreed that the lenders or
assigns shall have the right to make such
use Of the collateral security named herein,
together with any collateral added TO or
substituted for the same and dividends
declared, II any, as they may desire, sub
ject only TO their obligation TO deliver to
the said borrower or order collateral Of
the same amount and Kind as that men
toned above, together with any collateral
added TO or substituted for the same, with
the amount OF dividends, If any, collected
during the term OF this note upon payment
of this obligation at maturity
The provision that if the collateral should
decline below the 20 per cent excess Of the
amount loaned the note shall be deemed
due and payable unless more collateral is
deposited. and, falling this, empowering
the holder Of the collateral to sell the Sc
curities, is offset in its effect by a further
stipulation that the lender shall make up
any deficit that may arise from a forced
sale OF the collateral
With the Joyce suit the amount Of dam
ages wanted from the Fields is S707 674
The total Of the loans received for the
value OF collateral was s237 so 1t was
alleged by the Heinzes that the collateral
lost 10 them had a market value of nearly
sloo0,1D -