Omaha daily bee., 1908-10-23
MORE or MORSE'S METHODS
Unsecured Loans to Secretary Used in
Pyramiding Ice Stocks.
SHARES FAIL TO GO TO PAR
Calvin Austin Tells of Giving Note
for 100000 for stock which
He Returned-NOte Subse
quentIy Discounted.
SHARES FAIL TO GO TO PAE

NEW YORK, Oct. Elm the testimony
at the trial of Charles w. Morse and his
co~-defendant, Alfred II. Curtis, who are
charged before Judge Hough in the criml-
nal branch of the United states court with
conspiracy and violation of the national
banking laws, was introduced today tho
name of Miss Kate a. Wilson, secretary
% MIR. Morse, and the prosecution produced
witnesses who testified to large loans made
by the National Bank of North America,
a Morse institution, to Miss Wilson. Ed
win Moxey, a government bank examiner,
who has proved at this hearing that he is
a wizard at figures, was the principal wit
ness relative to the big loans made to the
financier's secretary.
Endless Chain BrOken.
Summed up, his testimony was as fol-
lows; "On her unsupported note Morse
would loan Miss Wilson a sum OF money.
Miss Wilson's note would be cashed by
the National Bank Of North America and
with the proceeds stock Of the American
Ice company would be purchased. Then
the ice stock would be used to secure an.
other loan from the bank. with the money
thus secured bank stock would be pur-
chased and the bank stock aided in sup
porting the ice stock pools in which Morse
and other financiers were interested. The
failure to raise the price above par was
what caused the break in the endless
chain"
The lawyers for the defense objected
repeatedly to the line OF questions asked
the witness by the government lawyers,
but Judge Hough sustained the prosecu-
ton and the above description of the Will
son loans was put upon the records, piece
by piece, until the chain was complete.
For the first time since her husband has
been on trial, Mrs. Clementine Dodge
Morse appeared in the court room. Mrs.
Curtis has been at her husbands side every
day. Mrs. Morse was attired in a gown of
blue. She took a seat beside her husband
inside the railing and appeared deeply in
terested in the proceedings.
Calvin Austin, president OF the Eastern
Steamship company OF Boston, was a wit
ness in the afternoon. He testified that
Mr.. Morse induced him to buy 1880 shares
of Ice stock, for which Mr.. Austin gave in
payment a note for 500, 900. The witness
produced a letter signed by Mr.. Morse,
guaranteeing Mr.. Austin from all loss.
Mr.. Austin says that he subsequently
learned that his note was discounted at
the National Bank of North America. Just
before this Information reached him, the
witness testified that miss Kate Wilson
came TO his office with a letter from Mr..
Morse asking him to surrender the certlfi-
Gates for 1850 shares of Ice stock.
Mr.. Austin endorsed the certificate in
blank and surrendered It.
Then, Mr.. Austin said, Mr.. Curtis, presi-
dent of the National Bank of North Amer
lea, told him his note had been discounted
at his bank. Mr.. Curtis informed him, he
said, that Charles T. Barney, one Of the
directors, suggested that he (Curtis) see
Austin and ask him either to pay the note
or furnish collateral.
II told Mr.. Curtis that Mr.. Morse had
but the loan in the bank and that he
would have to take care of it, said Mr..
Austin. He added that Mr.. Curtis told
him that Mr.. Barney threatened to resign
from the board OF directors II the note
was not taken up.
Mr.. Austin testified that Mr.. Curt,
pushed pen and ink toward Mr.. Barney
with which TO sign his signature.
And did he sign it?" the witness was
asked.
He did not. was the reply.
Gould you have made good the note?'
was asked.
Il could not. that is. not without the ice
stock" replied Mr.. Austin.
Upon cross-examination of the witnes,
by the defense it was brought out tina
Mr.. Austin had been in many deals witt
Mr.. Morse and that he had derived large
profits. II was also shown that his SALARY
ranged from $4,000 to O.OOO a year. TIL,
lawyers for the defense tried to show tina
Mr.. Austin would have been we'll able
to pay the note. Witness admitted ownins
large amounts of stock.
Mr.. Moxey was recalled to the witnes.
stand at this point and testified that Mr.
Morse discounted the Calvin Austin mote
for 100000 and a note OF James r. Keen,
for $4,000 and received a cashiers checl
for $4,000. Several other minor witnesses
simply called to corrobarate and complet.
testimony were placed on the stand anC
the trial was adjourned until tomorrow.