Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-10-24

the room.
New York, Oct. 23.-The trial of c.
w. Morse and A. H. Curtis on charges
of violation of the national banking
laws and conspiracy in connection
with their conduct OF the National
Bank of North America, which was
interrupted by the illness of juror
yesterday, was resumed today. The
juror who was stricken with acute in
digestion on Wednesday night is said
to have entirely recovered.
Among those in court when the trial
was resumed today was Miss X. A.
| Wilson, private stencgrapher to
Charles w Morse, whose name al
| ready has been given a prominent
place in the court proceedings in con-
| nection with Il series of loans by the
| National Bank of North America.
The first witness called today was
Adolph RADIO, the former assistant
| cashier of the National Bank of North
America. RADIO had been on the stand
!, before. He was examined today in
reference to 430 shares of bank stock
purchased in small lots by Primrose
and Braun and paid for with unsecur-
| ed notes of Miss X A. Wilson, which
We're deposited with the National Bank
of North America.
| Mr. RADIO was questioned regarding
the purchase of the 430 shares Of bank
stock, the evident intention of the
prosecution being to show that prac
! tically all the employees in the bank
knew the details of the large loans to
| Miss Wilson.
| That certain sums of money which
| would have gone into the Golfers OF
the National Bank of North America
| We're instead, diverted to the New
| Amsterdam Bank and applied to the
| Wilson loan. was the substance Of
testimony given by Former Cashier f.
f. Wire Of the National Bank of North
| America who followed RADIO on the
I stand He said that in 1906 he, heard
| Curtis tell Morse that the National
Bank of North America was about to
receive a check from the New York
Contracting CO. for a percentage of
that corporations profits in connection
with certain New Haven improve
ments.''
This. Mr. Wire continued, the bank
received in addition to the usual dis
| count of per cent. and all under an
ARRANGEMENT effected by Mr. Morse. the
contracting company evidently having
given the bank a share of the New
Haven Improvement" profits besides
the discount. as premium to secure
the loan from the bank to carry on
the work. Mr. Curtis, Mr.. Wire said
had suggested at once that the check
be applied to the Wilson loan in the
New Amsterdam Bank. The former
/ inc N
structions of More. had so used the
| check when it came in.
"Was that money due the bank?' in
| terrupted Judge Hough.
yes" replied Mr.. Wire
"And YOU applied it to the debt of an
individual customer in another bank?''
continued Judge Hough.
| "Yes"
"And under the personal ORDERS of Mr.
| Morse""
| Nj. Wire said he was unable to separate
| the various conversations he had had
, | with Mr.. Morse or that subject from
| time to time But he could swear that
it was in obcying orders of Mr.. Morse
that he had sent the check to the New
Amsterdam Bank
The methods employed by Mr.. Morse
TO finance his gigantic steamship combi-
| nation was next taken up by the prose-
cutior. Irving c. Douglass. q loan clerk
employed Nv the Knicllerbcclter Trust Co..
| the next witness. identified $1,000 bond
of the Consolidated Steamship Co. Lines.
This bond he said was one of SEQ sim
liar bonds pledged with the Knickerbock-
or Trust Co. as collateral for a loan
United States District Attorney Stimson
read a large number of letters passing
between the comptroller of the currency
and President Curtis Of the National
| Bank of North America relative to the
banks loans. The tenor of all tho comp
troller's letters was that Mr. Curtis and
the bank were permitting the concern to
| be used by it's officers and directors in
financing their outside enterprises. He
specifically called attention to loan oil
slSS.0Vc to the Hudson Navigation Co,
and OF s193, 900 to the Consolidated Steam
ship Lines and one of $4,000 to oak
leigh Thorne, which was discounted by
Mr.. Morse. The comptroller said the
bank was loaning too freely on collateral
of companies in which Mr.. Morse vas IN
! terested To this Mr.. Curtis replied, ac-
| cording to a letter read by Mr.. Stimson
that the bank felt it's security was ample
and that Mr. Morse was financially able
to protect any loans he was behind ano
| called attention that Mr.. Morse was nei
ther a director nor an officer upon tbs
| Morse enterprises for security.
There were many letters from President
| Curtis to the comptroller defending The
loans made by the bank, and in addition
there was a letter from John w. Gates
who. as director of the National Banl
of North America. defended the actor
of the bank He commended the bank:
action in making loans to Morse and th'
Morse enterprises.
The exchange of letters between thu
comptroller and the officers of the bani
. continued up to the time of the panic las