New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-27
REMARK OF PRESIDENT
STARTED INQUIRY.
Government Rests Case-Lazcyers
for Defendants Drazc Aprt-W.
T. Hduemeyer Testifes.


overdrawn his account more than 100000. ac-
cordng TO Mr.. Lees testimony yesterday at the
Morse Curtis trial before Judge Hough in the
United States District Court. Don't say that,
Curtis" was Morse's reply, as testified by the
same witness.
Mr. Lee went on to testify that he did not
believe at first that Mr.. Curtis was in earnest,
but soon understood that there was no jesting in
the presidents remark. Mr.. Lee said he set to
work at once, as an officer of the bank, to ex
anime it's affairs. especially Mr.. Morse's ac-
counts. He found the heavy overdraft, and later
was present when Morse took from the safety
deposit vaults under the bank a large amount
of collateral. on which he obtained from the
bank demand loan of $211000. which took
care of the overdraft and left small balance
William F Havemeyer, who succeeded Mr..
Curtis as president Of the Natioral Bank Of
North America on October q, 1907, after Morse
had resigned ice-president and Curtis had
been reduced in rank to vice-president took the
witness stand yesterday for the first time. and
! Charles NJ Schwab and John w. Gates, who
were also directors Of the bank were recalled
as witnesses All these testified that they knew
of no custom whereby Morse was allowed to
overdraw his account, and then make good the
deficit by means of notes Ex-Justice Morgan
J. O'Brien and John H. F1agler, two more Of the
banks directors, testified along similar lines.
BANK ALL RIGHT IF MORSE WAS.
William A. Nash. president of the Corn Ex-
change Bank. and a member of the Clearing
House committee. testified to telling Morse and
Curtis on October Il. 1907. that it was the in
tendon of the Clearing House committee to
examine the National Bank Of North America
on the following day in view of the rumors
which were prevalent TO the banks condi-
ton
7 took Mr.. Curtis TO one side and asked him
if his bank was all right" Mr. Nash testified
He waved his hand toward Mr. Morse and
replied If he is all right, bank is all right
I asked him 70 give ne his word of honor that
the banks affairs would not be interfered with
before the next afternoon. when the Clearing
House committee to examine the bank
He kept MS promise"
Mr. Nash was the last important witness
called by the prosecution, and shortly before
court adjourned for the day United States At
torney Stmson announced that the government
rested its case, having taken eleven days to
introduce its evidence. Wallace Macfariane
asked Judge Hough TO give the defence until
this morning before asking him to proceed. This
motion was granted. It viii take the defence
at least ten days. it is understood to present
its case The defence also made the usual mo-
tions asking for the discharge Of the two de-
PENDANTS which were denied by Judge Hough
Mr. HAVEMEYER ON STAND.
Mr.. Haverneyer testified TO a meeting Of the
banks board of directors on October II, 1907.
at which the loans TO Morse. which amounted
to SIg0UOO. We're discussed. AIr Havemeyer
said that MI Morse was asked to explain the
demand loan for $211.0OO made the day before
but refused. Mr Curtis had explained the wit
ness said. that Mr.. Morse had overdrawn his
account and had given the note as the only pos
sibIe settlement ''Mr. Curtis told that he
got all ont Of Mr.. Morse that he could at the
time" testified Mr.. Havemeyer. In reply TO
Nh Stfmsons question whether there were any
expressions Of indignation over the action Of
Mr. Morse and Mr. Curtis the witness said: I,
for one was very indignant" Tse defence OBJ
jected. however and question and answer were
stricken out.
in cross-examining Mr.. Havemeyer Mr.. Mac
farlane asked him If he did not. when president.
with the banks reserve below the % per cent
mark make loan TO himself Of $4,000 without
security i did not" replied Mr.. Havemeyer,
with considerable heat
Nj Gates was asked ABOUT the letter which
he had written to William B. RidgeIy, Controller
OF the Currency. indorsing the methods of Morse
and Curtis in regard to the making Of loans. 1t
came out that the letter written by the
late Charles r. Barney and signed by Mr. Gates
after he had submitted il to either Morse or
Curtis.
Ex-Justice O'Brien told Of attending the board
meeting At which the S211,000 loan to Morse
was criticised I'VE were al much concerned
over the condition OF the bank" said the wit
ness Mr.. Morse promised TO take care Of the
loan MI Curtis said he TMorseI was going 10
nut I'D 100000 OF Consolidated Steamship
Lines Company bonds additional collateral
for his loans" It came about later that Morse
put up the 81 100000 additional bonds, prom
ised.
MORGAN J. O'BRIEN NOT IN ICE.
Il want to make 8 statement exclaimed ex-
Justice O'Brien at this point. Il never bor-
rowed a dollar from the National Bank Of North
america l was never in any Ice pool nor per
sonalIy interested in any enterprise thar bor-
rowed penny from the National Bank OF North
America"
u want that stricken out" shouted ex-Con-
gressnan Charles e Litteheld for the defence.
- do not see that it does your any par
tir1Iar harm" was Judge HouEh's answer and
tb. O'Prien statement remained on the record.
Edward 3 Wire. the hanks cashier,
the witness stand during most Of the morning
session Mr Wire told Of calling on Mr. Curtis
a. his home on October 13. 1907, 10 discuss the
affsfrs "a the bank. Air Curtis told him, ne
said that the bank was all loaned up" with
only \ little call money outstanding.
Mr. Wire told Of an application made on Oc-
toher : bv Otto HeinZe CO. for loan Of
s196 600 which h refused. but referred to Mr.
C-,lrtis personally. on October 16. the lay #
the crash. T Augustus Heinze called and per
eonafv saw Mr. Morse Mr He.uze departed
and later MI Morses personal check for Sl2G,-
600 drawn on the National Bank of North
IrFy, t,.,.