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

New York, Oct. 23.-There were
three important developments today
in the joint trial of Charles w. Morse
| and Alfred Ii. Curtis. who arr charg-
cd with conspiracy and violation of
the federal banking laws in the man
agement of the defunct National Bank
of Nortl America. First the prosecu-
| ton produced letters to show that
! Comptroller of the Currency Ridgley
| foresaw the failure of the bank and
| wrote number of letters to Morse
| and Curtis, warning them against
making such large loans on what he
termed unsubstantial collateral to the
| officers and directors of the bark, es-
pccially mentioning the loans made to
Morse enterprises. Mr.. Ridgeley said
| in one Of his letters that at one time
| the Morse interests owed the bank
| $3. 75i10, the loans to the Morse
steamship companies alone amounting
To $1,76i, o53.3S.
Next the prosecution presented nvi-
| Gence to show that a large loan made
by the bank to Miss Katherine ". Will
son, AIr. Morse's secretary. Was paid
| in part by profits coming out OF the
financing of an undertaking vi the
New haven Improvement These
profits, Edward B. Wire, former CASH
Ter Of the bank. said should have gone
to the lank but Mr.. Curtis and Mr..
Morsr :, arranged. he testified, that
Inc profits Went to cover part Of the
| Wilson loan.
Third the prosecution had Mr. Wire
| testify regarding a note for $200,OGU
deposited with the Knickerbochei
Trust Co. one Of the institutions which
went to the wall during the financial
IlaniC. In tracing this note il was
| shown w banking records that after
| DasSing through the KniclerbncN6r
| trust Co it bobbed up in the Bank of
Commerce as Il credit to "E. +. Wire"
vt this POINT Government Bank Exam
| iner MuAry was called to the stand and
he end"aVored to show how the $500
100 obtained on the note went to finance
the Morse steamship undertakings.
| Mr.. MoNey traced payment of intoras:
| on the $2D0,c0o To show that the inter
est of 6 per cent was charged against
the accounts OF the National Bunk Of
North America. No debit against Mr..
| Wires personal account could be
| found.
Mr.. Wire, recalled. said that Mr.,
Morse and Charles r. Barney. the late
president of the knickerbockcr Trust
CO.. asked him to sign the note. saving
the proceeds would be used to nnaECc
Il deal in steamship stock. Mr.. Wire
said that after making the note he
turned a check for the amount over
to Miss Wilson He said that he iater
g vi
Cuban Steamship Co. Ga Morse CON
GERM. from Mr.. Morse. to the amount
OF $20o.n0o and subsequently when the
Consolidated steamship Co. w&s or
Sanized. he was given bonds Of tia;
company for the New York and Cuban
20. The account in the knicil"rbncker
| Trust CO he said, remained there until
oct. 2i-one day before the panic
when Mr.. Barney called upon him fol
| collateral for the loan and he turned
| over the steamship bonds. After this
| Mr. Wire withdrew the deposit. bat ht
| did not say what became of the money
| These three events of the days session
| took most of the time. Many witnesses
| were called to coIroborate the testimony
| given. There was some interest toward
| the end of the session when the prose
| cution put on the stand Miss Julia NJ
| Wolfe. a stenographer for the <niCker-
| booker Trust Go. An effort was made by
the prosecution to have stenoSrapho
| notes taken by the young woman of a
| conversation between Mr.. Morse and Mr.
| ScEurman. the latter counsel for the
Knickerbockcr The defence objected on
the ground that the conversation occurred
afcer the dates on which Morse and cur
| tbs are charged with violation Of the
banking laws. The prosecution mtim"ted
| that the reading of the stenoSrapher'
| notes would he very much in tho lin" OF
a confession. Judge HouSh said that he
| would require time to pass upon the
question of admitting the notes and ask
ed the lawyers for both sides to submit
briefs.
| lust before an adjournment was taken
Congressman Littlefeld, personal counsel
for Mr.. Morse. informed Judge Hougf
that he wanted to lay an important mat
| ter before the court after the Jury had
been dismissed for the day When the
| Jury had filed out, Mr.. Littlefield showed
to the court an article sent out by q
local news agencT describing the alleged
sale of National Bank of North America
stock by Mr.. Morse to clerks of the insti-
tuition Mr. Littlefeld asserted that the
information had been given to the news
agency by Assistant United States Attor-
ney Frankfurter.
His accusation was followed by a lively
controversy between United States Dis
trict Attorney Sti.uson. Mr.. Frankfurtel
and Mr.. LttlefieId. Tie court took nc
action in the matter.
Mr.. I.ittlefield then spoke of report
in the newspapers to tie effect that the
Jurors in the Morse trial are being guard
ed by secret service agents. instead OF
deputy United States marshals. The law
yer said this fact, If true, was reflection
on the defence.
Judge Hough said rather sharply tina
tho "a Of that the men guarding the Juror: