New-York tribune., 1908-10-29

comfort because it than possible t1a1 il1e sS %e
Institutions would he short at the same '''''e
While have many friends aong the 6ond Sahd PARSE Paise
dents in New YORK ana 2t You know it
would be known in finaneaa al Mercantile National
Bank was some weeks ago. This chance we
Tr9stns t You will view the situation as 90 ana
that in writing plainly as have you 1 dntT tow
cate it as an honest gg tvdT1 sST one 1e 2 while the
produce results benefcial'to the PAM II. CURTIS.
NJ Curtis explained carefully the Morse over
,5raft of $4,000 to F. Augustus Henze Oh 80 OcoO.
1s of last year He said that Heinze M lau -, -,
the hank and asked for a loan OF $1,000 49,,
he 0-urtis) had refused. Morse then spun -,
-, tho loan and the witness testlreo 'iia' e
TOLD Morse that Herze could not nave 0Ne - -
OF the banks money. Morse'rep - ,,,orid
Curtis that the firm Of Otto Helhze +" - ~ da
have 70 go TO the wall unless'the loan vac o.Is.s
let the firm go 20 The. wall, then. was Sui's
answer. ,, ,e knew
Mr.. Curtis said that the next tnlfg % "e -, 90
Norse's check for A26,GDO on the NauohaL Do-ii,
North America in favor of F. AUGUSTUS ~ ,aid
been presented at the banks "inuoN
Asked what he did then, the witness saio -. .ba
II AZ once went TO Mr.. Morse and toio hliii u -
oyerdraft and demanded collateral u 5e. of
hank Mr. Morse sent out ana got lWo 1,9 :.
o,,,ri,ias and gave me what he had toio nun II
- - or7o,,rb ard demanded more. MI Morse
declared he had plenty of collateral but not hetv:
asked him where it was He said ne H', - ~,
of bonds in London. I asked for an oroei Ioi -
bonds He gave II to me. I cabled TO the Dohuon
to1tr,o- i,o,Tso that held the bonds and had them
held there subject 10 the oIuei VI '
Bank Of North America ~,
15- Curtis told of the meetings Of directors heio
.ro,,etoI,t mat week at Mr.. Flagler's house ana
o@5. ,,ob+ ~ ax-Justice Morgan J. O Briens
house when the affairs Of the bank ana 'He "0i
loans were discussed at length
WOULDN'T ACCEPT MORSE DRAFT
The witness told Of MI Morse having asked him
10 accept a draft drawn on the Bath VS-e'' 1iu
,-or,nan,, with stock OF the Bath Trust Company
ls 49, ,,orse attached 10 the draft a part
,,a1-7,ent nj his Indebtedness. He had refused 10
acceDr i he said. although he believed the check
OF draft had been sent through the BANK as d coI-
lection and paid. o.L.-
a 1907 when the bank bought 1000 shares OF Ice
from Mr Morse
- went 10 Mr. Morse said the witness. 'and
told him he ought take up the Whiting loah' as
= had been running then for a year. 1t had oeen
cut down from $4,000 10 N0ocoo. Mr. Morse salu
he could not take it up Just then We then ar
ranged that the bank should take over 1900 shares
oF lee from Mr. Morse at $50 share. that being
g a share less than the market on that day; also
TO make Mr.. Morse loan Of $4,000 on z'SS shafes
or United Copper worth at the market $4,000
But that Ice was charged off the banks books
from day 10 day. was II not?" asked Mr.. oIcotI
Can you explain that?'
YES answered AIr. Curtis. AT board meet
Ing on October ls during the heat OF the panic, MI
Barney moved that charge off the Ice 10 pront
and loss It was unanimously voted TO do this
M Curtis was the witness stand for over
five hours. First he examined on dlrect
f9y ex-Judge William N. K. OlCotC his own coun-
sci Then ex-Congressman Charles f. Ltteheld
cross-exarined him behalf of Mr.. Morse, and
finally he was subjected TO searching cross-eXaTn-
iuatfon bv United States Attorney Henry l. SuIn-
son for the prosecution
MI Curtis said that the Bank OF North America
had usually kept vaults 25 per cent cash re-
serve In October 1907, however. the witness testi-
fed that there were numerous days-this was the
panic period-when many twenty-five Of the
Clearing House banks were far below the legal re-
serve maintained in normal times. The prosecution
had shown that the reserve Of the Bank Of North
America was below the legal limit on every day
save one from September 16 TO October Is of last
year.
Mr.. Lttlefelds CrOss-eXamination OF Mr.. Curtis
had 10 do apparently with the Indebtedness OF
other directors the bank. To nearly all of the
questions Mr.. Stmson objected and was sustained
Mr.. Stimsons cross-examination consisted of
going over and again the transactions about
which M Curtis had already testified. Court ad-
iourned with Mr.. Curtis still the stand The
trial Will continue this morning.
a person connected with the Ice pools said