The evening world., 1908-10-23
TRIED IN. VAIN
TO STOP THE BIG
LOANS TO MORSE
Comptroller of the Currency
Made Protest After Protest
to Bank President.

Juror Gordon Wendall having recov
cred from his illness of yesterday, tn,
trial of Charles w. Morse and ALFRED
H. Curtis, charged with violating thu
National Banking laws, was resumed
to-day before Judge Hough and jury
in the Federal Court.
The days proceedings opened with the
recall to the stand of Adolph Rado
former assistant cashier OF the National
Bank OF North America, TO take UP the
thread of Morse's alleged trafficking in
the shares of his own bank by means
of dummy loans, juggled notes and
shifted checks. Rado told how he had
prepared the notes by which Kate Will
son, stenographer for Morse had bought
40 shares of bank stock.
Then Z. b. Wire the former cashier.
told of the transfer OF the Kate Wilson
loan to the New Amsterdam National
Bank.
Continuing. Mr.. Wire said that at the
order OF Morse a check covering a per-
centage OF profits OF the New York
Contracting Company on the New
Haven road construction had been sent
to the New Amsterdam Bank to he ap-
piled on the Kate Wilson loan.
Court Asks Questions.
WAS that check due the bank IT.
self?" asked Judge Hough.
Yes"
"And IL was applied by the bank
to the payment of debt carried I'm
the name of n private individuaI."
continued His Honor.
"Yes."
Are you sure Mr.. Morse ordered you
to do this?"
While I cannot separate all the con-
versations on the subject l am certain
that obeyed his orders in sending the
amount received from the New York
Contracting Company to the New Am
sterdam Bank"
Mr.. Stimson read letters which passed
between the Comptroller of the Cur
rency and President Curtis Under date
Of Oct s, 1905, the Comptroller wrote
criticizing the bank for making so many
loans to directors, naming particularly
several loans to the Steamship Trust, a
loan OF slS3, 900 to the Hudson Naviga-
ton Company; loan OF sl92, 900 to Oak
ley Thorne, and several loans to the
Ice Trust,
On Oct. 6 Curtis replied. explaining
the nature of the securities on the
divers loans. Speaking of Morses share
he said: I'VE regard the loans to MIR.
Morse as perfectly safe and Mr.. Morse
Is responsible for them"
In August, 1DO6, the Comptroller
wrote again, scoIding the bank for
oaning 50 much money to directors
and to concerns in which the direc-
tors were Interested Morse was
the only offender mentioned by
name.
1t was stated that the bank had
failed to keep its cash on hand up to
the legal reserve limit. IT was also
pointed out that Morse was borrowing
too much on stocks in companies in
Clyde line hau got s26V,o0O and the New
York Contracting Company $40 900. The
Comptroller wanted these loans cut
right away Curtis's reply undertook to
explain that the bank was well pro-
tected In AL its loans.
A Forecast Of Disaster.
Right along the Comptroller kept ham
merins away at the bank, In his letter
OF Jan. 26 1907, he pointed out that the
bank had loaned a total of $500 754 TO
directors and TO the companies In which
directors were directly or indirectly in
terested, thus exceeding the required
e5 per cent. OF bills receivable. He said:
"The destfnies of the bank ap-