Los Angeles herald., 1908-11-06
MORSE TO GO
TO PRISON IS
THE. VERDICT
NO ALTERNATIVE OF FINE IS
PROVIDED
cLEMENcY RECOMMENDED FOR
FELLOW cULPRIT
Both Bankers Locked Up in Tombs
and Motions Will Be Heard
by the Judge This
Morning

NJ EW YORK, Nov. 5.-Charles w.
Morse, until a year ago a domin-
~ ant figure in the world of fin
ance, and Alfred H. Curtis. former
president of the National Bank of
America, were found guilty today in
the criminal branch of the circuit court
on charges of misapplication of funds
and falsifying the books of the bank.
There was also the additional charge
of conspiracy against the prisoners, but
the jury acquitted the men on this
count.
Within five minutes from the time
the jury had rendered it's verdict Judge
Hough had refused to entertain mo-
ton for bail and had committed the
two bankers to the Tombs prison.
The Judge said he would hear any
motions the lawyers for the prisoners
desire to make at 10:30 tomorrow morn
ing.
Must Go to Prison
The federal statutes porvide mini
mum penalty of five years imprison-
ment for falsifying the books of a
bank, and a penalty of two years I'M
prisonment or q $500 fine, or both, for
misapplying funds. No alternative but
pr;sonment for misapplying funds. NO
alternative but Imprisonment is pro-
vided for conviction on the charge or
f9lS1fV1n& the DOOhS VI a Jain NAAS
maximum penalty on this charge Is ten
years Imprisonment.
The jury recommended clemency for
Curtis, but made no recommendatlon IN
the case of Morse.
The scene in the court room was
dramatic. Mrs. Morse and Mrs. Cur
tis had remained in the court room
nearly all day awaiting the verdict.
Mrs. Curtis showed signs of giving
awav to her. emotions a number Oh
times, and once, when the jury re-
turned to the court room to receive m
structions on the manner in which tne
conspiracy charges should be conslu,
cred, Mrs. Morse broke down ana
soDbed 49,,
A large crowd had hurried into the
court room to hear the verdict. Mr.
Morse and Mr.. Curtis stood before the
i11rv while Foreman John Elder was
reading the verdict, and their wives
sat near tlrepn, leaning forward IN
tense attitude to catch every word.
Acquitted of Conspiracy
owe have agreed upon verdict in
+he case of both defendants said the
foreman in a subdued voice. "On the
charge of conspiracy we find them not
| guilty." ~ eaoo.
of the prisoners and their wives, but
| If lasted only a moment, for Mr.. Elder
continued:
"On the charge of the misapplica-
tion of the funds of the bank we ma
both defendants guilty.
ION the charge of making false en-
tries in the books of the bank we fnd
both defendants guilty.
''In the case of Alfred Fl. Curtis, the
iury wishes to make a strong recon-
mendatior to the mercy of the court. "
A sitting sob of relief escaped Mrs.
| Curtis as she heard the recommends
tion for mercy for her husband. Mr..
Curtis took the verdict like a stole,
but Morse was unable to conceal his
disappointment while his wife showed
no signs of emotion. She kept her eyes
on her husband, forgetting herself.
There was a momentary hush in
the court room. This was broken by
a buzz of excited conversation, and a
few minutes later the lawyers for the
defendants were making the customary
motions for a new trial. for bail and
for permission to take an appeal to
the circuit court of appeals.
Hears Motions Today
Judge Hough said he would hear the
motions tomorrow morning, when the
prisoners are to be arraigned before
him for sentence. He then dismissed
the jury.
Mr.. Morse ana MT. CuTllS WeIb dc-
companied as far as the Tombs prison
by their wives.
There has been wide interest in the
joint trial. 1t was brought out in the
testimony that Morse had made large
loans from the bank through so-called
dummies and that President Curtis
had enabled him to do So
The money thus obtained was used
to finance the Morse ice pools and
steamship operations