New-York tribune., 1908-02-12
FEDERAL JURY ACTS.
VOTES FIVE INDICTMENTS
F-oIEo5r InUestiga:ion Into the Morse
Enhancement.


the indictments sga;ns; John R. Walsh. He is
repo-red never 10 have had any Indictment
drawn UP by him quashed.
Three Of the indictments are against Charles
" Morse and former official OF the National
Sank Of North America for overcertifcation
and -r>spplication of funds. Two of these
against Morse. each charge and the
other is against his associate
z r Thomas visited the District Attorney
yesterday. and il is said good authority that
he told the District Attorney Of certain things
in relation TO Morse at the time he and Alfred
II Curtis went before the grand jury TO explain
the working Of the Morse system in the National
Bank Of North America.
The two indictments voted for Yesterday
one for overcertifcation and one for misapplica-
tion-are based on Mr.. Morse's acts at the time
tire Clearing House began TO take notice of the
e-Thomes- Morse coalition. When the
Clearing House demanded Heinze's resignation
re refused until Morse had made good a sum
of money involved in some big deal in which
the two had been concerned.
Morse drew check for 900 on the North
America banks funds which he gave TO Heinze.
He deposited II in the Mercantile National Bank.
and the amount was paid by the National Bank
q North America. man who official
Of the bank that time certifying the check
70 make good overnight.
PENALTY FOR THESE CRIMES
The penalty of overcertihcation is five years
O. 5000. that for misapplication three 10 five
years.
On February II E B. Wire made out q note
OF the Kuickerbocker Trust Company for $500
Gpo and this indorsed by Morse. The note
vas presented at the hnickerbocker and check
given in return, which Morse is alleged TO have
put in the Bank OF North America which TO
give The Rnickerbocker the amount named in the
check
While the federal grand jury was voting on
the indictments ez-Judge Wallace appeared in
behalf Of the demurrer interposed TO the fed
eral indictments against F. Augustus Heinze in
the United States District Court before Judge
HUugh These indictments charged improper
oerrifcation and misappropration Of the funds
G the Mercantile National Bank while Heinze
vas is president The government was repre-
sented by United States Attorney Stiu1son. his
assistant. MI O-Brien- and Mr- Pagan
ARGUE IN HEINZE CASE.
The fifteen counts Of the indictment against
Hefrze for Illegal certiffcatfon first dealt
with by ex-Judge Wallace. It is not contepded
by the government that Heinze himself certified
these checks for Otto Hetrze & Co. but that he
caused q clerk TO do so. which the government
contends makes him responsible as a principal
Ex-Judge Wallace conrended that under the sec
ton Of the United States statutes governing the
crime there was no punishment provided for
president Of q bank for Illegal cerufcation when
he did not perform the physical act himself. He
arsyAd too that the indictments failed TO SCI
forth the alleged illegal certifcation. which he
declared vas fatal defect inasnnuch as the de-
fendaut could not inteIiigently prepare his de-
fence.
on the second fifteen counts Of the indictment
alleging ulisapPropriaIion Of the funds OF the
bank ex-Judge wallace maintained that there
pas nothing TO show by what means the alleged
rnisappropriatlon had been accomplished. and
that since The indictment failed 70 charge by
what means and for what purpose the defendant
Intended TO rnisappropriate or convert the banks
funds there could be no offence under that par
ricula- statute. He argued that the simple Ger
t:HcztIon Of q check which might really be an
overdraft was not an offence unless 1t was
shown that the certifcation done with IN
tent % detraud-
REPLY OF PROSECUTION
NJ Pasan replied that II was not necessary
thar the wording Of the certfcatfon be set forth
in fun as Is the case with a forged check and
that the real issue was whether the CeTIifCa-
ton did or did not create an obligation for the
hank Judge Hough interrupted TO ask II the
GENERALIZATION had not rsAiiy caused an over
draft OF ONO Heinze & Co Mr. Stimson replied
that the decisions all held that even an over
d-atr made with bad intent, constituted a mis-
appropriation
Mr. stimson said that il did not matter If the
bank did have q good loan in contemplation
snd the president had certified checks in antici-
pation Of that fact It was to put an end 10 just
such methods Of banking that the present laws
regarding banking had been passed, he said He
sNd That il had been plainly the intention TO
put the assets and credits Of the bank at the
disposal Of Otto Heinze & CO.
Judge Hough gave counsel until Saturday TO
present briefs
E P. THOMAS WITH JEROME
The special county grand jury did not meet
ves-erdaz- bt,t District Attorney Jerome is said
10 have spent the afternoon in acquiring evt-
dence TO lay before il. E. r Thomas, who has
been a witness before the grand jury, accom-
panied bv counsel former Justice Davy, Vis-
tied Jerome IN the afternoon and had a long
conference. after which the party, augmented
by Justice Dowling went 10 a restaurant Ihe
information sought by the District Attorney
concerned q letter written BY Thomas 10 Morse
showing that he had certain and definite knowi-
edge of transactions in the National Bank OF
North America When Morse was before tle
Grand jury he is said 10 have denied any knoWi-
edge OF these transactions. Alfred H Curtis
who had preceded him. IS said 10 have testifed
that Morse mad full knowledge Of these transac-
rions and he WIS recalled TO the grand jury
foorn where he is said TO have repeated MS
Former testimony.
OLER TALKS ABOUT MORSE.
Wesley ID oIer president Of the American ice
COMPANY and former frlehd oL oHai e" ~