Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-10-22
OWN CASH BOUGHT BANK
Wife Of Accused Ice King Present
in Courtroom.
CALVIN AUSTIN ON THE STAND
Tells of Note He Would Not Take
Care of-Director Whose Bluff
Was Called.

| .iTnony at the trial Of Charles ". Morse
and his Co-defendant. Alfred II. Curtis,
who are charged before Judge Hough, in
the criminal branch of the United States
| court, with conspiracy and violation OF
the national banking laws, was introduced
yesterday the name Of Miss Kate A.
| Wilson. secretary to Morse. The prose-
cution produced witnesses who testified
to large loans made By the National Bank
of North America. a Morse institution. TO
Miss Wilson.
| Edwin Moxey, a government bank ex-
aminer. who has proved at this hearing
| that he is a wizard at figures. was the
principal witness relative to the big loans
made to the financiers faithful secretary.
| Summed up his testimony was as fol-
| lows:
Morse would loan Miss Wilson a sum Of
| money. Miss Wilson's note would be
cashed by the National Bank Of North
America. and with the proceeds stock OF
the American Ice Company would be pur-
| chased. Then the Ice stock would be
| used 10 secure another loan from the
bank.
with the money thus secured bank
| stock would be purchased. and the bank
| stock aided in supporting the Ice stock
pools in which Morse and other financiers
were interested. The failure to raise the
| price of Ice above par was what caused
the break in the endless chain"
Big Loan Traced to Girl.
| The lawyers for the defense objected
repeatedly to the line of questions asked
the witness by the govefnment lawyers.
Judge Hough sustained the prosecution
and the above description of the Wilson
m Y,lIf1 Ia records Micro hv
piece, until the chain was complete.
Examiner Moxey showed how he traced
| a loan of S125.OO to Miss Wilson. He re-
ferred every now and again to bundle OF
papers on which he had made no testi-
| mony.
For the first time since her husband
| has been on trial Mrs. Clementine Dodge
Morse appeared in the courtroom. Mrs.
Curtis. wife Of the former president OF
the National Bank Of North America, who
| is being Jointly tried with Morse, has
been at her husbands side every day.
| Mrs. Morse attended the afternoon ses-
| sion. accompanied by her son Harry. who
| is a student in Princeton University.
She was becomingly attired in a gown of
blue.
| She took a seat beside her husband in
| side the railing and appeared deeply in
terested In the proceedings. as did her
changed friendly greetings.
Calvin Austin, president OF the Eastern
Steamship Company of Boston. Mass,
was witness in the afternoon, He testi-
fled that Morse induced him to buy 1,2.J0
| shares of ice stock, for which Austin
gave In payment note Tor 100000.
| The witness produced a letter, signed by
Morse, guaranteeing Austin from all loss.
| Austin says that he subsequently learned
| that his note was discounted at the Ma
tional Bank of North America. Just be-
| fore this information reached him, the
1
| to his Office with letter from Morse ask
| ing him to surrender the certificate for
| the 1,2J0 shares of Ice stock. Austin in
| dorsed the certificate in blank and sur
rendered it.
Then, Austin said, Curtis, president of
| the National Bank of North America.
| told him his note had been discounted at
| his bank. Curtis informed him. the Wa
| ness said, that Charles T. Barney, one Of
| the directors, suggested that he (Curtis)
| see Austin and ask him to either pay the
note or to furnish collateral.
Il told Mr.. Curtis that Mr.. Morse had
put the loan in the bank and that he
would have to take care of it," said Aus
| tin.
Barney's Bluff Called.
He added that Curtis told him that Bar
| ney threatened to resign from the board
of directors If the note was not taken up.
| Austin testified that Curtis pushed pen
and ink toward Barney with which to
sign his resignation.
And did he sign it," the witness was
asked.
He did not" was the reply.
could you have made good the notes?"
was asked.
Il could not-that Is. not without the
| ice Stock" replied Austin.
Upon the crOss-eXaminatiOn of the wit
ness by the defense 1t was brought out
| that Austin had been in many deals with
Morse and that he had derived large
profits. 1t was also shown that his salary
ranged from $4,000 to $4,000 a year.
The lawyers for the def nse tried to
show that Austin would have been we'll
able to pay the note. The witness adj
| mitted owning large amounts of stock.
Mickey was recalled to the witness stand
at this point and testified that Morse dis
counted the Calvin Austin note for $lUo
600 and a note of James r. keene for
$4,000 and received a cashiers check for
$12j.OOO.
Several other minor witnesses, simply
called to corroborate and to complete tes-
timony already put on the records. were
placed on the stand, and the trial was
adjourned until tomorrow.
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