Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-31

six hours toGay Charles w. Morse
who year ago was one of the promi-
ncnt figures in Wall street. sat in the
witness chair in the criminal branch
of the United States circuit court en-
deavollng to defend the financial OPP
eratirns by the National Bank of
North America. which resulted in the
Indictment OF Mr.. Morse and Alfred II.
Curtis on charges of conspiracy and
violation of the national banking laws
All went smoothly during the morn
ing session when the lawyers for the
defence asked questions OF Mr.. Morse,
but late in the day when Attorney
Stimson took up the cross examination
for the government. sharp accusing
questions were put to the financier and
he riinched the arms of the chair as
he sat erect and answered them.
Mr. Morse on the defensive was at
his best. SIEVE raj times he refused to
answer questions unless permitted to
explain himself at length. He spared
nlcverly with Mr.. Stimson and a num-
her of times rather than insist upon
an answer 10 d question with an e&-
pianation accompanying it, Mr.. Slim
son withdrew the question.
Mr.. StilnSon rather took Mr.. Morse
by surprise when he took up the loan
of ?lore than S125. 900 made to Miss
Katherine y. Wilson, Mr.. Morse's sec
retGry. The financie" had testified that
the loan was made in his behalf and
that the T.csli" Whiting loans were
also his. Then with Mr.. Morse still sit
ting III the witness chair. Mr.. Slim
son read Il letter addressed to the then
comptroller of the currency, w. B.
Rldgvly. and signed by Mr.. Morse and
other directors of the New Amsterdam
Bank, saying that Mr.. Morse was not
directly interested in the loan.
M. Stmson asked Mr.. Morse again
if h" understood that the Wilson loan
was made in his behalf, and Mr.
Morse replied that the loan was his.
Mr.. Stlmson then read anothe! letter
this one being from Comptroller Ridge
ly to the president of the New -Amster-
dam Bank It called attention to the
excessive loans made by the bank and
especially mentioned the one to Miss
Wilson. saying that the 430 share, of
National Bank of North America stock
put up to secure the loan We're not
sufficient collateral The letter point
ca out that the stock was only quoted
at $4,000 at the time and added that
'thc examiner is under the impression
that Mr. Morse is in some way con-
nccted with the loan"
1t was this letter from the comp
trollcr which called forth tho one
signed by Mr.. Morse and the New Am
sterdam Bank directors declaring Mr..
Morse was not directly interested in
the Wilson loan
When the cross-eXamination was be-
gun MIR. Stimson asked Mr.. Morse
about the banking business and with
the rational laws. but the witness in
sisted that he did not understand the
legal eAactions and details of business.
saying that he always retained a law
yer when any legal point arose. Mr..
Stnson was counsel for the National
Rank of North America two years and
Mr.. Morse called attention to this.
1t was then brought out that Mr.. |
Morse never read the reports to the
of the currency showing |
the banks outstanding loans end9rs
ers, etc. but that he signed them off |
hand. Mr.. Stimson presented a num- |
Der of these reports and opposite the |
name of Mr.. Morse appeared figures |
his liability to the bank |
as an endorser of loans. etc. Then Mr. |
Stimson read off the figures and show
ed that when the Whiting and Wilson |
notes were still outstanding the amount |
was not charged to Mr.. Morse.
Mr. Morse protested that his liability |
IN the notes in question was purely |
verbal and that there was nothing In |
his verbal guarantee that would justify |
the bookkeeper in charging any of the |
liability to him.
Mr. Stinlson laid great stress on the |
liquidation of note for 100000 on Oct.
IA through the purchase by the oank
If 20o0 shares of Ice stock and a S4h,-
100 loan to Mr.. Morse. Mr.. Morse au-
nitted yesterday that he requested Mr..
'urtis, the president of the bank, to
wipe out the $50 600 balance due the
pank by charging it on the commits
sion account" Mr. Morse said the
amount should have. been charged
against the $4,000 profits he turned in
o the bank just before the situation
arose.
"You say You were solvent on Oct.
AZ" asked Mr. Stimson.
Yes replied the witness.
And vet, according to your state
nent. YOU agreed with Mr.. Curtis TO
,haree off the books of the bank per-
cctlv good account of $4,000 as
Css?"
That's not the right way to put It,
ctorted Mr.. Morse firmly. Il was hold
ng 5000 shares of Ice stocks, 400o in
he Mercantile and 1000 in the Ma
ional Bank of North America. I did
lot consider that it was much to ask
he bank to pay $40 share on the 5000
hares. when l had given the bank
1856, 900
''Had you ever put up cent of your
wn money; hadn't every cent of the