Daily press. [volume] (Newport News, Va.) 1896-current, 1908-10-30
Tells aeW De Came To Have An
Interest N Bank e
North Imerica.
KNEW NOTHING OF LEGAL txAc I|ou;
Declares Large Loans to Nineteen
Year-Old Clerk Were "Acccmnoda.
tion ACKNOWLEDGEMENTS Witness
Asserts That All Wall Street Brok.
ers Overdraw Their Bank Accounts.
Uv Associated Press.

tiJN ASSoCldteu
NEW YORK Oct. 29.-Charles w.
Morse. who with Alfred H. Curtis.
former president of the Natiohai
Bank Of North America is on trial III
the criminal branch of the Uhlted
States Circuit Court on charge OF
conspiracy aid violation of the ma
tional banking laws: took the stand
in his own defense today.
Mr.. Morse related how he came TO
an interest in the National Bank OF
North America saying that NJ secuF-
ed all interest in the coIsolldatlo"
in 1902.
Mr.. Morse said that he was not
salaried officer, and knew nothing oi
the legal exactions covering natlohal
banking. Tie financier then told OF
forming the acquaintance OF MI. ."'
It's and MIR. Wire.
Not Familiar With Affairs.
Il had confidence in them and useo
mv influence to have them maze
president and cashier of the bank
said Mr.. Morse. Mr.. Morse TESTIFIED
that he knew nothing of the bank :
method of bookkeeping and admitted
that he saw the banks loan sheetS
oniv few times each year.
-r-4-iMs secretary, Kate w. Wilson. and
NV former secretary, Arthur Braun,
attended to my personal and private
affairs" said the witness. Miss Wal
son kept my bank accounts straight.
Mr. Morse said that he had been
connected with the American Ice
Company since its formation in 1898
or 49,
Demand for Ice SIumped.
The company was then paying DIV
jJends the witness testified and dealt
in natural ice. A decrease in the de-
mand came in 1900, and artlhcial ice
WAS all the market wanted. That Ell
fected a change in the business OF the
company.
This line of questioning finally leo
up TO the point OF the loans made
d, John F. Carroll by the National
Bank of North America amounting 70
S136. 900 at one time He said these
loans were secured by 10000 shares
of ice stock.
Mr.. Morse told Of plan to buy
half of the Carroll stock at $oo a
share and give the bank the proht
Of the deal, then he purchased 4.oe'
shares of ice stock he SAID, at $4e
a share for Mrs. Gel<heEen.
What became Of the profit Of $lo
a share = asked Mr.. Morse's lawyer
II gave il to the bank, answered
the tnancieE.
An Accommodation Borrow.
The loans made to Leslie Whiting,
the l9year-old clerk III the broker
Office were then taken up and MT
Morse said that the first loan OF Sso.-
coo TO the youth was made at MS
INT. Morse'sD request ard was an
accommodation borrow
Mr.. Morse tod of how the loan
made to Whiting had been used TO
take up 1850 shares of Carroll ice
stock.
The second whiting Joan OF Ss9.o""
was secured ~ 1000 shares of He
stock. being one ha,f Of fhe Carroi'
stock he. Mr.. Morse. had purchased.
Judge Hough. al this Junciure, al
jourucd court.
Colonel X. ". Thompson. a former
director OF The NstIoTai Bank o.
North inlcrioa was also or he stan"
and Attorney General Stimson askc1
him If the holding company for the
American Ice Company had not bee"
characterized as 'trusi.
An evening newspaper has 50
charged it," answered Coionci
THOMPSON.
Some Politicians Stung-
Didn't the attorney gem raj Of the
state so Characteristic it,? asked MI
simon.
Not until some Politician. "fo
were acaiaintances Of the ATTORNEY
general were caught short OF the STOCK
market and stuRg' was the response
Later. in discussing the Morse
loans. Colonel Thompson was asked
n he had seen aware of the TACT mat
Mr. Morse had several times over
drawn his account.
There Is not a broker IN wan
street who does nor Ovcrhrsw MS
hank account daily. answered Coz
yucI Thompson. and he added. they
have no way Of kpowinA what they
are going TO win during the day.