The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-10-29
CURTIS RECALLED.
Witness Throws Further Light on
Morse's Banking Methods.

New York, Oct 2s-When the
Morse trial was resumed today Mr..
Curtis was recalled to the stand and
was taken in hand by United States
District Attorney Stimson for cross
exa mination. In telling of the occur
rences at the national bank of North
America at about the time Mr.. Morse
is alleged to have overdrawn his ac-
count 100000, Curtis said many
things which were discussed by the
directors at meetings were not enter
ed in the minutes of such meetings.
While none of these remarks which
were omitted from the minutes could
have ben regarded as material in
themselves, said the witness undoubt-
eddy as a whole they Influenced the
banks officers in thei reactions He
said Charles T. Barney and Mr..
Morse were close friends. They fire.
quently discussed the ice situation
and were optimistic regarding the
company's future
Mr. Stimso ntook up the Hquida-
ton of the 100000 Whiting loan
through the purchase by the bank
of 1000 shares of ice stock at $40
share and the making of a loan to
Mr.. Morse of $4,000 on the, 1000
shares of copper that had been put
up to strengthen the original Whiting
loan. Mr. Curtis was asked to ex
plain how the transaction improved
the situation of the bank inasmuch as
| it had not received dollar in cash
nor an additional share of stock in
the deal. He insisted that the 1000
ice purchased by the bank from
Morse at $40 per share could have
been sold in the market for ready
| cash and the proceeds would have
! liquidated the loan. He thought that
this materially improved the banks
position. The stock was not sold,
however
Mr.. Curtis declared that he never
knew of the withdrawal of 900
shares of copper stock originally put
| in addition to the 1000 shares as col
| loan. Not until long after the with
! drawal of the 900 shares did he hear
of it, Mr.. Curtis said.
Mr.. Stimson produced letter
signed &C. w. Morse. per W." written
| in response to a notice sent to Mr..
| the 1000 copper shares. In the lat
| ter Morse fatty repudiared the s40,-
| 600 loan and declared the bank had
no right to add it to the loans of
$27o,0o0 then standing in his name in
| the bank, saying that the bank well
knew the conditions upon which it
had been made.
Curtis declared he was very much
| surprised indeed when he first heard
through a third party" that Mr..
| Morse had repudiated the loan.
While Curtis was testifying with
reference to the socalled j. r. Elliott
| loan which appeared to have some
connection with the Arizona Smelling
| company loan, it developed that
| United States District Attorney Slim
| son who is conducting the prosecution
| in the present case, was at one time
counsel for the bank and in close BUSH
| ness relations with Morse and Curtis.
81 did not like this Arizona Smelter
company loan as it was so far away"
| stated Curtis. Then I went to the
counsel of the bank and laid the mat
| ter before him. He examined the
matter and rendered a written
| opinion. He did not regard the stock
| as good collateral and his opinion
was against the Loan
Tell us the entire conservation -
| interrupted Mr.. Littlefield, counsel
| for Morse. Tell us who was the
| counsel; tell US ALL"
I'VE do not object, but do not see
| its materiality.'' said Mr.. Stimson.
Tell US ALL said the court.
well, went to Mr.. Stimson and
| he gave me an honest, fair opinion
| against that loan. But despite that
| fact when our directors were told Mr..
| Elliott was many times a millionaire.
| the board of directors approved the
| loan and it was made despite Mr..
| Stimson's advice and written opinion
| THAT was three years ago?" Mr..
| Stimson asked.
"It was" replied Curtis.
Curtis was next asked concerning
letter to Mr.. Morse. Congressman
Littlefield at this juncture jumped to
| feet and declared that the cross
examination of the witness was aimed
at Mr.. Morse and not against Mr.. Cur
| tbs.