New-York tribune., 1908-01-26
ers All three of the witnesses were repre-
sented by counsel
RECEIVERS PETITION.

sented by counsel
RECEIVERS PETITION.
The receivers state in the petition that they
o,earnad that on February To- 1907. check to
,bo order Of F. B. Wire for 100000 was duly
d.,,-, nv The officers of the Knickerbocker Trust
c,onnanv which check paid through the
Clearing House and Endorsed E B. WIRE
nav TO the National Bank Of North America in
New York. c. W Morse; thus showing that
tho 5000 900 went into the possession of the Ma
,ionaI Bank of North America"
The receivers further set forth that they also
discovered that February 10 the National
Rank of North America sent TO the knicker-
hooker Trust Company 100000 and allowed the
same to be upon deposit with the knickefoocker
Tr,,s, Company until October 21, 1907, when 1t
annears to have been withdrawn. and, as your
netitioners are Informed and believe came into
t,o ,,ossassion of the National Bank Of North
A,,arica whether for its use or for the ac-
count of some one else your petitioners nave
been unable to ascertain
The petitioners allege that on October % 1907.
the day following the withdrawal of the S2oo'ooo
from the Knickerbocker Trust Company, the act
ing Superintendent of Banks took possession OF
the assets of the Knickerbocker Trust Company.
The receivers next set forth that among the
uapers coming into their possession was
further signed by t. b wire. puEpoi ui5 ~
have been made on February Is. 1907. but which
YOUR petitioners are informed and believe was
actually made ard signed on october 81. 1907,
wherein Wire promised to pay 10 the order OF
the Knickerbocker Trust Company 100000. with
;nterest AT the rate of per cent and recited the
deposft with the Knickerbocker Trust Company
as collateral security for It's payment the note
hereinbefore referred to. 500 bonds of the Con-
solidated Steamship Lines and 5000 shares OF
the stock of the Consolidated Steamship Lines.
Said securities deposited as collateral have
only a narrow and restricted market and' as
YOUR petitioners are informed and believe the
said stock cannot be sold for any price and the
bonds have greatly deprecated. so that at the
present time the security. if resorted TO. is Ut
terly inadequate except TO pay only fraction OF
the full amount of the loan"
The receivers add that. owing to the death Of
Charles T. Barney. who was president Of the
Knickerbocker Trust Company at the time the
loan was made ii has been difficult for them TO
obtain information. They further say that Wire,
the cashier. has said that he was not financially
able to meet the note. that the loan was not
for his benefit and that he did not take part in
the use of the 100000.
MR. M0RsES TESTIMONY.
Mr. Morse testified that he recalled writing a
letter guaranteeing Wires note for S2oo.tD.
dated February 10. 1907. He said that Mr..
Barney and Mr. Curtis asked him TO guarantee
the loan. He said that Mr.. Barney told him
the Knickerbocker Trust Company would lend
the 10000 to Wire proper collateral At
that time Mr.. Barney director of the Ma
tional Bank OF North America.
Mr.. Morse said that the original company
which he bought was called the New York &
Cuba Mail Steamship Company of New York.
and that the new one he organized called
the New York Cuba Mail Steamship Company
of Maine. He said he received the stock OF the
old company as he paid for IT, and it passed a
trustee. the National Bank of North America he |
believed Mr.. Morse said that Mr.. Curtis thought
Wire would turn over the profit from the deal to |
the bank. He said. however. that he had con- |
versauon with Wire the subject. The trans |
action was nominally for Wire.
Mr.. Morse hazy in his testimony as TO |
whether $4,000 was sent TO the Knckerbocker |
Trust Company not. He said, however. that |
he never knew until recently that the 5000 900 |
was withdrawn from the trust company. When |
shown a cashiers check for 100000 dated Feb /
ruary -. 1907. and drawn by the National Bank |
of North America TO the order of the Knicker- |
booker Trust Company. he said that he did not |
give any instructions with respect to the draw |
ing of this check. He said that the S2OO.o00 /
purchased 5000 shares OF the stock OF the New
York and Cuba Mail Steamship Company
Wire testified that he recalled making the note
for 100000 February To- 1907. He said that
he received on its delivery TO the Knickerbocker
Trust Company the 100000. He said that the |
day before Mr.. Curtis asked him If he would |
be willing to give his note to the Knickerbocker
for $4,000 arrangement between Mr.
Morse and Mr.. Barney. at Mr.. Barney's request, |
and he did So
The taking of testimony before the referee
was finished yesterday. and Mr. Davenport will
file his report with Justice Clark at ST George
Staten Island, tomorrow morning.