Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-10-28
Tells ABOUT LOANS
Curtis Explains. Banking
Methods of C. w. Morse.
CUSTOM AS TO RESERVES
Questions as to Ways Of Other Banks
Excluded.
E STOCK AS COLLATERAL
Witness Questioned Regarding Al
legged circumstances Of Assistant
Cashier RADIO.

NEW YORK, October 2S.-With the tes-
timony OF Alfred H. Curtis. one OF the
defendants. just getting under way when
court adjourned last night and the pros
pect that he would be on the stand the
greater part Of the day, interest in the
trial Of Charles w. Morse and Curtis on
a charge Of violating the national bank
ing law was materially increased today.
Curtis and Morse were closely associated
for many months when Morse was most
active in pushing the two great enter
prises which he organized-the American
Ice Company and the steamship combina-
tion-and it was believed that through
him the prosecution would attempt to
bring out some Of the deails of those pro-
motions which have not generally been
known by the public.
When Mr.. Curtis resumed his testimony
today he said weekly reports were made
by him to the banks directors showing
the loans. collateral. reserve, etc. There
was a rule In the bank, he said. that 1t
week cash representing Is per cent OF its
net deposits.
Practices Of Other Banks.
Taking up the governments testimony
regarding the lack Of reserve in the Ma
tional Bank of North America, Mr.. Oh
colt, counsel for Curtis. endeavored to
show that It was a common thing for
banks to be a little below the legal re-
serve, and endeavored to prove that fully
half Of the f1fty-three clearing house
banks had about that time but % to "a
per cent OF their deposits on hand in cash.
United States Attorney Stimson object
ed to questions along this line, and Judge
HOUgh sustained him.
Mr. Olcott next took up the various
dummy" loans made on ice stock at the
time trading in the stock was so brisk.
Many Of the Whiting dummy" loans
Mr. Curtis could not recall without con-
sulting the banks records. and some OF
them he could not remember at all and
did not think he had made them. He
said, however. that he probably would
have approved the loans had he been
called to pass upon them.
Mr.. Curtis told OF Mr.. Morse paying
off with his personal check for $248.O00
the total Whiting loans then outstand-
ing. The banks profit on this loan was
s3O,500, he said, and was duly credited
to the banks account.
Banks Ice Stock Holdings.
Mr. Curtis. in reply to questions put by
his counsel. said that although he had
referred in letters to ''our ice holdings"
the stock in question really was the prop
erty of Mr.. Morse. He said the di-
rectors generally referred to the stock as
''ours." because the bank was getting the
profits. He often used the term "our. !"
he said. In referring to collateral de-
posted in the bank from time to time in
support Of loans In the bank. Mr.. Curtis
said he was on his vacation when the
Oler loan was made. but that he would
have approved 1t had he been home.
Mr.. Curtis was asked regarding certain
testimony given by Second Assistant
Cashier RADIO. Curtis denied that RADIO
ever cautioned or complained to him
about the amount loaned on Ice. RADIO
had remarked to him that the amount
loaned was rather high.
But / asked him." said Mr.. Curtis, II
he didn't remember that 1t was the little
man. loan. and that the little man. was
behind it,
''The little man was a name Mr.. Morse
was known by in the bank?" asked the
attorney.
1T was"
With reference to the governments allie
CATION that charges of 500 and $1,000
due to Waiting loans were made against
the bank s commission account. Mr.. Cur
tbs said he could not recall whether he
had ordered the two sums charged as
loss to the bank or not but he was will
ing to assume the responsibility. The
bank had the profits and the witness
thought 1t right for 1t to take the loss.
Against these losses of 81, 500 charged
against the bank there were profits or
S154 900 which Morse had made for the
institution on ice said he.