The morning journal-courier., 1908-10-27
IN MORSE CASE RESTS Court Hears Denial That Direc- tors Ever Authorized Hon. bring of His Over
 drafts. NEVER KNEW OF PRACTICE Sensation Furnished hy Former Vice Presidents Declaration That
 Morse Had Busted"
 Bank.
NEVER KNEW OF PRACTICE

New York. Oct 2s After the ad mission of testimony by John W Gates. former Judge Morgan ! o'Brien, Charles NJ Schvab, John Il Flagler, and William F Havemeyer to the ef- feet that as directors of tho National Bank of North America they had never authorized tho honorng of over drafts by Charles W Morse. the vice president of the bank, and had never known of the existence of such a prac tice, the prosecution late to-day rested its case in the United States court here against the former banker and pro moter. and his fellow defendant. 4. II. Curtis. who arc being tried for al leeed violation of the national banking laws
 The days session furnished a mum her of sensations, not the least of which befug the declaration by W w. Lee a former vice president of the bank, that on the day of the nstitu tion's collapse. Curtis. the president, had said to him; "T have just told Morse that he has busted the bank Mir Lee was questioned ai length con- corning the happenings behind the closed doors of the bank during the evening hours of october IS. 1907. tho day of the collapse After the accounts of the days transactions had been closed. it was discovered Mir Lee tes- tiied that Mir Morse had overdrawn his account s21i GOO In order to make good this deficiency, Morse had turned into the hank 2 quantity of securities for tho most part stocks and bonds not listed on the Stock Exchange and ot doubtful value as collateral for the loan of s211,o0o This loan the direc- tors repudiated on the following day the collateral put up by Morse being found unsatisfactory
 Testimony intended to show the dominating influences exercised over the National bank of North Ameri- ca by Morse was given by w. A. Nash president of the Corn Exchange bank and member of the clearing house committee. Mir. Nash, it appears. in. formed Curtis of the intention of the clearing house committee to examine the bank of North America.
 "1 took Mr. Curtis aside, testified Mir. Nash and asked him If the bank was all right He waved his hand towards Morse and replied: If he iS all right. the bank is all right"
 It was noticed during the proceed. ings to-day that counsel for Morse and counsel tor Curtis differed sharp. ly at times regarding their respective principals part in the affairs of the ! bank.
 F. R. Wire. former cashier of tho | suspended bank, was the first witness | He testified to conversations between hnself and President Curtis abou' the depleted condition of the banks reserve, The banks money had al been loaned out, witness said and tho ! panic was impending. In the face l Of this crisis Mir. Wire said that q feN | days before the crash he refused z l lI1n Dl Al sO4UUV lp Dllu Il'llHi ~ N' l company. Mir. Morse, however, grant cd the loan, giving his personal checl fot S126,000 to r. Augustus 1teinze notwithstanding that at the time hi' balance with the bank was less thar s4O00. The Morse check, MT Wire testified had to be paid back into th' clearing house with the bank Q North Ameriea's funds II was thit overhaul that Morse later attempted to make good by means of loan Q s211.000 from the bank on collatera which the directors refused to accept
 Mir. Wire closed his testimony witt an explanation of the loan of S1S5,oOl made in 1905 to Davison Brown. Thi loan. he said, was really an accommo dtaion to Mrs Katherine Gelshener wh used the proceeds to buy and sel fec stock. Mir. Wire declared tha Mrs. Gelshenen was credited with thu profits accrulng from these stocl
 transactions, but that in some in