The free lance. (Fredericksburg, Va.) 1885-1926, 1908-10-31

Admits re 1du NO experience w
Banking aud Knew Nothing OF TIE
Bankina Laws-Former Bank Cfec-
tor Says American Ice Company
Was Not Called a Trust Until Poll
ticians Were Caught Short In the
Stock Market and Stung
New York. Oct. 80 - Charles W.
Morse. who. with Alfred II. Gurus,
former president of the National Bank
of North America. is on trial In the
criminal branch Of the United States
circuit court on a charge of conspiracy
and violation of the notional banking
laws. took the stand in his own de-
tense.
Mr. Morse related how he came TO
have an interest in the National Bank
of North America. saying that he Sc
cured an interest in the consolidation
in 1902.
The accused banker said that he
had no experience in the routine or
banking.
Mr.. Morse said that he was Mt a
salaried officer of the BAH, and know
nothing Of the legal cxac;.o.s cover
ing national banking.
Mr.. Morses counsel then asked a
number OF questions regarding the
connection Of Mr. Morse with the
American Ice company Mr.. Mo sc
said that he mad been connected with
that company since its formation in
1895 or 1899" The company was then
paying dividends. witness testified and
dealt principally in natural ice \ diff
ference in the demand came In 1902.
he said. and artificial ice was all the
market wanted. That effected a change
In the business of the company. As
this line of questioning was continued
il finally led up to the point OF the
loans made to John F. Carroll ty the
National Bank of North Am "a
amounting to $4,000 at one ''Ae.
In explaining the Carroll loans. he said
they were secured by 10000 shares Of
ice stock. Mr.. Morse told of plan to
buy half Of the Carroll stock at $50
a share and give the bank the profit
of the deal. Then he purchased 1000
shares of ice stock. he said, al $40
share for Mrs Gelshenen-
What became Of the profit of $40
a share?" asked Mr. Morses lawyer
81 gave it to the bank" answered
the fnancier
The loans made to Lesil Whiting
the nineteen-year-old clerk in a brok-
er's office. were then taken up and
Mr. Morse said that the first loan OF
$4,000 to the youth was made at his
(Mr Morses) request and was an az
commodation borrow"
Mr. Morse told Of how the loan made
to Whiting had been used to take up
1000 shares of Carroll Ice stock The
second Whiting loan of 500 1000 was
secured by 1000 shares of Ice stock.
being onehaif Of the Carroll stock
he (Mr. Morse) had purchased.
Before Mr.. Morse testified. Colonel
r. NJ Thompson. former director OF
the National Bank Of North America
was on the stand. and Attorney Gen
eral Stimson asked him If the holding
company for the American Ice com
many had not been characterized as
trust" IAN evening paper has 50
IT," answered Colonel
Thompson.
Didn't the attorney general OF the
state so characterize it?' asked Mr..
Stimson.
Not until some politicians who
were acquaintance of the attorney
general were caught short in the stock
market and stung." was the response.
Later. in discussing the Morse leans.
Colonel Thompson was asked if he
had been aware of the fact that Mt
Morse had several times overdrawn
his account.
There is not broker In Wall
street who does overdraw his bank ac-
count daily" answered Colonel Thomp
son and he added, they have no way
of knowing what they are going TO
win during the day"