Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-27

cipars part in the affairs of the Eank.
New York, Oct. ga report that
Miss Katherine Gelshenen was to be
called as witness in the trial of
Charles w. Morse and Alfred H. Curtis,
attracted an unusually large attend
ance to that trial today. The first mat
ter taken up today was a check for
s126,C00 drawn by Mr.. Morse Oct. 16.
1t was testified by Mr.. Wire, formerly
cashier of the National Bank of North
America that Mr. Curtis told him Oct.
IL last, Just before the panic, that the
bank was all loaned up, with little call
money outstanding. On Oct. ), he said
Otto Heinze & Co. tried to borrow
s126oO0 from the bank and failed to
get it. On Oct. IS, +. Augustus
Heinze called to see Morse and later
a check for $126, 900 drawn by Mr.. Morse
and cashed at the Mercantile National
Bank, came back to the Bank of
North America. Mr.. Morse then had
a balance of between $4,000 and $4,000
in the bank. Mr.. Wire said he re-
ported the overdraft to Mr.. Morses
secretary.
1t came out in cross-eXamination that
NIL N1Ol hSPl u ioi 81 eiii'o'hs ~
collateral in the loan department of
the National Bank of North America
to protect any checks that unexpect-
adly came in. At about that time, the
witness said. he had prepared a list
of the Morse collateral held by the
bank for the information of Mr.. Flag
Ter and other directors.
The total value on oct 20 Of this
collateral, the list of which was read
to the jury by Mr. Olcott was SOL lao.
on the same day Morse owed the bank
$3.50, 900
The collateral named consisted prin-
cipally of United States stock, Ameri-
can Ice collateral 4 per cent, Trust
bonds of the Consolidated Steamship
Co. and also some Mexican Coal stock
and shares in New York and Maine
banks.
Mr.. Wire said he signed the reports
Of the bank to the comptroller of the
currency believing they were correct
and true, and that he did not know
that Mr. Curtis knew any more about
them than he did.
Counsel for Mr.. Curtis asked if w
f. Hammer, formerly president Of the
hank. did not have loans in the bank
n the name of J. A. Smith, his stenog-
apher. The question was ruled out
Mr.. Wire told Mr. Olcott that neither
Mr.. Curtis nor Mr.. Morse had ever in
structed him to make improper or
wrong entries in the comptrolers re-
| rorts.
Mr. Wire said he knew the loans tC
Davidson Brown of $4,000 was really
4 e NJ Al
| shenen and that she used the proceeds
/ to deal in ice stocks and got the prof
! it's thereon. 1t came out that Other
i cans were made by the bank for spec
ulaton IN ice stocks and that while
l profits were credited to the borrower
some of the losses were charged
| against the bank.
did you also know" Judge Hougf
/ lsked, that the interest on the X. A
l Wilson loan was really being paid by
| he bank and not by the borrower
| Il did not know 1t then. have since
learned of it," replied the former
ASHER.
After further questions Mr. Wir'
laid that of the s7O1.140 Morse collat
l raj which the cashier had listed a.
leld by the bank sl25,0O0 worth Of Con
1 solidated Steamship bonds were not II
actual physical possession of the bank
w. w. Lee, formerly vice presiden
If the National Bank of North Anerf
"a, testified that Oct. 16 Mr.. Crrti
said: II have just told Mr.. Morse tina
he had busted the bank Morse said
'Dont say that"
L Mr. Lee said that he examined the DER
sonal account of Mr. Morse between an