New-York tribune., 1908-01-26
BIG LOAN TO MORSE.
M4DE BY KNICkERBOCkER
Banker BorrO1red $500, 400 to Hep
Float Consolidated COmpday.

of North America his agent He USED this
money TO help float the Consolidated steamship
Company and has not yet paid back the lodh-
This has Just come TO light in connection WIFI
the taking of testimony before the referee ap-
nointed by the Supreme Court to assist the
Knickerbocker Trust Company's temporary re-
ceivers in untangling the affairs of the sus-
pended company.
In connection with the loan brought out
some examples of high finance and light is
thrown on the dealings of Mr.. Morse with the
trust company. with Charles I. Barney ana
with the National Bank of North America and
its officers, who were cognizant OF the trahsac-
ton.
Mr.. Morse admits in his testimony that he
used the money obtained from the knicker-
booker Trust Company buy up the stock OF
the New York and Cuba Mail Steamship Com
pany which stock he afterward converted into
the stock and bonds of the Consolidated Steam
ship Company. Mr. Morse said that he had
traded 10 buy this company (the New York and
Cuba Mail Steamship Company for S2o.No.oo,
5000 900 cash and S150oOOo0 bonds. This (the
100000 obtained from the Knickerbocker Trust
Company was part of the S5oOe0o"
Asked what mis- duties were as president
of the National Bank of North America. Mr.
Morse replied, Nothing regarding the operation
of the bank"
The temporary receivers of the knickerbocker
Trust Company-Ernst Thalmann, Henry c.
Ide and George l. Rives-found among the as
sets note made by E B. Wire the cashier of
the National Bank Of North America, on Feb
ruary Is. 1907, promising 10 pay to the order Of
the Knickerbocker Trust Company demand
$4,000 and a communication signed by c. W.
Morse wherein he guaranteed the payment of
the loan.
DAYS BANKING.
.hrew some light on one days banking business
as conducted by Mr.. Morse. The cashier testi-
fed that on February 10, 1907 the day on which
the loan Of 100000 was obtained from the
Knickerbocker Trust Company. Mr. Morse also
borrowed $4,000 from the National Bank Of
North America, giving security 400 Consol-
dated Steamship Lines bonds.
On the morning OF this day, the cashier testi
fed Mr.. Morse had balance of S115y00O with
the National Bank of North America. During
the day he deposited several large checks. ag-
gregating 100000. and on the same day he
drew one check for S1,300.000 to the order of
A G. Smith. the treasurer of the New York &
Cuba Mail Steamship Company. and another
check for 100000. This reduced his balance to
$4,000 The 100000 borrowed from the Knick-
erbocker Trust Company, Wire testified, he did
not turn over to Mr.. Morse until the following
day, February 16. and this day Mr.. Morse
paid back TO the National Bank of North Amer
tca the 100000 which he had borrowed the day
before.
Alfred II. Curtis. the former president Of the
National Bank of North America. and Mr.
Morse were both before the grand jury last
week. and IL is understood that they were
amined among other things the Kncker-
booker loan. The fact that the referee before
whom the testimony heard went 10 Lake
Vile, Conn., the home OF District Attorney Je-
rome yesterday gave rise to the report that Mr..
Jerome would investigate the affair.
Mr.. Morse when seen at his home last night
said that the loan under discussion merely
matter between the Knickerbocker Trust
Company, the National Bank of North America
and Mr.. Wire. He denied that he was in any
way connected with the affair that he hap
pened 10 be officer of the bank at the time.
When his attention was called to the fact that
he had guaranteed the Wire note he said he did
IL simply ar the request OF Mr. Barney and Mr.
Curtis. Speaking Of the loan of 5000 .GO0 which
he made from the National Bank OF North
America, of which he was the vice-p president
on February 15 1907. and paid back on February
Is, Mr.. Morse said that this happening was a
mere coincidence.
SECURITY FOR THIS LOAN
AS the security for this loan, which con-
sisted Of 500 bonds of the Consolidated Steam
ship Company and 5000 shares of the com
panys stock, had greatly deprecated, and the
receivers desirous Of obtaining more de-
tails Of the transaction, Justice Clark, of the |
Supreme Court. on petition Of the receivers, is
sued order directing that an examination be |
held and testimony be taken before John S |
Davenport. as referee, al No 115 Broadway.
The hearing before the referee began on De-
cember p last Those summoned to appear for |
examination were Mr.. Morse. who at the time |
of the loan viCe-president and a director |
Of the National Bank of North America; Alfred |
the bank and Edward b. Wire then and now |
cashier Of the bank Neither Mr. Morse nor |
Mr.. Curtis is at present connected with the bank
both having withdrawn because of the recent |
financial difficulties. AIr. Morse resigned as |
vice-president and director the beginning |
of the panic last October, and Mr.. Curtis who |
had been relegated TO the vice-presidency when |
William F. Havemeyer became president after
Mr. MoEse's retirement. severed his connection |
with the bank only last week
Justice Clarks order directed the three wit |
nesses Ito submit TO examination concerning |
troll wrongful disposition of the property |
mentioned in the petition annexed" Henry l. |
Scheuerman and George W. Wickersham ex- |
amined the witnesses counsel for the receiv-