New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-22

loans put in the bank by Morse. The detence
brought out in cross-examination OF the WITNESS
4hat on October Il the bank had in its vaults
1000 shares CT American Ice Securities |oih-
pany stock worth at that time s62oOO' ana
100000 note of Mr. Morse. It had also credited
its commission account with S225oo pront IN
the period named by the witness ana had re-
ceived $500 in dividends on Ice STOCK
At this point Mr.. Stimson said he would begin
on the second division of his case having fin
ished with the Ice stock transactions ana Tue
numerous qualifications growing out OF theih
He would next take up, he said the transac-
tons carried on by the National BANK Vi MI /"
America in its own stock.
What the prosecution wanted TO prove was
that loans were made TO Miss Wilson and Prim-
rose & Braun. the Morse brokers, by the Ma
tional Bank of North America to purchase shares
of the banks stock in the market Ihls STOCK
then transferred to the name OF primrose
& Braun who Endorsed the certificates in blank
and turned them to the bank, ACCORDING 10
the governments witnesses. Thus the STOCK
according TO the prosecution. while standing III
the name of Primrose & Braun. really belonged
the bank
Edward P Moxey the special investigator Of
the Department Of Justice. went on the stand to
explain how these transactions in bank stock
were carried on.
LOANS TO MISS WILSON.
Did you find any. entry on the books of the
National Bank of North America showing a
record of loans in the name of Miss WILSON,
asked Mr. Frankfurter, assistant United States
Attorney.
Z do. on January 1s. 1905. the books show
loan Of $3.50 to Miss wilson replied the figure
wizard.
Mr.
the check had been drawn to the order of Prim-
rose & Braun. and later indorsed to Arthur
Braun in payment for nineteen shares of the
stock of the National Bank of North America at
$500 a share. Stripped Of its bookkeeping the
transaction showed that Morse had used Miss
wilson's name 20 borrow the $3.50 used in pay
ing Braun for the nineteen shares Of the banks
stock
Another entry showed two combined loans TO
Miss Wilson and Mr. Braun of s1.0S2 made on
four shares of the bank stock collateral. Evi-
IDENTIFY four additional shares were accumulated
by Mr. Morse at S270 a share.
A third loan of 1851 came next, charged TO
Miss Wilson and used in the purchase of thir-
teen shares at s275. with the incidental commits
s'ons the money going as usual to Primrose &
Braun. the buyer of the stock.
Still another loan TO Miss Wilson Of 1875
bought five more shares of the banks stock
Mr.. Moxey told OF great number Of demand
loans TO Miss Wilson. the cashiers checks Of
which were made payable TO Primrose & Braun
All were used, il was disclosed in the purchase
Of stock OF the National Bank OF North America.
The checks showed the shares were picked up
in odd share lots at prices ranging from 1910 to
$500 share up TO April 1906 In April, May
and June the loans were still made 20 Miss
Wilson. but the checks were issued to other
brokerage houses the price OF the banks stock
being around $500 a share
HOW LOAN WAS SHIFTED.
The stock purchases amounted to 40 shares
and the loans against them. standing in the
name Of Miss Wilson, aggregated S12o,3I6 40.
In the mean time all OF the 40 shares remained
in the name of Primrose & Braun. The divi-
dends on the bank stock were received by the
firm but turned hack 10 the bank as interest
payments. This loan of S125.3T6 80 was paid,
MI Moxey said on July ., 1906, by cashiers
check of the New Amsterdam National Bank,
another link of the Morse banking chain. AL
though fully liquidated on the books of the
National Bank of North America, the transac-
ton amounted simply 10 a shifting Of the loan
TO the uptown institution.
Mr. Frankfurter took up next the dividends
on the stock held in the name of Primrose Il
Braun Mr. Moxey traced the dividend checks
issued TO Primrose & Braun back to the bank
again. where they appeared as credits on the
interest account of the Miss Wilson loans The
interest credits were identical always, both as
to the dates and amounts with dividend checks.
Arthur Braun Mr.. Morse's former secretary,
and now q member of the brokerage firm OF
Primrose & Braun. vas asked about the pur-