New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-11

F. Augustus Heinze was called 3 : wit
ness yesterday in the Supreme Court
against the Mercantile National Bank. of
which he was formerly president. The suit
vas that of the former Heinze bank against
the National Bank Of North America to
recover $aoooo on an alleged loan to the
defendant
Incidentally the testimony brought
Charles " Morse again into public notice,
as he was in control of the National Bank
Of North America in 1907. when the trans
action took place. and he guaranteed the
paper that was put I'D for the loan. II de-
veloped also that Heinze had to remind
Morse by wireless that he had not given
the guarantee A. the time he was on a
steamer going to Europe In the courtroom
yesterday while Heinze was testfyipg were
several lawyers who figure in other cases
in which Heinze Is involved and they fol
lowed his testimony with much interest.
The defendant saws that the alleged loan
was merely the sale Of ] note made by
Primrose & Braun This note figured in
the prosecution Of Morse The plaintiff al
leses that. while. the S2f0nnO figured in 2
transaction over note of $1,000 made by
Leslie Whiting, an employe Of Primrose &
Braun. the check was given TO enable the
National Bank of North America TO reduce
the note to s110.51n
Heinze testified that he called on Morse
in June. 19o7. about making personal loan
Of 5000 Morse mentioned that he had
some commercial paper that he wished the
Mercantile 10 ACCEPT The paper was
500 noo note of r ". Wilder president Of
the Rutt~rtck Publishing COMPANY. secured
ny Butterick stock. and the 500 n00 note Of
Primrose & Braun, secured by 1000 shares
Of American Ice stock Morse offered the
notes for sale. but Heinze said he would
not accent them without the personal guar
sntee Of Morse. Heinze submitted the mat
TER My, O'Rrien. vice. president Of the
Mercantile. who decided the collateral for
the Primrose & Braun note vas insufficient.
and II was increased to 1000 shares Of
American Ice stock Morse talked over the
matter Of the loan 70 Heinze with Mr.
Curtis, president of the National Bank Of
North America. and as a result Hetnze
said the Mercantile took the Primrose &
R-aun note and the 1nnonD Wilder note
Did YOU get the Morse guarantee at the
same time that vou GOT the paper?" asked
counsel
NO. NOT for some time after the notes
were delivered
What were the circumstances Of your
eventually receiving the guarantee"
When I found that the notes had come
without Mr. Norse's guarantee I tried 10
communicate with him at his office, ana
found that he was on the ocean on the way
- Europe. I sent him wireless asking
where the guarantee was. He replied i'm
n1ediately that he would attend TO the mat
ter on his arrival in Europe Subsequently
July. IS 1907 in which he guaranteed the
tro notes"
The lawyer for the defence declared that
he wanted TO show that no responsibility
existed ard that Hetnze did not look to
the National Bank of North America tn
made good the notes.
Heinze said on cross-ex ANNA ton that he
Question of a sale Of the notes arose our
~ \ visit he made for the purpose Of ar
ranging a loan with Morse to himself He
declared he couldn't swear definitely as TO
u-befI,er II was transaction between the
two hanks. and he was asked If that was
bacauee the item was SO small. Hein7e
said the transaction was not unusual and
az made no impression upon him.
Further testimony developed the fact that
Nor did not have the notes when he
arranged for their sale, but that they were
made about = week later, being renewals
Of old notes